Railways Act 1993 (c. 43)

(The document as of February, 2008)

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(c) a statement setting out any general directions given to the Regulator during that year under section 69(2) above; and

(d) a general survey of the activities during that year of the Central Committee and the consultative committees and a summary of any reports made to him by the Central Committee or any consultative committee.

(3) The Secretary of State shall lay a copy of every report made by the Regulator under subsection (1) above before each House of Parliament and shall arrange for copies of every such report to be published in such manner as he may consider appropriate.

(4) The Regulator may also prepare such other reports as he thinks fit with respect to any matter falling within the scope of his functions.

(5) The Regulator may arrange for copies of any report prepared under subsection (4) above to be published in such manner as he may consider appropriate.

(6) In making or preparing any report under this section, the Regulator shall have regard to the need for excluding, so far as that is practicable, the matters specified in section 71(2)(a) and (b) above.

(7) Section 125(1) of the 1973 Act (annual and other reports) shall not apply to activities of the Monopolies Commission on which the Regulator is required to report by this section.

(8) In this section--

"financial year" means a period of twelve months ending with 31st March; and
"first relevant financial year" means the financial year in which is made the first appointment of a person as the Regulator.

75 Annual reports of the Franchising Director

(1) The Franchising Director shall, as soon as practicable after the end of the first relevant financial year, and of each subsequent financial year, make to the Secretary of State a report on--

(a) his activities during that year; and

(b) the general performance of franchisees during that year in carrying out their functions under their franchise agreements.

(2) The Secretary of State shall lay a copy of every report made by the Franchising Director under subsection (1) above before each House of Parliament and shall arrange for copies of every such report to be published in such manner as he may consider appropriate.

(3) In making or preparing any report under this section, the Franchising Director shall have regard to the need for excluding, so far as that is practicable, the matters specified in paragraphs (a) and (b) of section 71(2) above, for this purpose taking references in those paragraphs to the Regulator as references to the Franchising Director.

(4) In this section--

"financial year" means a period of twelve months ending with 31st March; and
"first relevant financial year" means the financial year in which is made the first appointment of a person as the Franchising Director.

The Central Committee and the consultative committees

76 General duties of the Central Committee

(1) It shall be the duty of the Central Committee to investigate any matter which relates--

(a) to the provision of railway passenger services--

(i) by the Board or any subsidiary of the Board,

(ii) under a franchise agreement, or

(iii) on behalf of the Franchising Director, or

(b) to the provision of station services by any person in a case where the operator of the station in question is authorised by a licence to be the operator of that station,

if the condition specified in subsection (2) below is satisfied in relation to the matter in question.

(2) The condition mentioned in subsection (1) above is satisfied if--

(a) the matter is the subject of a representation made to the Committee by a user or potential user of railway passenger services and does not appear to the Committee to be frivolous or vexatious;

(b) the matter is referred to the Committee by the Regulator; or

(3) If any matter falling within paragraph (a) of subsection (2) above appears to the Central Committee to relate only to the provision of railway passenger services, or of station services, within the area of one consultative committee, the Committee shall refer that matter to the consultative committee for that area.

(4) If, on investigating any matter, the Central Committee considers it appropriate to do so, the Committee shall make representations to the person providing the service in question and--

(a) in the case of a service provided under a franchise agreement, to the franchisee, or

(b) in the case of a service provided on behalf of the Franchising Director, to the Franchising Director,

about the matter, or any matter to which it relates or which appears to the Committee to be relevant to the subject of the matter investigated.

(5) Where the Central Committee--

(a) having made representations under subsection (4) above, is of the opinion that it is unable to achieve a satisfactory resolution of the matter by that means, or

(b) on investigating any matter, has reason to believe that the holder of a passenger licence or a station licence is contravening, or is likely to contravene, any condition of the licence,

the Committee shall refer the matter to the Regulator, with a view to his exercising such of his powers as he considers appropriate in the circumstances of the case.

(6) Where the Central Committee investigates any matter--

(a) it may prepare, and send to the Secretary of State and the Regulator, a report of its findings; and

(b) it may publish any such report, unless the matter in question is one which was referred to the Central Committee by the Regulator as mentioned in subsection (2)(b) above.

