- Latest available (Revised)
- Original (As enacted)
Building Societies Act 1986, Section 92A is up to date with all changes known to be in force on or before 23 December 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
(1)A building society—
(a)in order to acquire, or allow a subsidiary undertaking to acquire, a business to which subsections (3) and (4) below apply; or
(b)in order to establish, or allow such an undertaking to establish, a business to which subsections (3) and (5) below apply,
must resolve so to do by an ordinary resolution; but a failure to comply with this subsection shall not invalidate any transaction or other act.
(2)In order to be effective for the purposes of subsection (1) above, an ordinary resolution of a building society must be passed by a majority of the members of the society entitled to vote on such a resolution and voting either—
(a)in person or by proxy on a poll on the resolution at a meeting of the society; or
(b)in a postal [F2or electronic] ballot on the resolution;
and in a case falling within paragraph (a) above, a form for the appointment of a proxy shall be sent to each person entitled to notice of the meeting.
(3)This subsection applies to a business which is proposed to be acquired or established if, in the opinion of the board of directors of the society—
(a)the greater part of the income of the business is or will be derived from activities having no connection with loans secured on residential property;
(b)the greater part of the resources of the business are or will be devoted to such activities; or
(c)the greater part of the business consists or will consist of such activities.
(4)This subsection applies to a business which is proposed to be acquired if X is not less than 15 per cent of Y where—
X = the amount or value of the consideration to be given for the shares, voting rights or assets proposed to be acquired;
Y = the amount of the society’s own funds as at the relevant date.
(5)This subsection applies to a business which is proposed to be established if X is not less than 15 per cent of Y where—
X = the aggregate of the following as estimated by the society, namely—
(a)the cost of acquiring, developing, adapting or repairing any premises required for the purposes of the business;
(b)the initial cost of acquiring any plant or equipment, or any intellectual property, so required;
(c)the initial cost of employing or training staff so required;
(d)the cost of obtaining any professional advice required in connection with the establishment of the business;
(e)any other non-recurring items of expenditure to be incurred in that connection; and
(f)in the case of a business proposed to be established by a subsidiary undertaking, the amount of any capital to be provided by the society which will not be used for defraying items of expenditure falling within the foregoing paragraphs;
Y = the amount of the society’s own funds as at the relevant date.
(6)Where a business is proposed to be acquired or established by a syndicate whose members include a building society or subsidiary undertaking—
(a)subsection (1) above shall have effect as if the business were proposed to be acquired or (as the case may be) established by the society; and
(b)whichever of subsections (4) and (5) above is applicable shall have effect as if X were only so much of X as is referable to participation in the syndicate by the society or undertaking.
(7)For the purposes of subsections (1)(a) and (4) above, two or more proposed acquisitions by a building society or subsidiary undertaking which will form part of a larger acquisition or series of acquisitions shall be treated as a single acquisition.
(8)Nothing in this section shall apply in relation to a building society in so far as it undertakes, in accordance with section 94 and Schedule 16 to this Act, to fulfil engagements transferred to it in accordance with that section and that Schedule.
(9)In this section—
“initial”, in relation to any cost, means incurred, or likely in the directors’ opinion to be incurred, not later than 12 months after the establishment of the business;
“intellectual property” includes—
any patent, know-how, trade mark, service mark, registered design, copyright or design right; and
any licence under or in respect of any such right;
“the relevant date”, in relation to a building society, means—
the date of the end of its last financial year or, failing that, the date of its establishment; or
where it has been involved in a transfer of engagements, the date of that transfer,
whichever is the later.
(10)The [F3Treasury may] by order substitute for the percentage specified in subsection (4) or (5) above such other percentage as appears to [F4them] to be appropriate; and an order under this subsection may make such supplementary, transitional and saving provision as appears to the [F5Treasury] to be necessary or expedient.
(11)The [F6Treasury may] by order vary subsections (5) and (9) above by adding to or deleting from them any provision or by varying any provision contained in them; and an order under this subsection may make—
(a)different provisions for different cases or purposes; and
(b)such supplementary, transitional and saving provision as appears to the [F7Treasury] to be necessary or expedient.
(12)The power to make an order under subsection (10) or (11) above is exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.]
Textual Amendments
F1S. 92A and cross-heading preceding it inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 29, 47(3); S.I. 1997/2668, art. 2, Sch. Pt. II(u)
F2Words in s. 92A(2)(b) inserted (20.3.2003) by The Building Societies Act 1986 (Electronic Communications) Order 2003 (S.I. 2003/404), arts. 1(1), 30(5)
F3Words in s. 92A(10) 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. 176(a)(i) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(a)
F4Word in s. 92A(10) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/1149, art. 13(1), Sch. 3 Pt. II para. 176(a)(ii) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(a)
F5Word in s. 92A(10) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/1149, art. 13(1), Sch. 3 Pt. II para. 176(a)(iii) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(a)
F6Words in s. 92A(11) 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. 176(b)(i) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(a)
F7Word in s. 92A(11)(b) 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. 176(b)(ii) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(a)
Modifications etc. (not altering text)
C1S. 92A(10)(11): Functions of Building Societies Commission transferred (1.12.2001) to the Treasury by S.I. 2001/2617, arts. 2(b), 4(1), Sch. 1 Pt. III (art. 5)
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: