Co-operative and Community Benefit Societies Act 2014

4 Registration etc: special cases

(1) A society which has any withdrawable share capital may not be registered with the object of carrying on the business of banking.

(2) Section 67(2) (taking of deposits below limits specified there not to be treated as carrying on the business of banking) applies for the purposes of subsection (1).

(3) For the prohibition on registering a society whose objects are wholly or substantially those of a credit union otherwise than as a credit union, see section 2(3) of the Credit Unions Act 1979.

(4) Subsection (5) applies where, for the purposes of securing (and maintaining) approval of its profit sharing scheme in accordance with Part 1 of Schedule 9 to the Income and Corporation Taxes Act 1988, the rules of a society that is a workers’ co-operative contain any of the following—

(a) provision for membership of the society by trustees of the scheme;

(b) provision denying voting rights to those trustees;

(c) other provisions which appear to the FCA to be reasonably necessary for that purpose.

(5) The provisions are to be disregarded in determining—

(a) whether the society should be registered as a co-operative society under this Act;

(b) if the society is a registered society, whether for the purposes of this Part the society is a bona fide co-operative society.