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Building Societies Bill

Volume 98: debated on Wednesday 4 June 1986

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Question again proposed, That the amendment be made.

Therefore, I am very grateful to my hon. Friend for dealing with those points.

My hon. Friend the Member for Bridlington (Mr. Townend) referred to the Abbey National building society. I want to raise with my hon. Friend the Economic Secretary to the Treasury a point on the 20 per cent. conversion issue. As it has been maintained that this will be a realistic option for building societies, will my hon. Friend say what evidence might be required before it would seem reasonable to learn about that requirement of 20 per cent., short of a building society risking loss of confidence by attempting the leap and then failing?

If my hon. Friend will consult the Official Report of today's proceedings he will find that I touched on that matter earlier when I was asked a similar question.

As for the substance of this group of amendments, I am happy to respond to the hon. Member for Thurrock (Dr. McDonald). I do not believe that the anxieties of the society whose letter she quoted will be borne out in practice. She said that it was concerned that these provisions might place unreasonable pressure on small societies. I do not think that that will be the case. Small societies are protected by the disproportionate merger procedures, so they would be less vulnerable to approaches of the kind that that society mentioned. If those two provisions are taken together, building societies will not be exposed in that damaging way.

I am grateful to my hon. Friend the Member for Bridlington (Mr. Townend) for what he had to say. I do not believe that the previous provisions would have sounded anything so dramatic as the death knell of smaller societies, but I came to the conclusion, after further consideration of this matter, that the proposed remedy was out of scale to the problem. Clearly there was a problem, but I was not convinced that it was necessary to erect such an elaborate procedure to deal with it. The notification process that I have now put forward is a practical and sensible option in the circumstances. I think that the hon. Member for Thurrock can be assured that, coupled with the disproportionate merger provisions, it should not have an adverse effect on the society that she mentioned.

Amendment agreed to.

Clause 85

Mergers: Compensation For Loss Of Office And Bonuses To Members

Amendment made: No. 228, in page 125, line 9, leave out 'chief executive' and insert 'other officer'.— [Mr. Ian Stewart.]

Clause 86

Transfer Of Business To Commercial Company

Amendment made: No. 229, in page 126, line 21, leave out Clause 86.— [Mr. Ian Stewart.]

Clause 87

Cancellation Of Registration

Amendment made: No. 230, in page 127, line 23, leave out Clause 87.— [Mr. Ian Stewart.]

Clause 89

Restriction Of Use Of Certain Names And Descriptions

Amendments made: No. 231, in page 129, line 5, leave out '(7)' and insert '(7B)'.

No. 232, in page 130, line 44, at end insert—

'(7A) Subsection (1) above does not prohibit a person from using a description (other than his name) which, or from holding himself out in a way that, indicates a connection between himself or his business and one or more building societies if and to the extent he has been authorised to do so in writing by the society or societies in question.
(7B) Subsection (1) above does not prohibit a person from using a description (other than his name) which, or from holding himself out in a way that, indicates a connection between himself or his business and building societies generally where the connection indicated is not misleading.'.

No. 233, in page 131, line 10, leave out 'for Northern Ireland'.— [Mr. Ian Stewart.]

Clause 90

Power To Require Building Society To Change Misleading Name

Amendment made: No. 234, in page 131, line 37. after `may', insert

', by notice served on the society,'.—[Mr. Ian Stewart.]

Clause 93

Offences: Liability Of Officers And Defence Of Due Diligence

Amendments made: No. 235, in page 133, line 22, after `9(10)' insert

`section (Costs, procedure and evidence) (5)'.

No. 236, in page 133, line 32, leave out 'an' and insert `that'.— [Mr. Ian Stewart.]

Clause 98

Interpretation

Amendments made: No. 237, in page 135, line 36, at end insert

`and references to class 1 or class 2 advances are to be construed in accordance with sections 11 and 12;'.

No. 238, in page 136, leave out lines 20 to 24.

No. 239, in page 136, line 44, at end insert—

"`deposit" includes loan, and cognate expressions shall be construed accordingly;'.

No. 240, in page 137, line 26, at end insert—

'"mobile home loan" means a loan under section (Loans for mobile homes);'.

No. 241, in page 137, line 32, at end insert

`and "notice to" a person means notice given to that person, and "notify" shall be construed accordingly;'.

No. 242, in page 137, line 39, at end insert—

"`officially notified", in relation to the appointment or address of a director or the chief executive of a building society, means respectively notifed to, and the last address notified to, the central office under section 55(13) or 53(5), as the case may be;'.

No. 243, in page 137, line 47, leave out 'section 14(10) (a)' and insert

`section (Qualifying asset holding for certain powers)'.

No. 244, in page 138, line 2, leave out '32(4)' and insert '13'.

No. 245, in page 138, line 10, at end insert—

'"special resolution" has the meaning given by paragraph 26 of Schedule 2 to this act;'.

No. 246, in page 138, leave out line 16 and insert

`means the aggregate of its class 1 assets, its class 2 assets and its class 3 assets;'.

No. 247, in page 138, line 21, at end insert—

'(2A) The value in sterling, of any transaction effected by or with a building society in another currency shall be determined for any purpose of this Act in accordance with directions given by the Commission under this subsection.'. — [Mt. Ian Stewart.]

Clause 99

Amendments, Repeals And Transitional And Saving Provisions

Amendments made: No. 248, in page 138, line 30, after `repealed', insert 'or revoked'.

No. 249, in page 138, in line 32, after 'repealed', insert `or revoked'.

No. 250, in page 138, line 34, after 'repeal', insert 'or revocation'.— [Mr. Ian Stewart.]

Clause 102

Provision Of Conveyancing Services By Building Societies And Other Recognised Institutions

Amendment made: No. 409, in page 139, line 10, leave out 'and other institutions' and insert other institutions and individuals'.

Amendments made: No. 251, New Schedule—

`Schemes For Investigation Of Complaints

Part I Matters To Be Provided For In Schemes

The matters for which provision is, subject to Parts II and III of this Schedule, to be made are the following:

Administration

  • 1. The establishment and functioning of an independent body (whether corporate or unincorporate) which is to administer the scheme.
  • 2. The identity of the members.
  • 3. The manner in which the expenses of the scheme are to be met by the members.
  • The adjudicator

    4. The appointment of an independent adjudicator to conduct investigations under the scheme and his tenure of office and remuneration.

    Scope of scheme

    5. The matters action in relation to which is to be subject to investigation under the scheme and the grounds for making it subject to investigation.

    Functions of adjudicator

    6. The duty of the adjudicator to investigate, and make determinations on, actions duly referred for investigation.

    7. The powers of, and procedure to be followed in the conduct of investigations by, the adjudicator.

    8. The powers of the adjudicator on the making of determinations.

    Determinations and their effects

    9. The extent to which determinations are binding.

    10. The manner in which determinations are to be communicated and published.

    Reports by investigators to administering body

    11. The making to the body administering the scheme of regular reports by the adjudicator as to the discharge of his functions, and their publication.

    Amendment or revocation of scheme

    12. The manner of amending or revoking the scheme.

    Accession to membership

    13. Accession to membership of other societies.

    Withdrawal from membership

    14. Withdrawal from membership.

    Part Ii Requirements For Recognised Schemes: Matters Of Complaint

    Share accounts

    1. The operation or termination of a share account and the grant or refusal to grant a shareholder other facilities normally available to shareholders of his description.

    Note: The operation or termination of a share account includes any aspect of the relationship or termination of the relationship between the society and a shareholder as such and in particular the operation or termination of any services incidental to such accounts.

    Note: The grant of facilities includes the terms on which they are granted.

    Deposit accounts

    2. The operation or termination of a deposit account and the grant or refusal to grant a depositor other facilities normally available to depositors of his description.

    Note: The operation or termination of a deposit account includes any aspect of the relationship or the termination of the relationship between the society and a depositor as such, including in particular the operation or termination of any services incidental to such accounts.

    Note: The grant of facilities includes the terms on which they are granted.

    Borrowing members: class 1 or class 2 advances

    3. The operation or termination of the account of a member borrowing on a class 1 or class 2 advance and the grant or refusal to grant a borrowing member of that description other or further class 1, or as the case may be, class 2 advances secured on the same or different land or other facilities normally available to borrowing members of his description.

    Note: The operation or termination of the account of a borrowing member includes any aspect of the relationship or the termination of the relationship between the society and a borrowing member as such, including in particular the exercise of the right of foreclosure or any other power over the land by virtue of the mortgage.

    Note: The grant of advances includes the terms on which they are granted.

    Borrowers: mobile home loans

    4. The operation or termination of the account of a borrower under section (Loans for mobile homes) and the grant or refusal to grant to a borrower under that section other facilities normally available to borrowers of his description.

    Note: The operation or termination of the account of a borrower under section (Loans for mobile homes) includes any aspect of the relationship or the termination of the relationship between the lender and such a borrower, including in particular the exercise of any power over the security.

    Note: The grant of facilities includes the terms on which they are granted.

    Borrowers: other loans

    5. The operation or termination of the account of a borrower under section 14 and the grant or refusal to grant a borrower under that section other facilities normally available to borrowers of his description.

    Note: The operation or termination of the account of a borrower under section 14 includes any aspect of the relationship or the termination of the relationship between the lender and such a borrower including in particular, in the case of a secured loan, the exercise of any power over the security.

    Note: The grant of facilities includes the terms on which they are granted.

    Money transmission services

    6. The terms on which they are provided, the operation of or the withdrawal of money transmission services.

    Note: "Money transmission services" means the services of that description provided in accordance with Schedule 8 to this Act.

    Foreign exchange facilities

    7. The terms on which are provided, the operation of or the withdrawal of foreign exchange services.

    Note: "Foreign exchange services" means services of that description provided in accordance with Schedule 8 to this Act.

