(1)A building society may be dissolved by an instrument of dissolution, with the consent (testified by their signature of that instrument) of three-quarters of the members of the society, holding not less than two-thirds of the number of shares in the society.
(2)An instrument of dissolution under this section shall set out—
(a)the liabilities and assets of the society in detail;
(b)the number of members, and the amount standing to their credit in the accounting records of the society;
(c)the claims of depositors and other creditors, and the provision to be made for their payment;
(d)the intended appropriation or division of the funds and property of the society;
(e)the names of one or more persons to be appointed as trustees for the purposes of the dissolution, and their remuneration.
(3)An instrument of dissolution made with consent given and testified as mentioned in subsection (1) above may be altered with the like consent, testified in the like manner.
(4)The provisions of this Act shall continue to apply in relation to a building society as if the trustees appointed under the instrument of dissolution were the board of directors of the society.
(5)The trustees, within 15 days of the necessary consent being given and testified (in accordance with subsection (1) above) to—
(a)an instrument of dissolution, or
(b)any alteration to such an instrument,
shall give notice to the [F1Authority] of the fact and, except in the case of an alteration to an instrument, of the date of commencement of the dissolution, enclosing a copy of the instrument or altered instrument, as the case may be; and if the trustees fail to comply with this subsection they shall each be liable on summary conviction to a fine not exceeding level 3 on the standard scale.
(6)An instrument of dissolution under this section, or an alteration to such an instrument, shall be binding on all members of the society as from the date on which the copy of the instrument or altered instrument, as the case may be, is placed in the public file of the society under subsection (10) below.
(7)The trustees shall, within 28 days from the termination of the dissolution, give notice to the [F1Authority] of the fact and the date of the termination, enclosing an account and balance sheet signed and certified by them as correct, and showing the assets and liabilities of the society at the commencement of the dissolution, and the way in which those assets and liabilities have been applied and discharged; and, if they fail to do so they shall each be liable on summary conviction—
(a)to a fine not exceeding level 2 on the standard scale, and
(b)in the case of a continuing offence, to an additional fine not exceeding £10 for every day during which the offence continues.
(8)Except with the consent of the [F1Authority], no instrument of dissolution, or alteration of such an instrument, shall be of any effect if the purpose of the proposed dissolution or alteration is to effect or facilitate the transfer of the society’s engagements to any other society [F2or the transfer of its business to a company].
(9)Any provision in a resolution or document that members of a building society proposed to be dissolved shall accept investments in a company or another society (whether in shares, deposits or any other form) in or towards satisfaction of their rights in the dissolution shall be conclusive evidence of such a purpose as is mentioned in subsection (8) above.
(10)The [F1Authority] shall keep in the public file of the society any notice or other document received by it under subsection (5) or (7) above and shall record in that file the date on which the notice or document is placed in it.
Textual Amendments
F1Words in s. 87 substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, art. 13(1), Sch. 3 Pt. II para. 174(a)(b) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(a)
F2Words in s. 87(8) substituted (9.6.1997) by 1997 c. 32, s. 43, Sch. 7 para. 38; S.I. 1997/1427, art. 2(k)(n)(x)