16 Requirement to issue securities.E+W+S+N.I.
(1)This section applies while the Corporation is wholly owned by the Crown.
(2)If the Corporation or a company associated with the Corporation is directed to do so by the Secretary of State, it shall issue such securities as are specified in the direction—
(a)to the Secretary of State, or
(b)if the direction so requires, to a person nominated by the Secretary of State.
(3)Securities issued pursuant to a direction under subsection (2) shall be issued at such times, and on such terms, as may be specified in the direction.
(4)A direction under subsection (2) requiring the issue of shares shall specify the nominal value of the shares to be issued; and the shares—
(a)shall be issued as fully paid,
(b)shall be treated for the purposes of the M1Companies Act 1985 as having been paid up by virtue of payment of their nominal value in cash, and
(c)shall be treated for the purposes of the Corporation Tax Acts as if they had been issued wholly in consideration of a subscription of an amount equal to their nominal value.
(5)A debenture issued in accordance with a direction under subsection (2) shall be treated for the purposes of the Corporation Tax Acts as if it had been issued wholly in consideration of a loan of an amount equal to the principal sum payable under the debenture.
(6)The Secretary of State shall consult the Corporation before making a direction under subsection (2).
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