§ Mr. GallieTo ask the Secretary of State for Defence if he will make it his policy to use his VSEL golden share to ensure that no company wishing to take over the company could accumulate more than 15 per cent. shareholding until its takeover offer became unconditional.
§ Mr. FreemanUnder the articles of association of VSEL plc, it is for the board of the company to ensure compliance with the present 15 per cent. limitation on individual shareholdings. The relevant provisions of the articles of association cannot be amended without the consent of my right hon. and learned Friend as holder of the special share in VSEL. Amendments to these provisions which would be required in order to permit the acquisition of VSEL by either British Aerospace or GEC have been approved at extraordinary general meetings of778W VSEL, but have not yet received the consent of the special shareholder. My Department previously confirmed to both British Aerospace and GEC that the special shareholder would give his consent to these amendments if they were approved by VSEL shareholders, subject to the relevant regulatory approvals and his being satisfied that his order rights as special shareholder would continue to be protected.