    Agency payments and receipts

    8. The terms on which payments are made or received as agents or the operation or withdrawal of the service.

    Note: The payments made or received as agents are those made or received in accordance with Schedule 8 to this Act.

    Provision of credit

    9. The operation or termination of the account of a borrower with the person providing the credit.

    Note: The credit provided is credit provided under arrangements for the provision of credit in accordance with Schedule 8 to this Act.'.

    Part Iii Minimum Requirement For Recognised Schemes: Other Provisions

    Grounds of complaint

    1. The grounds for making action by a building society or associated body subject to investigation under the scheme must be that the action constitutes—

  • (a) in the case of a building society, a breach of the society's obligations under this Act, the rules or any other contract, or
  • (b) in the case of an associated body, a breach of the associated body's obligations under its rules (if any) or any contract, or
  • (c) unfair treatment, or
  • (d) maladministration,
  • in relation to the complainant and has caused him pecuniary loss or expense or inconvenience.

    Permissible exclusions from investigation

    2. A scheme must not exclude action from investigation on any other than the following grounds, that is to say—

  • (a) that the complaint is frivolous or vexatious;
  • (b) that the action is the subject of proceedings in a court of law or was the subject of such proceedings in which a judgment on the merits was given;
  • (c) that, where the society or associated body has a procedure for the resolution of complaints by it (an "internal procedure"), the procedure has not been invoked or has not been exhausted;
  • (d) that there has been undue delay in having the matter investigated under the scheme; or
  • (e) that the action in question occurred outside the United Kingdom.
  • Note: An internal procedure for resolution of complaints is not to be treated as having been invoked unless the complainant has made his complaint to the principal office of the society or, as the case may be, the registered office of the associated body and is not to be treated as having been exhausted unless more than three months has elapsed since the complainant invoked it without any decision on his complaint having been communicated to him.

    Note: Delay in having a matter investigated under the scheme is not "undue delay" unless at least six months (disregarding the period for exhausting the society's or associated body's internal procedure) has expired since the matter came to the knowledge of the complainant; and a person is not, for this

    purpose, to be presumed to have knowledge of the contents of a document which contains or relates to the terms or proposed terms of any transaction between him and the society.

    Functions of adjudicator

    3. A scheme must, as regards the duties and powers attached to the investigation of complaints under the scheme—

  • (a) impose on the adjudicator a duty, subject to any provision made in pursuance of sub-paragraph (c) below, to investigate and determine any complaint duly made;
  • (b) impose on the adjudicator a duty to afford the complainant and the society or associated body an opportunity to make representations (whether orally or in writing) in relation to the action complained of;
  • (c) confer power on the adjudicator to advise, mediate or act as conciliator before proceeding further with an investigation;
  • (d) confer power on the adjudicator to extend the scope of his investigation to other matters related to the action complained of; and
  • (e) confer on an adjudicator such powers to require information and documents relevant to the matter to be furnished to him as are necessary for the purposes of the investigation.
  • 4.–(1) Subject to any provision made in pursuance of sub-paragraph (3) below, a scheme must authorise the adjudicator, in reaching his decision, to have regard to, but not to be bound by, any matter (whether or not of obligation) relevant to the action complained of and to question any decision.

    (2) A scheme must impose on the adjudicator a duty, in reaching his decision, to have regard to—

  • (a) the rules (if any) of the society or associated body;
  • (b) the provisions of any deed or contract binding the society and the complainant or, as the case may be, the associated body and the complainant;
  • (c) the provisions of any code of conduct applicable to the conduct by the society or associated body of its affairs or business;
  • (d) any advertisement issued by the society or associated body in connection with any aspect of its activities and any communication with the complainant.
  • (3) Subject to sub-paragraph (4) below, a scheme may preclude the adjudicator, in his determination, from questioning the merits of any decision taken by the society or associated body with reference to—

  • (a) the taking or conduct of legal proceedings to enforce any right of the society or associated body; or
  • (b) the creditworthiness, for the purposes of any advance or other service or facility, of the complainant;
  • but not otherwise.

    (4) Where investigation of a complaint on the ground of maladministration involves consideration by the adjudicator of any decision taken with reference to the creditworthiness of the complainant the scheme must confer power on the adjudicator to direct the society or associated body to take its decision again and reach it by proper procedures.

    5.–(1) Subject to sub-paragraph (2) below, a scheme must confer power on the adjudicator, by his determination, to do either or both of the following, that is to say—

  • (a) direct the society or associated body whose action is complained of to take such steps as are specified in the determination;
  • (b) order the society or associated body whose action is complained of to pay the complainant a sum by way of compensation for the loss, expense or inconvenience caused by the action.
  • (2) A scheme may impose a limit on the amount of compensation that a society or associated body may be ordered to pay a complainant, but the limit must not be less than £100,000.

    Effect of determinations and their communication

    6.–(1) Subject to any provision made in pursuance of sub-paragraph (2) or (3) below, a scheme must provide that, if the complainant, by notice to the adjudicator within the period specified in the scheme, accepts his determination the society or associated body is under an obligation to take the steps it is directed to take or pay the compensation awarded or both.

    (2) A scheme may relieve a society of the obligations imposed by a determination if, but only if, the society undertakes an obligation to give notice to its members of the reasons for its non-fulfilment of the obligations imposed by the determination in the next directors' report under section 69 and to give notice of those reasons to the public in such manner as the adjudicator requires.

    (3) A scheme may relieve an associated body of the obligations imposed by a determination if, but only if, each of the building societies with which it is associated undertakes an obligation to give notice to its members of the reasons for the non-fulfilment of the obligations imposed by the determination in the next directors' report under section 69 and to give notice of those reasons to the public in such a manner as the adjudicator requires.

    7. A scheme must impose on the adjudicator an obligation not to disclose, whether in his determination or otherwise, any information or opinion furnished in confidence to the society or, as the case may be, to the associated body for the purpose of any action on its part.

    Reports by adjudicator to administering body

    8. A scheme must require reports by the adjudicator as to the discharge of his functions to be made to the body administering the scheme not less frequently than once in every year.

    Publication

    9.–(1) A scheme must permit the body administering the scheme to publish the whole or any parts of the reports made to them by the adjudicator.

    (2) A scheme, if it makes the provision authorised by paragraph 6(2) or (3) above, must require the body administering the scheme to send to the Commission, not less frequently than once in every year, particulars of the cases in which building societies have undertaken the alternative obligation authorised by either or both of those sub-paragraphs.'— [Mr. Ian Stewart.]

    Amendment made: No. 252, New Schedule—

    `Schemes For Investigation Of Complaints: Recognition, Accession, Etc

    Preliminary

    1. For the purposes of this Schedule, a scheme—

    "qualifies for recognition" if it makes provision for the matters specified in Part I of Schedule (Schemes for investigation of complaints) and the matters action in relation to which is subject to investigation under the scheme consist of or include one or more of the prescribed matters of complaint; and
    "conforms to the relevant requirements" if, in relation to a prescribed matter of complaint it makes action in relation to that matter subject to investigation in accordance with Part III of that Schedule;

    and any reference to a scheme qualifying for recognition, or being recognised, to any "extent" indicates recognition of it for the purpose of investigations of action in relation to one or more prescribed matters of complaint.

    (2) – (1) The function of the Commission of granting recognition of schemes is exercisable, in accordance with paragraph 4 or 5 below, on the Commission's own motion or on a submission for its approval made by or on behalf of any building societies.

    (2) In this Part of this Schedule, in relation to a scheme recognised by the Commission to any extent, a "direction for its recognition" means a direction that the scheme is, to the extent specified in the direction, a scheme recognised by the Commission.

    The register of recognised schemes

    3. – (1) The central office shall maintain a register of recognised schemes for the investigation of complaints ("the register"), and the register shall—

  • (a) contain a copy of every scheme and the direction for its recognition a copy of which is directed to be kept in it by any provision of this Part of this Schedule and
  • (b) be available for inspection on reasonable notice by members of the public on payment of the prescribed fee.
  • (2) Any member of the public shall be entitled, on payment of the prescribed fee, to be furnished with a copy of any scheme and the direction for its recognition kept in the register.

    Procedure for recognition: Commission's initiative

    4. – (1) If it appears to the Commission, from its own enquiries or from information made available to it, that a scheme has been made or is in operation which qualifies for recognition the Commission shall consider the scheme and the extent to which it qualifies for recognition.

    (2) If, on consideration of a scheme, the Commission is satisfied that the scheme qualifies for recognition and conforms to the relevant requirements in relation to one or more prescribed matters of complaint, the Commission shall approve the scheme as a recognised scheme to such extent as it considers appropriate.

    (3) The Commission shall, on approving a scheme under this paragraph, give a direction for its recognition.

    (4) On giving a direction for the recognition of a scheme, the Commission shall send a copy of the scheme and of the direction to the central office; and the central office shall keep the copy of the scheme and of the direction in the register.

    Procedure for recognition: submission by societies

    5. –(1) Submission by or on behalf of building societies of a scheme for approval by the Commission as a recognised scheme shall be made by an application for recognition which shall be—

  • (a) made in such manner as the Commission specifies, either generally or in any particular case; and
  • (b) accompanied by such information as the Commission may reasonably require, either generally or in any particular case, in order to make its decision on the application;
  • and in this paragraph "the applicants" means those societies or the person acting on their behalf for the purposes of the application.

