Postal Services Act 2011

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Extract

Postal Services Act 2011

An Act to make provision for the restructuring of the Royal Mail group and about the Royal Mail Pension Plan; to make new provision about the regulation of postal services, including provision for a special administration regime; and for connected purposes.

[13 th June 2011]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Part 1 Restructuring of Royal Mail group

Removal of existing statutory restrictions on ownership

1 Removal of restrictions on ownership of Royal Mail Holdings plc etc

(1) Sections 65 to 67 of the Postal Services Act 2000 (which contain restrictions on the issue and transfer of shares and share rights in Royal Mail Holdings plc and its relevant subsidiaries) are repealed.

(2) But see section 4 of this Act (which imposes restrictions on the issue and transfer of shares and share rights in a Post Office company etc).

Ownership of the Royal Mail

2 Report on decision to dispose of shares in a Royal Mail company etc

(1) This section applies where the Secretary of State—

(a) has decided to undertake a particular kind of relevant disposal, or

(b) has decided that another person may undertake a particular kind of relevant disposal.

(2) As soon as reasonably practicable after making the decision, the Secretary of State must lay before Parliament a report on the proposed disposal.

(3) The report must state—

(a) the kind of relevant disposal intended to be undertaken,

(b) the expected time-scale for undertaking it, and

(4) The report must—

(a) contain information about the expected commercial relationship, after the proposed disposal, between the Royal Mail company in question and any Post Office company, and

(b) if the proposed disposal would result in shares or share rights being owned by or on behalf of an employee share scheme for the first time, give details of the scheme.

In paragraph (b) “employee share scheme” has the meaning given by section 3.

(5) In this Part “relevant disposal” means—

(a) the issue or transfer of shares in a company the effect of which is to reduce the proportion of a Royal Mail company owned by the Crown, or

(b) the issue or transfer of share rights to a person the effect of which would be, if the shares to which the share rights relate were issued or transferred to the person, to reduce the proportion of a Royal Mail company owned by the Crown.

(6) In this Part “Royal Mail company” means a company that—

(a) provides a universal postal service, and

(b) is or has at any time been in the same group as—

(i) the original holding company, or

(ii) another company that is or has at any time been a Royal Mail company.

3 Employee share scheme

(1) The Secretary of State must ensure that arrangements are made, before the time at which the first relevant disposal is made in relation to a Royal Mail company, for the establishment of an employee share scheme.

(2) Those arrangements must secure that if at any time the proportion of the company owned by the Crown is reduced to nil, the proportion of the company owned by or on behalf of the employee share scheme is at that time (or has before that time been) at least 10%.

(3) If any shares or shares rights have been transferred under the employee share scheme to beneficiaries of the scheme, the shares or share rights are to be regarded for the purposes of subsection (2) as if they are still owned by or on behalf of the scheme.

(4)“Employee share scheme” means a scheme for encouraging or facilitating the holding of shares or share rights in the company (or companies in the same group as the company) by or for the benefit of persons who are or include employees of the company.

Ownership of the Post Office

4 Restrictions on issue and transfer of shares and share rights in a Post Office company etc

(1) No disposal of the Crown’s interest in a Post Office company may be made other than a disposal that—

(a) is made pursuant to a direction under subsection (2) , or

(b) is authorised under subsection (3).

(2) The Secretary of State may by order—

(a) direct a Post Office company (if it is wholly owned by the Crown) to issue shares or share rights to a relevant mutual, or

(b) direct a company wholly owned by the Crown to transfer shares or share rights in a Post Office company to a relevant mutual.

(3) A disposal of the Crown’s interest in a Post Office company is authorised under this subsection if—

(a) the disposal is by way of an issue or transfer of shares or share rights in a Post Office company to a relevant mutual, and

(b) the Secretary of State has by order approved the issue or transfer.

(4) An order under subsection (2) or (3)(b) is subject to affirmative resolution procedure.

(5) No disposal of a relevant mutual’s interest in a Post Office company may be made other than a disposal to—

(a) anothe...

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