The Mutual Societies (Electronic Communications) Order 2011

JurisdictionUK Non-devolved
CitationSI 2011/593

2011 No. 593

Building Societies

Friendly Societies

Industrial And Provident Societies

The Mutual Societies (Electronic Communications) Order 2011

Made 21th March 2011

Laid before Parliament 22th March 2011

Coming into force 12th April 2011

The Treasury consider that the authorisation of the use of electronic communications by this Order for any purpose is such that the extent (if any) to which records of things done for that purpose will be available will be no less satisfactory in cases where use is made of electronic communications than in other cases.

The Treasury make the following Order in exercise of the powers conferred by sections 8 and 9 of the Electronic Communications Act 20001:

1 Preliminary

PART 1

Preliminary

Citation, commencement and interpretation
S-1 Citation, commencement and interpretation

Citation, commencement and interpretation

1.—(1) This Order may be cited as the Mutual Societies (Electronic Communications) Order 2011 and comes into force on 12th April 2011.

(2) In this Order—

the 1965 Act” means the Industrial and Provident Societies Act 19652;

the 1968 Act” means the Friendly and Industrial and Provident Societies Act 19683;

the 1974 Act” means the Friendly Societies Act 19744;

the 1986 Act” means the Building Societies Act 19865;

the 1992 Act” means the Friendly Societies Act 19926.

2 Building societies

PART 2

Building societies

Amendment to proxy voting requirements
S-2 Amendment to proxy voting requirements

Amendment to proxy voting requirements

2.—(1) For sub-paragraphs (1A) and (1B) of paragraph 24 of Schedule 2 to the 1986 Act7(proxies) substitute—

S-1A

“1A A form for the appointment of a proxy—

(a) may be sent electronically to a member if it is sent to an electronic address notified by that member to the society for the purpose;

(b) is to be treated as having been sent electronically to a member, where the conditions in sub-paragraph (1B) below are satisfied.

S-1B

1B The conditions are that—

(a) the society and the member have agreed that a form may instead be accessed by the member on a website;

(b) in a manner agreed between the society and that member, the member is notified of—

(i) the publication of the form on a website;

(ii) the address of that website; and

(iii) the place on that website where the form may be accessed, and how it may be accessed; and

(c) the form is published on the website throughout the period beginning with the day on which the member is notified in accordance with paragraph (b) above and ending with the last day specified for the return of appointments of proxies.

S-1C

1C If the form is absent from the website for part of the period referred to in sub-paragraph (1B)(c), the absence is to be disregarded if it is wholly attributable to circumstances that it would not be reasonable to have expected the society to prevent or avoid.

S-1D

1D Where a form for the appointment of a proxy is made available by a society on a website in accordance with subsection (1A)(b), the society may also make available on the website a facility for completing the form and returning the appointment in an electronic communication (but see paragraph 34).”.

(2) In sub-paragraph (2A) of paragraph 34 of Schedule 2 to the 1986 Act8(declarations to be made in proxy and ballot forms), for “contained in an electronic communication sent in accordance with paragraph 24(1A)(b)” substitute “returned in an electronic communication in accordance with paragraph 24(1D)”.

Minor amendments to the 1986 Act
S-3 Minor amendments to the 1986 Act

Minor amendments to the 1986 Act

3.—(1) In section 61(7E) of the 1986 Act9(directors: electronic transmission of election address), in paragraph (a) omit “, nothing in subsection (9A) above shall invalidate the election of a director where”.

(2) In Part 3 of Schedule 2 (meetings, resolutions and postal ballots) to that Act—

(a)

(a) in paragraph 23(6)(bb)10, for “if species” substitute “specifies”, and

(b)

(b) in paragraph 32(3A)11, after “or copy” insert “is”.

(3) In paragraph 6(2) of Schedule 16 to that Act12(electronic notification of merger proposal: penalty for default), for “sub-paragraph (1) or (2)” substitute “paragraph (a) or (b)”.

3 Friendly societies

PART 3

Friendly societies

Interpretation

Interpretation

S-4 Interpretation of the 1992 Act

Interpretation of the 1992 Act

4.—(1) In section 119(1) of the 1992 Act13(general interpretation), insert at the appropriate place—

““electronic address” means any number or address used for the purposes of sending or receiving documents or information by electronic means;”.

