Part X Dissolution, Winding Up, Mergers and Transfer of Business
Transfer of business to commercial company
F1102B Protection of interests of beneficiaries in the case of trustee account holders.
1
This section shall have effect (notwithstanding anything to the contrary in the rules of the society) where the terms of the transfer of the business of a building society to its successor include provision for a distribution to be made to its members, and where more than one distribution is provided for, shall have effect in relation to each of them.
2
In this section “distribution” in relation to a society means—
a
a distribution among members of the society of part of the funds of the society or its successor, other than a distribution within section 100(2)(b), or
b
the conferring of rights in relation to shares in the successor on members of the society,
in consideration of the transfer.
3
Subject to the following provisions of this section and section 102C, a trustee account holder shall be treated by the society and its successor as not being disentitled from sharing in the distribution—
a
as such trustee account holder, and
b
also in relation to another account which he may hold as a trustee account holder or in relation to another account which he may hold otherwise than as a trustee account holder,
by reason only of his holding more than one account; and the terms of the transfer of business in question shall comply with this subsection.
4
A trustee account holder shall not be entitled to share in a distribution as such trustee account holder by virtue of any provision of this section if—
a
the society has notified that account holder that he must make, in relation to any account as respects which he is a trustee account holder, a statutory declaration under the M1Statutory Declarations Act 1835 complying with subsection (5); but
b
the trustee account holder does not give the society that declaration before such date as may be specified in the society’s notice to him.
5
A statutory declaration complies with this subsection if the person making it declares in it—
a
that he is a trustee account holder in respect of an account identified in the declaration,
b
the name and address of each beneficiary for whom he holds the account,
c
the reason why it is not reasonably practicable for any beneficiary to act in relation to that account himself, and
d
in a case where section 102D(8) applies, the names and addresses of all the trustee account holders of the account during the period referred to in that subsection.
6
In any case, where in response to a notice under subsection (4) (and within the time specified in that notice), a person gives a society a statutory declaration complying or purporting to comply with subsection (5) that he is a trustee account holder as respects any account he holds with that society then, subject to section 102C, the society and its successor—
a
shall treat him as such an account holder in respect of that account, and
b
shall not be liable to any other person in respect of any distribution to him (whether or not the society makes any enquiry into his eligibility before making the distribution).