(7) Where the Central Committee has investigated any matter under this section, it shall neither--

(a) include in any report or representations a proposal for any steps to be taken by any person in relation to that matter, nor

(b) refer the matter to the Regulator under subsection (5)(a) above by reason only of the failure of any person to take any steps in relation to that matter,

unless, balancing the cost of taking those steps against the benefits which the Committee considers will be enjoyed by any person in consequence of the taking of those steps, the Committee is of the opinion, on the basis of the information available to it, that the expenditure involved represents good value for money.

(8) The services which are to be regarded for the purposes of this section as provided on behalf of the Franchising Director are the same services as are to be so regarded for the purposes of section 37 above.

(9) In this section, any reference to railway passenger services includes a reference to bus substitution services required to be provided in place of any such services; and in this subsection, "bus substitution services" has the same meaning as it has in sections 120 to 124 of the [1985 c. 67.] Transport Act 1985.

77 General duties of consultative committees

(1) It shall be the duty of each consultative committee to investigate any matter which relates--

(a) to the provision of railway passenger services--

(i) by the Board or any subsidiary of the Board,

(ii) under a franchise agreement, or

(iii) on behalf of the Franchising Director, or

(b) to the provision of station services by any person in a case where the operator of the station in question is authorised by a licence to be the operator of that station,

if the condition specified in subsection (2) below is satisfied in relation to the matter in question.

(2) The condition mentioned in subsection (1) above is satisfied if the matter--

(a) is the subject of a representation made to the committee by a user or potential user of railway passenger services and does not appear to the committee to be frivolous or vexatious;

(b) is referred to the committee--

(i) by the Regulator under section 68(2) above; or

(ii) by the Central Committee under section 76(3) above; or

(3) If, on investigating any matter, a consultative committee considers it appropriate to do so, the committee shall make representations to the person providing the service in question and--

(a) in the case of a service provided under a franchise agreement, to the franchisee, or

(b) in the case of a service provided on behalf of the Franchising Director, to the Franchising Director,

about the matter, or any matter to which it relates or which appears to the committee to be relevant to the subject of the matter investigated.

(4) Where a consultative committee--

(a) having made representations under subsection (3) above, is of the opinion that it is unable to achieve a satisfactory resolution of the matter by that means, or

(b) on investigating any matter, has reason to believe that the holder of a passenger licence or a station licence is contravening, or is likely to contravene, any condition of the licence,

the committee shall refer the matter to the Regulator (or, in the case of a matter that was referred to the committee by the Regulator, refer it back to the Regulator) with a view to his exercising such of his powers as he considers appropriate in the circumstances of the case.

(5) Where a consultative committee investigates any matter pursuant to subsections (1) to (3) above--

(a) it may prepare, and send to the Central Committee, a report of its findings; and

(b) it may publish any such report, unless the matter in question is one which was referred to the consultative committee by the Regulator as mentioned in subsection (2)(b)(i) above.

(6) At the request of the Regulator, a consultative committee shall make a report to him on such matters relating to the quality of the railway passenger services, and the station services, provided in the committee's area as may be specified in the request.

(7) The Regulator may arrange for the publication of any report under subsection (6) above in such manner as he may consider appropriate.

(8) If the Franchising Director, after consultation with the Regulator, so requests, a consultative committee shall assist the Franchising Director, to such extent and in such respects as may be specified in the request, in ascertaining whether, in the case of any franchise agreement, the franchise operator is attaining the standards set for the provision of the franchised services.

(9) Where a consultative committee has investigated any matter pursuant to subsections (1) to (3) or subsection (6) above, it shall neither--

(a) include in any report or representations a proposal for any steps to be taken by any person in relation to that matter, nor

(b) refer the matter to the Regulator under subsection (4)(a) above by reason only of the failure of any person to take any steps in relation to that matter,

unless, balancing the cost of taking those steps against the benefits which the committee considers will be enjoyed by any person in consequence of the taking of those steps, the committee is of the opinion, on the basis of the information available to it, that the expenditure involved represents good value for money.