(2) After section 119A of the 1992 Act14, insert—

S-119AA

Meaning of electronic form, electronic means etc.

119AA.—(1) The following provisions apply for the purposes of this Act.

(2) A document or information is sent in electronic form if it is sent—

(a)

(a) by electronic means (for example, by email or fax), or

(b)

(b) by any other means while in electronic form (for example, sending a disk in the post).

References to “electronic copy” have a corresponding meaning.

(3) A document or information is sent by electronic means if it is—

(a)

(a) sent initially and received at its destination by means of electronic equipment for the processing (which expression includes digital compression) or storage of data, and

(b)

(b) entirely transmitted, conveyed and received by wire, by radio, by optical means or by other electromagnetic means.

References to “electronic means” have a corresponding meaning.

(4) A document or information sent in electronic form must be sent in a form, and by a means, that the sender reasonably considers will enable the recipient—

(a)

(a) to read it, and

(b)

(b) to retain a copy of it.

(5) For the purposes of this section, a document or information can be read only if—

(a)

(a) it can be read with the naked eye, or

(b)

(b) to the extent that it consists of images (for example photographs, pictures, maps, plans or drawings), it can be seen with the naked eye.

(6) The provisions of this section apply whether the provision of this Act in question uses the word “send” or uses other words (such as “furnish”, “circulate”, “provide”, “produce”, “supply”, “give” or “deliver”) to refer to the sending of a document or information.

S-119AB

Communications by means of a website

119AB.—(1) For the purposes of this Act, a person (A), other than the Authority, makes a document or information available on a website to another person (B) if each of the following conditions is satisfied.

(2) The first condition is that B—

(a)

(a) has agreed (generally or specifically) that A may make the document or information available to B in that manner, and

(b)

(b) has not revoked that agreement.

(3) The second condition is that A has notified B of—

(a)

(a) the presence of the document or information on the website,

(b)

(b) the address of the website,

(c)

(c) the place on the website where the document or information may be accessed, and

(d)

(d) how to access the document or information.

(4) The third condition is that the document or information is present on the website for the whole of the period—

(a)

(a) beginning when A sends B the notification referred to in subsection (3) or, if later, when the document or information first appears on the website, and

(b)

(b) ending with the end date specified for the purposes of this paragraph in the provision of, or made under, this Act that requires or permits A to send the document to B.

(5) If the document or information is absent from the website for part of the period referred to in subsection (4), the absence is to be disregarded if it is wholly attributable to circumstances that it would not be reasonable to have expected A to prevent or avoid.

(6) A is not to be regarded as making a document available on a website for the purposes of this section if the website is the Authority’s website (an electronic copy of the document having been placed there in reliance on section 104(1A)(b)).”.

Societies and the Authority

Societies and the Authority

S-5 Public file may be maintained electronically

Public file may be maintained electronically

5. In section 104 of the 1992 Act15(public file of a friendly society)—

(a) after subsection (1) insert—

S-1A

“1A The requirement to prepare and maintain the public file of a friendly society does not apply in relation to a document, a copy of a document or a record, if the Authority—

(a) prepares and maintains an electronic copy of the document, copy or record; and

(b) places the electronic copy on the Authority’s website.”;

(b) in subsection (2A)16, after “subsection (1)(b) above,” insert “for making an electronic copy available under subsection (1A) above”.

S-6 Forms of documents to be sent to the Authority

Forms of documents to be sent to the Authority

6.—(1) In section 114(1) of the 1992 Act17(forms of documents), after “the particulars to be included in”, insert “, and the authentication of,”.

(2) After section 114(2) insert—

S-3

“3 As regards the authentication of a document sent to the Authority electronically, the Authority may—

(a) require the document to be authenticated by a particular person or a person of a particular description;

(b) specify the means of authentication;

(c) require the document to contain or be accompanied by the name or registered number of the society to which it relates (or both).

S-4

4 As regards the procedure to be followed in sending a document electronically, the Authority may specify requirements as to the hardware and software to be used, and technical specifications (for example, matters relating to protocol, security, anti-virus protection or encryption).

S-5

5 Directions made by the Authority under this section must not require documents to be sent electronically.

S-6

6 In this section, a document is sent electronically if is it sent by electronic means or in electronic form.”.

Communications by and with societies

Communications by and with societies

S-7 Electronic transmission of...

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