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Building Societies Act 1986

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Building Societies Act 1986, Cross Heading: Administration orders is up to date with all changes known to be in force on or before 17 February 2020. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

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[F1 Administration ordersU.K.

Textual Amendments

F1Sch. 15A inserted (1.12.1997) by 1997 c. 32, s. 39(2), Sch. 6; S.I. 1997/2668, art. 2, Sch. Pt. I(i)

10(1)Section 8 of the Act (power of court to make administration order) has effect as if it included provision that, where—U.K.

(a)an application for an administration order to be made in relation to a building society is made by the [F2FCA or the PRA] (with or without other parties); and

(b)the society has defaulted in an obligation to pay any sum due and payable in respect of any deposit or share,

the society shall be deemed for the purposes of subsection (1) to be unable to pay its debts.

(2)In subsection (3) of that section, paragraph (c) and, in subsection (4) of that section, the words from “nor where” to the end are omitted.

Textual Amendments

11(1)Subsection (1) of section 9 of the Act (application for administration order) as applied to a building society has effect as if—U.K.

(a)it enabled an application to the court for an administration order to be by petition presented, with or without other parties, by the [F3FCA or the PRA] or by a shareholding member entitled under section 89(3) of this Act to petition for the winding up of the society; and

(b)the words from “or by the clerk” to “on companies)” were omitted.

(2)In subsection (2)(a) of that section as so applied, the reference to any person who has appointed, or is or may be entitled to appoint, an administrative receiver of the society is a reference to the Commission (unless it is a petitioner).

(3)Subsection (3) of that section, and in subsection (4) of that section, the words “Subject to subsection (3),” are omitted.

Textual Amendments

12U.K.In section 10 of the Act (effect of application for administration order), the following are omitted, namely—

(a)in subsection (2), paragraphs (b) and (c); and

(b)subsection (3).

13U.K.In section 11 of the Act (effect of administration order), the following are omitted, namely—

(a)in subsection (1), paragraph (b) and the word “and” immediately preceding that paragraph;

(b)in subsection (3), paragraph (b);

(c)in subsection (4), the words “an administrative receiver of the company has vacated office under subsection (1)(b), or”; and

(d)subsection (5).

14U.K.In subsection (1) of section 12 of the Act (notification of administration order), the reference to every invoice, order for goods or business letter is a reference to every statement of account, order for goods or services, business letter or advertisement.

15U.K.Subsection (3) of section 13 of the Act (appointment of administrator) has effect as if it enabled an application for an order under subsection (2) of that section to be made by the [F4FCA or the PRA] .

Textual Amendments

16(1)Subject to sub-paragraph (2) below, section 14 of the Act (general powers of administrator) has effect as if it required the administrator of a building society, in exercising his powers under that section—U.K.

(a)to ensure compliance with the provisions of this Act; and

(b)not to appoint to be a director any person who is not a fit and proper person to hold that position.

(2)Sub-paragraph (1)(a) above does not apply in relation to section 5, 6 or 7 of this Act F5. . ..

(3)In subsection (4) of that section as applied to a building society, the reference to any power conferred by the Act or [F6the Companies Acts] or by [F7the company’s articles] is a reference to any power conferred by this Act or by the society’s memorandum or rules.

F8(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17(1)Subject to sub-paragraph (3) below, paragraph 16 of Schedule 1 to the Act (powers of administrators) as applied to a building society has effect as if it conferred power to transfer liabilities in respect of deposits with or shares in the society.U.K.

(2)No transfer under that paragraph shall be a transfer of engagements for the purposes of Part X of this Act.

(3)No transfer under that paragraph which, apart from sub-paragraph (2) above, would be a transfer of engagements for the purposes of that Part shall be made unless it is approved by the court, or by meetings summoned under section 23(1) or 25(2) of the Act (as modified by paragraph 21 or 23 below).

F918U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

19(1)Section 17 of the Act (general duties of administrator) has effect as if, instead of the requirement imposed by subsection (3), it required the administrator of a building society to summon a meeting of the society’s creditors if—U.K.

(a)he is requested, in accordance with the rules, to do so by 500 of the society’s creditors, or by one-tenth, in number or value, of those creditors, or

(b)he is directed to do so by the court.

(2)That section also has effect as if it required the administrator of a building society to summon a meeting of the society’s shareholding members if—

(a)he is requested, in accordance with the rules, to do so by 500 of the society’s shareholding members, or by one-tenth, in number, of those members, or

(b)he is directed to do so by the court.

F1020U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

21(1)Subsection (1) of section 23 of the Act (statement of proposals) as applied to a building society has effect as if—U.K.

(a)the reference to the [F11Financial Conduct Authority] included a reference to the [F12scheme manager];

(b)the reference to all creditors included a reference to all holders of shares in the society; and

(c)the reference to a meeting of the society’s creditors included a reference to a meeting of holders of shares in the society.

(2)In subsection (2) of that section as so applied, references to members of the society do not include references to holders of shares in the society.

Textual Amendments

F12Words in Sch. 15A para. 21(1)(a) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 210(h)(i)(ii) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

22U.K.Section 24 of the Act (consideration of proposals by creditors’ meeting) as applied to a building society has effect as if any reference to a meeting of creditors included a reference to a meeting of holders of shares in the society.

23(1)Section 25 of the Act (approval of substantial revisions) as applied to a building society has effect as if—U.K.

(a)subsection (2) required the administrator to send a statement in the prescribed form of his proposed revisions to the [F13[F14FCA, to the PRA] and to the scheme manager]; and

(b)the reference in that subsection to a meeting of creditors included a reference to a meeting of holders of shares in the society.

(2)In subsection (3) of that section as so applied, references to members of the society do not include references to holders of shares in the society.

Textual Amendments

F13Words in Sch. 15A para. 23(1)(a) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 210(i) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

24U.K.Subsection (1) of section 27 of the Act (protection of interests of creditors and members) has effect—

(a)as if it enabled the [F15[F16FCA, the PRA] or the scheme manager] to apply to the court by petition for an order under that section; and

(b)in relation to an application by the [F17[F16FCA, the PRA] or the scheme manager], as if the words “(including at least himself)” were omitted.]

Textual Amendments

F15Words in Sch. 15A para. 24(a) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 210(j) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

F17Words in Sch. 15A para. 24(b) substituted (17.8.2001 for certain purposes and otherwise 1.12.2001) by S.I. 2001/2617, arts. 2, 8, 13(1), Sch. 3 Pt. II para. 210(k) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2

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