SCHEDULES

C1SCHEDULE 14 Settlement of Disputes

Section 85.

Annotations:
Modifications etc. (not altering text)
C1

Sch. 14 excluded (temp.) by S.I. 1986/2168, art. 3(1)(4)

Part I Proceedings in Court

Jurisdiction of the court

1

1

No court other than the High Court or, in the case of a building society whose principal office is in Scotland the Court of Session, shall have jurisdiction to hear and determine disputes to which this paragraph applies; and, in this Part of this Schedule, “the court” means the High Court or, as the case may be, the Court of Session.

2

This paragraph applies to any dispute—

a

between a building society and a member of the society in his capacity as a member, or

b

between a building society and a representative of such a member in that capacity,

in respect of any rights or obligations arising from the rules of the society or any provision of this Act or any statutory instrument under it.

3

Except in the cases referred to in sub-paragraph (5) below, no disputes to which this paragraph applies may be referred to arbitration.

4

The court shall not hear and determine any dispute arising out of section 61(8)(a) or F1paragraph 20A(10)(a) or 31(4)(a) of Schedule 2 to this Act.

5

The court shall not hear and determine any dispute which is required to be referred to arbitration under paragraph 4 below or which is referred to the F2Authority under paragraph 6 or to an adjudicator under paragraph 7 below except as provided in paragraph 2 below.

2

The court may hear and determine a dispute falling within paragraph 1(5) above in any case where, on the application of any person concerned, it appears to the court—

a

that application has been made by either party to the dispute to the other party for the purpose of having the dispute settled by arbitration, and

b

that either arbitrators have not been appointed within 40 days of that application or the arbitrators have refused, or have neglected for a period of 21 days, to proceed with the reference or make an award.

Right of F4Authority to be heard

Annotations:
Amendments (Textual)
F4

Words in cross-heading 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. 208(a)(ii) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

3

1

Any person who institutes proceedings in the court in relation to a dispute to which paragraph 1 above applies shall give notice of the fact and of the matter in dispute to the F3Authority.

2

The court shall not proceed to hear a dispute to which paragraph 1 applies until the court is satisfied that the notice required by sub-paragraph (1) above has been given.

3

The F3Authority shall be entitled, with the leave of the court, to attend and to be heard at any hearing of a dispute to which paragraph 1 applies.

Annotations:
Amendments (Textual)
F3

Words in Sch. 14 para. 3 substituted (14.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617 arts. 2 ,8, 13(1) Sch. 3 Pt. II para. 208(a)(ii) (with art. 13(3), Sch. 5); 2001/3538 art. 2

Part II Arbitration

Circulation of election addresses, resolutions and statements

4

1

If the rules of the society so provide, any dispute in respect of a refusal by a building society to send to its members—

a

copies of an election address F5or a revised election address, in accordance with section 61(7), or

b

any document required to be sent under F6paragraph 20A(1)(b) or 31(1) of Schedule 2 to this Act,

shall, unless the refusal is on one of the grounds specified in sub-paragraph (2) below, be referred to arbitration.

2

Those grounds are—

a

that publicity for the document in question would be likely to diminish substantially the confidence in the society of investing members of the public, or

b

that the rights conferred by section 61(7) or F7paragraph 20A(1)(b) or 31(1) are being abused to seek needless publicity for defamatory matter.

F9Calling of special meeting

Annotations:
Amendments (Textual)
F9

Sch. 14 para. 4A and cross-heading preceding it inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 64(4); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xxxvii)

F84A

If the rules of the society so provide, any dispute in respect of a refusal by a building society to call a special meeting required to be called under paragraph 20A(1)(a) of Schedule 2 to this Act shall be referred to arbitration.

Procedure on a reference to arbitration

5

1

This paragraph has effect in relation to an arbitration under paragraph 4(1) above.

2

One or more arbitrators shall be appointed in the manner provided for by the rules of the building society; and so shall another arbitrator if an appointed arbitrator dies or refuses to act.

3

No arbitrator acting on a reference shall be beneficially interested (whether directly or indirectly) in the funds of the society.

4

The rules of the society may provide for the procedure to be followed on a reference to arbitration.

5

An award made by arbitrators, or the majority of them, shall be final and binding.

6

For the purposes of F10Part I of the Arbitration Act 1996 the rules of the society shall be treated as an arbitration agreement.

7

In relation to Scotland, sub-paragraph (6) above shall be omitted.

Access to register of members

6

1

Any dispute as to the rights of a member of a building society under paragraph 15 of Schedule 2 to this Act shall be referred to the F11Authority.

2

The reference of a dispute to the F11Authority under this paragraph shall be treated as a reference to arbitration; and its award shall have the same effect as that of an arbitrator acting in a reference under paragraph 4(1) above.

Annotations:
Amendments (Textual)
F11

Words in Sch. 15 para. 6(1)(2) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by 2001/2617 arts. 2, 8, 13(1), Sch. 3 Pt. II para. 208(a)(i) (with art. 13(3), Sch. 5); S.I. 2001/3538 art. 2

Disputes cognizable under a scheme

F127

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General

8

In this Part of this Schedule, in relation to an arbitration in Scotland, references to an arbitrator shall be read as references to an arbiter.