SCHEDULES

SCHEDULE 5Special Administration

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I1I25

1

In section 23 of the Water Industry Act 1991 (special administration order) after subsection (2G) (inserted by paragraph 2 above) insert—

2H

A transfer under subsection (2) or (2A) may be effected by—

a

transferring all or part of the company's undertaking to a wholly-owned subsidiary of the company, and

b

then transferring securities in the subsidiary to another company.

2

The Secretary of State may by order amend Schedule 2 to the Water Industry Act 1991 in consequence of sub-paragraph (1).

3

An order under sub-paragraph (2) may not be made unless—

a

the Welsh Ministers have consented to the making of the order, and

b

a draft has been laid before and approved by resolution of each House of Parliament.

4

Amendments made by or under this paragraph apply to special administration orders made before or after the commencement of this section.