s 4A
(1) It shall be the duty of the Corporation so to exercise their powers as to secure that the carrying on of the activities that have fallen to be carried on under their ultimate control is organised, so far as regards the direction thereof, in the most efficient manner. (2) The Corporation shall not make, or permit to be made, any substantial change in the manner in which the carrying on of the activities that have fallen to be carried on under their ultimate control is organised, so far as regards the direction thereof, except with the consent of the Secretary of State. (3) In carrying out any measure of reorganisation or any work of development which involves sub- Stantial outlay on capital account, and in securing the carrying out by any publicly-owned companies of any such measure or work, the Corporation shall act in accordance with a general programme settled from time to time with the approval of the Secretary of State. (4) Without prejudice to subsection (1) of section 4 of this Act or subsection (3) above but subject as provided in subsection (5) below, the Secretary of State may, after consultation with the Corporation, by order, give to the Corporation directions— (a) to discontinue or restrict any of their activities or to dispose of any of their property, rights, liabilities and obligations ; or (b) to secure the discontinuance or restriction of any of the activities of a publicly-owned company or the disposal of all or any of its property, rights, liabilities and obligations, or the winding up of any such company ; and the Corporation shall give effect to any directions so given. (5) The Secretary of State shall not give any direction under subsection (4) above unless he is satisfied that the giving of it will further the public interest. (6) Subject to subsection (7) below, any direction under subsection (4) above to dispose or secure the disposal of property, rights, liabilities or obligations may in particular include a direction— (a) to form a company for the purpose of acquiring the property or rights and assuming the liabilities or obligations to be transferred in pursuance of the direction ; (b) prohibiting, except with the consent of the Secretary of State, the disposal to, or acquisition from any person by, any company which will acquire property or rights in pursuance of the direction of assets used of capable of use in the production of products of a description, or of products other than products of a description, specified in the direction. (7) The powers to direct the formation of a company and to restrict the disposal or acquisition of assets are exercisable subject to the following further limitations, that is to say— (a) no company shall be directed to be formed otherwise than as a publicly-owned company ; and (b) no such restriction shall be imposed except on a company which is, or when formed will be, in public ownership or be binding after it ceases to be in public ownership ; (8) So long as a restriction on the disposal or acquisition of assets is binding on the Corporation or a publicly-owned company the provisions of this Act relating to the capacity of the Corporation or the publicly-owned company shall have effect subject to the restriction.” (2) In section 4 of the 1975 Act (general powers of the Secretary of State in relation to the Corporation) the following provisions shall be omitted, that is to say— (a) subsection (2) (power to give directions about organisation) ; (b) subsections (3) and (4) (which are re-enacted as subsections (2) and (3) of the section 4A inserted by subsection (1) above) ; (c) subsection (5) (which is re-enacted with modifications in subsection (4) of that section) ; and (ad) subsection (6) (no direction to prejudice discharge of Corporation’s duties). (3) In section 5 of the 1975 Act (which imposes on the Corporation duties to review their affairs and report to the Secretary of State)— (a) subsections (1) and (2) (Corporation to review and, after consultations, report on their organisation) shall be omitted ; (b) after subsection (5) there shall be inserted the following subsections— “ (5A) Except as provided in subsection (GB) below, the report made under subsection (4) above for any year shall set out any consent given by the Secretary of State to the Corporation during that year under section 4A(2) of this Act and shall include a general account of the changes in organisation made during that year by virtue of any consent of his given in that or in any earlier year under that subsection. (SB) Paragraphs (a) and (b) of subsection (5) above shall apply in relation to any consent given during the year by the Secretary of State as they apply in relation to any direction given by him and, in relation to changes in organisation made during the year, shall so apply except to such extent as the Secretary of State agrees. ” (4) Section 13 of the 1975 Act shall have effect with the substitution, in subsection (2) (exemption from stamp duty where chargeable transaction is due to directions etc.), for paragraphs (a) and (b), of the following paragraphs— “ (a) for the purpose of giving effect to a direction given by the Secretary of State under section 4A(4) of this Act ; or (b) for the purpose of making a change in organisation for which the Secretary of State has given his consent under section 4A(2) of this Act; or (c) for purposes that include either of those purposes ; ”. (5) In section 36 of the 1975 Act (supplementary provisions about orders and regulations) in subsections (2) and (5), for the figures “ 4(5) ” there shall be substituted the figures “ 4A(4) ”. (6) Paragraph 2 of Schedule 4 to the 1975 Act (duty to make regulations providing compensation to employees of certain nationalised companies or of the former Iron and Steel Board) shall cease to have effect but without prejudice to the continuance in force of the regulations made or having effect as if made under that paragraph.