Deregulation (Industrial and Provident Societies) Order 1996

JurisdictionUK Non-devolved
CitationSI 1996/1738
Year1996

1996 No. 1738

DEREGULATION

The Deregulation (Industrial and Provident Societies) Order 1996

Made 3rd July 1996

Coming into force 1st September 1996

Whereas:

(a) the Treasury are of the opinion that certain provisions of the Industrial and Provident Societies Act 19651the Industrial and Provident Societies Act 19672the Friendly and Industrial and Provident Societies Act 19683and the Friendly Societies Act 19744impose burdens affecting persons in the carrying on of a trade, business, profession or otherwise and that by amending or repealing the provisions concerned and by making certain other provisions it is possible to remove or reduce the burdens without removing any necessary protection;

(b) the Treasury have consulted such organisations as appear to them to be representative of interests substantially affected by their proposals and such other persons as they consider appropriate;

(c) it appears to the Treasury that it is appropriate following that consultation to proceed with the making of the Order;

(d) a document setting out the Treasury’s proposals has been laid before Parliament in accordance with Section 3 of the Deregulation and Contracting Out Act 19945and the period for Parliamentary consideration under section 4 of that Act has expired;

(e) the Treasury have had regard to the representations made during that period;

(f) a draft of this Order has been laid before Parliament with a statement giving details of such representations and the changes to the Treasury’s proposals in the light of those representations; and

(g) a draft of this Order has been approved by resolution of each House of Parliament.

Now, therefore, the Treasury in exercise of the powers conferred on them by Section 1 of the Deregulation and Contracting Out Act 1994, hereby make the following Order:—

S-1 Title and Commencement

Title and Commencement

1. This Order may be cited as the Deregulation (Industrial and Provident Societies) Order 1996 and shall come into force on 1 September 1996.

S-2 Interpretation

Interpretation

2. In this Order—

the 1965 Act” means the Industrial and Provident Societies Act 1965,

the 1967 Act” means the Industrial and Provident Societies Act 1967,

the 1968 Act” means the Friendly and Industrial and Provident Societies Act 1968,

the 1974 Act” means the Friendly Societies Act 1974,

the 1979 Act” means the Credit Unions Act 19796.

S-3 Easier Registration

Easier Registration

3.—(1) In section 2(1) of the 1965 Act (registration of society) in paragraphs (a) (minimum number of members for registration) and (b) (minimum number of members to sign application for registration) for “seven” there shall be substituted “three”.

(2) In consequence of paragraph (1) of this Article—

(a)

(a) in section 16(1)(a)(i) of the 1965 Act (cancellation of registration of a society when the number of members falls below the specified minimum), and

(b)

(b) in section 6(1) of the 1979 Act (minimum number of members of a credit union ), for “seven” there shall be substituted “three”.

(3) In section 53(2) of the 1965 Act (conversion of company into registered society) for “seven” there shall be substituted “three”.

S-4 Registration of rules of federal societies

Registration of rules of federal societies

4.—(1) In section 2(2) of the 1965 Act (which requires an application for registration of a society of registered societies to be signed by two members of the committee and the secretary of each of the constituent societies, or, where there are more than three such societies, of any three of them, and to be accompanied by certain copy documents)—

(a)

(a) the words “two members of the committee and” are hereby repealed,

(b)

(b) for “(or, if more than three, of each of any three)” there shall be substituted “(or, if more than two, of each of any two)”, and

(c)

(c) the words “of the registered rules of each of the constituent societies as well as” are hereby repealed.

(2) In section 10(1)(a) of that Act (which requires an amendment of the rules of a society consisting of registered societies to be signed by, inter alios, two members of the committee and the secretary of each of the constituent societies, or, where there are more than three such societies, of any three of them)—

(a)

(a) the words “two members of the committee and” are hereby repealed, and

(b)

(b) for “(or, if more than three, of each of any three)” there shall be substituted “(or, if more than two, of each of any two)”.

S-5 Time for submission of annual returns: industrial and provident societies

Time for submission of annual returns: industrial and provident societies

5.—(1) Section 39 of the 1965 Act (annual returns) shall be amended as follows.

(2) In subsection (1) (duty to send return to the appropriate registrar)—

(a)

(a) for “, not later than 31st March in each year,” there shall be substituted “within the period of 7 months beginning immediately after the end of the period required by this section to be included in the return”, and

(b)

(b) for “relating to its affairs for the period required by this section to be included in the return” there shall be substituted “relating to its affairs for that period”.