    (2) Where an application is made to the Commission for recognition of a scheme then—

  • (a) if it appears to the Commission that the scheme qualifies for recognition and conforms to the relevant requirements in respect of one or more of the prescribed matters of complaint, the Commission shall approve the scheme as a recognised scheme to such extent as it considers appropriate;
  • (b) if it appears to the Commission that the scheme, with modifications, will, in addition to qualifying for recognition, conform to the relevant requirements in respect of one or more of the prescribed matters of complaint, and the applicants agree on appropriate modifications within the period of 21 days from the date on which the Commission notifies the applicants of the modifications it proposes for their agreement, the Commission shall approve the scheme as modified as a recognised scheme to such extent as it considers appropriate;
  • but otherwise it shall withhold its approval.

    (3) The Commission shall, on approving a scheme, give a direction for its recognition and send copies of the direction to the applicants.

    (4) On giving a direction for the recognition of a scheme, the Commission shall also send a copy of the scheme and of the direction to the central office; and the central office shall keep the copy of the scheme and of the direction in the register.

    Procedure on accession to schemes

    6. –(1) A building society which accedes to a recognised scheme or has acceded to a scheme which becomes a recognised scheme shall, within the period of 21 days beginning with the date of its accession or on which it received a copy of the direction for its recognition, as the case may be, send a notice of that fact to the central office and to the Commission.

    (2) A notice by a society under paragraph (1) above shall specify the prescribed matters of complaint action in relation to which by the society is subject to investigation under the scheme.

    (3) The central office, on receiving such a notice from a society, shall, if satisfied that the scheme is a recognised scheme to the extent required to enable the society to comply with its duty under section (schemes for the investigation of complaints) (3) in relation to the prescribed matters of complaint specified in the notice, record the accession of the society to the scheme in the public file of the society.

    (4) If a building society fails to comply with sub-paragraph (1) above, the society shall be liable on summary conviction—

  • (a) to a fine not exceeding level 4 on the standard scale; and
  • (b) in the case of a continuing offence, to an additional fine not exceeding £100 for every day during which the offence continues;
  • and so shall any director of the society who is also guilty of the offence.

    Withdrawal of recognition

    7. –(1) The Commission may withdraw its recognition of a scheme if it appears to the Commission that—

  • (a) the scheme does not conform to the relevant requirements; or
  • (b) the scheme is so operated as not to conform to those requirements.
  • (2) Withdrawal of recognition of a scheme under this paragraph may operate in relation to the scheme as a whole or to the extent to which the scheme makes one or more prescribed matters of complaint subject to investigation under it.

    8. – (1) If the Commission proposes at any time to withdraw recognition of a scheme to any extent, it shall serve on each member, on the body administering the scheme and on the adjudicator under the scheme, a notice stating—

  • (a) that the Commission proposes to withdraw recognition and to what extent;
  • (b) the grounds for the proposed withdrawal of recognition; and
  • (c) that the person receiving the notice may make representations with respect to the proposed withdrawal within such period of not less than 14 days as may be specified in the notice.
  • (2) The Commission shall, before reaching a decision on whether to withdraw recognition, consider any representations made to it in accordance with sub-paragraph (1) above and shall serve on every person on whom it served a notice under that sub-paragraph a notice stating its decision and the grounds for it.

    9. Withdrawal of recognition by the Commission shall take effect as from such date as is specified in the notice of its decision, being a date not less than one year nor more than two years after the date of the notice.

    Withdrawal from membership

    10. – (1) A building society wishing to withdraw from membership of a recognised scheme shall send notices of its proposed withdrawal to the central office and to the Commission.

    (2) A notice by a society under subparagraph (1) above shall specify the prescribed matters of complaint action in relation to which by the society is subject to investigation, or on its withdrawal, will become a member under, which, as regards each of the prescribed matters of complaint specified in the notice, action by the society is or will be subject to investigation.

    (3) The central office, on receiving such a notice from a society, if satisfied that its withdrawal from the scheme will not result in a failure by it to comply with the duty imposed on it by section (schemes for the investigation of complaints) (3), shall confirm the withdrawal of the society from the scheme; but, if the central office is not so satisfied, the central office shall withhold its confirmation.

    (4) If the central office withholds its confirmation of a society's withdrawal from a scheme, the society shall continue to be a member of the scheme and bound and entitled under the scheme accordingly.

    (5) On confirming the withdrawal of a society from a scheme the central office shall send to the society and to the Commission notice of its decision and the central office shall record the decision in the public file of the society.'. — [Mr. Ian Stewart.]

    Amendment made: No. 253, New Schedule—

    'Settlement Of Disputes

    Part I

    PROCEEDINGS IN COURT

    Jurisdiction of the court

    1. –(1) No court other than the High Court or, in the case of a building society whose principal office is in Scotland the Court of Session, shall have jurisdiction to hear and determine disputes to which the paragraph applies; and, in this Part of the Schedule, "the court" means the High Court or, as the case may be, the Court of Session.

    (2) This paragraph applies to any dispute—

  • (a) between a building society and a member of the society in his capacity as a member, or
  • (b) between a building society and a representative of such a member in that capacity.
  • in respect of any rights or obligations arising from the rules of the society or any provision of this Act or any statutory instrument under it.

    (3) Except in the cases referred to in sub-paragraph (5) below, no disputes to which this paragraph applies may be referred to arbitration.

    (4) The court shall not hear and determine any dispute arising out of section 55(8) (a) or paragraph 28(4) (a) of Schedule 2 to this Act.

    (5) The court shall not hear and determine any dispute which is required to be referred to arbitration under paragraph 4 below or which is referred to the Commission under paragraph 6 or to an adjudicator under paragraph 7 below except as provided in paragraph 2 below.

    2. The court may hear and determine a dispute falling within paragraph 1(5) above in any case where, on the application of any person concerned, it appears to the court—

  • (a) that application has been made by either party to the dispute to the other party for the purpose of having the dispute settled by arbitration, and
  • (b) that either arbitrators have not been appointed within 40 days of that application or the arbitrators have refused, or have neglected for a period of 21 days, to proceed with the reference or make an award.
  • Right of central office to be heard

    3. –(1) Any person who institutes proceedings in the court in relation to a dispute to which paragraph I above applies shall give notice of the fact and of the matter in dispute to the central office.

    (2) The court shall not proceed to hear a dispute to which paragraph 1 applies until the court is satisfied that the notice required by sub-paragraph (1) above has been given.

    (3) The central office shall be entitled, with the leave of the court, to attend and to be heard at any hearing of a dispute to which paragraph 1 applies.

    Part Ii Arbitration

    Circulation of election addresses, resolutions and statements

    4. –(1) If the rules of the society so provide, any dispute in respect of a refusal by a building society to send to its members—

  • (a) copies of an election address, in accordance with section 55(7), or
  • (b) any document required to be sent under paragraph 28(1) of Schedule 2 to this Act,
  • shall, unless the refusal is on one of the grounds specified in sub-paragraph (2) below be referred to arbitration.

    (2) Those grounds are—

  • (a) that publicity for the document in question would be likely to diminish substantially the confidence in the society of investing members of the public, or
  • (b) that the rights conferred by section 55(7) or paragraph 28(1) are being abused to seek needless publicity for defamatory matter.
  • Procedure on a reference to arbitration

    5. – (1) This paragraph has effect in relation to an arbitration under paragraph 4(1) above.

    (2) One or more arbitrators shall be appointed in the manner provided for by the rules of the building society; and so shall another arbitrator if an appointed arbitrator dies or refuses to act.

    (3) No arbitrator acting on a reference shall be benefically interested (whether directly of indirectly) in the funds of the society.

    (4) The rules of the society may provide for the procedure to be followed on a reference to arbitration.

    (5) An award made by arbitrators, or the majority of them, shall be final and binding.

    (6) For the purposes of the Arbitration Act 1950 and the Arbitration Act 1979 or, in Northern Ireland, the Arbitration Act (Northern Ireland) 1937 the rules of the society shall be treated as an arbitration agreement.

    (7) In relation to Scotland, sub-paragraph (6) above shall be omitted.

    Access to register of members

    6. –(1) Any dispute as to the rights of a member of a building society under paragraph 14 of Schedule 2 to this Act shall be referred to the Commission.

    (2) The reference of a dispute to the Commission under this paragraph shall be treated as a reference to arbitration; and its award shall have the same effect as that of an arbitrator acting in a reference under paragraph 4(1) above.

    Disputes cognizable under a scheme

    7. – (1) Any dispute relating to a prescribed matter of

    complaint action in relation to which is subject to investigation under a scheme under section (Schemes for the investigation of complaints) may, if the complainant and the society or, as the case may be, the complainant and the associated body agree, instead of being determined by the adjudicator under the scheme, be referred to him as arbitrator.

    (2) The reference of a dispute to an adjudicator under subparagraph (1) above shall be treated as a reference to arbitration; and his award shall have the same effect as that of an arbitrator acting in a reference under paragraph 5(1) above.

    (3) Any expression used in this paragraph and section (Schemes for the investigation of complaints) has the same meaning in this paragraph as in that section.

    General

    8. In this Part of this Schedule, in relation to an arbitration in Scotland, references to an arbitrator shall be read as references to an arbiter.'.— [Mr. Ian Stewart.]

    Amendment made: No. 254, New Schedule—

    `Transfers Of Business: Supplementary Provisions

    Part I Issue Of Statement To Members

    Preliminary

    1. In this Part of this Schedule—

    "prescribed matters" in relation to any transfer of the business of a building society to its successor, means the matters relating to the transfer, the society, its officers, members or depositors, or the successor which are prescribed in regulations made under paragraph 5 below; and
    "transfer statement", in relation to a transfer of business by a building society, means the statement with respect to the transfer to be sent to members of the society under paragraph 2 below.

    Duty to send transfer statements to members

    2. A building society which desires to transfer its business shall, in accordance with this Part of the Schedule, send a transfer statement to every member entitled to notice of a meeting of the society.

