Money Grouse: Would-be buyer put off BT3 shares
Saturday 17 July 1993
Mr Harris's mother is unwell and has formally appointed him to handle her financial affairs by signing a document giving him power of attorney.
'Under the Powers of Attorney Act 1971, Section 3.1 (1) a copy of an instrument creating a power of attorney may be certified either by the donor of the power or by a solicitor or stockbroker,' says Mr Harris.
'It is quite clear that in law the validity of a certified copy is unaffected by which of these categories of person certifies it.'
Mr Harris was outraged, therefore, to see that the BT3 prospectus contained a clause stating that anyone applying for shares with a power of attorney must produce a document signed by a solicitor.
Since he has done all the work associated with setting up the power of attorney without involving a solicitor, he does not want to start now.
'In the case of my power of attorney over my mother's affairs all the certified copies of the power that I have were certified by my mother as donor,' he says. 'These have been accepted as valid by solicitors for the sale of a house and also as proof when purchasing shares under other flotations, where the terms and conditions have merely required 'a certified copy' to be sent.'
He has complained to the Securities and Futures Authority about the prospectus.
Explanations from SG Warburg and Linklaters & Paines, the merchant bank and solicitor advising the Government on the BT3 issue, were less than illuminating.
The requirement for people with power of attorney to submit certificates signed by solicitors is apparently traditional in government share issues.
The view of the advisers is that the Government is entitled to insist on this in its share prospectuses even though legislation on powers of attorney do not.
No explanation was available on why the Government had originally taken this view, but Mr Harris has been promised a letter from the Treasury.
Write to Money Grouse, The Independent, 40 City Road, London EC1Y 2DB. Include a daytime phone number. Please do not send original documents or SAEs.
- 1 Asteroid nine times the size of the QE2 liner to sail pass Earth
- 2 Notes from a small island: Is Sealand an independent 'micronation' or an illegal fortress?
- 3 British business: We need to stay in the EU - or risk losing up to £92bn a year
- 4 You thought Ryanair's attendants had it bad? Wait 'til you hear about their pilots
- 5 It’s official: thanks to Stephen Hawking's Israel boycott, anti-Semitism is no more
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Win anything from gadgets to five-star holidays on our competitions and offers page.
iJobs Money & Business
£550 - £600 per day: Orgtel: Fidessa Analyst / PM - Banking - London - Up to £...
£450 - £500 per day: Orgtel: Sourcing Manager - Banking - London - Up to £500p...
To be discussed at interview.: Queen Elizabeth's School: An experienced and ef...
£294.05 - £330.92 per day + 150 per day travel and accommodation: Orgtel: A le...
Day In a Page
A five-bedroom bungalow in Hoveton with riverside garden and mooring dock, £550,000
A refurbished one-bedroom flat with south-facing reception and high ceilings. £579,950
A four-bedroom Grade II-listed house in Nazeing with large gardens. £550,000
A modern four-bedroom house in a converted stable within walking distance to Peckham Rye. £695,000
Three-bedroom house in a quiet residential area within close distance to Battersea Park. £450,000
A three-bedroom cottage within commuting distance of London, Norwich and Cambridge. £250,000
A two-bedroom cottage with a sun room and gardens in South Chard. £350,000.
A three-bedroom semi-detached house with original features including fireplaces and wooden flooring. £399,950
A modern two-bedroom flat split across two floors and close to several public transport links. £595,000
A one-bedroom flat with an open-plan reception/kitchen and private balcony. £315,000.
A bright two-bedroom garden flat between South Acton and Chiswick Park. £499,950.
A listed four-bedroom farmhouse with stables, set in four acres. £500,000.
A three-storey family home with four bedrooms and an extended kitchen/diner. £995,000.
A three-bedroom Hamstone cottage in the rolling Somerset countryside. £430,000.
A luxury one-bedroom apartment on the first floor of a converted Victorian house. £425,000.
Three-bedroom semi-detached house with private parking and a rear garden. £249,995.