Industrial Development Act, 1986

Power to purchase shares.

[1969, s. 44; 1977, s. 9; 1981, s. 9. New in pt.]

31.—(1) Where, in the opinion of the Authority, an industrial undertaking conforms to the criteria set out in subsections (3) and (4) of section 21 , the Authority may, out of funds at its disposal—

(a) purchase or take shares, to any extent it may consider desirable, in the body corporate owning, controlling or managing the undertaking or in a body corporate participating in the ownership, control or management of the undertaking,

(b) form or take part with other persons in the formation of such bodies corporate,

but no shares shall be purchased or taken by the Authority except after consultation with any body (in this subsection referred to as a State-sponsored body) specified for the purposes of this subsection by the Minister by order nor where as a result the Authority itself, or the Authority and any State-sponsored body or bodies together, would hold more than half in nominal value of the share capital or more than half in nominal value of shares carrying voting rights (other than voting rights which arise only in specified circumstances) in a body corporate, unless the Minister shall have approved of the proposed purchase or taking of shares.

(2) Shares purchased or taken by the Authority under this section shall be registered in the name of the Minister for Finance.

(3) All amounts representing dividends or other money received by the Minister for Finance in respect of shares purchased or taken under this section shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister for Finance may direct.

(4) The Authority shall not, without the prior permission of the Government, expend more than £1,500,000 in the purchase or taking of shares in a particular body corporate.