ukpga/2000/26 — Postal Services Act 2000

Postal Services Act 2000 2000 c. 26 An Act to establish the Postal Services Commission and the Consumer Council for Postal Services; to provide for the licensing of certain postal services and for a universal postal service; to provide for the vesting of the property, rights and liabilities of the Post Office in a company nominated by the Secretary of State and for the subsequent dissolution of the Post Office; to make further provision in relation to postal services; and for connected purposes. [28th July 2000] 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 I Introductory The Postal Services Commission. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Consumer Council for Postal Services. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duty of the Commission to ensure provision of a universal postal service. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provision of a universal postal service: meaning. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other duties of the Commission in the consumer interest. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part II Licences for Postal Services Restriction on provision of postal services Restriction on provision of postal services. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exceptions from section 6. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power to modify section 7 by order. 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General power to suspend the restriction. 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Emergency power to suspend the restriction. 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Licences Licences: general. 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Licences: grant. 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Licences: refusal 12A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Licences: determination of applications 12B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Licences: conditions and other provisions. 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Modification of licences Modification of licences by agreement. 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References to the Competition Commission. 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References under section 15: time limits 15A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References under section 15: application of Enterprise Act 2002 15B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reports on references. 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reports on references under section 15: further provision 16A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Modification following report. 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power of intervention of the Competition Commission. 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Procedural requirements in relation to modifications. 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sections 18 and 19: further provision 19A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Application of competition legislation to references etc. 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Modification by order under other enactments. 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enforcement orders Final orders. 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provisional orders. 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Confirmation of provisional orders. 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exceptions from duty to make or confirm enforcement orders. 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enforcement orders: main procedural requirements. 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enforcement orders: further procedural requirements. 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Validity of enforcement orders. 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Effect of enforcement orders. 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial penalties Financial penalties. 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statement of policy in relation to penalties. 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Imposition of penalties: main procedural requirements. 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Penalties: further procedural requirements. 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Time-limits on the imposition of penalties. 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest and payments by instalment. 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appeals. 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Recovery of penalties. 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Miscellaneous Register. 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Recovery of costs of the Council etc. 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Licences and the new arrangements 39A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Directors’ remuneration. 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Free services for the blind and partially sighted. 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part III Other functions of the Commission and the Council The Commission Duties in relation to public post offices. 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Duties in relation to social and environmental matters. 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Review and information. 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Annual and other reports: the Commission. 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Publication of information and advice: the Commission. 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Power of the Commission to require information. 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information powers: enforcement. 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Powers of entry and seizure. 49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Codes of practice. 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Council Relevant postal issues. 51 In this section and sections 52 to 57— “ relevant postal issues ” means the interests of users of relevant postal services in the United Kingdom and matters affecting those interests, “ relevant postal services ” means any postal services provided in connection with the provision of a universal postal service and any other postal services which are provided, or authorised or required to be provided, by a licence holder under Part II in accordance with a licence under that Part, and, for this purpose, services are provided in accordance with a licence if the licence authorises or requires them to be provided by the licence holder. Provision of advice and information to public authorities and licence holders. 52 1 The Council shall— a provide advice and information, b represent the views of users of relevant postal services, and c make proposals, about relevant postal issues to any person mentioned in subsection (2). 