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Electricity Act 1989 (c. 29)(The document as of February, 2008) Page 13 Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 27 The [S.I. 1981/1794.] Transfer of Undertakings (Protection of Employment) Regulations 1981 shall apply to any transfer effected by Part II of this Act, being a transfer of-- (a) all property, rights and liabilities comprised in the Electricity Council's undertaking (other than excepted rights and liabilities within the meaning of section 66 of this Act); or (b) all property, rights and liabilities comprised in a specified part of that undertaking, whether or not, apart from this paragraph, that undertaking would be treated as an undertaking in the nature of a commercial venture for the purposes of those Regulations. 28 Any agreement made under section 53 of the [1947 c. 54.] Electricity Act 1947 or section 12 of the [1957 c. 48.] Electricity Act 1957 (machinery for settling terms and conditions of employment) which is effective on the transfer date shall have effect as if-- (a) the parties to the agreement on the employers' side were the successor companies and not the Electricity Council and the Scottish Boards; and (b) each of the parties to the agreement were entitled to withdraw from it on giving the other parties 12 months' notice in writing. 29 (1) It shall be the duty of an Electricity Board or the Electricity Council and (in either case) the appropriate successor company to take, as and when during the transitional period that company considers appropriate, all such steps as may be requisite to secure that the vesting in that company by virtue of Part II of this Act or this paragraph of any foreign property, right or liability is effective under the relevant foreign law. (2) During the transitional period, until the vesting in a successor company by virtue of Part II of this Act or this paragraph of any foreign property, right or liability is effective under the relevant foreign law, it shall be the duty of the Board or Council concerned to hold that property or right for the benefit of, or to discharge that liability on behalf of, the successor company. (3) Nothing in sub-paragraphs (1) and (2) above shall be taken as prejudicing the effect under the law of the United Kingdom or of any part of the United Kingdom of the vesting in a successor company by virtue of Part II of this Act or this paragraph of any foreign property, right or liability. (4) An Electricity Board or the Electricity Council shall have all such powers as may be requisite for the performance of its duty under this paragraph, but-- (a) it shall be the duty of the appropriate successor company during the transitional period to act on behalf of the Board or Council (so far as possible) in performing the duty imposed on the Board or Council by this paragraph; and (b) any foreign property, rights and liabilities acquired or incurred by the Board or Council during that period shall immediately become property, rights and liabilities of the appropriate successor company. (5) References in this paragraph to any foreign property, right or liability are references to any property, right or liability as respects which any issue arising in any proceedings would have been determined (in accordance with the rules of private international law) by reference to the law of a country or territory outside the United Kingdom. (6) Any expenses incurred by an Electricity Board or the Electricity Council under this paragraph shall be met by the appropriate successor company. 30 (1) Notwithstanding the repeal by this Act of section 46 of the [1947 c. 54.] Electricity Act 1947, it shall be the duty of the Electricity Council, the Generating Board and each Area Board to prepare statements of accounts in accordance with that section in respect of each financial year ending before the transfer date, and that section shall continue to apply during the transitional period in relation to those statements and the auditing of those statements. (2) Notwithstanding the repeal by this Act of section 10 of the [1957 c. 48.] Electricity Act 1957, it shall be the duty of each Area Board, the Generating Board and the Electricity Council-- (a) to make a report to the Secretary of State in accordance with that section in respect of each financial year ending before the transfer date; and (b) in the case of each Area Board and the Generating Board, to send a copy of the report, as soon as it is so made, to the Electricity Council. (3) Notwithstanding the repeal by this Act of section 11 of that Act, it shall be the duty of the Electricity Council to prepare consolidated statements of accounts in accordance with that section in respect of each financial year ending before the transfer date, and that section shall continue to apply during the transitional period in relation to those statements and the auditing of those statements. (4) Any expenses incurred by the Electricity Council, the Generating Board or an Area Board under this paragraph shall be met by the appropriate successor company. 31 (1) Notwithstanding the repeal by this Act of section 30 of the [1979 c. 11.] Electricity (Scotland) Act 1979, it shall be the duty of each Scottish Board to prepare an annual statement of accounts in accordance with that section in respect of each financial year ending before the transfer date, and that section shall continue to apply during the transitional period in relation to such a statement and the auditing of such a statement. (2) Notwithstanding the repeal by this Act of section 42 of that Act, it shall be the duty of each Scottish Board to make an annual report to the Secretary of State in accordance with that section in respect of each financial year ending before the transfer date. (3) Any expenses incurred by a Scottish Board under this paragraph shall be met by the appropriate successor company. 32 Notwithstanding the repeal by this Act of sections 10 and 11 of and Schedule 5 to the Electricity (Scotland) Act 1979-- (a) any constructional scheme prepared by a Scottish Board and confirmed by an order of the Secretary of State made under, or having effect as if made under, Schedule 5 to that Act; (b) the powers conferred by section 11 of that Act for the purpose of carrying out any such scheme; and (c) any authorisation of a Scottish Board under section 10(3) of that Act to execute works of a minor character without the preparation of a constructional scheme, shall have effect after the transfer date in relation to the appropriate successor company as they had effect before that date in relation to the Scottish Board. 33 Where by virtue of anything done before the transfer date, any enactment amended by Schedule 16 to this Act has effect in relation to an Electricity Board or the Electricity Council, that enactment shall have effect in relation to the appropriate successor company as if that company were the same person, in law, as the Board or Council. 