(10) The services which are to be regarded for the purposes of this section as provided on behalf of the Franchising Director are the same services as are to be so regarded for the purposes of section 37 above.

(11) In this section, any reference to railway passenger services includes a reference to bus substitution services required to be provided in place of any such services; and in this subsection, "bus substitution services" has the same meaning as it has in sections 120 to 124 of the [1985 c. 67.] Transport Act 1985.

78 Functions under section 56 of the Transport Act 1962

(1) In consequence of sections 76 and 77 above, subsections (4) to (6) of section 56 of the [1962 c. 46.] Transport Act 1962 (which make provision with respect to the functions of the former Central Committee and Area Committees with respect to services and facilities provided by certain Boards and, as applied or amended, by certain other persons) shall not have effect in relation to matters affecting the services or facilities which are for the time being provided by the Board or a subsidiary of the Board or under a franchise agreement.

(2) In section 56 of that Act, in subsection (5), the words from the beginning to "section; and" (which preclude committees from considering charges for services and questions relating to the discontinuance or reduction of railway services) shall be omitted.

(3) Subject to subsections (1) and (2) above--

(a) the functions of the former Central Committee under subsections (4) to (6A) of section 56 of that Act are hereby transferred to the Central Committee; and

(b) the functions of the former Area Committees under those subsections are hereby transferred to the consultative committees.

(4) In consequence of subsection (3) above--

(a) any reference in those subsections to the former Central Committee shall be taken as a reference to the Central Committee; and

(b) for the words "each Area Committee", "any Area Committee", "Area Committees", "an Area Committee" and "An Area Committee", wherever occurring in those subsections, there shall be substituted respectively the words "each consultative committee", "any consultative committee", "consultative committees", "a consultative committee" and "A consultative committee".

(5) After subsection (6) of that section there shall be inserted--

" (6ZA) If the Secretary of State so directs in the case of any consultative committee, subsections (4) to (6) of this section shall have effect in relation to that committee and the Central Committee as if the reference in subsection (4) of this section to services and facilities provided by any of the Boards included a reference to any such ferry service as may be specified in the direction, whether provided by a Board or by some other person; and, in the application of subsections (4) to (6) of this section in relation to any such ferry service, any reference in those subsections to a Board shall be taken to include a reference to the person providing the ferry service. "

(6) At the end of that section there shall be added--

" (20) In this section--

"the Central Committee" means the Central Rail Users' Consultative Committee, constituted under the Railways Act 1993;
"consultative committee" means--
(a)
a Rail Users' Consultative Committee established under the Railways Act 1993; or
(b)
so far as relating to the Greater London area, within the meaning of section 2 of that Act, the London Regional Passengers' Committee. "

(7) In this section--

"former Area Committees" means Area Transport Users Consultative Committees, established under section 56 of the [1962 c. 46.] Transport Act 1962;
"the former Central Committee" means the Central Transport Consultative Committee for Great Britain, established under that section.

79 Annual reports by the Central Committee and the consultative committees

(1) Each committee shall, as soon as practicable after the end of the first relevant financial year and of each subsequent financial year--

(a) make a report to the Regulator on the committee's activities during that year; and

(b) in the case of the Central Committee and the consultative committees for Scotland and for Wales, send a copy of that report to the Secretary of State;

and the Secretary of State shall lay before each House of Parliament a copy of the reports sent to him pursuant to paragraph (b) above.

(2) Each committee may arrange for any report which it makes under subsection (1) above to be published in such manner as the committee considers appropriate.

(3) In arranging for the publication of any report under this section, a committee shall have regard to the need for excluding, so far as that is practicable, the matters specified in paragraphs (a) and (b) of section 71(2) above, for this purpose taking references in those paragraphs to the Regulator as references to the committee.

(4) In this section--

"committee" means the Central Committee or a consultative committee;
"financial year" means a period of twelve months ending with 31st March; and
"first relevant financial year", in relation to a committee, means the financial year in which the committee is established.

Information

80 Duty of certain persons to furnish information to the Franchising Director on request

(1) Any of the following persons, that is to say--

(a) the Board,

(b) any wholly owned subsidiary of the Board, or

shall be under a duty to furnish to the Franchising Director in such form and manner as he may by notice request such information as he may so request, being information which the Franchising Director considers necessary for the purpose of facilitating the performance of any function of his under this Part.

(2) A request under subsection (1) above must be complied with within such time (being not less than 28 days from the making of the request) as may be specified in the request.

(3) If any such request is not complied with, the Franchising Director may serve a notice under subsection (4) below on the person from whom the information was requested under subsection (1) above.

(4) A notice under this subsection is a notice signed by the Franchising Director and--

(a) requiring the person on whom it is served to produce, at a time and place specified in the notice, to the Franchising Director or to any person appointed by the Franchising Director for the purpose, any documents which are specified or described in the notice and are in that person's custody or under his control; or

(b) requiring that person to furnish, at a time and place and in the form and manner specified in the notice, to the Franchising Director such information as may be specified or described in the notice.

(5) No person shall be required under this section to produce any documents which he could not be compelled to produce in civil proceedings in the court or, in complying with any requirement for the furnishing of information, to give any information which he could not be compelled to give in evidence in any such proceedings.

(6) A person who without reasonable excuse fails to do anything required of him by notice under subsection (4) above is guilty of an offence and shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale.

(7) A person who intentionally alters, suppresses or destroys any document which he has been required by any notice under subsection (4) above to produce is guilty of an offence and shall be liable--

(a) on summary conviction, to a fine not exceeding the statutory maximum;

(b) on conviction on indictment, to a fine.

(8) If a person makes default in complying with a notice under subsection (4) above, the court may, on the application of the Franchising Director, make such order as the court thinks fit for requiring the default to be made good; and any such order may provide that all the costs or expenses of and incidental to the application shall be borne by the person in default or by any officers of a company or other association who are responsible for its default.

(9) Any reference in this section to the production of a document includes a reference to the production of a legible and intelligible copy of information recorded otherwise than in legible form; and the reference to suppressing a document includes a reference to destroying the means of reproducing information recorded otherwise than in legible form.

(10) In this section "the court" means the High Court, in relation to England and Wales, and the Court of Session, in relation to Scotland.

Interpretation

81 Meaning of "railway"

(1) Subject to subsection (2) below, the definition of "railway" in section 67(1) of the [1992 c. 42.] Transport and Works Act 1992 shall have effect for the purposes of this Part as it has effect for the purposes of that Act, and cognate expressions shall be construed accordingly.

(2) Where it is stated for the purposes of any provision of this Part that railway has its wider meaning, "railway" shall be taken, for the purposes of that provision, to mean--

(a) a railway,

(b) a tramway, or

and cognate expressions shall be construed accordingly.

(3) In paragraphs (a) to (c) of subsection (2) above "guided transport", "railway", "tramway" and "trolley vehicle system" have the meaning given by section 67(1) of the [1992 c. 42.] Transport and Works Act 1992.

82 Meaning of "railway services" etc

(1) In this Part, "railway services" means services of any of the following descriptions, that is to say--

(a) services for the carriage of passengers by railway;

(b) services for the carriage of goods by railway;

(d) station services;

(e) network services.

(2) In this Part--

"light maintenance services" means services of any of the following descriptions, that is to say--
(a)
the refuelling, or the cleaning of the exterior, of locomotives or other rolling stock;
(b)
the carrying out to locomotives or other rolling stock of maintenance work of a kind which is normally carried out at regular intervals of twelve months or less to prepare the locomotives or other rolling stock for service;
"network services" means any service which consists of, or is comprised in, the provision or operation of a network (or of any of the track or other installations comprised in a network), but does not include any service which falls within paragraphs (a) to (d) of subsection (1) above;
"services for the carriage of passengers by railway" includes services for and in connection with the carriage of luggage, parcels or mail on trains which at the time are available, and primarily intended, for use by passengers; and references to carrying, or to the carriage of, passengers by railway shall be construed accordingly;
"station services" means any service which consists of, or is comprised in, the provision or operation of a station;

and, for the purposes of the above definitions of "network services" and "station services", where a person permits another to use any land or other property comprised in a network or station he shall be regarded as providing a service which falls within the meaning of "network services" or "station services", as the case may be.