2 Those persons are— a the Secretary of State, the Commission, the Competition Commission and any other public authority, b any universal service provider, c any licence holder under Part II who is not a universal service provider, and d any other person whose activities may affect the interests of users of relevant postal services. 3 So far as practicable the Council shall secure that no information relating to the affairs of a person is disclosed under this section to a person mentioned in subsection (2)(b) to (d) if the Council considers that its disclosure would or might seriously and prejudicially affect the interests of the person to whom it relates. 4 Subsection (3) does not apply to any disclosure of information to which the person to whom the information relates consents. Publication of information to users. 53 1 The Council shall make available to users of relevant postal services such information as it considers expedient to give to such users about— a relevant postal services, b relevant postal issues, and c itself and its functions. 2 The Council may perform its function under subsection (1) by— a publishing information in such form and manner as the Council considers appropriate, or b furnishing any such information to any user of relevant postal services (whether in response to a request or otherwise). 3 So far as practicable the Council shall secure that no information relating to the affairs of a person is disclosed under this section if the Council considers that its disclosure would or might seriously and prejudicially affect the interests of the person to whom it relates. 4 Subsection (3) does not apply to any disclosure of information to which the person to whom the information relates consents. Exercise of functions: general. 54 1 The Council shall, in exercising its functions in relation to relevant postal services, have regard to the interests of different users of relevant postal services (including, in particular, the interests of users in different areas). 2 The Council shall, in exercising its functions, have regard to the interests of— a individuals who are disabled or chronically sick, b individuals of pensionable age, c individuals with low incomes, and d individuals residing in rural areas, but that is not to be taken as implying that regard may not be had to the interests of other descriptions of persons. 3 So far as the Council considers it practicable to do so with a view to facilitating the exercise of its functions, it shall collect and keep under review information about— a the provision (in the United Kingdom and elsewhere) of postal services, and b the interests and views of users of postal services in the United Kingdom and matters affecting those interests and views. 4 As part of the arrangements it makes for exercising its functions, the Council— a shall establish— i a committee for Scotland, ii a committee for Wales, and iii a committee for Northern Ireland, b may establish other committees for any areas within Scotland, Wales or Northern Ireland, and c shall establish at least one committee, and may establish other committees, in relation to England (whether a committee for England or a committee for an area within England). 5 The purposes of a committee established under subsection (4) (in this Act referred to as a “ regional committee ”) shall be— a the provision of advice and information to the Council about relevant postal issues affecting the area for which it is established, and b such other purposes as the Council may determine. 6 The Council shall maintain in each of England, Scotland, Wales and Northern Ireland at least one office at which users of relevant postal services may apply for information. Annual and other reports: the Council. 55 1 The Council shall, as soon as practicable after the end of each financial year, make a report to the Secretary of State on its activities during that year (“ the annual report ”). 2 The Secretary of State shall— a lay a copy of each annual report before each House of Parliament, and b publish the report in such manner as he considers appropriate. 3 The Council may prepare other reports in relation to any matter falling within the scope of its functions and may publish any such report in such manner as it considers appropriate. 4 A report under this section shall contain such information as may be specified in any direction given to the Council by the Secretary of State. 5 So far as practicable the Council shall secure the exclusion from any report under this section of any matter relating to the affairs of a person if the Council considers that its inclusion would or might seriously and prejudicially affect the person’s interests. 6 Subsection (5) does not apply if the person concerned consents to inclusion of the matter in the report. Complaints referred to the Council. 56 1 Where a matter which relates to the provision of relevant postal services is referred to the Council by or on behalf of a user of such services and— a the matter has previously been the subject of a complaint to the person providing the service concerned, b the complaint has not been satisfactorily resolved, and c the matter does not appear to the Council to be of a frivolous or vexatious nature, the Council shall investigate the matter as it considers appropriate. 2 Where, as the result of any such investigation, the Council considers that— a a condition of a licence under Part II may have been contravened, b the matter referred, or any other matter, is a referable matter, or c it is appropriate to do so, it shall, as soon as practicable, refer the matter concerned to the Commission for its consideration. 3 The Council and the Commission shall from time to time agree the descriptions of matters which are to be referred to the Commission and, for the purposes of subsection (2)(b), a matter is a “ referable matter ” if it is of a description for the time being so agreed. Power of the Council to investigate other matters. 57 1 The Council may investigate— a any matter (not being a matter which it is under a duty to investigate under section 56) which it considers to be a matter relating to the interests of users of relevant postal services, and b any matter relating to the number and location of public post offices. 2 The Council may send a report on any matter investigated under this section to— a the Commission, b the Secretary of State, c the Office of Fair Trading, d any other public authority whose functions appear to the Council to be exercisable in relation to that matter. 3 Subject to subsection (4), the Council may also— a send a report on any such matter to any person who appears to the Council to have an interest in the matter, and b publish any such report in such manner as the Council considers appropriate. 4 So far as practicable the Council shall secure the exclusion from any report under subsection (3) of any matter relating to the affairs of a person if the Council considers that its inclusion would or might seriously and prejudicially affect the person’s interests. 5 Subsection (4) does not apply if the person concerned consents to inclusion of the matter in the report. Power of the Council to require information. 