Industrial and Provident Societies Act 1965

6 Maximum shareholding in society

(1) Where a society is, or is to be, registered under this Act, no member thereof other than—

(a) a registered society ; or

(b) an authority who acquired the holding by virtue of section 119(3) of the [1957 c. 56.] Housing Act 1957, section 79(2) of the [1950 c. 34.] Housing (Scotland) Act 1950, or any enactment re-enacted with or without modifications by either of those sections; or

(c) a member who acquired the holding by virtue of paragraph 2 of Part I of the Schedule to the [1923 c. 34.] Agricultural Credits Act 1923 at a time when section 2 of that Act applied to the society,

shall have or claim any interest in the shares of the society exceeding one thousand pounds.

(2) Where in the case of a society to which section 4 of this Act applies—

(a) immediately before 27th April 1952 the rules of the society provided for the maximum amount of the interest in the shares of the society permitted to be held by a member (other than a registered society) to be two hundred pounds; and

(b) no amendment of the rules of the society has been registered since that date; and

(c) on or after that date and before 22nd July 1961 the society's committee has by a resolution recorded in writing resolved that the said maximum amount shall be a specified amount greater than two hundred pounds but not greater than five hundred pounds,

then, subject to subsection (4) of this section, the registered rules of the society shall have effect subject to that resolution.

(3) Where in the case of a society to which section 4 of this Act applies—

(a) immediately before 22nd July 1961 the rules of the society provided for the maximum amount aforesaid to be five hundred pounds; and

(b) no amendment of the society's rules has been registered since that date; and

(c) on or after that date and before 22nd January 1963 the society's committee has by a resolution recorded in writing resolved that the said maximum amount shall be a specified amount greater than five hundred pounds but not greater than one thousand pounds,

then, subject to subsection (4) of this section, the registered rules of the society shall have effect subject to that resolution.

(4) Where subsection (2) or (3) of this section applies to any society, the society's committee shall not have power to vary or revoke the resolution referred to in that subsection ; but upon the registration after the commencement of this Act under section 10 thereof of any amendment of the society's rules the registered rules of the society shall have effect as if the resolution had not been passed, so, however, that this subsection shall not affect any interest in the shares of the society held by a member immediately before the date of that registration.