Part VI Powers of Control of the Commission
Powers in relation to authorisation
43AF1Revocation: supplementary directions.
1
The Commission may give a building society directions under this section—
a
when giving it notice that the Commission proposes to revoke its authorisation;
b
at any time after such a notice has been given to the society (whether before or after its authorisation is revoked);
c
when giving the society a notice of revocation under subsection (3)(e) of section 43 where the requisite initial step (within the meaning of that section) is the passing of a resolution for voluntary winding up or the execution of an instrument of dissolution; or
d
at any time after the society has requested the Commission to revoke its authorisation or the central office to cancel its registration.
2
Directions under this section—
a
shall be such as appear to the Commission to be desirable in the interests of the society’s shareholders or depositors, whether for the purpose of safeguarding its assets or otherwise; and
b
may relate to any activities of the society, whether or not those for which an authorisation is required.
3
Directions under this section may in particular—
a
impose limitations on the issue of shares, the acceptance of deposits or the making of loans;
b
require the society to take certain steps or to refrain from adopting or pursuing a particular course of action or to restrict the scope of its business in a particular way;
c
require the society to take steps with regard to the conduct of the business of any connected undertaking of the society;
d
require the removal of any director or other officer.
4
No direction shall be given by virtue of paragraph (a) or (b) of subsection (1) above, and any direction given by virtue of either of those paragraphs shall cease to have effect, if—
a
the Commission gives the building society notice that it is not proposing to take any further action pursuant to the notice mentioned in that paragraph; or
b
the Commission’s decision to revoke the society’s authorisation is reversed on appeal.
5
No direction shall be given by virtue of paragraph (d) of subsection (1) above, and any direction given by virtue of that paragraph shall cease to have effect, if the society’s request to the Commission to revoke its authorisation, or to the central office to cancel its registration, is withdrawn.
6
No direction shall be given to a building society under this section after it has ceased to have any liability in respect of shares or deposits for which it had a liability at a time when it was authorised; and any such direction which is in force with respect to a building society shall cease to have effect when the society ceases to have any such liability.
7
A building society which fails to comply with any requirement or contravenes any prohibition imposed on it by a direction under this section shall be guilty of an offence and liable—
a
on conviction on indictment, to a fine;
b
on summary conviction, to a fine not exceeding the statutory maximum.
8
A contravention of a prohibition imposed under this section shall not invalidate any transaction or other act.