Building Societies Act 1986

Requirements for establishment

1 (1) Any ten or more persons may establish a society under this Act by taking the following steps—

(a) agreeing upon the purpose or principal purpose of the society and upon the extent of its powers in a memorandum the provisions of which comply with the requirements of this Part of this Schedule;

(b) agreeing upon rules for the regulation of the society which comply with the requirements of this Part of this Schedule ;

(c) sending to the central office four copies of the memorandum and the rules, each copy signed by at least ten of those persons (or, if there are only ten, by all of them) and by the intended secretary.

(2) Where copies of the memorandum and rules are sent to the central office in accordance with sub-paragraph (1)(c) above, the central office, if satisfied that—

(a) the provisions of the memorandum are in conformity with this Act and any instruments under it,

(b) the rules are in conformity with this Act,

(c) the intended name of the society is not, in its opinion, un desirable,

shall register the society and issue it with a certificate of incorporation.

(3) On registering a building society under sub-paragraph (2) above, the central office shall—

(a) retain and register one copy of the memorandum and of the rules,

(b) return another copy to the secretary of the society, together with a certificate of registration, and

(c) keep another copy, together with a copy of the certificate of incorporation, and of the certificate of registration of the memorandum and the rules, in the public file of the society.

(4) Subject to Schedule 20 in this Act, in relation to a building society—

• " adoptable powers " means powers which, by any provision of this Act, must, in order to be exercisable, be adopted by the society;

• " adopt" or " adopted " means adopt or adopted by agreement upon the establishment of the society or subsequently under paragraph 4 below ; and

• " assume " or " assumed " means assume or assumed by agreement upon the establishment of the society or subsequently under paragraph 4 below;

• " memorandum " means the memorandum of the purpose and the extent of the powers of the society including the record of any alteration under paragraph 4 below.