Statutory Water Companies Act 1991

2 Powers to issue redeemable stock

(1) This section applies, subject to the following provisions of this Act, to every statutory water company which—

(a) has created or issued any redeemable stock; or

(b) has authority to create and issue any stock.

(2) Subject to the following provisions of this section and to section 3 below, a company to which this section applies may from time to time issue, so as to be redeemable, any stock created by them or any redeemed stock.

(3) No redeemed stock shall be issued under this section except for the purpose of effecting the redemption of redeemable stock under the provisions of section 3 below unless the issue is authorised by a resolution of a general meeting of the company.

(4) No new stock shall be created, nor shall any redeemed stock be issued by a statutory water company, so as to make the total amount of any particular class of stock exceed the amount of stock of that class which the company is for the time being authorised to create except during an interval of three months between—

(a) the creation or, in the case of redeemed stock, the issue of the stock; and

(b) the completion of the redemption of redeemable stock for the purpose of redeeming which the stock of that particular class is proposed to be created or issued.

(5) Where any preference stock is created or issued by a statutory water company as mentioned in subsection (4) above, the amount raised by means of that stock shall, for the purposes of any enactment, statutory order or resolution regulating the borrowing powers of the company, be deemed during any such interval as is so mentioned not to have been raised.

(6) In this section and section 3 below—

• “issue” includes reissue;

• “preference stock” includes preference shares;

• “redeemable stock” means stock issued so as to be redeemable;

• “redeemed stock” means redeemable stock which has been redeemed and is available for issue under the provisions of this section or section 3 below; and

• “stock” means preference stock or debenture stock.