Building Societies Act 1997

Default powers

3 (1) If the central office has not, before the end of the transitional period, received from an existing building society copies of a record of alterations in accordance with paragraph 1 or 2 above, the society shall be treated as having, by special resolution—

(a) altered its purpose or principal purpose to that required by section 5(1) of the 1986 Act as amended by section 1(1) of this Act;

(b) so altered its powers as to include all powers which were exercisable by it immediately before the commencement of sections 1 and 2 of this Act; and

(c) made such alteration of its rules as, in conformity with model rules made under this paragraph, the central office directs.

(2) The Commission may, by order made by a statutory instrument made with the consent of the Treasury, prescribe model rules for building societies for the purposes of this paragraph.

(3) Where, under this paragraph, a society is treated as having by special resolution, altered its purpose or principal purpose, its powers and its rules, the central office shall prepare three copies of a record of the alterations 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.

(4) A record of alterations so registered shall have effect for all purposes of the society’s memorandum and rules until further alterations are made under paragraph 4 of Schedule 2 to the 1986 Act.

(5) Such fee as is prescribed shall be due from the society to the Chief Registrar for the registration of a record of alterations under this paragraph.

(6) In this paragraph—

• “existing building society” means a building society registered under the 1986 Act immediately before the commencement of sections 1 and 2 of this Act;

• “prescribed”—

  (a)

  except in sub-paragraph (5) above, means prescribed by the Commission, with the consent of the Treasury, by order made by statutory instrument; and

  (b)

  in that sub-paragraph, means prescribed by the Chief Registrar, with the consent of the Treasury, by order so made;

• “the transitional period” means the period beginning with that commencement and expiring with such day as is prescribed.