Before the appointed day the Post Office shall take steps to separate from the remainder of its undertaking the part thereof concerned with the provision of telecommunication and data processing services (that is to say, the part thereof which is under the management and control of the deputy chairman who has special responsibility for telecommunication and data processing services).

Subject to the following provisions of this section, on the appointed day there shall be transferred from the Post Office to, and by virtue of this Act vested in, the Corporation all the property, rights and liabilities which, immediately before that day, were comprised in the part of the Post Office's undertaking mentioned in subsection (1).

At any time before the appointed day the Post Office and the Corporation may agree in writing that subsection (2) shall not have effect in relation to any property, rights and liabilities specified in the agreement.

No agreement under subsection (3) or (4) shall have effect in relation to rights and liabilities under a contract of employment unless the employee concerned is a party to the agreement.

Subject to subsection (7), in the case of any agreement under subsection (4) the property, rights and liabilities in question shall on the date of the coming into force of the agreement be transferred, and by virtue of the agreement vest, in accordance with the agreement.

Schedule 2 shall apply to any transfer under subsection (2) or (6) subject, in the case of a transfer under subsection (6), to any reference in that Schedule to a vesting by virtue of this Act being construed as a reference to a vesting by virtue of the agreement in question; and those subsections shall have effect subject to the provisions of that Schedule.

Any reference in this Act to a transfer by this Act includes a reference to a transfer under subsection (6).

Without prejudice to the generality of subsection (2) of section 10, the rights and liabilities transferred from the Post Office to the Corporation under that subsection shall include the rights and liabilities which, by virtue of the provisions of the Telegraph Acts, are enjoyed by, and incumbent on, the Post Office immediately before the appointed day, and the Corporation shall become subject to the restrictions imposed by those provisions to which the Post Office is subject immediately before that day.

In this section " the Telegraph Acts " means the [1863 c. 112.] Telegraph Act 1863, the [1868 c. 110.] Telegraph Act 1868, the [1870 c. 88.] Telegraph Act 1870, the [1878 c. 76.] Telegraph Act 1878, the [1889 c. 34.] Telegraph (Isle of Man) Act 1889, the [1892 c. 59.] Telegraph Act 1892. the [1908 c. 33.] Telegraph (Construction) Act 1908, the [1909 c. 20.] Telegraph (Arbitration) Act 1909, the [1911 c. 39.] Telegraph (Construction) Act 1911 and the [1916 c. 40.] Telegraph (Construction) Act 1916.