# The Building Societies Act 1986 (Modifications) Order 2024, Note: Explanatory note


(This note is not part of the Order)
This Order amends Parts 7 and 8 of the Building Societies Act 1986 (c. 53) (“the 1986 Act”) to assimilate the law relating to building societies and to companies concerning directors’ retirement and balance sheet signature following modification of the statutory provisions in force in Great Britain and Northern Ireland in relation to companies.
Article 2(2) of the Order repeals section 60(7) and (12) of the 1986 Act and associated provisions mandating a normal retirement age of 70 for the directors of building societies (or a lower age prescribed by the society’s rules) subject to eligibility for election following board approval and notification to members entitled to vote. It also repeals section 60(5) and (6) permitting the imposition of a compulsory retirement age for the directors of building societies under societies’ rules above which there is no eligibility for election. It repeals section 60(8) which contains relevant definitions. Article 2(2) and (3) repeal sections 60(15) and 61(6) of the 1986 Act creating criminal liability for breach of the retirement age restrictions and imposing penalties on building societies and their directors.
These amendments align the position of building society directors with that of company directors who are no longer subject to any age-related restrictions either in Great Britain or Northern Ireland following the repeal by the Companies Act 2006 (c. 46) (“the 2006 Act”) of the Companies Act 1985 (c. 6) (“the 1985 Act”) and of the Companies (Northern Ireland) Order 1986 (S.I. 1986/1032 (N.I.6)) (“the 1986 Order”) which imposed such restrictions on the directors of public companies.
Article 2(4) of the Order aligns the requirements in section 80(1) of the 1986 Act for signature of a building society’s balance sheet (being part of its annual accounts) with those in section 414 of the 2006 Act requiring signature of a company’s annual accounts by one director (which replaced similar provisions in the 1985 Act and the 1986 Order). Consequently, a building society’s balance sheet must only be signed by one director on behalf of the board instead of by two directors and the chief executive of the society.
A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary, or public sector is foreseen. A de minimis impact assessment is available from HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and is published with the Explanatory Memorandum alongside this instrument on www.legislation.gov.uk.

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Source: https://www.legislation.gov.uk/ukdsi/2024/9780348264289/note (the official version)
Page: https://openlegislation.uk/draft-building-societies-act-1986-modifications-order-2024/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.