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Building Societies Act 1997

1997 c. 32 · Enacted 21 March 1997 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 26 March 2015.

An Act to amend the Building Societies Act 1986; to make provision for amalgamating the Building Societies Investor Protection Board and the Deposit Protection Board into a single board and the Building Societies Investor Protection Fund and the Deposit Protection Fund into a single fund; and for connected purposes.

[21st March 1997]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Contents

  1. Part I: Constitution and powers
  2. 1Principal purpose and powers.
  3. 2Membership and liability of members.
  4. 3Capacity etc.
  5. 4The lending limit.
  6. 5Loans secured on land.
  7. 6Loans fully secured on land.
  8. 7Discharge of mortgages.
  9. 8The funding limit.
  10. 9Raising funds and borrowing.
  11. 10Restrictions on certain transactions.
  12. 11Restriction on creation of floating charges. Repealed
  13. 12Superseded provisions of 1986 Act.
  14. Part II: Powers of control of Commission
  15. 13Power to direct restructuring of business etc.
  16. 14Power to make prohibition orders.
  17. 15Powers to petition for winding up etc.
  18. 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  19. 17Power to direct transfers of engagements or business.
  20. 18Notification and confirmation of transfer directions.
  21. 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  22. 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  23. 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  24. 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  25. 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  26. 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  27. Part III: Accountability to members
  28. 25Special meeting on members’ requisition.
  29. 26Failure to comply with members’ requisition.
  30. 27Election of directors: general.
  31. 28Election of directors: supplementary.
  32. 29Acquisition or establishment of a business.
  33. 30Information about transfers or proposed transfers of business.
  34. 31Transfers of business: increased remuneration etc.
  35. Part IV: Protection of investors and investigation of complaints
  36. 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  37. 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  38. 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  39. 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  40. Part V: Miscellaneous and supplemental
  41. Miscellaneous
  42. 36Registered and business names.
  43. 37Access to registers of members.
  44. 38Transactions with directors and persons connected with them.
  45. 39Application of certain insolvency legislation.
  46. 40Abolition of priority liquidation distribution rights.
  47. 41Protective provisions for specially formed successors.
  48. 42Registration of charges by building societies.
  49. 43Other amendments of 1986 Act.
  50. Supplemental
  51. 44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  52. 45Minor and consequential amendments.
  53. 46Transitional provisions, savings and repeals etc.
  54. 47Short title, interpretation, commencement and extent. Not yet in force
  55. Schedule 1[Part II of Schedule 2 to 1986 Act]
  56. Schedule 2[Schedule 2a to 1986 Act]
  57. Schedule 3. . .
  58. Schedule 4[Schedule 8a to 1986 Act]
  59. Schedule 5: Information about transfers or proposed transfers of business
  60. Part I: [Part I of Schedule 17 to 1986 Act]
  61. Paragraph
  62. Part II: [Part IA of Schedule 17 to 1986 Act]
  63. Paragraph
  64. Schedule 6[Schedule 15a to 1986 Act]
  65. Schedule 7: Other amendments of 1986 Act
  66. The Building Societies Commission
  67. 1Paragraph 1 Repealed
  68. Annual and other reports
  69. 2Paragraph 2
  70. Authorisation to raise funds and borrow money
  71. 3Paragraph 3 Repealed
  72. The Building Societies Investor Protection Board
  73. 4Paragraph 4 Repealed
  74. The Investor Protection Fund
  75. 5Paragraph 5 Repealed
  76. Meaning of “insolvency” etc.
  77. 6Paragraph 6 Repealed
  78. Payments to investors
  79. 7Paragraph 7 Repealed
  80. Membership of insolvency committees etc
  81. 8Paragraph 8 Repealed
  82. Liability of insolvent society in respect of payments made by Board
  83. 9Paragraph 9 Repealed
  84. Power to obtain information
  85. 10Paragraph 10 Repealed
  86. Voluntary schemes
  87. 11Paragraph 11 Repealed
  88. Power to direct application to renew authorisation
  89. 12Paragraph 12 Repealed
  90. Imposition of conditions on current authorisation
  91. 13Paragraph 13 Repealed
  92. Revocation of authorisation
