Regulation 3 Limit relating to bonuses to members
Where the terms of a merger so provide, a distribution of funds may be made in consideration of the merger among any of the members of any of the participating societies, subject to the limit specified in paragraph (2) below.
The maximum distribution that may be made among members of any one society under paragraph (1) above is —
in any case other than that referred to in sub-paragraph (b) below, a sum equal to one per cent. of the value of that society’s total assets; and
in a case where the terms of the merger provide for some but not all of that society’s liabilities to its members in respect of shares to be transferred, a sum equal to one per cent. of the value of the liabilities in respect of shares that are transferred.
For the purposes of paragraph (2) above, the value of any assets or liabilities of a society is their value as given in any statement relating to the merger sent under Part I of Schedule 16 to the Act (which includes a provision requiring that statement to state the financial position of the society), or, if it is not given in the statement, their value as determined for the purpose of making that statement.