58 1 The Council may serve notice on any person mentioned in subsection (2) requiring him— a to supply to the Council such information specified or described in the notice as the Council may reasonably require in the exercise of its functions, and b to supply it at a time and place and in a form and manner so specified and to a person so specified. 2 The persons on whom a notice under subsection (1) may be served are— a the Commission, b a universal service provider, c any licence holder under Part II who is not a universal service provider. 3 In deciding whether to serve a notice under this section and the contents of any such notice, the Council shall have regard to the desirability of minimising the costs of, and any other detriment to, the person on whom the notice may be, or is to be, served. 4 Subject to subsections (5) to (7), a person on whom a notice is served under this section shall comply with the notice. 5 The Commission may refuse to supply information required from it by a notice under this section if subsection (7) applies. 6 A person falling within subsection (2)(b) or (c) may refuse to supply information required from him by a notice under this section if the Commission determines that he need not comply with the notice; and the Commission may so determine if subsection (7) applies. 7 This subsection applies if the Commission considers that— a the information concerned is not reasonably required by the Council in the exercise of its functions, b the information concerned is of a description specified in an order made by the Secretary of State, or c any other circumstances so specified apply. 8 The Commission shall, if required by the Council to do so, give a statement to the Council of its reasons for— a a refusal to supply information under this section, b a determination under subsection (6), and the Council may publish that statement in such manner as it considers appropriate. 9 No person shall be required under this section— a to produce any documents which he could not be compelled to produce in civil proceedings before the court, or b to supply any information which he could not be compelled to supply in evidence in such proceedings. 10 If a person makes default in complying with a notice under this section, the court may, on the application of the Council, make such order as the court considers appropriate for requiring the default to be made good. 11 Any such order may, in particular, provide that all the costs or expenses of and incidental to the application shall be borne— a by the person in default, or b if officers of a company or other association are responsible for its default, by those officers. 12 In this section, “the court”— a in relation to England and Wales or Northern Ireland, means the High Court, and b in relation to Scotland, means the Court of Session. The Commission and the Council Provision of information by the Council to the Commission. 59 1 The Council shall, as soon as practicable after being required to do so by the Commission, provide to the Commission such information relating to the exercise of the Commission’s functions as the Commission may require. 2 The Secretary of State may by order specify— a descriptions of information which the Council may refuse to provide under this section, and b circumstances in which the Council may refuse to provide information under this section. 3 Where the Council refuses to provide any information under this section, it shall give notice to the Commission of the reason for its refusal and the Commission may publish that notice in such manner as it considers appropriate. Memorandum of understanding. 60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Forward work programmes. 61 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information Information relating to complaints handling standards 61A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part IV Reorganisation of the Post Office Transfer of property etc. Transfer of property etc. to nominated company. 62 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Schedule 3 (which makes supplementary provision) shall have effect. 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Post Office company etc : government holdings Power to direct issue of certain securities etc 63 1 This section applies to— a a Post Office company, b a Royal Mail company, or c a company in the same group as a company within paragraph (a) or (b), that is wholly owned by the Crown. 2 The Secretary of State may direct a company to which this section applies to issue securities to— a the Secretary of State or the Treasury (or to a nominee of either of them), or b a parent company that is wholly owned by the Crown. 3 A direction must specify— a the kind and amount of securities to be issued, b the terms of issue, and c the date at or by which the securities must be issued. 4 Any shares issued in pursuance of a direction under this section are to be— a issued as fully paid, and b treated for the purposes of the Companies Acts as if they had been paid up by virtue of payment of their nominal value in cash. 5 A direction under this section may be given only with the consent of the Treasury. 6 Before giving a direction under this section, the Secretary of State must consult— a the company to whom the direction is to be given, and b if the company has a parent company, its parent company (or, if it has more than one parent company, the parent company that does not itself have a parent company). Government investment in securities of certain companies . 64 1 The Treasury or, with the consent of the Treasury, the Secretary of State may at any time acquire securities of — a a Post Office company, b a Royal Mail company, or c a company in the same group as a company within paragraph (a) or (b). 1A Securities acquired under this section may be held by a nominee. 2 The Secretary of State shall not, without the consent of the Treasury, dispose of any securities acquired by him in pursuance of this section. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Post Office company etc: restrictions on dealings Restriction on issue of shares to third parties. 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Restriction on disposals of shares to third parties. 66 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Approved disposals. 67 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Financial provisions Loans by the Secretary of State to relevant companies . 68 1 The Secretary of State may, on or after the appointed day and with the approval of the Treasury, make loans to a relevant company . 1A In this Part “ relevant company ” means— a a Post Office company, b a Royal Mail company, or c a company that is, or has at any time been, in the same group as a company within paragraph (a) or (b). 2 Interest shall be paid on loans made by the Secretary of State under this section at such rates as the Secretary of State may, with the approval of the Treasury, direct. 3 Subject to that, the loans shall be on such terms as may be— a agreed between the Secretary of State and the company to which the loan is made, and b approved by the Treasury. 4 The terms shall, in particular, include provision as to the times and methods of payment of the principal and interest. 