Building Societies Act 1986

72 Duty of directors to prepare annual accounts. U.K.

(1) Subject to subsection (4) below, the directors of every building society shall prepare with respect to each financial year of the society—

(a) an income and expenditure account showing the income and expenditure for that year,

(b) a balance sheet showing the state of its affairs as at the end of that year, and

(c) a statement of the source and application of the funds during that year.

(2) F1 . . ., if, at the end of its financial year, a building society has [F2 subsidiary undertakings] , the directors shall also prepare, with respect to that year, group accounts dealing respectively with the income and expenditure, the state of the affairs and the source and application of the funds, of the society and the [F2 subsidiary undertakings].

(3) The directors of a building society which has [F2 subsidiary undertakings] shall secure that, except where in their opinion there are good reasons against it, the financial year of each of its [F2 subsidiary undertakings] coincides with the society’s own financial year.

(4) Where the directors prepare a statement of the source and application of the funds of the society and its [F2 subsidiary undertakings] under subsection (2) above they need not also prepare such a statement as to the society’s funds under subsection (1) above.

F3 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) The Commission may by regulations made with the consent of the Treasury—

(a) add to the classes of documents to be comprised in a society’s accounts to be prepared for each financial year under subsection (1) or (2) above;

(b) make provision as to the matters to be included in any document so added;

(c) modify the requirements of this Part as to the matters to be stated in any document comprised in the society’s accounts; and

(d) reduce the classes of documents to be comprised in a society’s accounts.

(8) Regulations under subsection (7) above may make different provision for different descriptions of society, and may include incidental and supplementary provisions.

(9) The power to make regulations under subsection (7) above is exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(10) The accounts prepared with respect to a society’s financial year under this section (whether as individual accounts or group accounts), with the notes to them, are referred to in this Part as “the annual accounts”.

Textual Amendments

F1 Words in s. 72(2) omitted by virtue of S.I. 1991/1729, art. 4(1).

F2 Words in ss. 71-82 (Pt. VIII) substituted by S.I. 1991/1729, art.3.

F3 S. 72(5)(6) omitted by virtue of S.I. 1991/1729, art. 4(2).