    3. A transfer statement, in relation to a transfer of business by a building society, shall contain—

  • (a) the particulars required, in relation to the prescribed matters, by the regulations made under paragraph 5 below, and
  • (b) particulars of any other matters required by the Commission in the case of the particular transfer,
  • with or without other particulars regarding the transfer.

    4. — (1) Subject to sub-paragraph (2) below, a building society shall, in relation to a transfer of business, include a transfer statement in or with the notice to be sent to its members of the meeting of the society at which the requisite transfer resolutions are to be moved.

    (2) No transfer statement shall be sent unless its contents, so far as they concern the prescribed matters or any matter of which particulars are required to be given under paragraph 3 (b) above, have been approved by the Commission.

    5. –(1) The Commission, with the consent of the Treasury, may make regulations for the purpose of specifying, as prescribed matters, the matters of which transfer statements are to give particulars; and the regulations may also require particulars to be given of any alternatives to the particular transfer which were available to the society making the transfer.

    (2) The power to make regulations under this paragraph is exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

    Part Ii Confirmation By Commission: Procedure

    6. An application by a building society for confirmation by the Commission of a transfer of its business to a company shall be made in such manner as the Commission may prescribe.

    7. –(1) Where a building society applies for confirmation of a transfer of its business, the society shall publish a notice of the application in any one or more of the London Gazette, the Edinburgh Gazette or the Belfast Gazette, as the Commission directs and, if it so directs, in one or more newspapers.

    (2) A notice published in pursuance of sub-paragraph (1) above shall—

  • (a) state that any interested party has the right to make representations to the Commission with respect to the application;
  • (b) specify a date determined by the Commission before which any written representations or notice of a person's intention to make oral representations must be received by the Commission; and
  • (c) specify a date determined by the Commission as the day on which it intends to hear any oral representations.
  • 8. –(1) After the date specified in the notice in pursuance of paragraph 7(2) (b) above, the Commission shall—

  • (a) determine the time and place at which oral representations may be made;
  • (b) give notice of that determination to the building society making the transfer and any persons who have given notice of their intention to make oral representations; and
  • (c) send copies of the written representations received by the Commission to the building society making the transfer.
  • (2) The Commission shall allow the building society making the transfer an opportunity to comment on the written representations, whether at a hearing or in writing, before the expiration of such period as the Commission specifies in a notice to the society.'.— [Mr. Ian Stewart.]

    Schedule 1

    The Building Societies Commission

    Amendments made: No. 255, in page 140, line 18, leave out 'in writing'.

    No. 256, in line 36, at end insert—

    '3A. No person who has attained the age of 70 years is eligible to be or to remain a part-time member of the Commission.'.

    No. 257, in page 141, line 38, at end insert—

    '11A. In Schedule 2 to the Parliamentary Commissioner Act 1967 (which lists the authorities subject to investigation under that Act) there shall be inserted in the appropriate place in alphabetical order the words "Building Societies Commission".'. —[Mr. Ian Stewart.]

    Schedule 2

    Establishment, Incorporation And Constitution Of Societies

    Amendments made: No. 258, in page 142, line 32, leave out from 'society' to end of line 33.

    No. 259, in page 142, line 34, leave out 'the society with the' and insert 'it with a'.

    No. 260, in page 142, line 35, leave out sub-paragraph (3) and insert—

    '(3) On registering a building society under sub-paragraph (2) above, the central office shall—
  • (a) retain and register one copy of the memorandum and of the rules,
  • (b) return another copy to the secretary of the society, together with a certificate of registration, and
  • (c) keep another copy, together with a copy of the certificate of incorporation, and of the certificate of registration of the memorandum and the rules, in the public file of the society.'.
  • No. 261, in page 144, leave out lines 31 to 34.

    No. 262, in page 145, line 39, after 'copy', insert

    ', together with a copy of the certificate of registration of the alteration,'.

    No. 263, in page 149, line 34, leave out 'supply' and insert 'give'.

    No. 264, in page 149, line 37, leave out 'supplied' and insert 'given'.

    No. 265, in page 150, line 18, at end insert—

    '(4) For the purposes of this Act "registered address", in relation to a member of a building society, means—
  • (a) the address shown in the register maintained under this paragraph, except in a case where paragraph (b) below applies;
  • (b) where the member has requested that communications from the society be sent to some other address, that other address.
  • Exception to duties to send documents

    13A. – (1) A building society is not obliged by any provision of this Act or its rules to send a notice or other document to a member in whose case the society has reason to believe that communications sent to him at his registered address are unlikely to be received by him.

    (2) Where the requirement relates to notice of a meeting or postal ballot of the society, the society must, instead, comply with the advertising requirements of paragraph 32 below.'.

    No. 266, in page 154, line 37, leave out 'sent', and insert 'given'.

    No. 267, in page 154, line 42, leave out 'sent' and insert 'given'.

    No. 268, in page 155, line 34, leave out from `(b)' to `in' in line 35.

    No. 269, in page 155, line 38, at end insert

    ', at the beginning of the period of 56 days immediately preceding the voting date for members voting in person at a meeting or, as the case may be, on a postal ballot.'.

    No. 270, in page 155, line 41, leave out from beginning to end of line 46 and insert

    'he holds shares in the society to a value not less than the prescribed amount or such lesser amount as may be specified in the rules.'.

    No. 271, in page 157, line 35, at end insert—

    ". No resolution of a building society shall be passed as a borrowing members' resolution unless it is required to be so passed by or under any provision of this Act or by the rules of the society.'.

    No. 272, in page 158, line 11, at end insert—

    'Transfer resolutions

    27A. – (1) The transfer resolutions required for the purposes of section (Transfer of business to commercial company), for the approval by members of a building society of a transfer of its business are two resolutions, of which—

  • (a) one is passed as a borrowing members' resolution, and
  • (b) the other ("the requisite shareholders' resolution") is passed in accordance with sub-paragraphs (2) to (5) below.
  • (2) In a case where the successor is to be a specially formed company, the requisite shareholders' resolution—

  • (a) must be passed as a special resolution, and
  • (b) must be passed on a poll on which not less than 20 per cent. of the members of the society qualified to vote on a special resolution voted;
  • and the notice of the resolution required by sub-paragraph (a) or sub-paragraph (b) of paragraph 26(1) above, as the case may be, must specify that the resolution will not be effective unless both of the requirements specified in this sub-paragraph are fulfilled.

    (3) Subject to any direction under sub-paragraph (5) below, in a case where the successor is to be an existing company, the requisite shareholders' resolution must be passed as a special resolution and either—

  • (a) must be passed by not less than 50 per cent. of the members qualified to vote on a special resolution, or
  • (b) must be passed by the holders, being members qualified to vote on a special resolution, of shares in the society to a value, on the voting date, representing not less than 90 per cent. of the total value of the shares held on that date by the members so qualified to vote;
  • and, in either case, the resolution must be a resolution in relation to which the notice required by paragraph 26 above includes a statement specifying that the resolution will not be effective unless either of the above requirements is fulfilled has been duly given.

    (4) If the Commission considers it expedient, in relation to a transfer of the business of a building society to an existing company, to do so for the purpose of protecting the investments of the sharholders of or depositors with the society, the Commission may give a direction under sub-paragraph (5) below.

    (5) A direction under this sub-paragraph is a direction that, for the purposes of the transfer of business specified in the direction, the requisite shareholders' resolution is to be effective if it is passed as a special resolution.

    (6) The Treasury, after consultation with the Commission may by order amend sub-paragraph (2) (b), (3) (a) or (3) (b) above so as to substitute for the percentage for the time being specified in the sub-paragraph such other percentage as it thinks appropriate.

    (7) The power to make orders under sub-paragraph (6) above is exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

    (8) In this paragraph "voting date", with reference to a requisite shareholders' resolution, has the same meaning as in paragraph 22(7) above. '.

    No. 273, in page 158, line 18, leave out 'and (5)' and insert '(4A) and (4B)'.

    No. 274, in page 158, line 23, leave out sub-paragraph (b).

    No. 275, in page 158, in line 26, leave out 'circulate' and insert 'send'.

    No. 276, in page 158, line 27, after 'meeting', insert 'a copy of'.

    No. 277, in page 158, line 28, leave out '200' and insert `100'.

    No. 278, in page 158, line 31, after first 'number' insert—

  • `(i) in the case of a society with a qualifying asset holding, is fifty or such lesser number as is specified for the purpose in the rules of the society, and
  • (ii) in the case of any other society'.
  • No. 279, in page 159, line 2, leave out from 'send' to second 'a' and insert

    `notices of a resolution or copies of'.

    No. 280, in page 159, line 4, after 'or', insert,

    ', as the case may be,'.

    No. 281, in page 159, line 8, at end insert

    `or for frivolous or vexatious purposes.'.

    No. 282, in page 159, line 12, at end insert—

    `(4A) If the rules of a building society so provide, sub-paragraph (1) above does not require notice of a resolution to be given to members of the society if the resolution is in substantially the same terms as any resolution which has been defeated at a meeting or on a postal ballot during the period beginning with the third annual general meeting before the date on which notice of the resolution is given to the society.
    (4B) No copies of a statement with respect to a resolution shall be sent to members of a building society if, on any of the grounds in sub-paragraph (4) or (4A) above, the society does not give the notice of the resolution to them required by sub-paragraph (1)(a) above.'.

    No. 283, in page 159, line 13, leave out from beginning to end of line 26 and insert—

    '(5) The Commission shall hear and determine any dispute arising under sub-paragraph (4)(a) above,'.

    No. 284, in line 40, leave out from 'The' to 'statement' and insert

    'notices of a resolution and the copies of a'.