5 The power of the Secretary of State to make loans under this section includes power to make loans in currencies other than sterling. 6 The Treasury may issue out of the National Loans Fund to the Secretary of State such sums as are necessary to enable him to make loans under this section. 7 Such sums may be issued in sterling or, where the loan is to be in a currency other than sterling, in that currency or in sterling. 8 Any sums received by the Secretary of State by way of repayment of, or interest on, a loan made by him under this section shall be paid into the National Loans Fund. Guarantees by the Secretary of State for relevant companies . 69 1 The Secretary of State may, on or after the appointed day and in such manner and on such conditions as he considers appropriate, guarantee the discharge of any financial obligation of a relevant company . 2 As soon as practicable after giving a guarantee under subsection (1), the Secretary of State shall lay a statement of the guarantee before each House of Parliament. 3 If any sums are paid by the Secretary of State in fulfilment of a guarantee given under subsection (1), the relevant company shall make to the Secretary of State, at such times and in such manner as the Secretary of State may direct— a payments, of such amounts as the Secretary of State may direct, in or towards repayment of the sums paid by the Secretary of State, and b payments of interest on what is outstanding in respect of the sums paid by the Secretary of State, at such rate as the Secretary of State may direct. 4 If any sums are paid by the Secretary of State in fulfilment of a guarantee given under subsection (1), the Secretary of State shall— a lay a statement relating to the sums before each House of Parliament as soon as practicable after the end of the financial year in which the sums were paid, and b lay a statement before each House of Parliament as soon as practicable after the end of any subsequent financial year in which there is an outstanding liability in relation to the obligation which is the subject of the guarantee. 5 Any statement under subsection (4) shall include a statement of— a any amounts received by the Secretary of State during the financial year concerned in or towards repayment of, or as interest in respect of, sums paid by him in fulfilment of any guarantee given under subsection (1), and b any amounts outstanding at the end of that year in respect of sums so paid by the Secretary of State. Extinguishment of certain liabilities. 70 1 The Secretary of State may, on or after the appointed day, by order extinguish all or any of the liabilities of a relevant company in respect of— a such sums paid by the Treasury, in fulfilment of guarantees given under section 38 of the Post Office Act 1969, as may be specified in the order, or b such sums paid by the Secretary of State, in fulfilment of guarantees given under section 69 of this Act, as may be specified in the order. 2 The Secretary of State may, on or after the appointed day, by order extinguish such liabilities to him of a relevant company as may be specified in the order; but the order shall not specify liabilities which— a may be extinguished under subsection (1), or b relate to taxes, duties or fines. 3 Before exercising a power under subsection (1) or (2), the Secretary of State must consult— a the relevant company, and b if the relevant company has a parent company, its parent company (or, if it has more than one parent company, the parent company that does not itself have a parent company). 5 The Secretary of State may by order repeal this section. 6 The Secretary of State shall not exercise any power conferred on him by subsection (1), (2) or (5) without the consent of the Treasury. Limit on loans and other arrangements with government. 71 1 The Secretary of State and the Treasury shall exercise their powers under or by virtue of this Act so as to ensure that, on and after the appointed day, the Crown’s financial arrangements with relevant companies do not at any time exceed £5,000 million or such greater sum as the Secretary of State may by order specify. 2 For the purposes of subsection (1) the Crown’s financial arrangements with relevant companies are the aggregate of— a amounts outstanding in respect of the principal of loans made under section 37 of the Post Office Act 1969, b amounts outstanding (otherwise than by way of interest) in respect of sums paid by the Treasury in fulfilment of guarantees given under section 38 of that Act, c amounts outstanding in respect of the principal of loans made under section 68 of this Act, d amounts outstanding (otherwise than by way of interest) in respect of sums paid by the Secretary of State in fulfilment of guarantees given under section 69 of this Act, e amounts outstanding in respect of the principal of debt securities issued in pursuance of section 63 of this Act, and f liabilities extinguished under section 70 of this Act so far as they are not replaced with corresponding liabilities. 3 No order shall be made under subsection (1) unless a draft of it has been approved by a resolution of the House of Commons. 4 For the purposes of this section equivalents in sterling shall be calculated as the Secretary of State considers appropriate. Reserves of relevant companies . 72 1 The Secretary of State may, on or after the appointed day, give directions to a relevant company that does not have a parent company (“ the relevant company ”) — a requiring it to allocate to a reserve generally, or to a reserve for a particular purpose, or to cause any of its subsidiaries so to allocate to a reserve, either a specified amount or such amount as the relevant company considers appropriate, b requiring it to re-allocate for a specified purpose, or to cause any of its subsidiaries so to re-allocate, the whole or any part of any amount previously allocated by the relevant company or (as the case may be) subsidiary to a reserve for some other purpose, or c with respect to the application by the relevant company or any of its subsidiaries of amounts allocated to a reserve in accordance with a direction under this section. 2 Directions requiring the allocation of any amount to a reserve may provide for it to be so allocated either at a specified time or during the course of a specified period. 3 Directions under subsection (1)(c) may, in particular, require amounts allocated to a reserve in accordance with a direction under this section to be applied as if they were profits available for distribution within the meaning of section 830 of the Companies Act 2006 (distributions to be made out of profits). 4 Despite subsection (3), no part of a reserve to which amounts have been allocated in accordance with this section shall count as an undistributable reserve of the company concerned for the purposes of section 831(4)(d) of the Companies Act 2006 (restriction on distribution of assets). 5 For the purpose of determining under section section 831 of the Companies Act 2006 whether the company concerned may make a distribution at any time, any amount for the time being standing to the credit of the reserve concerned (excluding any amount which by virtue of subsection (3) above is authorised to be, but has not yet been, applied as if it were profits available for distribution) shall be treated for the purposes of section 831(4)(c) of the Companies Act 2006 as if it were unrealised profits of the company. 5A No direction under this section may be given to, or in respect of, a company that is not wholly owned by the Crown. 6 Before giving a direction under this section to a company, the Secretary of State must consult the company. 7 No direction shall be given under this section without the consent of the Treasury. Statutory accounts of the original holding company . 73 1 For the purposes of any statutory accounts of the original holding company — a the transfer effected by virtue of section 62 shall be taken to have been a transfer of all the property, rights and liabilities to which the Post Office was entitled or subject immediately before the end of the last accounting year of the Post Office ending before the appointed day and to have been effected immediately after the end of that year, and b the value or amount (as at the time of transfer) of any asset or liability of the Post Office taken to have been transferred to the original holding company by virtue of paragraph (a) shall be taken to be the value or (as the case may be) the amount assigned to that asset or liability for the purposes of the corresponding statement of accounts prepared by the Post Office in relation to that year. 2 For the purposes of any statutory accounts of the original holding company the amount to be included in respect of any item shall be determined as if anything done by the Post Office (whether by way of acquiring, revaluing or disposing of any asset or incurring, revaluing or discharging any liability, or by carrying any amount to any provision or reserve, or otherwise) had been done by the original holding company . 3 Accordingly (but without prejudice to the generality of subsection (2))— a the amount to be included from time to time in any reserves of the original holding company as representing its accumulated realised profits shall be determined as if any profits realised and retained by the Post Office had been realised and retained by the original holding company , and b the amount to be included from time to time in any statutory accounts of the original holding company as representing its accumulated realised losses shall be determined as if any losses realised by the Post Office had been realised by the original holding company . 4 In this section “ statutory accounts ”, in relation to the original holding company , means any accounts of that company prepared for the purposes of any provision of the Companies Act 2006 (including group accounts). Further provisions relating to the capital structure of certain relevant companies . 74 1 If the Secretary of State so directs, a company within subsection (1A) shall be taken to have assumed a debt to the Secretary of State of such amount as may be specified in the direction. 1A A company is within this subsection if— a it is a relevant company, b it is wholly owned by the Crown, and c it does not have a parent company. 2 The terms of any such debt, including the terms as to the payment of interest and repayment, shall be such as the Secretary of State may from time to time determine. 3 A company within subsection (1A) shall issue such debt securities of the company as the Secretary of State may direct; and any such securities shall, as the Secretary of State may direct, be issued to the Treasury or the Secretary of State (or their nominees) . 4 Debt securities to be issued in pursuance of subsection (3) shall be issued at such time or times, and on such terms, as the Secretary of State (or a nominee of the Secretary of State) may direct. 5 Subsections (3) and (4) are without prejudice to any power conferred by section 63. 6 The Secretary of State may by order repeal this section. 7 The Secretary of State— a shall not exercise any power under this section without the consent of the Treasury or before the appointed day, and b shall, before exercising any such power (other than the power under subsection (6)), consult the relevant company . 8 In this Part “ debt securities ” means any instrument creating or acknowledging indebtedness which is issued by a company including, in particular, debentures, loan stock, bonds and certificates of deposit. Dissolution of the Post Office Dissolution of the Post Office. 75 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Supplementary provisions Accounts of the Secretary of State in relation to loans. 76 1 The Secretary of State shall, in respect of each financial year, prepare in such form and manner as the Treasury may direct, an account of— a sums issued to him under section 68(6), b sums received by him as mentioned in section 68(8), and c the disposal by him of the sums mentioned in paragraphs (a) and (b). 2 The Secretary of State shall send the account to the Comptroller and Auditor General not later than the end of the month of November in the following financial year. 3 The Comptroller and Auditor General shall— a examine, certify and report on the account, and b lay copies of it, together with his report, before each House of Parliament. Publicity requirements for certain accounts and reports .... 77 A1 This section applies to— a a relevant company that is wholly owned by the Crown and does not have a parent company, and b the original holding company if it is wholly owned by the Crown. 1 A company to which this section applies shall send to the Secretary of State— a a copy of all annual accounts of the company on which the company’s auditors have made a report under section 495 of the Companies Act 2006 , and b a copy of the auditor’s report, as soon as practicable after the report has been made. 2 A company to which this section applies shall send to the Secretary of State a copy of the report prepared by its directors under section 415 of the Companies Act 2006 in relation to any year which includes the appointed day or any subsequent year as soon as practicable after the report has been approved and signed under section 419 of that Act. 2A A company to which this section applies shall send to the Secretary of State a copy of the report prepared by its directors under section 414A of the Companies Act 2006 as soon as practicable after the report has been approved and signed under section 414D of that Act. 3 The Secretary of State shall lay a copy of the accounts and reports received by him under this section before each House of Parliament. 4 In this section “ annual accounts ” means annual accounts (within the meaning of Part 15 of the Companies Act 2006 ) which relate to any year which includes the appointed day or to any subsequent year. Information requirements on certain relevant companies . 78 A1 This section applies to— a a relevant company that is wholly owned by the Crown and does not have a parent company, and b the original holding company if it is wholly owned by the Crown. 1 The Treasury may serve notice on a company to which this section applies — a requiring it to supply to the Treasury such information— i as the Treasury may reasonably require for the performance of their functions in relation to public sector finance, and ii as may be specified or described in the notice, and b specifying the time, place, manner and form in which any such information is to be supplied and the person to whom it is to be supplied. 2 If a person makes default in complying with a notice under subsection (1), the court may, on the application of the Treasury, make such order as the court considers appropriate for requiring the default to be made good. 3 Any such order may, in particular, provide that all the costs or expenses of and incidental to the application shall be borne— a by the person in default, or b if officers of a company are responsible for its default, by those officers. 4 In this section “the court”— a in relation to England and Wales or Northern Ireland, means the High Court, and b in relation to Scotland, means the Court of Session. Exercise of functions through nominees. 79 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shadow directors. 80 1 For the purposes of the provisions ... listed in subsection (2) neither the Treasury nor the Secretary of State shall be regarded as a shadow director of a relevant company any part of which is owned by the Crown . 2 The provisions are— a section 162(6) of the Companies Act 2006 (register of directors: liability for offence); b Chapter 3 of Part 10 of that Act (declaration of interest in existing transaction or arrangement); c sections 190 to 196 of that Act (transactions requiring members’ approval: substantial property transactions); d sections 197 to 214 of that Act (transactions requiring members’ approval: loans etc. ); e regulation 10(3) of the Companies (Trading Disclosures) Regulations 2008 (liability for offence), as it applies in relation to an offence under regulation 8 (disclosure of names of directors). Tax. 81 Schedule 4 (taxation provisions in relation to the transfer to the Post Office company) shall have effect. Interpretation: Part IV. 82 1 In this Part— “ the appointed day ” has the meaning given by section 62(8), “ the Companies Acts ” has the meaning given by section 2 of the Companies Act 2006, “ company ” includes any body corporate, “ debenture ” includes debenture stock, “ debt securities ” has the meaning given by section 74(8), any reference to a company being in the same “group” as another company is to be read in accordance with section 15(4) of the Postal Services Act 2011, “ the original holding company ” has the meaning given by section 15 of the Postal Services Act 2011, any reference to a company being a “parent” of another company is to be read in accordance with section 1162 of the Companies Act 2006, “ Post Office company ” has the meaning given by section 6 of the Postal Services Act 2011, “ relevant company ” has the meaning given by section 68(1A) of this Act, “ Royal Mail company ” has the meaning given by section 2 of the Postal Services Act 2011, “ securities ”, in relation to a company, includes shares, debt securities and other securities of the company, whether or not constituting a charge on the assets of the company, and the right to subscribe for, or to acquire, such securities and any other rights in connection with such securities, ... “ shares ” includes stock, and “ wholly owned by the Crown ” has the meaning given by section 15 of the Postal Services Act 2011. 2 References in this Part to property, rights and liabilities of the Post Office are references to all such property, rights and liabilities, whether or not capable of being transferred or assigned by the Post Office. 3 It is hereby declared for the avoidance of doubt that— a any reference in this Part to property of the Post Office is a reference to property of the Post Office whether situated in the United Kingdom or elsewhere, and b any reference in this Part to rights or liabilities of the Post Office is a reference to rights to which the Post Office is entitled, or (as the case may be) liabilities to which it is subject, whether under the law of the United Kingdom or of any part of the United Kingdom or under the law of any country or territory outside the United Kingdom. Part V Offences in relation to Postal Services Offences of interfering with the mail Interfering with the mail: postal operators. 83 1 A person who is engaged in the business of a postal operator commits an offence if, contrary to his duty and without reasonable excuse, he— a intentionally delays or opens a postal packet in the course of its transmission by post, or b intentionally opens a mail-bag. 2 Subsection (1) does not apply to the delaying or opening of a postal packet or the opening of a mail-bag under the authority of— a this Act or any other enactment (including, in particular, in pursuance of a warrant issued under any other enactment), . . . b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Subsection (1) does not apply to the delaying or opening of a postal packet in accordance with any terms and conditions applicable to its transmission by post. 4 Subsection (1) does not apply to the delaying of a postal packet as a result of industrial action in contemplation or furtherance of a trade dispute. 5 In subsection (4) “trade dispute” has the meaning given by section 244 of the M1Trade Union and Labour Relations (Consolidation) Act 1992 or Article 127 of the M2Trade Union and Labour Relations (Northern Ireland) Order 1995; and the reference to industrial action shall be construed in accordance with that Act or (as the case may be) that Order. 6 A person who commits an offence under subsection (1) shall be liable— a on summary conviction, to a fine not exceeding the statutory maximum or to imprisonment for a term not exceeding six months or to both, b on conviction on indictment, to a fine or to imprisonment for a term not exceeding two years or to both. Interfering with the mail: general. 84 1 A person commits an offence if, without reasonable excuse, he— a intentionally delays or opens a postal packet in the course of its transmission by post, or b intentionally opens a mail-bag. 2 Subsections (2) to (5) of section 83 apply to subsection (1) above as they apply to subsection (1) of that section. 3 A person commits an offence if, intending to act to a person’s detriment and without reasonable excuse, he opens a postal packet which he knows or reasonably suspects has been incorrectly delivered to him. 4 Subsections (2) and (3) of section 83 (so far as they relate to the opening of postal packets) apply to subsection (3) above as they apply to subsection (1) of that section. 5 A person who commits an offence under subsection (1) or (3) shall be liable on summary conviction to a fine not exceeding level 5 on the standard scale or to imprisonment for a term not exceeding six months or to both. Prohibition on sending certain articles by post Prohibition on sending certain articles by post. 85 1 A person commits an offence if he sends by post a postal packet which encloses any creature, article or thing of any kind which is likely to injure other postal packets in course of their transmission by post or any person engaged in the business of a postal operator. 2 Subsection (1) does not apply to postal packets which enclose anything permitted (whether generally or specifically) by the postal operator concerned. 