(3) In subsection (3) (under which returns made up to a date later than the usual date must be sent to the appropriate registrar within three months) the words from “and in that case” to the end are hereby repealed.

S-6 Time for submission of annual returns: friendly societies

Time for submission of annual returns: friendly societies

6. In section 43(1) of the 1974 Act (duty to send annual return to the Registrar) for “31st May” there shall be substituted “31st July”.

S-7 Extending the time limit of submitting charges

Extending the time limit of submitting charges

7.—(1) The 1967 Act shall be amended as follows.

(2) In section 1 (charges on assets of English and Welsh societies)—

(a)

(a) in subsection (2) (application for registration of charge) for “fourteen days” there shall be substituted “twenty-one days”, and

(b)

(b) in subsection (5) (late registration)—

(i) for “High Court” there shall be substituted “Chief Registrar”,

(ii) for “fourteen days” there shall be substituted “twenty-one days”, and

(iii) for “Court may, on such terms as it thinks fit, order” there shall be substituted “Chief Registrar may, on such terms as he thinks fit, direct”.

(3) In section 4(2) (late registration of charge in relation to Scottish society)—

(a)

(a) for “Court of Session” there shall be substituted “Chief Registrar”, and

(b)

(b) for “Court may, on such terms as it thinks fit, order” there shall be substituted “Chief Registrar may, on such terms as he thinks fit, direct”.

(4) This Article shall apply to instruments executed on or after the day on which this Order comes into force.

S-8 Power to opt out of duty to have accounts audited: industrial and provident societies

Power to opt out of duty to have accounts audited: industrial and provident societies

8.—(1) After section 4 of the 1968 Act there shall be inserted—

S-4A

Power of societies to disapply section 4.

4A.—(1) Subject to subsections (3) and (4) of this section, a society may disapply section 4 of this Act in relation to any year of account beginning on or after the day on which the Deregulation (Industrial and Provident Societies) Order 1996 comes into force if—

(a)

(a) the value of its assets at the end of the preceding year of account did not in the aggregate exceed £1,400,000, and

(b)

(b) its turnover for that year did not exceed £350,000

(2) The power conferred by subsection (1) of this section shall be exercisable by resolution passed at a general meeting at which—

(a)

(a) less than 20 per cent. of the total votes cast are cast against the resolution, and

(b)

(b) less than 10 per cent. of the members of the society for the time being entitled under the society’s rules to vote cast their votes against the resolution.

(3) Subsection (1) of this section shall not apply to a society which—

(a)

(a) is a credit union within the meaning of the Credit Unions Act 1979,

(b)

(b) is registered in the register of housing associations maintained by the Housing Corporation, Housing for Wales or Scottish Homes,

(c)

(c) is, or has, a subsidiary,

(d)

(d) prepares accounts under the Insurance Accounts Directive (Miscellaneous Insurance Undertakings) Regulations 19937, or

(e)

(e) holds, or has, at any time since the end of the preceding year of account, held, a deposit within the meaning of the Banking Act 19878, other than a deposit in form of withdrawable share capital.

(4) The registrar may by notice to a society disapply subsection (1) of this section in relation to the year of account of the society in which the notice is given.

(5) Where a society exercises the power conferred by subsection (1) of this section, the disapplication shall cease to have effect if, at any time before the end of the year of account to which it relates—

(a)

(a) the society becomes one to which subsection (3) of this section applies, or

(b)

(b) the registrar gives the society notice under subsection (4) of this section.

(6) In the case of a society which is a charity within the meaning of the Charities Act 19939, or a recognised body as defined by section 1(7) of the Law Reform (Miscellaneous Provisions) (Scotland) Act 199010, subsection (1) of this section shall have effect with the substitution for paragraph (b) of—

“(b)

“(b) its gross income for that year did not exceed £250,000.”

(7) For a period which is a society’s year of account, but not in fact a year, the maximum figure in subsection (1)(b) of this section (including that provision as it has effect by virtue of subsection (6) of this section) shall be proportionately adjusted.

(8) In this section, “turnover”, in relation to a society, means the amounts derived from the provision of goods and services falling within the society’s activities, after deduction of—

(a)

(a) trade discounts,

(b)

(b) value added tax, and

(c)

(c) any other taxes based on the amounts so derived.”

(2) After ...

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