# Building Societies Act 1986, Paragraph 30

Extent: E+W+S+N.I.

(1) The transfer resolutions required for the purposes of section 97 for the approval by members of a building society of a transfer of its business are two resolutions, of which—
(a) one is passed as a borrowing members’ resolution, and
(b) the other (“the requisite shareholders’ resolution”) is passed in accordance with sub-paragraphs (2) to (5) below.
(2) In a case where the successor is to be a specially formed company, the requisite shareholders’ resolution—
(a) must be passed as a shareholding members’ resolution, and
(b) must be passed on a poll on which not less than 50 per cent. of the members of the society qualified to vote on a shareholding members’ resolution voted;
and the notice of the resolution required by paragraph 27A above must specify that the resolution will not be effective unless both of the requirements specified in this sub-paragraph are fulfilled.
(3) Subject to any direction under sub-paragraph (5) below, in a case where the successor is to be an existing company, the requisite shareholders’ resolution must be passed as a shareholding members’ resolution and either—
(a) must be passed by not less than 50 per cent. of the members qualified to vote on a shareholding members’ resolution, or
(b) must be passed by the holders, being members qualified to vote on a shareholding members’ resolution, of shares in the society to a value, on the voting date, representing not less than 90 per cent. of the total value of the shares held on that date by the members so qualified to vote;
and, in either case, the resolution must be a resolution in relation to which the notice required by paragraph 27A above includes a statement specifying that the resolution will not be effective unless either of the above requirements is fulfilled has been duly given.
(4) If the appropriate authority considers it expedient, in relation to a transfer of the business of a building society to an existing company, to do so for the purpose of protecting the investments of the shareholders of or depositors with the society, the it may give a direction under sub-paragraph (5) below.
(4A) If the appropriate authority is the PRA, it must consult the FCA before giving a direction under sub-paragraph (5).
(5) A direction under this sub-paragraph is a direction that, for the purposes of the transfer of business specified in the direction, the requisite shareholders’ resolution is to be effective if it is passed as a shareholding members’ resolution.
(6) The Treasury . . . may by order amend sub-paragraph (2)(b), (3)(a) or (3)(b) above so as to substitute for the percentage for the time being specified in the subparagraph such other percentage as they think appropriate.
(7) The power to make orders under sub-paragraph (6) above is exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(8) In this paragraph “voting date”, with reference to a requisite shareholders’ resolution, has the same meaning as in paragraph 23(6) above.

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Source: https://www.legislation.gov.uk/ukpga/1986/53/schedule/2/paragraph/30 (the official version)
Page: https://openlegislation.uk/building-societies-act-1986/schedule-2/paragraph-30
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.