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The Public Airport Companies (Capital Finance) Order 1990

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Changes in the capitalisation or capital structure of a public airport company or subsidiary

5.—(1) Where a public airport company or any subsidiary of such a company—

(a)reduces its share capital under section 135 of the Companies Act 1985;

(b)purchases its own shares from any person other than the controlling authority or a constituent council of the controlling authority; or

(c)redeems its own redeemable shares which are owned by a person other than the controlling authority or a constituent council of the controlling authority;

the controlling authority shall be entitled to an amount of additional credit allowance.

(2) The amount of additional credit allowance shall be equal to—

(a)where paragraph (1)(a) above applies, the amount of the payment in respect of the reduction by the company or subsidiary to its members;

(b)where paragraph (1)(b) above applies, the value of any consideration in respect of the purchase given by the company or subsidiary; and

(c)where paragraph (1)(c) above applies, the amount of the payment in respect of the redemption made by the company or subsidiary.

(3) Paragraphs (3) to (10) of article 4 above shall apply for the purposes of this article as they apply for the purposes of article 4, subject to the substitution of a reference to the financial year in which the payment is made or, as the case may be, the consideration is given by the public airport company or subsidiary for the reference in paragraph (4) to the financial year in which the public airport company or subsidiary in question reduced its liabilities on the relevant date as described in article 2(3).

(4) In this article the amount of additional credit allowance shall not include the amount of any payment paid or payable or the value of any consideration given or to be given to any of the following—

(a)the controlling authority or a constituent council of the controlling authority of the relevant public airport company;

(b)any subsidiary of that company; or

(c)the public airport company which is the holding company of the relevant subsidiary.

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