3 A person commits an offence if he sends by post a postal packet which encloses— a any indecent or obscene print, painting, photograph, lithograph, engraving, cinematograph film or other record of a picture or pictures, book, card or written communication, or b any other indecent or obscene article (whether or not of a similar kind to those mentioned in paragraph (a)). 4 A person commits an offence if he sends by post a postal packet which has on the packet, or on the cover of the packet, any words, marks or designs which are of an indecent or obscene character. 5 A person who commits an offence under this section shall be liable— a on summary conviction, to a fine not exceeding the statutory maximum, b on conviction on indictment, to a fine or to imprisonment for a term not exceeding twelve months or to both. Additional protection for universal postal service Prohibition on affixing advertisements on certain letter boxes etc. 86 1 A person commits an offence if, without due authority, he affixes any advertisement, document, board or thing in or on any universal postal service post office, universal postal service letter box or other property belonging to, or used by, a universal service provider in connection with the provision of a universal postal service. 2 A person commits an offence if, without due authority, he paints or in any way disfigures any such office, box or property. 3 A person who commits an offence under subsection (1) or (2) shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale. 4 In this Act— “ universal postal service letter box ” means any box or receptacle provided by a universal service provider for the purpose of receiving postal packets, or any class of postal packets, for onwards transmission in connection with the provision of a universal postal service, and “ universal postal service post office ” includes any house, building, room, vehicle or place used for the provision of any postal services in connection with the provision of a universal postal service or a part of such a service. Prohibition on misleading descriptions. 87 1 A person commits an offence if, without the authority of the universal service provider concerned, he places or maintains in or on any house, wall, door, window, box, post, pillar or other place belonging to him or under his control, any of the following words, letters or marks— a the words “letter box” accompanied with words, letters or marks which signify or imply, or may reasonably lead the public to believe, that it is a universal postal service letter box, or b any words, letters or marks which signify or imply or may reasonably lead the public to believe that any house, building, room, vehicle or place is a universal postal service post office, or that any box or receptacle is a universal postal service letter box. 2 A person commits an offence if, without the authority of the universal service provider concerned, he— a places or maintains in or on any ship, vehicle, aircraft or premises belonging to him or under his control, or b uses in any document in relation to himself or any other person or in relation to any ship, vehicle, aircraft or premises, any words, letters or marks which signify or imply, or may reasonably lead the public to believe, any of the things mentioned in subsection (3). 3 The things are— a that he or that other person is authorised by the universal service provider concerned to collect, receive, sort, deliver or convey postal packets in connection with the provision of a universal postal service, b that the ship, vehicle, aircraft or premises are used by the universal service provider concerned for the purpose of collecting, receiving, sorting, delivering or conveying postal packets in connection with the provision of a universal postal service. 4 A person commits an offence if, without reasonable excuse, he fails to comply with a notice given to him by the universal service provider concerned requiring him— a to remove or efface any words, letters or marks which fall within subsection (1) or (2), or b to remove or close up any letter box belonging to him or under his control which has ceased to be a universal postal service letter box. 5 A person who commits an offence under this section shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale. Obstruction of business of universal service providers. 88 1 A person commits an offence if, without reasonable excuse, he— a obstructs a person engaged in the business of a universal service provider in the execution of his duty in connection with the provision of a universal postal service, or b obstructs, while in any universal postal service post office or related premises, the course of business of a universal service provider. 2 A person who commits an offence under subsection (1) shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale. 3 A person commits an offence if, without reasonable excuse, he fails to leave a universal postal service post office or related premises when required to do so by a person who— a is engaged in the business of a universal service provider, and b reasonably suspects him of committing an offence under subsection (1). 4 A person who commits an offence under subsection (3)— a shall be liable on summary conviction to a fine not exceeding level 2 on the standard scale, and b may be removed by any person engaged in the business of a universal service provider. 5 Any constable shall on demand remove, or assist in removing, any such person. 6 In this section “ related premises ” means any premises belonging to a universal postal service post office or used together with any such post office. Part VI Postal services: supplementary Schemes and limitation of liability Schemes as to terms and conditions for provision of postal services . 89 1 A postal operator may make a scheme under this section in relation to any or all of the postal services provided by the operator. 2 A scheme under this section is a scheme for determining any or all of the following (so far as not otherwise agreed)— a the charges which are to be imposed in respect of the services concerned, and b the other terms and conditions which are to be applicable to the services concerned, ... c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A scheme under this section may, in particular— a adopt such system for the determination of the charges and other terms and conditions as the postal operator considers appropriate (including determining them himself subject to any conditions and limitations provided for in the scheme), b specify the manner in which, time and place at which and person by whom the charges are to be paid. 4 Subject to section 92(5) and (6), no provision may be made in any scheme under this section— a for limiting the liability of the postal operator for loss or damage, or b for amending the rules of law relating to evidence. 5 A scheme under this section shall come into force on such day as is specified in the scheme; but no day earlier than the day after that on which the scheme has been published in the London, Edinburgh and Belfast Gazettes shall be so specified. 