Cable and Wireless

HC Deb 01 July 1986 vol 100 c507W

Mr. Chapman

asked the Chancellor of the Exchequer if he will make a statement about the Government's special share in Cable and Wireless.

Mr. Norman Lamont

Cable and Wireless plc will be proposing to shareholders, at the company's forthcoming annual general meeting, an amendment to the articles of association which requires the consent of the Government as holder of the special share in the company. The proposed amendment is to enable appropriate Stock Exchange nominee organisations in other countries (which perform a similar function to SEPON Ltd. in the UK) to be exempted from the requirement in the articles that no person, alone or with his associates, shall be entitled to hold more than 15 per cent. of the shares of the company.

The proposed amendment would not alter the requirement in the articles that no person, alone or with associates, can exercise (or control the exercise of) more than 15 per cent. of the votes at general meetings of the company. The Government have agreed to the proposed amendment to the articles.