Regulation 6 Prescribed circumstances

The following circumstances are prescribed pursuant to section 1(2)(b) of the 2003 Act—

(a)

use or dealing with a society’s assets for the purposes of—

(i)

paying a member the value of his withdrawable share capital or interest on such capital;

(ii)

making any payment pursuant to section 24 (proceedings on death of nominator), 25 (provision for intestacy) or 26 (payments in respect of mentally incapable persons) of the 1965 Act;

(iii)

making any payment in accordance with the rules of the society to trustees of the property of bankrupt members or, in Scotland, members whose estate has been sequestrated; or

(iv)

where the society is to be dissolved in accordance with section 55 of the 1965 Act (dissolution of registered society) or wound up under the Insolvency Act 1986^f1, paying its creditors; and

(b)

the transfer of a society’s assets to—

(i)

a prescribed community benefit society which has a restriction on use and which will apply that restriction to any assets so transferred;

(ii)

a community interest company;

(iii)

a registered social landlord which has a restriction on the use of its assets which is equivalent to a restriction on use and which will apply that restriction to any assets so transferred;

(iv)

a charity (including a community benefit society that is a charity); or

(v)

a body, established in Northern Ireland or a State other than the United Kingdom, that is equivalent to any of those persons.

Annotations

Footnotes

f1: 1986 c.45.