(3) Without prejudice to the generality of the definition in subsection (2) above, "network services" includes services of any of the following descriptions, that is to say--

(a) the construction, maintenance, re-alignment, re-configuration or renewal of track,

(b) the installation, operation, maintenance or renewal of a railway signalling system or of any other railway communication equipment,

(c) the construction, control, maintenance or renewal of electrical conductor rails or overhead lines, of any supports for such rails or lines, and of any electrical substations or power connections used or to be used in connection therewith, and the provision of electrical power by means thereof,

(d) the provision and operation of services for the recovery or repair of locomotives or other rolling stock in connection with any accident, malfunction or mechanical or electrical failure,

(e) the provision and operation of services for keeping track free from, or serviceable notwithstanding, obstruction (whether by snow, ice, water, fallen leaves or any other natural or artificial obstacle or hindrance) or for removing any such obstruction,

(f) the provision, operation, maintenance and renewal of any plant, equipment or machinery used in carrying on any of the activities specified in paragraphs (a) to (e) above,

(g) the exercise of day to day control over train movements over or along any track comprised in the network,

(h) the preparation of a timetable for the purposes of such control as is referred to in paragraph (g) above,

and it is immaterial for the purposes of this subsection and that subsection whether or not the person who provides the service in question also provides or operates a network, or any of the track or other installations comprised in a network, or provides the service on behalf of a person who does so.

(4) In determining whether any service is a station service, it is immaterial whether or not the person who provides the service also provides or operates a station, or any part of a station, or provides the service on behalf of a person who does so.

(5) In this section, "maintenance" includes the detection and rectification of any faults.

(6) "Railway" has its wider meaning in the application of this section in relation to any provision of this Part for the purposes of which "railway" has that meaning.

83 Interpretation of Part I

(1) In this Part, unless the context otherwise requires--

"the 1973 Act" means the [1973 c. 41.] Fair Trading Act 1973;
"the 1980 Act" means the [1980 c. 21.] Competition Act 1980;
"access agreement" means--
(a)
an access contract entered into pursuant to directions under section 17 or 18 above; or
(b)
an installation access contract entered into pursuant to directions under section 19 above;
"access contract" has the meaning given by section 17(6) above;
"access option" shall be construed in accordance with section 17(6) above;
"additional railway asset" has the meaning given by section 29(8) above;
"ancillary service" means any service which is necessary or expedient for giving full effect to any permission or right which a person may have to use any track, station or light maintenance depot;
"appropriate officer" has the meaning given by section 55(10) above;
"the Central Committee" means the Central Rail Users' Consultative Committee;
"closure" shall be construed in accordance with section 37(1), 38(1), 39(1), 40(1), 41(1) or 42(1) above, as the case may be, and "proposed closure" shall be construed accordingly;
"closure conditions" has the meaning given by section 45 above;
"closure consent" means any decision required by section 43 or 44 above before a proposed closure may take effect;
"consultative committee" means a Rail Users' Consultative Committee, established under subsection (2) of section 2 above (but this definition is subject to subsection (4) of that section);
"the Director" means the Director General of Fair Trading;
"exempt facility" shall be construed in accordance with section 20(13) above;
"experimental passenger service" has the meaning given by section 48(6) above;
"facility exemption" has the meaning given by section 20(13) above;
"facility owner" has the meaning given by section 17(6) above;
"final order" and "provisional order" have the meaning given by section 55(10) above;
"franchise agreement" has the meaning given by section 23(3) above;
"franchise assets" has the meaning given by section 27(11) above;
"franchise exemption" has the meaning given by section 24(13) above;
"franchise operator" has the meaning given by section 23(3) above;
"franchise period" has the meaning given by section 23(3) above;
"franchise term" has the meaning given by section 23(3) above;
"franchised services" has the meaning given by section 23(3) above;
"franchisee" has the meaning given by section 23(3) above;
"goods" includes mail, parcels, animals, plants and any other creature, substance or thing capable of being transported, but does not include passengers;
"information" includes accounts, estimates, records and returns;
"installation access contract" has the meaning given by section 19(9) above;
"installation owner" has the meaning given by section 19(9) above;
"licence" means a licence under section 8 above and "licence holder" shall be construed accordingly;
"licence exemption" has the meaning given by section 7(13) above;
"light maintenance" (without more) means--
(a)
the refuelling, or the cleaning of the exterior, of locomotives or other rolling stock; or
(b)
the carrying out to locomotives or other rolling stock of maintenance work of a kind which is normally carried out at regular intervals of twelve months or less to prepare the locomotives or other rolling stock for service;

