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Commonwealth Development Corporation Act 1999


Section 16: Requirement to issue securities

46.Section 16 empowers the Secretary of State, following consultation with CDC and with the consent of the Treasury (see section 22(1)(h)), to direct the Corporation or one of the companies associated with it (see section 25) to issue securities to the Secretary of State (or a person nominated by him). This is only whilst the Corporation remains wholly Government-owned. Securities are defined in section 26(1) and may include, for example, shares and debentures. “A person nominated by the Secretary of State” could be a nominee (who acts on the Secretary’s behalf) or an independent third party, such as a bank. Section 19(2)(b) makes it clear that this is so by indicating that a person who holds securities by virtue of section 16 on the Secretary of State’s behalf is to hold and deal with them as the Secretary of State directs. By implication, therefore, an independent third party can also hold shares or securities by virtue of section 16.

47.Subsection (4) makes provision in relation to shares so issued, which is similar to section 6(2) (see explanation in paragraph 24 above).

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