Section 94 | Cases in which government investment is written off

(1)Government investment in a company is written off if any of the following occurs in relation to the company. This is subject to subsection (2).

Case 1The company's liability to repay any money lent to it out of public funds by a Minister is extinguished. In this case the written-off amount is the amount of the liability extinguished and the write-off occurs when the liability is extinguished.

Case 2Any of the company's shares for which a Minister has subscribed out of public funds are cancelled. In this case the written-off amount is the amount subscribed for the shares and the write-off occurs when the shares are cancelled.

Case 3The company's commencing capital debt (see subsection (3)) is reduced otherwise than by being paid off or its public dividend capital (see subsection (4)) is reduced otherwise than by being repaid (including, in either case, a reduction to nil). In this case the written-off amount is the amount of the reduction and the write-off occurs when the reduction occurs.

(2)The written-off amount is reduced so far as it is replaced by—

(a)money lent, or a payment made, out of public funds, or

(b)shares subscribed for by a Minister for money or money's worth.

(3)“Commencing capital debt” means a debt to a Minister assumed as such under an enactment.

(4)“Public dividend capital” means an amount paid by a Minister—

(a)under an enactment in which that amount is so described, or

(b)under an enactment corresponding to an enactment in which a payment made on similar terms to another body is so described.

(5)In this section—

“enactment” includes an Act of the Scottish Parliament, and

“Minister” means a Minister of the Crown, the Scottish Ministers or a Northern Ireland department.