34 Without prejudice to the powers conferred by section 112(2) of this Act, every provision contained in a local Act, or in subordinate legislation, which is in force immediately before the transfer date and then applicable to an Electricity Board or the Electricity Council shall have effect as if-- (a) for references therein to the Board or Council there were substituted references to the appropriate successor company; and (b) for any reference (however worded and whether expressly or by implication) to the undertaking or business, or any part of the undertaking or business, of the Board or Council there were substituted a reference to the undertaking or business, or the corresponding part of the undertaking or business, of the appropriate successor company. 35 (1) Nothing in this Act shall affect the validity of anything done by, or in relation to, an Electricity Board before the transfer date under or by virtue of the [1950 c. 30.] Public Utilities Street Works Act 1950; and anything which, immediately before that date, is in process of being done under, or by virtue of, that Act by or in relation to the Board (including, in particular, any legal proceedings to which it is a party) may be continued by, or in relation to, the appropriate successor company. (2) Any notice or direction given or other thing whatsoever done under the said Act of 1950 by an Electricity Board shall, if effective at the transfer date, continue in force and have effect as if similarly given or done by the appropriate successor company. 36 (1) Where immediately before the transfer date an Electricity Board falls, by virtue of section 34(3) of the [1967 c. 9.] General Rate Act 1967, to be treated for the purposes of that Act as occupying in a rating area a hereditament of a rateable value calculated in accordance with the provisions of Part I of Schedule 7 to that Act, that Board shall, notwithstanding the transfers of property, rights and liabilities effected by Part II of this Act, continue to be so treated until 1st April 1990. (2) Section 16(1) of the [1956 c. 60.] Valuation and Rating (Scotland) Act 1956 (liability for rates) shall, in relation to such lands and heritages as the Secretary of State may after consultation with the Scottish Boards by regulations prescribe, have effect until 1st April 1990 as if any reference to a rate being payable by occupiers only were a reference to the rate being payable by the Scottish Board from which the lands and heritages were transferred by Part II of this Act. (3) Any sums which by virtue of this paragraph fall to be paid by an Electricity Board after the transfer date shall be met by the appropriate successor company. 37 (1) An application or claim by an Electricity Board for hazardous substances consent which is effective on the transfer date-- (a) shall have effect as if made by the appropriate successor company; and (b) in the case of an application or claim made to the Secretary of State, shall be determined by him notwithstanding that the land to which it relates is no longer land to which section 1B of the [1971 c. 65.] Town and Country Planning Act 1971 or, as the case may be, section 56B of the [1972 c. 52.] Town and Country Planning (Scotland) Act 1972 applies. (2) A hazardous substances consent granted or deemed to be granted to an Electricity Board which is effective on the transfer date shall have effect as if it had been granted to the appropriate successor company. 38 (1) Where an asset, or the right to receive an asset, vests in a successor company by virtue of this Act, then for the purposes of Part I of the [1972 c. 63.] Industry Act 1972 and Part II of the [1982 c. 52.] Industrial Development Act 1982-- (a) so much of any expenditure incurred by the appropriate Board or Council in providing that asset as is approved capital expenditure (of any description relevant for the purposes of regional development grant) in respect of which no payment of regional development grant has been made to the Board or Council shall be treated as having been incurred by the successor company and not by the Board or Council; and (b) where the asset itself vests in the successor company by virtue of this Act, it shall be treated as a new asset if it would have fallen to be so treated if it had remained vested in the Board or Council. (2) In this paragraph "regional development grant" means a grant under Part I of the Industry Act 1972 or Part II of the Industrial Development Act 1982 and "approved capital expenditure" has the same meaning as it has for the purposes of the provisions relating to regional development grant. 39 (1) Where a distribution is proposed to be declared during the accounting reference period of a successor company which includes the transfer date or before any accounts are laid or filed in respect of that period, sections 270 to 276 of the [1985 c. 6.] Companies Act 1985 (accounts relevant for determining whether a distribution may be made by a company) shall have effect as if-- (a) references in section 270 to the company's accounts or to accounts relevant under that section; and (b) references in section 273 to initial accounts, included references to such accounts as, on the assumptions stated in sub-paragraph (2) below, would have been prepared under section 227 of that Act in respect of the relevant year. (2) The said assumptions are-- (a) that the relevant year had been a financial year of the successor company; (b) that the vesting effected by Part II of this Act had been a vesting of all the property, rights and liabilities (other than excepted rights and liabilities within the meaning of section 66 or 67 of this Act) to which the Board or Council concerned was entitled or subject immediately before the beginning of the relevant year and had been effected immediately after the beginning of that year; (c) that the value of any asset and the amount of any liabilities of the Board or Council concerned vested in the successor company by virtue of that section had been the value or (as the case may be) the amount assigned to that asset or liability for the purposes of the statement of accounts prepared by that Board or Council in respect of the financial year immediately preceding the relevant year; (d) that any securities of the successor company issued or allotted before the declaration of the distribution had been issued or allotted before the end of the relevant year; and (e) such other assumptions (if any) as may appear to the directors of the successor company to be necessary or expedient for the purposes of this paragraph. (3) For the purposes of the said accounts the amount to be included in respect of any item shall be determined as if anything done by the Board or Council concerned (whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision or reserve, or otherwise) had been done by the successor company. Accordingly (but without prejudice to the generality of the preceding provision) the amount to be included in any reserves of the successor company as representing its accumulated realised profits shall be determined as if any profits realised and retained by the Board or Council concerned had been realised and retained by the successor company. (4) The said accounts shall not be regarded as statutory accounts for the purposes of section 76 of this Act. (5) In this paragraph--
40 In this Part of this Schedule expressions which are used in Part II of this Act have the same meanings as in that Part. Section 112(4). SCHEDULE 18 Repeals
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