Part IV General

Exemptions

32 Wholesale co-operative societies.

1

The Secretary of State may approve under this section any industrial and provident society which in his opinion fulfils the following conditions—

a

that it carries on business in the production or supply of goods or in the supply of services or in the application to goods of any process of manufacture;

b

that its shares are wholly or mainly held by industrial and provident societies; and

c

that those societies are retail societies or societies whose shares are wholly or mainly held by retail societies;

and a society which is for the time being so approved shall not be treated as a trade association or a services supply association.

2

An approval given in respect of a society under this section (if it has not been previously withdrawn) expires at the end of the period of two years beginning with the date on which it was given or, if that period is extended (once or more than once) under subsection (3) below, at the end of that period as so extended, or further extended, as the case may be.

3

The Secretary of State may extend or, if it has already been extended under this subsection, may further extend the period of two years referred to in subsection (2) above by such period, not exceeding two years, as he may specify.

4

The Secretary of State may at any time withdraw an approval given in respect of a society under this section if it appears to him—

a

that the society has made an agreement which would have been subject to registration under this Act if the approval had not been given, or that such a recommendation as is mentioned in section 8(2) or (4) above has been made by or on behalf of the society; and

b

that the agreement or recommendation has such adverse effects on competition that it should not be precluded from being investigated by the Court under the provisions of this Act.

5

In relation to a society which is for the time being approved under this section but which, in consequence of an order made under section 11 or section 12 above, is a society to which the provisions of section 16 above would apply if it were not so approved, subsection (4) above has effect as if in that subsection—

a

any reference to an agreement which would have been subject to registration under this Act if the approval had not been given included a reference to an agreement which would in those circumstances have been subject to such registration by virtue of the order; and

b

any reference to such a recommendation as is mentioned in section 8(2) or (4) included a reference to such a recommendation as is mentioned in section 16(3) or (5).

6

On the expiry or withdrawal of an approval given in respect of a society under this section, the provisions of this Act shall have effect in relation to agreements and recommendations made by the society during the currency of the approval as if the society had not been approved under this section.

7

In this section—

  • “industrial and provident society” means a society registered or deemed to be registered under the Industrial and Provident Societies Acts 1965 to 1975 or under the M1Industrial and Provident Societies Act (Northern Ireland) 1969;

  • “retail society” means a society which carries on business in the sale by retail of goods for the domestic or personal use of individuals dealing with the society, or in the provision of services for such individuals.