and, for the purposes of paragraph (b) above, "maintenance work" includes the detection and rectification of any faults;
"light maintenance depot" means any land or other property which is normally used for or in connection with the provision of light maintenance services, whether or not it is also used for other purposes;
"light maintenance depot licence" means a licence authorising a person--
(a)
to be the operator of a light maintenance depot; and
(b)
to be the operator of a train being used on a network for a purpose preparatory or incidental to, or consequential on, the provision of light maintenance services;
"light maintenance services" has the meaning given by section 82 above;
"locomotive" means any railway vehicle which has the capacity for self-propulsion (whether or not the power by which it operates is derived from a source external to the vehicle);
"network" means--
(a)
any railway line, or combination of two or more railway lines, and
(b)
any installations associated with any of the track comprised in that line or those lines,

together constituting a system of track and other installations which is used for and in connection with the support, guidance and operation of trains;
"network licence" means a licence authorising a person--
(a)
to be the operator of a network;
(b)
to be the operator of a train being used on a network for any purpose comprised in the operation of that network; and
(c)
to be the operator of a train being used on a network for a purpose preparatory or incidental to, or consequential on, using a train as mentioned in paragraph (b) above;
"network services" has the meaning given by section 82 above;
"notice period" has the meaning given by section 48(13) above;
"operator", in relation to a railway asset, has the meaning given by section 6(2) above;
"passenger licence" means a licence authorising a person--
(a)
to be the operator of a train being used on a network for the purpose of carrying passengers by railway; and
(b)
to be the operator of a train being used on a network for a purpose preparatory or incidental to, or consequential on, using a train as mentioned in paragraph (a) above;
"passenger service operator" means a person who provides services for the carriage of passengers by railway;
"premises" includes any land, building or structure;
"prescribed" means prescribed by regulations made by the Secretary of State;
"private sector operator" means any body or person other than a public sector operator;
"protected railway company" has the meaning given by section 59(6)(a) above;
"public sector operator" has the meaning given by section 25 above;
"railway" shall be construed in accordance with section 81 above;
"railway asset" has the meaning given by section 6(2) above;
"railway facility" means any track, station or light maintenance depot;
"railway passenger service" means any service for the carriage of passengers by railway;
"railway services" has the meaning given by section 82 above;
"railway vehicle" includes anything which, whether or not it is constructed or adapted to carry any person or load, is constructed or adapted to run on flanged wheels over or along track;
"records" includes computer records and any other records kept otherwise than in a document;
"relevant activities", in relation to a protected railway company, has the meaning given by section 59(6)(b) above;
"relevant condition or requirement" has the meaning given by section 55(10) above;
"relevant operator" has the meaning given by section 55(10) above;
"rolling stock" means any carriage, wagon or other vehicle used on track and includes a locomotive;
"station" means any land or other property which consists of premises used as, or for the purposes of, or otherwise in connection with, a railway passenger station or railway passenger terminal (including any approaches, forecourt, cycle store or car park), whether or not the land or other property is, or the premises are, also used for other purposes;
"station licence" means a licence authorising a person to be the operator of a station;
"station services" has the meaning given by section 82 above;
"track" means any land or other property comprising the permanent way of any railway, taken together with the ballast, sleepers and metals laid thereon, whether or not the land or other property is also used for other purposes; and any reference to track includes a reference to--
(a)
any level crossings, bridges, viaducts, tunnels, culverts, retaining walls, or other structures used or to be used for the support of, or otherwise in connection with, track; and
(b)
any walls, fences or other structures bounding the railway or bounding any adjacent or adjoining property;
"train" means--
(a)
two or more items of rolling stock coupled together, at least one of which is a locomotive; or
(b)
a locomotive not coupled to any other rolling stock;
"vehicle" includes railway vehicle.

