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British Aircraft Corporation

Volume 928: debated on Friday 18 March 1977

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asked the Secretary of State for Industry what arrangements he will make to ensure that all assets necessary for the business of the British Aircraft Corporation come into British Aerospace.

British Aircraft Corporation (Holdings) Ltd. ("BAC Holdings") has certain important assets and liabilities appurtenant to the business of its subsidiary, British Aircraft Corporation Ltd. ("BAC Ltd."), which is the company listed in Schedule 1 to the Aircraft and Shipbuilding Industries Act. These assets and liabilities, which would vest in BAC Ltd. on the aircraft industry vesting date under Section 20 of the Act, are the only assets of BAC Holdings apart from the shares of BAC Ltd. As a matter of mutual convenience, therefore, it has been agreed with BAC Ltd. and its ultimate shareholders that the shares of BAC Holdings instead of those of its wholly-owned subsidiary BAC Ltd. should be acquired by British Aerospace. To this end, BAC Ltd. has transferred certain works to BAC Holdings, and in consequence the Secretary of State will serve a notice of acquisition under Section 26 of the Act on BAC Holdings, and a notice under Section 27 on BAC Ltd. to the effect that that company will not vest, though it will come fully under the control of British Aerospace as a wholly-owned subsidiary of BAC Holdings. By agreement under Section 26, BAC Holdings will now vest in British Aerospace on the aircraft industry vesting date. The effect is to acquire the parent company, BAC Holdings, as well as the listed subsidiary, BAC Ltd.