HC Deb 20 November 1990 vol 181 cc85-6W
Mr. Sillars

To ask the Secretary of State for Trade and Industry what is his Department's policy on the retention of Glasgow as a British Steel price-basing point.

Mr. Leigh

Price-basing points are a matter for the European Commission under article 60 of the treaty of Paris. So far as I am aware, neither the Commission nor British Steel has suggested that the Glasgow point should be removed.

Mr. Sillars

To ask the Secretary of State for Trade and Industry if he will set out in detail the powers within British Steel which he may exercise as the holder of the golden share.

Mr. Leigh

The rights attaching to the special rights redeemable preference share in British Steel plc are set out in article 5 of the company's articles of association. The special share is held by my right hon. Friend the Secretary of State and allows him, or his duly authorised representative, to attend and to speak, but not to vote, at any general meeting or at any meeting of any class of shareholders of the company. The special share also provides that written consent of my right hon. Friend is required: for changes to article 46 of the company's articles of association which currently prohibits any person, other than as specifically permitted, from retaining an interest, either alone or as part of a voting concert party, in 15 per cent. or more of the company's share capital; for the creation or issue in certain circumstances of shares with voting rights attached; for changes to article 5 of the articles of association, or to the definition of "special share" and "special shareholder" in article 2; and for the voluntary winding up of the company.