    No. 285, in line 41, leave out '28(1) (b)' and insert '28(1) (a)'.

    No. 286, in line 44, leave out 'copies' and insert `them'.

    No. 287, in line 47, leave out from 'Where', to second `of and insert

    `notices of a resolution or copies'.

    No. 288, in page 160, line 4, after first 'a', insert `notice or'.

    No. 289, in page 160, line 6, after first 'a', insert `notice or'.

    No. 290, in page 162, line 7, leave out from beginning to 'For' in line 1 on page l63 and insert—

    'Advertising requirements in lieu of notice of meetings, etc.

    32. — (1) The advertising requirements referred to, in relation to notices of meetings or postal ballots of building societies, are as follows.

    (2) Notice of the holding of the meeting or of the postal ballot must be given either—

  • (a) by displaying a notice in a prominent position in every branch office, or
  • (b) by advertisement in one or more newspapers circulating in the areas in which the members of the society reside,
  • according as the rules of the society provide.

    (3) The notice must be so given not later than 21 days before the date of the proposed meeting or, as the case may be, the final date for the receipt of completed ballot papers.

    (4) The notice shall state where members may obtain copies of the resolutions and any statements with respect to the matter referred to in a resolution, forms relating to voting by proxy and, in the case of a postal ballot, the ballot papers.

    The prescribed amount

    33.—(1).'.

    No. 291, in page 163, line 10, leave out Part IV. — [Mr. Ian Stewart.]

    Schedule 3

    Authorisation: Supplementary Provisions

    Amendments made: No. 292, in page 166, line 37, leave out 'in writing'.

    No. 293, in page 167, line 13, at end insert—

    '(4A) If the grounds for the proposed refusal include the ground that any officer of the society is not a fit and proper person to hold office in the society the Commission shall also serve the notice specified in sub-paragraph (4) above on the officer concerned giving him the like right to make representations and to be heard with respect to his fitness and propriety for office.'.

    No. 294, in line 16, after '(4)', insert 'or (4A)'.

    No. 295, in line 20 after 'society', insert

    `and every other person on whom a notice was served under sub-paragraph (4A) above.'.

    No. 296, in line 34, leave out sub-paragraph (8).

    No. 297, in page 168, line 12, leave out paragraph 4.

    No. 298, in page 172, line 5, leave out paragraph 10.

    No. 299, in line 11, leave, out from '11' to end of line 25 and insert—

  • '(1) The modifications of the provisions of Part III of this Schedule in their application to the imposition of conditions by the Commission in pursuance of a direction of an appeal tribunal under section (Determination of appeal) (6) or (7) are as follows.
  • (2) The notice under paragraph 5(1) shall be served on the society and the other persons there specified within the period of 14 days beginning with the date on which the Commission received notice of the tribunal's decision under subsection (8) of that section; and a copy shall also be sent within that period to the tribunal.
  • (3) The notice under paragraph 5(1) may specify, as the period within which representations may be made, a period of now less than 7 days.
  • (4) If the Commission serves a notice under paragraph 6(2) on the society and the other persons there specified it shall also send a copy of the notice to the tribunal.
  • No. 300, in line 27, leave out paragraph 12 and insert—

    '12. Where any provision of this Schedule requires notice of any matter to be served on every director of a building society that requirement is satisfied by serving notice on each director whose appointment has been officially notified and the non-receipt of a notice of a matter by a director or the chief executive does not affect the validity of any action on the part of the Commission.'. —[Mr. Ian Stewart.]

    Schedule 4

    Advances: Supplementary Provisions

    Amendments made: No. 301, in page 173, line 3, leave out Part I.

    No. 302, in page 174, line 42, after 'society', insert 'or any other person'.

    No. 303, in page 174, line 43, leave out from 'excuse' to end of line 5 on page 175 and insert 'shall be an offence'.

    No. 304, in page 175, line 10, at end insert—

    'and in relation of such an offence on the part of a building society, so shall any officer who is also guilty of the offence.'.

    No. 305, in page 176, line 41, at end add—

    'Power to prescribe form of documents

    5. —(1) The Chief Registrar may make rules for prescribing anything authorised or required by any provision of this Schedule to be prescribed; and in this Schedule "prescribed" means prescribed by rules made under this paragraph.

    (2) The power to make rules under this paragraph shall be exercisable by statutory instrument.'.— [Mr. Ian Stewart.]

    Schedule 5

    The Building Societies Investor Protection Board

    Amendment made: No. 306, in page 177, line 41, leave out 'in writing'. — [Mr. Ian Stewart.]

    Schedule 6

    Insolvency Payments: Trusts And Joint Holdings

    Amendments made: No. 307, in page 179, line 7, leave out 'or loan'.

    No. 308, in page 179, line 7, leave out 'or to'. — [Mr. Ian Stewart.]

    Schedule 7

    Investors: Special Provisions

    Amendments made: No. 309, in page 180, line 42, at end add—

    '(4) The Treasury may from time to time by order direct that this paragraph shall have effect as if for the reference in sub-paragraph (1) above to £5,000 there were substituted a reference to such higher amount as may be specified in the order.
    (5) An order under sub-paragraph (4) above shall apply in relation to deaths occurring after the expiraton of a period of one month beginning with the date on which the order comes into force.
    (6) The power to make an order under sub-paragraph (4) above is exercisable by statutory instrument but no such order shall be made unless a draft of it has been laid before and approved by a resolution of each House of Parliament.'.

    No.310, in page 181, line 1, leave out from first 'of' to first 'the' in line 2 and insert

    'a deposit made by him with'. —[Mr. Ian Stewart.]

    Schedule 8

    Powers To Provide Services

    Amendments made: No. 311, in page 181, leave out line 20 and insert—

    '8. Establishment and management of unit trust schemes for the provision of pensions.
    8A. Establishment and, as regards the contributions and benefits, administration, of pension schemes.'.

    No. 312, in page 181, line 21, at end insert

    ', whether on behalf of the person effecting or the person providing the insurance.
    9A. Giving advice as to insurance of any description.'.

    No. 426, in page 181, line 24, at end insert—

    'Part 1A

    General Restriction On Services Abroad

    (1) Subject to sub-paragraph (2) below, no power to provide a service of a description specified in Part I of this Schedule includes power to maintain a place of business in a country or territory outside the United Kingdom for that purpose unless the society also conducts the principal business of a building society in that country or territory.

    (2) This paragraph does not apply to the power to provide estate agency services.'.

    No. 313, in page 182, line 10, leave out paragraph 5

    No. 314, in page 182, line 30, at end insert—

    'Pensions management etc.

    8A. The power to establish and manage unit trust schemes is available only to a subsidiary of the society.'.

    No. 316, in page 182, line 33, leave out from `provision' to end of line 34 and insert

    'primarily to individuals; but this restriction does not apply to, nor in determining whether over any period insurance is being provided primarily to individuals is any account to be taken of income derived from, insurance relating to land which is to secure advances by the society.'.

    No. 317, in page 182, line 41, leave out paragraph 12.

    No. 318, in page 183, line 25, at end insert—

    `Status as bankers

    2A. —(1) So far as regards the provision by it of a service which is a qualifying banking service for the purposes of this paragraph a building society shall be treated for all purposes as a bank and a banker and as carrying on the business of banking or a banking undertaking whether or not it would be so treated apart from this paragraph.

    (2) A building society provides a qualifying banking service for the purposes of this paragraph if, with or without any restriction, it provides either or both of the services falling within paragraph 1 or 3 of Part I.

    (3) This paragraph does not affect the determination of any question as to the status of a building society as a bank or banker for other purposes.

    Foreign exchange services to individuals

    2B. — (1) For the purpose of determining whether a transaction consists in the provision of foreign exchange services to an individual it shall be presumed that a transaction does so consist if the value of the transaction is less than the standard amount.

    (2) The standard amount is, subject to sub-paragraph (3) below, £5,000.

    (3) The Commission, with the consent of the Treasury, may by order amend sub-paragraph (2) above so as to substitute for the amount for the time being specified in that sub-paragraph such other amount as it considers appropriate for the purposes of this paragraph.

    (4) For the purposes of sub-paragraph (1) above the value of a transaction consisting in the provision of foreign exchange services is, where the society is selling the foreign currency, the sum paid to it and, where the society is purchasing the foreign currency, the sum paid by it.'

    No. 319, in page 183, line 30, at end insert—

    `3A. This Schedule is to be construed as relating only to the capacity of building societies or their subsidiaries to provide the services for the time being specified in it and not as making lawful any activity which would not be lawful apart from this Schedule.'.

    No. 320, in page 183, in line 32, leave out from `services"' to 'Schedule' in line 33 and insert

    `has the same meaning as in'.

    No. 403, in page 183, line 37, at end insert

    '"pension scheme" means a personal pension scheme (within the meaning of the Social Security Act 1986) or an occupational pension scheme (as defined in section 66(1) of the Social Security Pensions Act 1975 or in relation to Northern Ireland, Article 2(2) of the Social Security Pensions (Northern Ireland) order 1975) and the "provision of pensions" means the provision of benefits which are "money purchase benefits" within the meaning of that Act of 1986;'

    No. 428, in page 183, line 37, at end insert—

    '"the principal business of a building society" means the business of raising funds (whether by the issue of shares or receiving deposits) for the purposes of the society or of making advances secured on land;'.

    No. 322, in page 183, line 38, after 'limit"', insert `, in relation to guarantees'.

    No. 323, in page 183, line 41, at end add

    ': and "'unit trust scheme" has the same meaning as in the Financial Services Act 1986.'. —[Mr. Ian Stewart.]

