{
  "url": "https://openlegislation.uk/draft-mutual-societies-transfers-order-2009/article-7",
  "json_url": "https://openlegislation.uk/draft-mutual-societies-transfers-order-2009/article-7.json",
  "legislation": "ukdsi/2009/9780111472927",
  "legislation_title": "The Mutual Societies (Transfers) Order 2009",
  "legislation_url": "https://openlegislation.uk/draft-mutual-societies-transfers-order-2009",
  "path": "article/7",
  "kind": "article",
  "number": "7",
  "heading": "Distribution of funds of building society or holding mutual",
  "text": "(1) Section 4 of the 2007 Act (transfers to subsidiaries: distribution of funds) has effect in relation to a relevant transfer.\n(2) The terms of a relevant transfer may include provision for part of the funds of the transferor building society or of the holding mutual (or both) to be distributed to members of the transferor or of the holding mutual (or both) in consideration of the transfer, in accordance with section 4 of the 2007 Act and this article.\n(3) The limit referred to in section 4(3) and (4) of the 2007 Act, in relation to a distribution made by a transferor building society, is—\n(a) five per cent of the value of that society’s total assets, or\n(b) if less, the sum calculated in accordance with paragraph (4).\n(4) The sum referred to in paragraph (3)(b) is calculated by deducting the value of the transferor society’s fixed assets, both tangible and intangible, from the aggregate of that society’s general reserves and, if any, revaluation and other reserves.\n(5) For the purposes of paragraphs (3) and (4), the value of any assets, liabilities or reserves of a building society is their value as given in the most recent annual accounts of the society sent to the Financial Services Authority in accordance with section 81(2) of the 1986 Act (laying and furnishing accounts, etc, to members and the Authority).\n(6) The limit referred to in section 4(3) and (4) of the 2007 Act, in relation to a distribution made by the holding mutual, is five per cent of the holding mutual’s total assets as shown in the most recent audited accounts of the holding mutual.\n(7) The resolution referred to in section 4(3)(a) of the 2007 Act, in the case of the holding mutual, is—\n(a) where the transfer is approved by a resolution of the members of the holding mutual, that resolution, or\n(b) where the transfer is approved by the board of directors or committee of management of the holding mutual, a resolution of the members of the holding mutual.\n(8) Any terms of a transfer of business to which section 4(3) of the 2007 Act and paragraphs (3) to (7) above apply are regulated terms for the purposes of section 97 of the 1986 Act.\n(9) In this article—\n“annual accounts” has the same meaning as in Part 8 of the 1986 Act (see section 81B of that Act (interpretation of Part 8));\n“transfer of business” and “regulated terms” have the same meaning as in section 97 of the 1986 Act.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "Section 81 was amended by S.I. 2001/2617. There are other amendments but none are relevant."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "Section 81B was inserted by S.I. 2004/3380. There are amendments but none are relevant."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2009/9780111472927/article/7",
    "retrieved_at": "2026-10-30T14:58:08.994724+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}