The Water Industry (Scotland) Act 2002 is amended as follows.

In section 25(3)(a) (powers of Scottish Water: formation and promotion of companies), for “(within the meaning of the Companies Act 1985)” substitute “ under the Companies Act 2006 ”.

In section 43(4) (guarantees: meaning of “subsidiary” of Scottish Water), for “is to be construed in accordance with section 736 of the Companies Act 1985” substitute “ has the meaning given by section 1159 of the Companies Act 2006 ”.