§ Mark TamiTo ask the Secretary of State for Trade and Industry if she will give her consent as holder of the special share to changes in the Articles of Association of BAe Systems plc and Rolls-Royce plc. [47160]
§ Ms HewittI have reviewed the provisions in place for BAE Systems and Rolls-Royce and have decided to agree to the following changes. In the case of BAE Systems, we have agreed to remove the provision allowing the appointment of a Government Director; to change the current requirements that all Executive Directors are British to a requirement that a simple majority of the Board, including the Chief Executive and any Executive Chairman, are British; and to remove the aggregate foreign shareholding limit. In the case of Rolls-Royce, we have agreed to change the current requirement that 75 per cent. of the Board are British to a requirement that a simple majority, including the Chief Executive and any Executive Chairman, are British; to allow the appointment of a non-British non-Executive Chairman; and to remove the aggregate foreign shareholding limit. There will be no change in the requirements that no individual foreign shareholder, or group of foreign shareholders acting in concert, can hold more than 15 per cent. of the shares in either company. These provisions ensure that neither company can fall under foreign control.