Statutory Instruments
1994 No. 341
INDUSTRIAL AND PROVIDENT SOCIETIES
The Industrial and Provident Societies (Increase in Shareholding Limit) Order 1994
Made
15th February 1994
Laid before Parliament
18th February 1994
Coming into force
15th March 1994
The Chief Registrar of Friendly Societies, with the consent of the Treasury, in exercise of the powers conferred upon her by section 2 of the Industrial and Provident Societies Act 1975(1), and of all other powers enabling her in that behalf, hereby makes the following Order:-
Citation and commencement
1. This Order may be cited as the Industrial and Provident Societies (Increase in Shareholding Limit) Order 1994, and shall come into force on 15th March 1994.
Interpretation
2. In this Order:
“the Act” means the Industrial and Provident Societies Act 1965(2).
“society” means any body which is or is deemed to be a society registered under the Act.
Increase in shareholding limit
3. In section 6(1) of the Act(3), for the words “ten thousand pounds” (denoting the limit on the interest any one member may hold in the shares of a society registered under that Act) there shall be substituted the words “twenty thousand pounds”.
Powers of society’s committee
4.—(1) Where registered rules of a society provide for a fixed maximum shareholding limit in accordance with section 6(1) of the Act, the committee may, by a resolution recorded in writing, resolve that the maximum shareholding limit may be increased to such amount up to twenty thousand pounds as may be specified in the resolution, and subject to notice under paragraph (4) below having been given the registered rules shall have effect thereafter accordingly until such time as any subsequent amendment to the rules is registered whereupon the rules so registered shall have effect as if the earlier resolution had not been passed but so, however, that this paragraph shall not affect any interest in the shares of a society held by a member immediately before the date on which the subsequent amendment of rules is registered.
(2) The power conferred on the committees of societies by paragraph (1) above shall not be exercisable after the expiration of the period of eighteen months beginning with the date on which this Order comes into force; and if any amendment of the rules of a society is made after the coming into force of this Order and before the expiration of the time allowed by this paragraph for exercising that power the power shall cease to be exercisable by the committee of that society on the date on which the amendment is registered under section 10 of the Act.
(3) The committee of a society shall not have power to vary or revoke a resolution under paragraph (1) above.
(4) Notice in writing of any change in the rules of a society made by the committee of a society in exercise of the power conferred by paragraph (1) above to increase the maximum shareholding limit shall be given to the appropriate registrar within 60 days of the making of the necessary resolution in the form specified in the Schedule to this Order.
Rosalind Gilmore
Chief Registrar of Friendly Societies.
8th February 1994
We consent to this Order.
T. Wood
T. Kirkhope
Two of the Lords Commissioners of Her Majesty’s Treasury.
15th February 1994
SCHEDULEINDUSTRIAL AND PROVIDENT SOCIETIES ACTS 1965 AND 1975
Notice of increase in the maximum shareholding limit of Society pursuant to section 2 Industrial and Provident Societies Act 1975.
Explanatory Note
(This note is not part of the Order)
This Order increases from £10,000 to £20,000 the limit on the interest which any one member may hold in the shares of a society registered under the Industrial and Provident Societies Act 1965. It further empowers the committee of a society, subject to certain conditions, to give effect to the increase by resolution recorded in writing. If the rules happen to be amended subsequently and do not make reference to the increased limit resolved on by the committee of the society the shareholding limit reverts to that in the rules as previously registered. Where an amendment makes provision as to the limit, on registration of the amendment the limit is the limit so provided.
A review of the cost of compliance with this Order has been undertaken and the resulting compliance cost assessment may be purchased from the Registry of Friendly Societies, 15 Great Marlborough Street, London W1V 2AX.
Registry of Friendly Societies
15 Great Marlborough Street
LONDON
W1V 2AX
8th February 1994
Section 6(1) was amended by section 1 of the Industrial and Provident Societies Act 1975 and by S.I. 1981/395.