The Building Societies (Accounts and Related Provisions) (Amendment) Regulations 1994

Explanatory Note

(This note is not part of the Regulations)

These Regulations amend the Building Societies (Accounts and Related Provisions) Regulations 1992. The details of chairman’s and directors' emoluments disclosed in the notes to the accounts now include pension contributions; and additional information is required in respect of non-executive directors. The Regulations also require the disclosure in the notes of remuneration paid to a sociey’s auditors and their associates for non-audit work.

The Regulations extend the information that a building society must provide in its annual business statement about directors and other officers. Information is required in relation to service contracts of directors and the chief executive (including duration and termination provisions); and rights of a director or other officer to subscribe for shares or debentures (including rights granted to a member of the director’s or other officer’s immediate family).

The Building Societies Act 1986 (Modifications) (No. 2) Order 1991 modified section 110(3) of the Building Societies Act 1986 so as to permit building societies to purchase and maintain, for their directors, other officers and auditors, insurance against liability in respect of negligence, default, breach of duty or breach of trust. This assimilated the law relating to building societies to that relating to companies in Great Britain and Northern Ireland. Where a society has in the financial year purchased or maintained any such insurance, these Regulations require that this shall be disclosed in the directors' report. This brings the disclosure requirements for societies in relation to such insurance into line with the disclosure requirements for companies.

The Regulations contain transitional provisions in respect of the disclosure of items relating to financial years beginning before they come into force.

A review of the cost of compliance with these Regulations has been undertaken and the resulting compliance cost assessment may be purchased from the Secretary, Building Societies Commission, 15 Great Marlborough Street, London W1V 2AX.