AGRICULTURE Citation, commencement and extent 1 1 These Regulations may be cited as the Agricultural Marketing Act 1958 and the Milk Marketing Schemes (Amendment) (Scotland) Regulations 1991 and shall come into force on 22nd August 1991. 2 These Regulations other than regulation 3 shall extend to Scotland only. Interpretation 2 In these Regulations unless the context otherwise requires the following expressions have the meaning hereby assigned to them:– “ 1958 Act ” means the Agricultural Marketing Act 1958 ; “the Aberdeen and District Milk Marketing Scheme” means the Scheme set out in the Schedule to the Aberdeen and District Milk Marketing Scheme 1984 Approval Order 1984 ; “the North of Scotland Milk Marketing Scheme” means the Scheme set out in the Schedule to the North of Scotland Milk Marketing Scheme Approval Order 1934 ; and “the Scottish Milk Marketing Scheme” means the Scheme set out in Schedule 1 to the Scottish Milk Marketing Scheme (Consolidation) Approval Order 1989 . Amendment of the Agricultural Marketing Act 1958 3 After section 39 of the 1958 Act there shall be inserted– 39A 1 For the purpose of ensuring that in Scotland the operations of milk marketing boards specified in Article 5.1 of Council Regulation ( EEC ) No 1422/78 (processing of milk for direct human consumption and manufacture of milk products) are subject to a separate system of financial management and administration with a view to placing their processing undertakings on an equal footing with other independent undertakings, a board administering any milk marketing scheme in Scotland which includes power to carry out such operations may, with the approval of the Minister, set up a company or subsidiary to carry out those operations or transfer to an existing company such assets, rights or liabilities as are necessary to carry out those operations. 2 In this section “company” has the same meaning as in section 735(1)(a) of the Companies Act 1985 and “subsidiary” has the same meaning as it has for the purposes of section 736 of that Act. 3 The power conferred by subsection (1) of this section is without prejudice to any corresponding power conferred on a Board administering a milk marketing scheme in England and Wales by any amendment of that scheme made before the coming into force of that subsection. . Amendment of the Scottish Milk Marketing Scheme 4 The Scottish Milk Marketing Scheme shall be amended– a by inserting in section 2(1) thereof:– i after the definition of “commercial activities” the following definition:– “company” has the same meaning as in section 735(1)(a) of the Companies Act 1985; ; ii after the definition of “statutory poll” the following definition:– “subsidiary” has the same meaning as it has for the purposes of section 736 of the Companies Act 1985; ; b by renumbering section 16 as “16(1)”; and c by inserting after section 16(1) the following paragraphs:– 2 For the purpose of complying with this section, the Board may if it thinks fit and with the approval of the Minister– a form a company to carry out commercial activities or to form a subsidiary to carry out commercial activities; b transfer to that company or to an existing company or to a subsidiary such assets, rights or liabilities as are necessary; c make available to or for such company or such subsidiary on prevailing market terms, loans, guarantees or other financial benefits. 3 For so long as and to the extent that any commercial activities of the Board are, under this section, carried out by a company or a subsidiary of that company– a they shall be the activities of that company or that subsidiary; b reference to their commercial activities in sections 26(3)(b) and 39(2) and (7) of the Scheme shall be construed accordingly; and c reference to the Board’s accounts and records in section 39 of the Scheme shall be construed as including a reference to that company’s accounts and records and, if applicable, that subsidiary’s accounts and records. . Amendment of the Aberdeen and District Milk Marketing Scheme 5 The Aberdeen and District Milk Marketing Scheme shall be amended as follows:– a by inserting in section 2(1) thereof– i after the definition of “commercial activities” the following definition:– “company” has the same meaning as in section 735(1)(a) of the Companies Act 1985; ; ii after the definition of “statutory poll” the following definition:– “subsidiary” has the same meaning as it has for the purposes of section 736 of the Companies Act 1985; ; b by renumbering section 17 as section “17(1)”; and c by inserting after section 17(1) the following paragraphs:– 2 For the purpose of complying with this section the Board may if it thinks fit and with the approval of the Minister– a form a company to carry out commercial activities or to form a subsidiary to carry out commercial activities; b transfer to that company such assets, rights or liabilities as are necessary; c make available to or for that company or that subsidiary on prevailing market terms, loans, guarantees or other financial benefits. 3 For so long as and to the extent that any commercial activities of the Board are, under this section, carried out by a company or a subsidiary of that company– a they shall be the activities of that company or that subsidiary; b reference to their commercial activities in sections 27(3)(b) and 39(2) and (7) of the Scheme shall be construed accordingly; and c reference to the Board’s accounts and records in section 39 o f the Scheme shall be construed as including a reference to that company’s accounts and records and, if applicable, that subsidiary’s accounts and records. . Amendment of the North of Scotland Milk Marketing Scheme 6 The North of Scotland Milk Marketing Scheme shall be further amended– a by inserting in section 2(1) thereof– i after the definition of “commercial activities” the following definition:– “company” has the same meaning as in section 735(1)(a) of the Companies Act 1985; ; ii after the definition of “statutory poll” the following definition:– “subsidiary” has the same meaning as it has for the purposes of section 736 of the Companies Act 1985; ; b by renumbering section 15A as “15A(1)”; c by inserting after section 15A(1) thereof the following paragraphs:– 2 For the purpose of complying with this section, the Board may if it thinks fit and with the approval of the Minister– a form a company to carry out commercial activities or to form a subsidiary to carry out commercial activities; b transfer to that company such assets, rights or liabilities as are necessary; c make available to or for such company or such subsidiary on prevailing market terms, loans, guarantees or other financial benefits. 3 For so long as and to the extent that any commercial activities of the Board are, under this section, carried out by a company or a subsidiary of that company– a they shall be the activities of that company or that subsidiary; b reference to their commercial activities in sections 24(3) and 35(1A) and (5) of the Scheme shall be construed accordingly; and c reference to the Board’s accounts and records in section 35 of the Scheme shall be construed as including a reference to that company’s accounts and records and, if applicable, that subsidiary’s accounts and records. . Strathclyde Parliamentary Under Secretary of State, Scottish Office St. Andrew’s House, Edinburgh 23rd July 1991