The Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011
| Jurisdiction | UK Non-devolved |
| Citation | SI 2011/2687 |
| Year | 2011 |
2011 No. 2687
Regulatory Reform
The Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011
Made 8th November 2011
Coming into force in accordance with article 1
The Treasury, in exercise of the power conferred by section 1 of the Legislative and Regulatory Reform Act 20061, make the following Order.
For the purposes of section 3(1) of that Act, they consider, where relevant, that the conditions in section 3(2) are satisfied.
They have consulted in accordance with section 13(1) and (2) of that Act.
They have laid a draft Order and an explanatory document before Parliament in accordance with section 14(1) of that Act.
Pursuant to section 15 of that Act, the super-affirmative resolution procedure (within the meaning of Part 1 of that Act) applies in relation to the making of the Order.
The period of 60 days referred to in section 18(2) of that Act has expired.
In accordance with section 18(2) of that Act, they have had regard to any representations, resolutions and recommendations made during that period and in particular to the Eighth Report of Session 2009-10 of the House of Lords Delegated Powers and Regulatory Reform Committee (published on 25th March 2010) and the Second Report of Session 2009-10 of the House of Commons Regulatory Reform Committee (published on 29th March 2010).
In accordance with section 18(7) of that Act, they have laid a revised draft Order before Parliament together with a statement.
In accordance with section 18(8) of that Act, the revised draft Order has been approved by resolution of each House of Parliament.
PART 1
Introductory
Citation, commencement and extent
1.—(1) This Order may be cited as the Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011 and shall come into force as follows—
(a)
(a) article 15(4)(a) at the same time that section 5(2) of the Co-operative and Community Benefit Societies and Credit Unions Act 20102comes into force; and
(b)
(b) the remainder at the end of the period of two months beginning with the date on which it is made.
(2) This Order extends to Great Britain only, except article 22 which also extends to Northern Ireland.
Interpretation
2. In this Order—
“the 1965 Act” means the Industrial and Provident Societies Act 19653;
“the 1968 Act” means the Friendly and Industrial and Provident Societies Act 19684;
“the 1979 Act” means the Credit Unions Act 19795.
PART 2
Industrial and Provident Societies
Maximum shareholding in society
3. In section 66of the 1965 Act (maximum shareholding in society), after subsection (1) insert—
“1ZA Any interest in the shares of the society which are not withdrawable shall be disregarded for the purposes of subsection (1) of this section.”
Annual return
4.—(1) Section 397of the 1965 Act (annual returns) is amended as follows.
(2) In subsection (1)—
(a)
(a) for “period required by this section to be included in the return” substitute “year of account”;
(b)
(b) for “period” substitute “year”;
(c)
(c) in paragraph (a) for “period required to be included in the return” substitute “year of account”.
(3) In subsection (1A)(b) for “period included in the return” substitute “year of account”.
(4) In subsection (1B)—
(a)
(a) in paragraph (a) for “period included in the return” substitute “year of account”;
(b)
(b) in paragraph (b) for “period” substitute “year”.
(5) Omit subsections (2), (2A), (3) and (4).
5. After section 39 of the 1965 Act insert—
“Year of account (existing registrations)
39A.—(1) This section applies to a society registered under section 1 before the day on which this section comes into force.
(2) The year of account for a society to which this section applies begins with whichever is the later of—
(a)
(a) the date of the society’s registration, and
(b)
(b) the date to which the society’s last annual return was made up.
(3) Subject to subsections (5) and (6) the year of account for a society to which this section applies ends—
(a)
(a) with the date of the last balance sheet published by the society before the appropriate date; or
(b)
(b) if the date of that balance sheet is earlier than 31st August immediately preceding the appropriate date or later than 31st January of the year in which the appropriate date falls, with 31st December immediately preceding the appropriate date.
(4) For the purposes of subsection (3) “the appropriate date” is 31st March of the year in which an annual return is required by section 39 to be sent to the Authority or the date on which that return is so sent, whichever is the earlier.
(5) In the case of a society which is terminated by an instrument of dissolution under section 55(1)(b) of this Act the last year of account for that society ends with the date of the instrument of dissolution.
(6) A society to which this section applies may alter the date on which its current and subsequent years of account end to a date other than that specified in subsection (3)(a) or (b) by notice to the Authority.
(7) A notice under subsection (6) must state whether it extends or shortens the current year of account.
(8) A notice extending a society’s current year of account is not effective if—
(a)
(a) it is given less than 5 years after the end of an earlier year of account of the society that was extended under this section; or
(b)
(b) it extends that year of account such that it exceeds 18 months.
Year of account (new registrations)
39B.—(1) This section applies to a society registered under section 1 of this Act on or after the day on which this section comes into force.
(2) The year of account for a society to which this section applies is determined according to its accounting reference date in each calendar year.
(3) Subject to subsection (7) below the accounting reference date is the last day of the month in which the anniversary of its registration falls.
(4) The first year of account is the period of more than 6 months but not more than 18 months beginning with the date of the society’s registration and ending with its accounting reference date.
(5) Subsequent years of account are successive periods of 12 months beginning immediately after the end of the previous year of account and ending with the society’s accounting reference date.
(6) In the case of a society which is terminated by an instrument of dissolution under section 55(1)(b) of this Act the last year of account for that society ends with the date of the instrument of dissolution.
(7) A society to which this section applies may by notice to the Authority specify a new accounting reference date having effect in relation to the society’s current and subsequent years of account.
(8) A notice under subsection (7) must state whether the current year of account—
(a)
(a) is to be shortened, so as to come to an end on the first occasion on which the new accounting reference date falls or fell after the beginning of the year of account; or
(b)
(b) is to be extended, so as to come to an end on the second such occasion.
(9) A notice extending a society’s current year of account is not effective if—
(a)
(a) it is given less than 5 years after the end of an earlier year of account of the society that was extended under this section; or
(b)
(b) it extends that year of account such that it exceeds 18 months.”
6. In section 31 of the 1979 Act (interpretation), in subsection (4)8for “section 39 (annual accounts)” substitute “sections 39 to 39B (annual returns etc.)”
PART 3
Industrial and Provident Societies and Credit Unions
Provision of copies of rules
7. In section 159of the 1965 Act (provision of copies of rules)—
(a) for subsection (1) substitute—
“1 A registered society shall, on demand, give a copy of its registered rules—
(a) free of charge, to any member of the society to whom a copy of those rules has not previously been given; and
(b) to any other person, upon payment of such fee as the society may require, not exceeding the specified amount.”;
(b) after subsection (1) insert—
“1A In subsection (1) of this section “specified amount” means £5 or such other amount as the Treasury may specify by order.
1B The power to make an order under this section shall be exercisable by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament.”
Members under 18
8.—(1) In section 2010of the 1965 Act (members under 18)—
(a)
(a) omit the words “but above the age of sixteen”; and
(b)
(b) for “enjoy all the rights” to “under those rules, but” substitute—
“(a)
“(a) enjoy all the rights of a member; and
(b)
(b) if between the ages of sixteen and eighteen, execute all instruments and give all receipts necessary to be executed or given under those rules,
but a person under the age of sixteen”.
(2) In section 911of the 1979 Act (deposits by persons too young to be members), for “section 20 of the 1965 Act” substitute “any provision of the credit union’s rules”.
Dissolution
9.—(1) In section 5512of the 1965 Act (dissolution of registered society) for subsection (1)(b) substitute—
“(b)
“(b) in accordance with section 58 of this Act, by an instrument of dissolution—
(i) to which not less than three-fourths of the members of the society have given their consent testified by their signatures to the instrument;
(ii) in the case of a dormant society which is not a...
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