Telecommunications Act 1984
c. 12
62
PART
V
(3) The first target investment limit fixed under this section
shall be equal to the proportion of the ordinary voting rights
which is carried by the Government shareholding at the time
when the order fixing the limit is made.
(4) The Secretary of State may from time to time by order
fix a new target investment limit in place of the one previously
in force under this section ; but-
any new limit must be lower than the one it replaces ;
and
(b) an order under this section may only be revoked by an
order fixing a new limit.
(a)
(5)
It shall be the duty of the Secretary of State so to exercise-
(a) his powers under section 63 above and his power to dis-
pose of any shares held by him by virtue of any pro-
vision of this Part; and
(b) his power to give directions to his nominees,
as to secure that the Government shareholding does not carry
a proportion of the ordinary voting rights exceeding any target
investment limit for the time being in force under this section.
(6) Notwithstanding subsection (5) above, the Secretary of
State may take up, or direct any nominee of his to take up, any
rights for the time being available to him, or to that nominee, as
an existing holder of shares or other securities of the successor
company or of any subsidiary of the successor company ; but
if as a result the ordinary voting rights carried by the Government shareholding at any time exceeds the target investment
limit it shall be the duty of the Secretary of State to comply
with subsection (5) as soon after that time as is reasonably
practicable.
(7) For the purposes of this section the temporary suspension of any of the ordinary voting rights shall be disregarded.
Financial
66.-(1) If the Secretary of State so directs at any time before
structure of the the successor company ceases to be wholly owned by the Crown,
successor
company.
such sum (not exceeding the accumulated realised profits of
British Telecommunications) as may be specified in the direction
shall be carried by the successor company to a reserve (in this
section referred to as " the statutory reserve ").
(2) The statutory reserve may only be applied by the successor company in paying up unissued shares of the company to be
allotted to members of the company as fully paid bonus shares.
1980 c. 22.
(3) Notwithstanding subsection (2) above, the statutory reserve
shall not count as an undistributable reserve of the successor
company for the purposes of section 40(2)(d) of the Companies