    Schedule 10

    Requisite Particulars Of Income Of Related Businesses

    Amendments made: No. 422, in page 185, leave out lines 13 to 27 and insert—

    `Part I

    Requisite Particulars Where No Adoption Of Part 11'

    No. 326, in page 185, line 29, leave out

    'body or firm associated with'

    and insert 'business associate of'.

    No. 327, in page 186, line 9, leave out

    'body or firm associated with'

    and insert 'business associate of'.

    No. 328, in page 186, line 34, leave out

    'body or firm associated with'

    and insert 'business associate of'.

    No. 329, in page 186, line 43, leave out

    `body or firm associated with'

    and insert 'business associate of'.

    No. 423, in page 187, line 6, at end insert—

    'Part Ii

    Requisite Particulars On Adoption Of This Part

    Conveyancers

    6. Where the business associate of the building society provides conveyancing services the requisite particulars of its business in any financial year are the following—

  • (a) the prescribed band within which falls the estimated number of cases in which it has provided conveyancing services in respect of an advance secured on land and the purchase of the land both to the society and to the borrower;
  • (b) the prescribed band within which falls the estimated number of cases in which it has provided the society (but not the borrower) with conveyancing services in respect of an advance secured on land;
  • (c) the prescribed band within which falls the estimated aggregate amount of the fees paid to it by the society or by or on behalf of the bon-ower for the provision of conveyancing services falling within sub-paragraphs (a) arid (b) above;
  • (d) the prescribed band within which falls the estimated aggregate of the amounts paid to it by the society by way of commission for its having introduced investment business to the society;
  • (e) the prescribed band within which falls the estimated aggregate amount of any fees paid to it by the society in consideration of the provision of conveyancing services in respect of any land held by the society under section 6, 10, 15 or 17;
  • (f) the prescribed band within which falls the estimated aggregate of any fees paid to it by the society in consideration of the provision of management services to the society.
  • Valuers and surveyors

    7. Where the business associate of the building society provides the services of surveying and valuing property the requisite particulars of its business in any financial year are the following—

  • (a) the prescribed band within which falls the estimated number of cases in which it has, in respect of any land which is to secure an advance, surveyed the land or provided a valuation of it on behalf of the society or the borrower or both;
  • (b) the prescribed band within which falls the estimated number of cases in which it has, on behalf of the society (but not the borrower), surveyed any land which is to secure an advance or provided the society with a valuation of it;
  • (c) the prescribed band within which falls the estimated aggregate amount of the fees paid to it by the society or by or on behalf of the borrower for the provision of the services falling within sub-paragraphs (a) and (b) above;
  • (d) the prescribed band within which falls the estimated aggregate of the amounts paid to it by the society by way of commission for its having introduced investment business to the society;
  • (e) the prescribed band within which falls the estimated aggregate of any fees paid to it by the society in consideration of the provision of surveying or valuing services in respect of any property held by the society under section 6, 10, 15 or 17;
  • (f) the prescribed band within which falls the estimated aggregate amounts of any fees paid to it by the society in consideration of the provision of management services to the society.
  • Accountants

    8. Where the business associate of the building society provides accountancy services the requisite particulars of its business in any financial year are the following—

  • (a) the prescribed band within which falls the estimated aggregate amount of the fees paid to it by the society for the provision of accountancy services; and
  • (b) the prescribed band within which falls the estimated aggregate amount of any fees paid to it by the society in consideration of the provision of management services to the society.
  • Insurance agents, etc.

    9. Where the business associate of the building society arranges for the provision of relevant insurance the requisite particulars of its business in any financial year are the following—

  • (a) the prescribed band within which falls the estimated aggregate of the amounts paid to it by the society or by way of commission by insurers in respect of relevant insurance effected by the society or by borrowers in compliance with the terms on which advances secured on land are made by the society; and
  • (b) the prescribed band within which falls the estimated aggregate amount of any fees paid to it by the society in consideration of the provision of management services to the society.
  • Part Iii

    Supplementary

    Power to prescribe bands for Part II particulars

    10. — (1) The Commission, with the consent of the Treasury, may by order prescribe, for the purposes of the provisions of Part II of this Schedule, —

  • (a) series of numbers by reference to limits specified in the order, or
  • (b) series of monetary amounts by reference to limits so specified;
  • and, in any provision of Part II, "prescribed band" means, in realtion to cases, any series of numbers so prescribed for the purposes of that provision and, in relation to monetary amounts, any series of monetary amounts so prescribed for the purposes of that provision.

    (2) The power conferred by this paragraph includes power—

  • (a) to prescribe different series of numbers or of monetary amounts for the purposes of different provisions, and
  • (b) to prescribe series of numbers or of monetary amounts such that the same number or amount is included in more than one series.
  • (3) The power to make an order under this paragraph is exerciseable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

    Interpretation

    11. —(1) In this Schedule—

    "administrative services" means services falling within section 63(5);
    "business associate" and "associated", in relation to a building society, have the same meaning as in section 63;
    "financial year" means a financial year of the society with which the business associate is associated;
    "prescribed band" has the meaning given by paragraph 10(1) above; and
    "relevant insurance" means insurance falling within section 63(4)(d).

    (2) In section 63 "the volume of the business", in relation to any business constituted by the provision of any services referred to in any provision of Part I or Part II of this Schedule means—

  • (a) in the case of a paragraph of Part I, the aggregate of all the fees and commissions which are the subject of the requisite particulars under that paragraph; and
  • (b) in the case of a paragraph of Part II, the aggregate of the amounts which are specified in orders under paragraph 10 above as the upper limits of the prescribed bands within which fall the estimated aggregates of the fees or commissions which are the subject of the requisite particulars under the provisions of that paragraph:. —[Mr. Ian Stewart.]
  • Schedule 11

    Auditors: Appointment, Tenure, Qualifications

    Amendments made: No. 330, in line 40, leave out `court' and insert 'High Court'.

    No. 331, in page 188, line 46, leave out 'court' and insert 'High Court'.

    No. 332, in page 189, line 16, leave out 'court' and insert 'High Court'.

    No. 333, in page 191, line 2, leave out 'in writing'.

    No. 334, in line 25, leave out 'court' and insert 'High Court'.

    No. 335, in line 30, leave out 'court' and insert 'High Court'.

    No. 336, in line 44, leave out 'court' and insert 'High Court'.

    No. 337, in page 192, line 22, leave out 'circulate' and insert 'send to'.

    No. 338, in page 193, line 3, leave out 'court' and insert 'High Court'.

    No. 339, in line 12, leave out 'court' and insert 'High Court'.

    No. 340, in line 21, at end add—

    '9. In the application of this Schedule to Scotland, references to the High Court shall be read as references to the Court of Session. '. —[Mr. Ian Stewart.]

    Schedule 12

    Winding Up: Supplementary Provisions

    Amendments made: No. 341, in page 194, line 29, after 'be', insert 'given or'.

    No. 405, in page 195, line 16, after '26', insert 'or 29'.

    No. 406, in line 18, at end insert—

    '6B. Section 605 (saving for rights of creditors and contributories) shall have the same effect in relation to a building society in the course of dissolution by consent as it has in relation to a society being wound up voluntarily;'.

    No. 407, in line 28, at end insert—

    '(2A) Section 519(7) shall have the same effect in relation to a building society in the course of dissolution by consent as it has in relation to a society being wound up voluntarily.'.

    No. 408, line 35, leave out '(5)' and insert—

    '7A. Section 524 (commencement of winding up by the court) shall have effect as if the following subsection were inserted in it, after subsection (1), —
    "(1A) If, before the presentation of a petition for the winding up of a building society by the court, an instrument for the dissolution by consent of the society as been placed in the public file of the society, the winding up of the society shall be deemed to have commenced on the date on which a copy of the instrument was placed on the file; and unless the court, on proof of fraud or mistake directs otherwise, all proceedings taken in the course of the dissolution shall be deemed to have been validly taken.".

    7B. ' .

    No. 342, in page 197, line 33, leave out '242' and insert `241'.

    No. 343, in page 198, line 1, leave out `(e)' and insert `(d)'

    No. 344, in page 198, line 22, leave out '6(6)' and insert `(6)'. — [Mr. Ian Stewart.]

    Schedule 13

    Mergers: Supplementary Provisions

    Amendments made: No. 345, in page 199, line 5 leave out

    'Subject to paragraph 3 below,'.

    No. 346, in line 11, leave out from 'Commission' to 'in' in line 12.

    No. 347, in line 15, leave out from `to' to end of line 16 and insert

    'every member entitled to notice of a meeting of the society a statement'.

    No. 348, in line 17, at end insert—

    '(1A) A building society shall include the statement referred to in sub-paragraph (1) above in or with the notice to be sent to its members of the meeting of the society at which the resolutions required for the approval of the amalgamation or, as the case may be, the transfer are to be moved.
    (1B) No statement shall be sent unless its contents, so far as they concern the matters specified in sub-paragraph (2) below, have been approved by the Commission.'.

    No. 349, in page 199, line 31, leave out 'merger' and insert 'amalgamation'.

    No. 350, in page 199, line 39, at end insert—

    '(2A) The statement shall be sent so that any member to whom the building society sends notice of the meeting at which the resolutions to approve the amalgamation or transfer are to be considered will receive the statement not later than he receives the notice. '.

    No. 351, in page 199, line 42, leave out from beginning to end of line 11 on page 200.

    No. 352, in page 200, line 12, leave out Part II and insert—

    'Part Ii

    Notification Of Proposals For Merger

    Preliminary

    '4. In this Part of this Schedule—

    "merger" means an amalgamation of building societies under section 82 or a transfer of all the engagements of one building society to another under section 83; and "merge" has a corresponding meaning;
    "merger proposal", in relation to a building society, means a proposal in writing, by another building society desiring to merge with it, for the societies to merge, with or without terms for the merger; and "proposer" has a corresponding meaning;
    "merger resolutions", in relation to a building society, means the resolutions required for the approval of a merger of the society with another building society under section 82(2) or 83(2);
    "merger statement" means a statement containing the requisite particulars of a merger proposal; and
    "requisite particulars", in relation to a merger proposal, means the particulars required by paragraph 5(2) below to be given in a merger statement.

    Duty to notify members

    5.—(1) Subject to sub-paragraph (3) below, it shall be the duty of a building society receiving a merger proposal to send, in accordance with this Part of this Schedule, a merger statement in respect of the proposal to every member entitled to notice of a meeting of the society.

    (2) A merger statement must contain the following particulars—

  • (a) the fact that a merger proposal has been made, and
  • (b) the identity of the proposer;
  • with or without other particulars regarding the proposal.

    (3) Sub-paragraph (1) above does not require a merger statement to be sent to members if the proposer has requested in writing that the requisite particulars are to be treated as confidential; and, where such a request is made and is at a later date withdrawn in writing, the society receiving the proposal shall, for the purposes of this Part of this Schedule, treat the proposal as having been received on that date instead of any earlier date.

    6. —(1) A building society shall include in or with every notice of its annual general meeting a merger statement with respect to any merger proposal, other than a proposal of which notice has already been given under this paragraph—

  • (a) received by it during the period of 12 months ending with the ninth month of last financial year of the society before that meeting; or
  • (b) treated by paragraph 5(3) above as having been received by it during the last three months of that financial year;
  • and the society may also include, under this sub-paragraph, a merger statement with respect to any proposal received, or treated as received, by it after the end of either period.

    (2) In any case where merger resolutions are to be moved at any meeting of a building society, every notice of the meeting shall have included in or with it a merger statement with respect to any merger proposal, other than a proposal of which notice has already been given under this paragraph, received by it more than 42 days before the date of the meeting.

    Duty to notify the central office

    7. —(1) Where a building society sends a merger statement to its members under paragraph 6 above in connection with a meeting of the society, it shall send a copy of the statement to the central office at least 14 days before the date of the meeting.

    (2) The central office shall keep the copy of a merger statement received by it from a building society in the public file of that society.

    Penalty

    8. If default is made by a building society in complying with paragraph 6(1), 6(2) or 7 above, the society shall be liable on summary conviction to a fine not exceeding level 4 on the standard scale; and so shall any officer who is also guilty of the offence.'.

    No. 353, in page 203, line 11, leave out 'will' and insert 'intends to'.

    No 354, in page 203, line 26, leave out 'he' and insert `the Commission'. — [Mr. Ian Stewart.]

    Schedule 14

    Amendments Of Acts

    Amendments made: No. 355, in page 203, line 28, at end insert—

    `Part I

    United Kingdom

    Land Registration Act 1925 (c. 21)

    In section 25(1) (proprietor's power to create charges) of the Land Registration Act 1925, in paragraph (b), for the words from "under" to "with" there shall be inserted "(within the meaning of the Building Societies Act 1986), in accordance with".'

    No. 356, in page 204, line 22, at end insert–

    'Stock Transfer Act 1963 (c. 18)

    In section 1(4) of the Stock Transfer Act 1963 (simplified transfer of certain securities, not to apply to building society securities), for "1962" there shall be substituted "1986".

    Industrial and Provident Societies Act 1965 (c. 12)

    In section 31 (b) of the Industrial and Provident Societies Act 1965 (authorised investments), for "society registered under the Building Societies Acts" there shall be substituted "building society within the meaning of the Building Societies Act 1986'.'.

    No. 357, in line 24, leave out paragraph 3.

    No. 358, in line 28, at end insert—

    'Income and Corporation Taxes Act 1970 (c. 10)

    (1) This paragraph amends the Income and Corporation Taxes Act 1970 as follows.

    (2) In section 343(8) (arrangements for payment of tax by building societies) for "Building Societies Act 1962 or the Building Societies Act (Northern Ireland) 1967" there shall be substituted "Building Societies Act 1986".

    (3) In section 415(5) (contractual savings schemes) for "Building Societies Act 1962 or the Building Societies Act (Northern Ireland) 1967" there shall be substituted "Building Societies Act 1986".'.

    No. 359, in line 43, at end insert—

    'Banking Act 1979 (c. 37)

    . — This paragraph amends the Banking Act 1979 as follows.

    (2) In section 34(1) (Treasury regulations controlling advertisements for deposits), after the word "Bank" there shall be inserted the words "and, in so far as they relate to building societies, the Building Societies Commission".

    (3) In section 36(4) (exemption from restriction on use of description "banking services") there shall be inserted—

  • (a) after the word "Act", the words "or an authorised building society,", and
  • (b) after the words "the institution", the words "or society, as the case may be".
  • (4) In section 41(5) (consents for prosecutions), in paragraph (a) after the words "Public Prosecutions or", and in paragraph (b) after the words "Ireland or", there shall be inserted the words ", in the case of proceedings against a building society, the Building Societies Commission or, in any other case".

    (5) In section 50(1) (definitions), after the definition of "the Bank" there shall be inserted the following definition—

    "building society" means a building society within the meaning of the Building Societies Act 1986 and, in that context, "authorised" has the meaning given by section 98(1) of that Act;".'.

    No. 360, in line 43, at end insert—

    'Consumer Credit Act 1974 (c. 39)

    . — (1) This paragraph amends the Consumer Credit Act 1974 as follows.

    (2) In section 16(1) (consumer credit agreement with certain bodies exempt from regulation) the words "or building society" shall be omitted and, after paragraph (f), there shall be inserted the words ", or

    (g) a building society.".

    (3) In section 16(3) (Secretary of State's duty to consult before making orders), after paragraph (d) there shall be inserted the words "or

    (e) under subsection (1) (g) without consulting the Building Societies Commission and the Treasury.".

    (4) In section 189(1) (definitions), for the definition of "building society" there shall be substituted the following definition—

    ""building society" means a building society within the meaning of the Building Societies Act 1986;".'

    No. 361, in page 204, line 43, at end insert—

    'Local Government Act 1972 (c. 70)

    In Schedule 12A (access to information: exempt information) to the Local Government Act 1972—

  • (a) in Part II, in paragraph 2(d) for "1962" there shall be substituted "1986"; and
  • (b) in Part III, in paragraph 1(1), after the definition of `protected informant' there shall be inserted the following definition—
  • "'registered', in relation to information required to be registered under the Building Societies Act: 1986, means recorded in the public file of any building society (within the meaning of that Act);".

    Charging Orders Act 1979 (c. 53)

    In section 6(1) (interpretation) of the Charging Orders Act 1979, in the definition of "building society" for "1962" there shall be substituted "1986".

    Finance Act 1982 (c. 39)

    . —-(1) This paragraph amends the Finance Act 1982 as follows.

    (2) In section 28(5) (variation of terms of repayment of certain loans), for "Building Societies Act 1962 or the Building Societies Act (Northern Ireland) 1967" there shall be substituted "Building Societies Act 1986".

    (3) In paragraph 2(4), 4(1) and 14(1) of Schedule 7 (deduction of tax from certain loan interest), for "Building Societies Act 1962 or the Building Societies Act (Northern Ireland) 1967" there shall be substituted "Building Societies Act 1986".

    Companies Act 1985 (c. 6)

    (1) This paragraph amends the Companies Act 1985 as follows.

    (2) In section 295(3) (disqualification orders against directors of companies; meaning of "company"), after "Part XXI" there shall be inserted "and a building society (within the meaning of the Building Societies Act 1986).".

    (3) In section 302(4) (provision against undischarged bankrupt acting as director, etc.; meaning of "company"), after "unregistered company" there shall be inserted ", a building society (within the meaning of the Building Societies Act 1986)".'.

    No. 362, in page 205, line 39, at end add—

    'Part Ii

    Northern Ireland

    Payment of Wages Act (Northern Ireland) 1970 (c.12 N.I.)

    .—(1) This paragraph amends the Payment of Wages Act (Northern Ireland) 1970 as follows.

    (2) In section 1(3) (authorised means of payment of wages), after paragraph (a) there shall be inserted—

    "(aa) payment into an account at a building society, being an account standing in the name of the person to whom the payment is due, or an account standing in the name of that person jointly with one or more persons,".

    (3) In section 2(1) (requirements applicable to authorised payments), after "bank" there shall be inserted "or building society".

    (4) In section 7(1) (interpretation) —

  • (a) in the definition of "account", after "way)" there shall be inserted "and, in relation to a building society, includes a share account and a deposit account (however described)",
  • (b) after the definition of "bank" there shall be inserted—
  • "building society" means a building society within the meaning of the Building Societies Act 1986;", and

    (c) in the definition of "branch", after "head office of the bank" there shall be inserted " and, in relation to a building society, includes the principal office of the society;".

    Private Streets (Northern Ireland) Order 1980 (S.I. 1980/1086 (N.I.12))

    . In Article 33 (security not to be deemed prior mortgage under Building Societies Acts) of the Private Streets (Northern Ireland) Order 1980 for the words from "section 32" where they first occur onwards there shall be substituted "section 11(2) (d) or (4) of the Building Societies Act 1986".

    Housing (Northern Ireland) Order 1981 (S.I. 1981/156 (N.I.3))

    . — (1) This paragraph amends the Housing (Northern Ireland) Order 1981 as follows.

    (2) In Article 2(2) (interpretation) after the definition of "building regulations" there shall be inserted—

    " "building society" means a building society within the meaning of the Building Societies Act 1986.".

    (3) In Article 156(5) (b) (consultations by the Department regarding forms of indemnity agreements) for "Registrar of Friendly Societies for Northern Ireland" there shall be substituted "Building Societies Commission".

