Transport Act 1985

73 Control over constitution and activities of public transport companies. E+W+S

(1) It shall be the duty of any public transport company’s controlling authority to exercise their control over that company so as to ensure that the directors of the company include no more than the permitted maximum number of persons who are not full-time employees of the company.

(2) Following the transfer to a public transport company of its initial undertaking, it shall be the duty of that company’s controlling authority to exercise their control over that company so as to ensure that the directors of the company include not less than the required minimum number of persons who are full-time employees of the company holding positions of responsibility for the management of the company’s business or any part of it.

The reference above in this subsection to the transfer to a public transport company of its initial undertaking is a reference, in relation to any such company, to the transfer or (if more than one) the first transfer of property, rights and liabilities to that company under section 59(7), 61(11), 68(7) or 70(2) of this Act.

(3) Subject to subsection (5) below, it shall be the duty of any public transport company’s controlling authority to exercise their control over the company so as to ensure that the company—

(a) does not engage in activities in which the controlling authority have no power to engage or permit any body corporate which is its subsidiary to engage in any such activities;

(b) does not—

(i) borrow money from any person other than the controlling authority; or

(ii) permit any body corporate which is its subsidiary to borrow money from any person other than the company, any other subsidiary of the company, or the controlling authority;

with the exception in each case of borrowing by way of temporary loan or overdraft; and

(c) does not—

(i) raise money by the issue of shares or stock to any person other than the controlling authority; or

(ii) permit any body corporate which is its subsidiary to raise money by the issue of shares or stock to any person other than the company.

(4) Where a public transport company’s controlling authority are a composite authority, the duties imposed by the preceding provisions of this section are joint duties of both or all of the component councils of that authority; and subsection (3) above shall apply in any such case as if—

(a) paragraph (a) referred to activities in which none of the component councils have power to engage; and

(b) references in paragraphs (b) and (c) to the controlling authority were references to the component councils.

(5) Subsection (3)(a) above shall not apply—

(a) in the case of a public transport company whose controlling authority are [F1 the Integrated Transport Authority for any integrated transport area or] the Passenger Transport Authority for any passenger transport area, in relation to activities within the powers of the Executive for that area or activities which were formerly within those powers but have ceased to be so by virtue of any order made under section 60 of this Act;

(b) in the case of a public transport company within section 72(1)(c) of this Act, in relation to activities which were formerly within the powers of the council who formed or of any council who participated in forming that company, but have ceased to be so by virtue of section 66(1) of this Act.

(6) The Secretary of State may by order prescribe—

(a) the permitted maximum number for the purposes of subsection (1) above; and

(b) the required minimum number for the purposes of subsection (2) above.

Textual Amendments

F1 Words in s. 73(5) inserted (E.W.) (9.2.2009) by Local Transport Act 2008 (c. 26), s. 134(4), Sch. 4 para. 23; S.I. 2009/107, art. 2(1), Sch. 1 Pt. 1

Modifications etc. (not altering text)

C1 Pt. 4: functions made exercisable (E.) (28.2.2024) by The East Midlands Combined County Authority Regulations 2024 (S.I. 2024/232), regs. 1(2), 14(1)

C2 Ss. 72-76: functions made exercisable concurrently (E.) (28.2.2024) by The East Midlands Combined County Authority Regulations 2024 (S.I. 2024/232), regs. 1(2), 14(4)