(2) For the purposes of this Part, a person shall be regarded as providing or operating services for the carriage of goods by railway notwithstanding that he provides or operates the services solely for the carriage of his own goods or otherwise for his own benefit.

Part II Re-organisation of the Railways

New companies, transfer schemes and disposals

84 Powers of the Board to form companies

(1) The Board shall have power to form, or take part in forming, companies--

(a) for the purposes of the Board's business;

(b) for the purpose of facilitating the disposal of--

(i) the whole or any part of the undertaking, or any property, rights or liabilities, of the Board or of any wholly owned subsidiary of the Board; or

(ii) without prejudice to the generality of sub-paragraph (i) above, any securities of any subsidiary of the Board;

(c) for the purpose of facilitating the performance by the Franchising Director of his functions under sections 23 to 36 above;

(d) for such other purposes as may be specified by the Secretary of State in a direction to the Board.

(2) The Secretary of State may, after consultation with the Board, direct the Board to exercise any power conferred by paragraph (a), (b), (c) or (d) of subsection (1) above; and, if he so directs, he may also give the Board directions with respect to--

(a) the nature and objects of the company which is to be formed;

(b) the manner in which, and time within which, it is to be formed.

(3) The Board shall not exercise any power conferred by subsection (1) above, except--

(a) in the case of the power conferred by paragraph (a), with the consent of, or pursuant to a direction given under subsection (2) above by, the Secretary of State; or

(b) in any other case, pursuant to such a direction.

(4) Each of the powers conferred on the Board by this section--

(a) is in addition to, and not in derogation from, any other powers of the Board; and

(b) relates only to the capacity of the Board as a statutory corporation;

and nothing in this section shall be construed as authorising the disregard by the Board of any enactment or rule of law.

85 Powers of the Board to make transfer schemes

(1) The Board shall have power to make schemes for the transfer of the whole or any part of the undertaking, or any property, rights or liabilities, of--

(a) the Board,

(b) any wholly owned subsidiary of the Board,

(d) the Franchising Director, or

(e) any company which is wholly owned by the Franchising Director,

to any other person falling within paragraphs (a) to (e) above or to a franchise company.

(2) In relation to the transfer or disposal (or the proposed transfer or disposal) of the whole or any part of an undertaking, any reference in this Part to property, rights or liabilities includes a reference to the undertaking or part (and, accordingly, to the property, rights and liabilities comprised in that undertaking or part).

(3) The powers conferred on the Board by subsection (1) above shall only be exercisable--

(a) for the purposes of the Board's business, or to facilitate a disposal in the ordinary course of that business;

(b) for the purpose of effecting or facilitating the disposal of such property, rights or liabilities as the Secretary of State may direct; or

(c) for the purpose of facilitating the performance by the Franchising Director of his functions under sections 23 to 36 above,

and paragraph (a) above accordingly applies only in relation to transfers between the Board and any of its wholly owned subsidiaries or between two or more of its wholly owned subsidiaries.

(4) The Secretary of State may, after consultation with the Board, direct the Board to exercise any power conferred by subsection (1) above; and, if he does so, he may also give the Board directions with respect to--

(a) the manner in which, and time within which, the power is to be exercised;

(b) the property, rights or liabilities to be transferred;

(5) The Board shall not exercise the power conferred by subsection (1) above--

(a) for a purpose falling within paragraph (a) of subsection (3) above, except with the consent of, or pursuant to a direction given under subsection (4) above by, the Secretary of State; or

(b) for a purpose specified in paragraph (b) or (c) of subsection (3) above, except pursuant to such a direction.

(6) Subject to the following provisions of this Part, on the day on which a scheme under subsection (1) above comes into force (in this Part referred to as the "transfer date") the property, rights and liabilities affected by the scheme shall, subject to section 97 below, be transferred and vest by virtue of, and in accordance with, the scheme.

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