Search Legislation

Transport Act 2000

Sections 49 to 51: Ownership of transferee companies

45.Section 49 applies where property, rights or liabilities are transferred by a transfer scheme and permits the Secretary of State to require certain companies receiving the property to issue securities to any person listed in section 49(5). The securities must be issued at such times and on such terms as the Secretary of State directs. Section 50 allows the Treasury (or the Secretary of State with the Treasury’s consent), to acquire securities of a transferee company falling within section 50(1) and to acquire options to acquire or dispose of those securities.

46.Section 51 requires the Secretary of State not to dispose of more than 51% of the shares in the designated company, and to ensure that the Crown’s holding in the company is not diluted below 25%. The Crown must also not dispose of any of its shares unless it is satisfied that plans are in place which will ensure the completion of certain major projects.

47.The section also requires the Crown to hold a special share in the designated company which is to be provided for in the company’s articles of association. The Crown must not alter the special share arrangements without the consent of Parliament. The provisions of this section can only be amended or repealed by order with the approval of Parliament (see section 103(6)).

Back to top


Print Options


Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.


More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources