Legislation – Subsidy Control Act 2022
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There are currently no known outstanding effects for the Subsidy Control Act 2022, Section 19.
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PART 2Subsidy control requirements
CHAPTER 2Prohibitions and other requirements
Ailing or insolvent enterprises
19Rescuing
(1)
A subsidy for rescuing an ailing or insolvent enterprise is prohibited by this section unless the conditions in subsections (2) to (4) are met.
(2)
The condition in this subsection is that the subsidy is given during the preparation by the enterprise of a restructuring plan for the purposes of section 20(2).
(3)
The condition in this subsection is that the subsidy consists of temporary liquidity support in the form of a loan or loan guarantee.
(4)
The condition in this subsection is that the public authority giving the subsidy is satisfied that—
(a)
the subsidy contributes to an objective of public interest by avoiding social hardship or preventing a severe market failure, in particular with regard to job losses or disruption of an important service that is difficult to replicate, or
(b)
there are exceptional circumstances that justify the subsidy being given despite its not contributing as mentioned in paragraph (a).
(5)
This section does not apply to a subsidy for rescuing an ailing or insolvent enterprise that is a deposit taker or insurance company.