# The Building Societies (Designated Capital Resources) (Deferred Shares) Order 1989, Article 4: Capital resources which may be aggregated with reserves


(1) Where a building society issues new deferred shares those shares may subject to paragraph (2) below for the purposes of the first criterion of section 45(3) of the Act be aggregated with reserves, but only in so far as the nominal value of the shares so aggregated does not together with the nominal value of any old deferred shares for the time being aggregated with reserves for those purposes, exceed £250,000.
(2) Any new deferred shares issued upon terms which are subject to a provision having the effect of the permitted exception set out in paragraph 2 of the Schedule to the Building Societies (Deferred Shares) Order 1989 shall cease to be aggregated for the foregoing purposes with reserves when the Commission has signified to the society its approval of any resolution for the purposes of that provision and shall not thereafter be so aggregated notwithstanding that that resolution is not passed or is revoked.

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Source: https://www.legislation.gov.uk/uksi/1989/208/article/4 (the official version)
Page: https://openlegislation.uk/building-societies-designated-capital-resources-deferred-shares-order-1989/article-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.