6 A scheme under this section may— a make different provision for different cases or classes of case determined by, or in accordance with, the provisions of the scheme, b modify any previous scheme made under this section. 7 Any charge payable by virtue of this section may be recovered by the postal operator and in England and Wales and Northern Ireland may be so recovered as a civil debt due to him. 8 The production of a copy of any of the Gazettes mentioned in subsection (5) which purports to contain a scheme under this section shall be conclusive evidence in all legal proceedings of that scheme. Powers of OFCOM in relation to schemes 89A 1 A postal operator may not make a scheme under section 89 unless— a the operator has notified OFCOM of the scheme that the operator is proposing to make, and b the operator has carried out a consultation exercise in relation to the proposed scheme in accordance with requirements contained in a notification published by OFCOM. 2 OFCOM may give a direction to a postal operator who has notified a scheme to them under subsection (1)(a) requiring the operator to make such modifications of the scheme as are specified in the direction. 3 Before giving a direction under subsection (2), OFCOM must publish a notification— a setting out the terms of the scheme that the operator proposes to make, b stating that OFCOM are proposing to give a direction under subsection (2) modifying the scheme, c setting out the effect of the proposed modification, d giving reasons for making the proposed modification, and e specifying the period within which representations may be made to them about the proposed modification. 4 The specified period must be at least one month beginning with the day after the day the notification under subsection (3) is published. 5 OFCOM may not give a direction under subsection (2) unless they have considered every representation and proposal made to them during the period specified in that notification. 6 If the scheme is not in force at the time at which that notification is published, the operator may not bring the scheme into force until such time as OFCOM may direct. 7 OFCOM must publish a notification of any direction that they make under subsection (2). 8 The publication of a notification under this section must be in such manner as OFCOM consider appropriate for bringing its contents to the attention of such persons as they consider appropriate. 9 An obligation imposed on a postal operator by a direction under subsection (2) is enforceable by OFCOM under Schedule 7 to the Postal Services Act 2011 (enforcement of regulatory requirements). Exclusion of liability. 90 A1 This section applies in relation to— a the provision by a universal service provider of a universal postal service, and b the provision by a postal operator of a service in relation to which a scheme under section 89 (made by the operator) applies. A2 In this section— a “ the operator ” means the universal service provider or the postal operator concerned, and b “ the service ” means the service mentioned in subsection (A1)(a) or (b) (as the case may be). 1 No proceedings in tort shall lie or, in Scotland, be competent against the operator in respect of loss or damage suffered by any person in connection with the provision of the service because of— a anything done or omitted to be done in relation to any postal packet in the course of transmission by post, or b any omission to carry out arrangements for the collection of anything to be conveyed by post. 2 No officer, servant, employee, agent or sub-contractor of the operator shall be subject, except at the suit or instance of the operator , to any civil liability for— a any loss or damage in the case of which liability of the operator is excluded by subsection (1), or b any loss of, or damage to, a postal packet to which section 91 applies. 3 No person engaged in or about the conveyance of postal packets and no officer, servant, employee, agent or sub-contractor of any such person shall be subject, except at the suit or instance of the operator , to any civil liability for— a any loss or damage in the case of which liability of the operator is excluded by subsection (1), or b any loss of, or damage to, a postal packet to which section 91 applies. 4 In the application of subsection (1) to Scotland, the reference to proceedings in tort shall be construed in the same way as in section 43(b) of the Crown Proceedings Act 1947. 5 This section is subject to section 91. Limited liability for postal packets . 91 1 Proceedings shall lie or, in Scotland, be competent against a postal operator under this section, but not otherwise, in respect of relevant loss of, or relevant damage to, a postal packet in respect of which the operator accepts liability under this section in pursuance of a scheme made under section 89. 2 The references in subsection (1) to relevant loss or damage are to loss or damage so far as it is due to any wrongful act of, or any neglect or default by, an officer, servant, employee, agent or sub-contractor of the postal operator while performing or purporting to perform in that capacity his functions in relation to the receipt, conveyance, delivery or other dealing with the packet. 3 No proceedings shall lie or, in Scotland, be competent under this section in relation to a packet unless they are begun within the period of twelve months starting with the day on which the packet was posted. 4 A postal operator shall not be liable under this section in respect of a packet of any description unless such conditions (if any) as are required by a scheme under section 89 to be complied with in relation to packets of that description at the time when they are posted have been complied with in the case of the packet. 5 For the purposes of this section and section 92 a scheme under section 89 may define a description of packet by reference to any circumstances whatever (including, in particular, the amount of any fee paid in respect of the packet in pursuance of the scheme). 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 91: supplementary. 92 1 Subject to subsection (3), no relief or remedy shall be available under section 91 in relation to a packet except upon a claim by the sender or the addressee of the packet. 2 The sender or addressee concerned shall be entitled— a to claim any relief or remedy available under this section whether or not he is the person who has suffered the loss or damage, and b to give a good discharge in respect of all claims under this section in respect of the packet concerned. 3 Where the court is satisfied, on an application by a person who is not the sender or addressee of the packet, that the sender and the addressee are unable or unwilling to enforce their reliefs or remedies under this section, the court may, upon such terms as to security, caution, costs, expenses and otherwise as the court considers appropriate, allow that other person to bring proceedings under this section in the name of the sender or the addressee of the packet. 4 Where, by virtue of subsection (2) or (3), a person recovers any money or property which, apart from that subsection, would have been recoverable by another person