    (4) For paragraph 1 of Schedule 10 there shall be substituted—

    "1. Building Societies.".

    Property (Discharge of Mortgage by Receipt) (Northern Ireland) Order 1983 (S.I. 1983/766 (N.I. 9),

    . In Article 3(10) of the Property (Discharge of Mortgage by Receipt) (Northern Ireland) Order 1983, after "applies" in the definition of "mortgage" there shall be inserted "and, subject to paragraph 4(7) of Schedule 4 to the Building Societies Act 1986, does not include a mortgage to which that paragraph 4 applies.".

    Housing (Northern Ireland) Order 1983 (S.I. 1983/1118 (N.I. 15))

    . In Article 3(4) of the Housing (Northern Ireland) Order 1983, in the definition of "building society" for the words from "1962" onwards there shall be substituted "1986".

    No. 363, in line 39, at end add—

    'Companies Act (Northern Ireland) 1960 (c. 22 N.J.)

    In section 178(3) of the Companies Act (Northern Ireland) 1960 (provision against undischarged bankrupt acting as director, etc.; meaning of "company"), after "unregistered company" there shall be inserted ", a building society (within the meaning of the Building Societies Act 1986).".

    Industrial and Provident Societies Act (Northern Ireland) 1969 (c. 24 N.I.)

    In section 31 (b) of the Industrial and Provident Societies Act (Northern Ireland) 1969 (authorised investments) for "society registered under the Building Societies Acts" there shall be substituted "building society within the meaning of the Building Societies Act 1986.".

    Companies (Northern Ireland) Order 1978 (S.1. 1978/1096 (N.I. 12))

    In Article 55(4) of the Companies (Northern Ireland) Order 1978 (disqualification orders against directors of companies), in the definition of "company" at the end there shall be inserted "and a building society (within the meaning of the Building Societies Act 1986).".'.— [Mr. Ian Stewart.]

    Schedule 15

    Repeals

    Amendments made: No. 364, in page 206, leave out lines 4 and 5 and insert—

    'REPEALS: GENERAL'.

    No. 365, in line 20, leave out 'paragraph 3A' and insert 'paragraphs 3A and 7'.

    No. 366, in page 206, line 22, at end insert—

    '1974 c.39.The Consumer Credit Act 1974In section 16 in subsection (1) the words "or building society," and, in subsections (l)(e) and (3)(c), the word "or",'.

    No. 367, in page 206, line 22, at end insert—

    '1965 c.32.The Administration of Estates (Small Payments) Act 1965.In Schedules 1 and 3, the entries relating to the Building Societies Act 1962.
    1969 c.46.The Family Law Reform Act 1969.In Schedule 1, the entry relating to the Building Societies Act 1962.
    1970 c.10.The Income and Corporation Taxes Act 1970.In section 343(5), the words 'union or'.
    1974 c.46.The Friendly Societies Act 1974.In Schedule 10, paragraph 9.
    1974 c.49.The Insurance Companies Act 1974.In Schedule 1, the entries relating to the Building Societies Act 1962.
    1979 c.37.The Banking Act 1979.In paragraph 6 of Schedule 1, the words from "within" to the end.
    In Schedule 6, paragraphs 6, 7, 16 and 17.
    1982 c50.The Insurance Companies Act 1982.In Schedule 5, paragraphs 3, and 5.
    1984 c.28.The County Courts Act 1984.In Schedule 2, paragraph 26.

    1985 c.9.The Companies Consolidation (Consequential Provisions) Act 1985.In Schedule 2, the entries relating to the Building Societies act 1962.
    1985 c.58.The Trustee Savings Banks Act 1985.In Schedule 1, paragraph 11(2)(a) and so much of that sub-paragraph as relates to the sections 59 specified therein.'.

    No. 368, in page 206, line 29, at end insert—

    'Part Ii

    Revocation Extending To Great Britain

    Number

    Title

    Extend of revocation

    S.I. 1981/1488.The Building Societies (Authorisation) Regulations 1981.The whole Regulations.'

    No. 369, in page 207, line 1, leave out 'II' and insert 'III'.

    No. 370, in page 207, line 8, at end insert—

    '1967 c. 5 (N.I.).The Administration of Estates (Small Payments) Act (Northern Ireland) 1967.In Schedule 1, the entry relating to the Building Societies Act 1874.
    1969 c. 24 (N.I.).The Industrial and Provident Societies Act (Northern Ireland) 1969.In section 101(1), the definition of "Building Societies Acts".
    1969 c. 28 (N.I.)The Age of Majority Act (Northern Ireland) 1969.In Schedule 1, the entry relating to the Building Societies Act (Northern Ireland) 1967.'.

    No. 371, in page 207, line 28, at end insert—

    'S.I. 1981/156 (N.I.3.).The Housing (Northern Ireland) Order 1981.Article 156(6) In Part II of Schedule 2, the entry relating to the Building Societies Act (Northern Ireland) 1967.'.

    No. 372, in page 207, line 28, at end insert—

    'S.R. 1982/155 (N.I.).The Building Societies (Authorisation) Regulations (Northern Ireland) 1982.The whole Regulations.'.

    No. 373, in page 207, line 33, at end insert—

    'S.I.1983/1118 (N.I. 15).The Housing (Northern Ireland) Order 1983.In Schedule 10, the entry relating to the Building Societies Act (Northern Ireland) 1967.'.

    No. 404, in page 207, in line 34, leave out '14' and insert '13'— [Mr. Ian Stewart.]

    Schedule 16

    Transitional And Saving Provisions

    Amendments made: No. 374, in page 208, line 41, leave out lines 41 and 42 and insert—

  • '(a) retain and register one copy of the memorandum and of the altered rules,
  • (b) return another copy to the secretary of the society, together with a certificate of registration, and
  • (c) keep another copy, together with the record of the specified date sent to it under sub-paragraph (3) above and a copy of that registration certificate, in the public file of the society .' .
  • No. 375, in page 209, line 33, leave out from 'shall' to end of line 34 and insert

    `retain and register a copy of the memorandum and of the altered rules'.

    No. 376, in line 34, at end insert—

    `(4A) On registering a copy of the memorandum and of the altered rules under sub-paragraph (4) above, the central off ce shall—

  • (a) return another copy to the secretary of the society, together with a certificate of registration, and
  • (b) keep another copy, together with the record of the specified date sent to it under sub-paragraph (2) above and a copy of that certificate, in the public file of the society .'.
  • No. 377, in page 210, line 2, leave out from 'If' to `copies' in line 3 and insert

    `the central office has not, before the end of the transitional period, received from an existing building society'.

    No. 378, in line 9, leave out from 'If' to 'copies' in line 10 and insert

    `the central office has not, before the end of the transitional period, received from an existing building society'.

    No. 379, in line 20, leave out from 'prepare' to end of line 22 and insert

    `three copies of a memorandum and of rules for the society and shall—
  • (a) retain and register one copy,
  • (b) return another to the secretary of the society, together with a certificate of registration, and
  • (c) keep another copy, together with a copy of that certificate, in the public file of the society.'.
  • No. 380, in line 41, after '6.', insert '—(1).'.

    No. 381, in line 42, leave out 'or loans'.

    No. 382, in page 211, line 4, at end insert—

    '(2) The central office shall record in the public file of each building society to which sub-paragraph (1) above applies the fact that, by virtue of that sub-paragraph, the society is to be treated as authorised for the purposes of this Act.'.

    No. 383, in line 4, at end insert—

    'Anticipation of powers' declaratory provision

    .—(1) It is hereby declared that building society has had, as from 19th December 1985, power, for the purposes of any power conferred by this Act or, building societies or building societies of its description, to do such things, subject to sub-paragraph (2) below, as are reasonably necessary to enable it—

  • (a) to decide whether or not, and to what extent, to exercise and in the case of an adoptable power to adopt) the power, and
  • (b) if it decides to exercise the power, to exercise it as from the date when it becomes exercisable by the society.
  • (2) Sub-paragraph (1) (b) above does not authorise a society—

  • (a) to make contracts, other than conditional contracts, for the acquisition of land, the acquisition of a business or the acquisition of shares in any company if that company offers the public any service or facility within the power
  • (b) to issue invitations to members of the society or the public to apply for any power to be exercised for their benefit, or
  • (c) to retain shares in a company which offers the public any service or facility within the power;
  • and, in this sub-paragraph, "conditional", in relation to contracts with respect to the exercise of a power, means conditional on the power's becoming exercisable by the society.

    (3) The power conferred by this paragraph, and activities carried on under it, for the purposes of an adoptable power are not to be treated a included in, or in activities comprised in, that adoptable power for the purposes of paragraph 7 of Schedule 16 to this Act.'

    No. 384, in page 213, line 20, at end insert—

    '(6A) Nothing in the foregoing provisions of this Schedule implies that it is improper for any of the following, that is to say—
  • (a) the Chief Registrar or any assistant registrar of the central office,
  • (b) the assistant registrar of friendly societies for Scotland,
  • (c) the registrar of building societies for Northern Ireland, or
  • (d) the Commission,
  • to give to a building society or building societies generally an indication of the action the Commission might or might not take in exercising its functions under this paragraph; and no decision of the Commission under this paragraph shall be liable to be set aside by reason of the indication having been given.'.

    No. 385, in page 214, line 4, after 'age', insert

    , or the compulsory retirement age (if any), as the case may be,'.

    No. 386, in line 18, leave out from beginning to 'given' and insert

    "'the compulsory retirement age" and "the normal retirement age" have the meanings'.

    No. 387, in page 215, line 27, after 'copy', insert

    ', together with a copy of that certificate,'.

    No. 388, in line 39, leave out sub-paragraph (7). — [Mr. Ian Stewart.]