  93. 14Paragraph 14 Repealed
  94. Reauthorisation
  95. 15Paragraph 15 Repealed
  96. Powers to avoid apparent association with other bodies
  97. 16Paragraph 16
  98. Powers to obtain information and documents etc.
  99. 17Paragraph 17
  100. Right of entry to obtain information and documents
  101. 18Paragraph 18 Repealed
  102. Confidentiality of information obtained by Commission
  103. 19Paragraph 19 Repealed
  104. Information disclosed to Commission from other sources
  105. 20Paragraph 20 Repealed
  106. Investigations on behalf of Commission
  107. 21Paragraph 21
  108. Inspections and special meetings: general
  109. 22Paragraph 22
  110. Inspections: supplementary provisions
  111. 23Paragraph 23
  112. Restrictions on loans etc. to directors
  113. 24Paragraph 24
  114. Directors etc. not to accept commissions in connection with loans
  115. 25Paragraph 25
  116. Records of loans etc. for directors
  117. 26Paragraph 26
  118. Records of income of related businesses
  119. 27Paragraph 27
  120. Interpretation of Part VII
  121. 28Paragraph 28
  122. Accounting records and systems of business control etc.
  123. 29Paragraph 29
  124. Contents and form of annual accounts
  125. 30Paragraph 30
  126. Duty of directors to prepare annual business statement
  127. 31Paragraph 31
  128. Directors’ report
  129. 32Paragraph 32
  130. Summary financial statement for members and depositors
  131. 33Paragraph 33
  132. Auditor’s report and powers
  133. 34Paragraph 34
  134. Auditor’s duties to Commission and related rights
  135. 35Paragraph 35 Repealed
  136. Investigation of complaints: supplementary provisions
  137. 36Paragraph 36 Repealed
  138. Settlement of disputes
  139. 37Paragraph 37
  140. Dissolution by consent
  141. 38Paragraph 38
  142. Winding up: grounds and petitioners
  143. 39Paragraph 39
  144. Winding up or dissolution: supplementary
  145. 40Paragraph 40
  146. Amalgamations
  147. 41Paragraph 41
  148. Transfer of engagements
  149. 42Paragraph 42
  150. Mergers: provisions supplementing sections 93 and 94
  151. 43Paragraph 43
  152. Mergers: compensation for loss of office etc.
  153. 44Paragraph 44
  154. Transfer of business to commercial company
  155. 45Paragraph 45
  156. Regulated terms: compensation for loss of office etc.
  157. 46Paragraph 46
  158. Distribution and share rights
  159. 47Paragraph 47
  160. Power to amend etc. to assimilate to company law
  161. 48Paragraph 48
  162. Limited power to anticipate future statutory instrument powers
  163. 49Paragraph 49
  164. Power to require building society to change misleading name
  165. 50Paragraph 50
  166. Offences: liability of officers etc.
  167. 51Paragraph 51 Repealed
  168. Qualifying asset holding for certain powers
  169. 52Paragraph 52
  170. Interpretation
  171. 53Paragraph 53
  172. Northern Ireland
  173. 54Paragraph 54
  174. The Commission
  175. 55Paragraph 55 Repealed
  176. Establishment, incorporation and constitution
  177. 56Paragraph 56
  178. Meetings, resolutions and postal ballots
  179. 57Paragraph 57
  180. The Building Societies Investor Protection Board
  181. 58Paragraph 58 Repealed
  182. Directors: requisite particulars of restricted transactions
  183. 59Paragraph 59
  184. Requisite particulars of income of related business
  185. 60Paragraph 60
  186. Auditors: appointment, tenure and qualifications
  187. 61Paragraph 61
  188. Schemes for investigation of complaints
  189. 62Paragraph 62 Repealed
  190. Recognition etc. of schemes for investigation of complaints
  191. 63Paragraph 63 Repealed
  192. Settlement of disputes
  193. 64Paragraph 64
  194. Application of companies winding up legislation to building societies
  195. 65Paragraph 65
  196. Mergers: supplementary provisions
  197. 66Paragraph 66
  198. Transitional and saving provisions
  199. 67Paragraph 67
  200. Schedule 8: Transitional provisions and savings
  201. Alterations of purpose, powers and rules
  202. 1Paragraph 1 Repealed
  203. 2Paragraph 2 Repealed
  204. Default powers
  205. 3Paragraph 3 Repealed
  206. Existing members to whom advances have been made
  207. 4Paragraph 4
  208. Existing borrowing members which are corporations
  209. 5Paragraph 5
  210. Existing fully secured loans
  211. 6Paragraph 6
  212. Existing shareholders
  213. 7Paragraph 7
  214. Existing depositors and shareholders
  215. 8Paragraph 8
  216. Existing transfer statements referring to the abolition of priority liquidation distribution rights
  217. 9Paragraph 9
  218. Existing specially formed successor companies
  219. 10Paragraph 10
  220. Schedule 9Repeals and revocations