Objection to existing controllerU.K.
4(1)Where it appears to the [F2Treasury] that the criteria of sound and prudent management are not or may not be fulfilled in respect of a UK company by reason of the ability of a person who is a controller of the company to influence the company, [F3the Treasury] may—
(a)where that person is the managing director or chief executive, serve on the company; and
(b)in any other case, serve on that person,
a written notice of objection to that person continuing to be a controller of the company.
(2)Before serving a notice of objection under this paragraph, the [F2Treasury] shall serve—
(a)on the person concerned; and
(b)where that person is the managing director or chief executive, on the company, a preliminary written notice stating that the [F2Treasury][F4are] considering serving a notice of objection under this paragraph.
(3)A notice under sub-paragraph (2) above shall—
(a)give particulars of the rights conferred by sub-paragraph (4) below; and
(b)specify the criteria of sound and prudent management which are not or may not be fulfilled in respect of the company.
(4)A person served with a notice under sub-paragraph (2) above may, within the period of one month beginning with the day on which the notice is served—
(a)make written representations to the [F2Treasury]; and
(b)if that person so requests, oral representations to an officer of the [F5Treasury] appointed for the purpose by the [F2Treasury].
(5)Where representations are made in accordance with this paragraph, the [F2Treasury] shall take them into consideration before serving a notice of objection.
(6)The [F2Treasury]shall not be obliged to disclose to the person concerned or to the company any particulars of the ground on which [F6they are] considering the service of a notice of objection.
(7)After a notice of objection has been served on a company in relation to a person who is a managing director or chief executive, the company shall forthwith remove that person from that office.
Textual Amendments
F2Word in Sch. 2 para. 4 substituted (5.1.1998) by S.I. 1997/2781, art. 8, Sch. Pt. I para. 66 (with art. 7)
F3Words in Sch. 2 para. 4(1) substituted (5.1.1998) by S.I. 1997/2781, arts. 2(1)(c), 8, Sch. Pt. I para. 70(a) (with art. 7)
F4Words in Sch. 2 para. 4(2) substituted (5.1.1998) by S.I. 1997/2781, arts. 2(1)(c), 8, Sch. Pt. I para. 70(b) (with art. 7)
F5Words in Sch. 2 para. 4(4)(b) substituted (5.1.1998) by S.I. 1997/2781, arts. 2(1)(c), 8, Sch. Pt. I para. 70(c) (with art. 7)
F6Words in Sch. 2 para. 4(6) substituted (5.1.1998) by S.I. 1997/2781, arts. 2(1)(c), 8, Sch. Pt. I para. 70(d) (with art. 7)