Moved by
Baroness Bennett of Manor Castle
145: Clause 156, page 126, line 37, at end insert—
“(c) after subsection (2) insert—
“(3) No financial assistance provided under this section may be used for the purposes of—
(a) repaying debt incurred outside of the business's normal day-to-day operations;
(b) paying interest on debt incurred outside of the business's normal day-to-day operations;
(c) making distributions to shareholders.””
Member’s explanatory statement
This amendment ensures that financial assistance given by the Secretary of State is not distributed to shareholders or used to repay debt obligations incurred as “financial engineering” or leveraging.