Textual Amendments
F1Ss. 716-734 repealed (prosp.) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16 and the repeal being partly in force, as to which see individual sections.
Modifications etc. (not altering text)
C1Power to amend and modify Pt. 25 conferred (1.7.2005) by Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27), ss. 58(b), 65; S.I. 2004/3322, art. 2(3), Sch. 3 (subject to arts. 3-13)
(1)The powers of a company include (if they would not otherwise do so apart from this section) power to make the following provision for the benefit of persons employed or formerly employed by the company or any of its subsidiaries, that is to say, provision in connection with the cessation or the transfer to any person of the whole or part of the undertaking of the company or that subsidiary.
(2)The power conferred by subsection (1) is exercisable notwithstanding that its exercise is not in the best interests of the company.
(3)The power which a company may exercise by virtue only of subsection (1) shall only be exercised by the company if sanctioned—
(a)in a case not falling within paragraph (b) or (c) below, by an ordinary resolution of the company, or
(b)if so authorised by the memorandum or articles, a resolution of the directors, or
(c)if the memorandum or articles require the exercise of the power to be sanctioned by a resolution of the company of some other description for which more than a simple majority of the members voting is necessary, with the sanction of a resolution of that description;
and in any case after compliance with any other requirements of the memorandum or articles applicable to its exercise.
(4)Any payment which may be made by a company under this section may, if made before the commencement of any winding up of the company, be made out of profits of the company which are available for dividend.
Modifications etc. (not altering text)
C2S. 719 modified (subject to the transitional and savings provisions mentioned in S.I. 1990/1392, art. 6) by Companies Act 1989 (c. 40, SIF 27), ss. 144(4), 213(2), Sch. 18 para. 36