Part II Powers in relation to Transfers of Control of Important Manufacturing Undertakings to Non-Residents

12 Meaning of “change of control”.

1

There is a change of control of an important manufacturing undertaking for the purposes of this Part of this Act only upon the happening of a relevant event.

2

In subsection (1) above “relevant event” means any event as a result of which—

a

the person carrying on the whole or part of the undertaking ceases to be resident in the United Kingdom;

b

a person not resident in the United Kingdom acquires the whole or part of the undertaking;

c

a body corporate resident in the United Kingdom but controlled by a person not so resident acquires the whole or part of the undertaking;

d

a person not resident in the United Kingdom becomes able to exercise or control the exercise of the first, second or third qualifying percentage of votes in a body corporate carrying on the whole or part of the undertaking or in any other body corporate which is in control of such a body; or

e

a person resident in the United Kingdom and able to exercise or control the exercise of the first, second or third qualifying percentage of votes in a body corporate carrying on the whole or part of the undertaking or in any other body corporate which is in control of such a body ceases to be resident in the United Kingdom.

3

For the purposes of subsection (2) above—

a

a body corporate or individual entitled to cast 30 per cent. or more of the votes that may be cast at any general meeting of a body corporate is in control of that body; and

b

control of a body corporate which has control of another body corporate gives control of the latter body.

4

Any power to direct the holder of shares or stock in a body corporate as to the exercise of his votes at a general meeting of that body corporate is to be treated as entitlement to cast the votes in respect of the shares or stock in question.

5

Two or more persons acting together in concert may be treated as a single person for the purposes of any provision of this Part of this Act relating to change of control.

6

For the purposes of this Part of this Act—

a

the first qualifying percentage of votes is 30 per cent.;

b

the second qualifying percentage is 40 per cent.; and

c

the third qualifying percentage is 50 per cent.;

and the references to votes in this subsection are references to votes that may be cast at a general meeting.