Paragraph 1

United Kingdom

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

Sch. 2 para. 3(4) table words substituted by Building Societies Act 1986 (Assimilation to Company Law and Changes to Funding Limit) 2026 art. 2(3)
Sch. 2 para. 9(1) omitted by Building Societies Act 1986 (Assimilation to Company Law and Changes to Funding Limit) 2026 art. 2(4)
Sch. 2 Pt. 2A inserted by Building Societies Act 1986 (Assimilation to Company Law and Changes to Funding Limit) 2026 art. 2(5)

(1)

Any ten or more persons may establish a society under this Act by taking the following steps—

(a)

agreeing upon the purpose or principal purpose of the society and upon the extent of its powers in a memorandum the provisions of which comply with the requirements of this Part of this Schedule;

(b)

agreeing upon rules for the regulation of the society which comply with the requirements of this Part of this Schedule;

(c)

sending to the F1FCA F2three copies of the memorandum and the rules, each copy signed by at least ten of those persons (or, if there are only ten, by all of them) and by the intended secretary.

(2)

Where copies of the memorandum and rules are sent to the FCA in accordance with sub-paragraph (1)(c) above, the FCA , if satisfied that—

(a)

the provisions of the memorandum are in conformity with this Act and any instruments under it,

(b)

the rules are in conformity with this Act,

(c)

the intended name of the society is not, in its opinion, undesirable,

shall register the society and issue it with a certificate of incorporation.

(3)

On registering a building society under sub-paragraph (2) above, the FCA shall—

(a)

retain and register one copy of the memorandum and of the rules,

(b)

return another copy to the secretary of the society, together with a certificate of registration, and

(c)

keep another copy, together with a copy of the certificate of incorporation, and of the certificate of registration of the memorandum and the rules, in the public file of the society.

F3(4)

In this Act “memorandum”, in relation to a building society, means the memorandum of the purpose and the extent of the powers of the society including the record of any alteration under paragraph 4 below.

Annotations

Textual amendments

F1: Words in Sch. 2 para. 1 substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 53(2) (with Sch. 12)
F2: Words in Sch. 2 para. 1(1)(c) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 200(b) (with S. 13(3), Sch. 5); S.I. 2001/3538, art. 2
F3: Sch. 2 Pt. I para. 1(4) substituted (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. 43, 47(3), Sch. 7 para. 56(2); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xxxiii)

Notes on Schedule 2

Modifications

C1: Sch. 2 modified (3.1.1995) by 1994 c. 40, ss. 17(3), 82(2)
C2: Sch. 2 applied (with modifications) (7.4.2010) by The Building Societies (Financial Assistance) Order 2010 (S.I. 2010/1188), arts. 1(2), 8