Building Societies Act 1986

Part II U.K. Directions under section 42B(4)

Preliminary U.K.

6 U.K. This Part of this Schedule applies where a direction is given under section 42B(4) (“the direction”).

Compensation for loss of office U.K.

7 (1) The consent of the [F1 Authority] shall be sufficient authority for the provision for any such compensation as is mentioned in section 99(2)(a). U.K.

(2) A resolution of the board of directors passed in pursuance of the direction shall be sufficient authority for any such payments as are mentioned in section 99(2)(b).

Textual Amendments

F1 Words in Sch. 8A para. 7(1) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 204(a) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

Increased remuneration U.K.

8 U.K. If the [F2 Authority] consents to the inclusion of any such provision as is mentioned in section 99A(1), it shall not be necessary for an ordinary resolution approving the provision to be put before a meeting of the society.

Textual Amendments

F2 Words in Sch. 8A para. 8 substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 204(a) (with art. 13(3) Sch. 5); S.I. 2001/3538, art. 2

Statements to members U.K.

9 (1) The following provisions of this paragraph shall apply in place of Part I of Schedule 17. U.K.

(2) The society shall send to every member entitled to notice of a meeting of the society, a statement containing—

(a) the particulars required, in relation to prescribed matters, by regulations under section 42B(8); and

(b) particulars of any other matters required by the [F3 Authority] in the case of the particular transfer of business,

with or without other particulars regarding that transfer.

(3) The statement shall be sent—

(a) where the [F3 Authority] has given the society a direction under section 42B(1)(b), within the period (not being less than 28 days) specified in [F4 a final notice given by the Authority under section 390 of the Financial Services and Markets Act 2000];

(b) where the [F3 Authority] has not given the society such a direction, within 14 days of the board of directors passing a resolution in pursuance of the direction.

(4) No 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 sub-paragraph (2)(b) above, have been approved by the [F3 Authority].

(5) A failure to comply with a requirement of this paragraph shall not invalidate the transfer of business; but, if the society fails without reasonable excuse to comply with such a requirement 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.

Textual Amendments

F3 Words in Sch. 8A para. 9 substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 204(a) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

F4 Words in Sch. 8A para. 9(3)(a) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 204(b) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

Modifications etc. (not altering text)

C1 Sch. 8A para. 9 amended (2.3.1998) by S.I. 1998/212, reg. 5(1), Sch. 3

Application for confirmation U.K.

10 U.K. No application for confirmation by the [F5 Authority] of the transfer of business may be made under Part II of Schedule 17 until after the society has complied with the requirements of paragraph 9 above.

Textual Amendments

F5 Words in Sch. 8A para. 10 substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 204(a) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

Grounds for not confirming transfer U.K.

11 U.K. Section 98 shall apply as if—

(a) for paragraphs (a) and (b) of subsection (3) there were substituted the following paragraph—

“(a) the members or a proportion of them would be unreasonably prejudiced by the transfer;”;

(b) in subsection (5), for the words “paragraphs (a), (b), (c) and (d)” there were substituted the words “ paragraphs (a), (c) and (d) ”; and

(c) in subsection (6), the words “the calling of a further meeting,” were omitted.