(1)Where it is shown, in relation to a person who has made a statutory declaration to a society purporting to comply with section 102B(5), that, at the time the declaration is made, he is not a trustee account holder in relation to the account in question, then—
(a)a distribution shall not be made to him in pursuance of section 102B if it is so shown before the distribution is made;
(b)if a distribution is made to him, he shall be liable—
(i)to repay to the society’s successor any funds, and to surrender to it any shares or rights to any shares, which he may have received as the holder of that account,
(ii)if any shares or rights to any shares are not surrendered, to pay the successor an amount equal to the relevant value of those shares or rights.
(2)Where subsection (1)(b) applies in relation to a person, he shall also be liable to pay to the successor interest (at the rate applicable to judgment debts or, as respects Scotland, to decrees of the Court of Session)—
(a)on any funds which he is liable to repay to the successor under sub-paragraph (i) of subsection (1)(b),
(b)on the relevant value of any shares or rights which are surrendered under that sub-paragraph, and
(c)on any amount payable under subsection (1)(b)(ii),
as from the day on which he received the funds, shares or rights until subsection (1)(b) is complied with in relation thereto.
(3)In subsections (1) and (2) “relevant value”, in relation to any shares or rights to any shares, means the market value of those shares on the first day on which they are quoted on the Stock Exchange Daily Official List, and section 272 of the M1Taxation of Chargeable Gains Act 1992 shall apply for the purposes of this subsection.
(4)Where the successor receives any payment in circumstances where subsection (1)(b) applies, the amount of the payment shall be treated as settlement of a debt due to the successor and accordingly not as an amount due to members of the society.
(5)In section 146(1) of the M2Companies Act 1985 (treatment of shares held by or for a public company) the following paragraph shall be inserted after paragraph (a)—
“(aa)where shares in the company are surrendered to the company in pursuance of section 102C(1)(b) of the M3Building Societies Act 1986;”.
(6)In Article 156(1) of the M4Companies (Northern Ireland) Order 1986 (treatment of shares held by or for a public company) the following sub-paragraph shall be inserted after sub-paragraph (a)—
“(aa)where shares in the company are surrendered to the company in pursuance of section 102C(1)(b) of the M5Building Societies Act 1986;”.]
Textual Amendments
F1Ss. 102B-102D inserted (21.3.1997 with application as mentioned in s. 2(2) of the amending Act) by 1997 c. 41, s. 1(1)
Marginal Citations