Written question asked by Mark Hoban (Conservative) on Friday, 6 July 2007, in the House of Commons. It was due for an answer on Tuesday, 10 July 2007. It was answered by Stephen Timms (Labour) on Monday, 16 July 2007 on behalf of the Department for Business, Enterprise and Regulatory Reform.
Government Shareholding
- Question
- To ask the Secretary of State for Business, Enterprise and Regulatory Reform pursuant to the answer of 14 June 2007, Official Report, columns 1283-84W, on Government Shareholding, what the nature and status is of the special shares held by his Department in (a) Rolls Royce plc and (b) British Aerospace plc.
- Answer
-
The information is as follows.(a) The Solicitor for the Affairs of Her Majesty’s Treasury, as nominee for the Secretary of State for Trade and Industry, holds the Government’s Special Share in Rolls-Royce Group plc, going back to when the Company was privatised in 1987.The purpose of the Rolls-Royce special share, which has a nominal value of £1, is to protect the UK’s national security interests. These include security of supply issues associated with its nuclear business (nuclear propulsion for Royal Navy submarines) and for other defence equipment (mainly aero-engine and ship propulsion). The provisions of the special share are tailored as narrowly as possible and kept under review.Key features of the Rolls-Royce special share are:"A 15 per cent. limit on the percentage of foreign shares in Rolls-Royce Group plc (the holding company) that can be held by a single foreign shareholder, or foreign shareholders acting in concert. (A foreign shareholder includes an EU national.)""A requirement that the chief executive and the majority of directors of Rolls-Royce Group plc (the holding company) are British.""A requirement that disposals of the whole or a material part of the nuclear business, or the group as a whole, require the consent of the Special Shareholder."(b) The Solicitor for the Affairs of Her Majesty’s Treasury, as nominee for the Secretary of State for Trade and Industry, holds the Government’s Special Share in BAE Systems plc (then known as British Aerospace plc). The purpose of the special share, created in 1985, and which has a nominal value of £1, is to protect the UK’s national security interests. The provisions of the special share are tailored as narrowly as possible and kept under review.Key features of the BAE Systems’ special share are:"A 15 per cent. limit on the percentage of shares that can be held by any individual foreign shareholder, or group of foreign shareholders acting in concert, in the company; (A foreign shareholder includes an EU national.)""A requirement that the chief executive and the majority of the board are British;""A requirement that any executive chairman is to be British and, if both the chairman and the deputy chairman are non-executives, that at least one of them is British."
Secondary information
- Type
- Written question
- Reference
- 148946; 463 c48-9W
- Session
- 2006-07
- Related items
- Subjects
- Government shareholding
- Link
- View this Written question on www.publications.parliament.uk
Librarians' tools
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- 2020-02-17 15:54:25 +0000
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