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General Interpretation

Volume 195: debated on Tuesday 23 July 1991

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Lords amendment: No. 31, in page 29, line 44, at end insert—

("(3) For the purposes of any provision of this Act to which this subsection applies a person employed by a company which is a wholly-owned subsidiary of any company or other body mentioned in that provision shall be regarded as employed by the company or other body so mentioned.
(4) Subsection (3) above applies to the following provisions of this Act—
  • section 2(3)(c);
  • section 5(3);
  • section 13(3)(b);
  • section 19(3)(b) and (5);
  • section 26(5);
  • section 28(2)(b) and (4); and
  • subsection (2)(a) above;
  • (all of which are concerned with participation by employees of a company in ownership of its equity share capital or related matters).")

I beg to move, That this House doth agree with the Lords in the said amendment.

The Bill already provides that management and employee buy-outs should be encouraged and that a port authority may bear the costs incurred in mounting such buy-outs. In some cases, however, ports own subsidiary companies which have their own directly employed work force. These will, after the transfer of the port's undertaking, become wholly owned subsidiaries of the successor company. It seems only right that employees of these wholly owned subsidiaries should be in a position to benefit from the same encouragement that the Bill provides to management and employee buy-outs.

Question put and agreed to.

Subsequent Lords amendments agreed to. (Some with Special Entry.]