Part I Deregulation
Chapter IIMiscellaneous Deregulatory Provisions
15 Building societies: issue of deferred shares at a premium.
In section 7 of the M1Building Societies Act 1986 (power to raise funds) after subsection (2) there shall be inserted—
2A
In the case of deferred shares, the power to raise funds by the issue of shares includes the issue of shares at a premium.
2B
If a building society issues deferred shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount or value of the premiums on those shares shall be transferred to the society’s reserves.