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Powers In Event Of Breach Of Limits On Certain Assets And Liabilities

Volume 98: debated on Wednesday 4 June 1986

The text on this page has been created from Hansard archive content, it may contain typographical errors.

Amendments made: No. 112, in page 45, line 38, leave out 'or otherwise lent to'.

No. 113, in page 46, line 4, at end insert—

'(the limits referred to in paragraphs (a), (b), (c) and (d) above being referred to in this section as "the relevant statutory limits")'.

No. 114, in page 46, leave out lines 12 to 16 and insert—

  • '(a) that the assets and liabilities of the society will not, by the end of the period of 12 months beginning with the date of the direction, exceed the relevant statutory limits as applied at the last day of that period, and
  • (b) that they will not thereafter exceed the relevant statutory limits.
  • (3A) For the purpose of applying the relevant statutory limits as directed by subsection (3) (a) above—

  • (a) in the case of a limit which operates by reference to the end of a financial year of a society, the financial year of the society shall be treated as ending on the day as at which the limits are to be applied; and
  • (b) the assets and liabilities of the society shall be determined by reference to a balance sheet prepared by the directors by reference to that day and sent to the Commission within the period of three months beginning with that day;
  • and section 75(4) shall apply in the event of a default in complying with this provision as it applies in the event of a default in complying with subsection (2) of that section.'.

    No. 115, in page 46, line 19, leave out paragraph (a) and insert—

    '(a) within the period of six months beginning with the date of the direction, to submit to its members for their approval at a meeting or by ballot the requisite transfer resolutions for a transfer of the business of the society to a company under section (Transfer of business to commercial company); and'.

    No. 116, in page 46, line 23, at end insert 'or ballot'.

    No. 117, in page 46, line 28, leave out paragraph (b) and insert—

    '(b) within the period of six months beginning with the date of the direction, to submit to its members for their approval at a meeting or by ballot the requisite transfer resolutions for a transfer of the business of the society to a company under section (Transfer of business to commercial company);'.

    No. 118, in page 47, line 7, leave out subsection (7) and insert—

    '(7) Where a meeting or ballot is held, in pursuance of a direction under subsection (4) or (5) above, for the purpose of voting on the requisite transfer resolutions, then—
  • (a) if the resolutions are agreed to and the confirmation of the transfer by the Commission is obtained, the society shall proceed under section (Transfer of business to commercial company) to transfer its business to a successor company;
  • (b) if either resolution is disagreed to, the society shall notify the Commission of that fact as soon as it is practicable to do so.'.
  • No. 119, in page 47, line 33, leave out from `to' to end of line 34 and insert

    'submit to members the requisite transfer resolutions.'.

    No. 120, in page 47, line 36, leave out from 'or' to end of line 37 and insert

    `submit to members the requisite transfer resolutions,'.

    No. 121, in page 47, line 41, leave out paragraph (e) and insert—

    '(e) to agree to the requisite transfer resolutions submitted to the members in pursuance of subsection (4) or (5) above, or'.

    No. 122, in page 48, line 1, leave out paragraph (f) and insert—

    '(f) where it has agreed to the requisite transfer resolutions to proceed under section (Transfer of business to commercial company) to transfer its business to the successor company,'.

    No. 123, in page 48, line 6, at end add—

    '(11) In this section "confirmation", "the requisite transfer resolutions" and "transfer" have the same meaning as in section (Transfer of business to commercial company).'.—[Mr. Ian Stewart.]