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Co-operative and Community Benefit Societies Act 2014

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This is the original version (as it was originally enacted).

Distribution of member’s property in society on death

37Nomination by member of entitlement to property in society on member’s death

(1)A member of a registered society may, in accordance with subsection (2), nominate one or more persons to become entitled at the member’s death to—

(a)the whole of any property in the society (whether in shares, loans or deposits or otherwise) which the member may have at the time of death, or

(b)to such part or respective parts of that property as may be specified in the nomination.

(2)A nomination must be—

(a)made in a written statement signed by the member and delivered at or sent to the society’s registered office during the member’s lifetime, or

(b)made in any book kept at the society’s registered office.

(3)The nomination of a person who (at the date of the nomination) is an officer or employee of the society is valid only if that person is the nominator’s spouse, civil partner, parent, child, brother, sister, nephew or niece.

(4)For the purposes of the disposal of any property which is the subject of a nomination, if at the date of death the amount of property in the society comprised in the nomination exceeds £5,000, the nomination is valid to the extent of £5,000 but not further or otherwise.

(5)A registered society must keep a book recording—

(a)the names of all persons nominated under this section, and

(b)any revocation or variation of a nomination.

(6)An order under section 6 of the Administration of Estates (Small Payments) Act 1965 (power to provide for increases in amounts disposable on death by nomination) has effect in relation to the limits in subsection (4) as it has effect in relation to the limits referred to in section 2 of that Act.

38Section 37: variation and revocation of nominations

(1)In this section “nomination” means a nomination under section 37.

(2)A member’s nomination may be varied or revoked by—

(a)a subsequent nomination by the member, or

(b)any similar document in the nature of a revocation or variation signed by the member and delivered at or sent to the society’s registered office during the member’s lifetime.

(3)A member’s nomination is not revocable or variable by the member’s will (or by any codicil to the will).

(4)Any nomination made by a member who subsequently marries or forms a civil partnership is revoked by the marriage or formation of the civil partnership.

(5)But if any of the member’s property is transferred by an officer of the society in pursuance of the nomination in ignorance of the marriage or civil partnership, the nominee’s receipt is a valid discharge to the society (and the society is under no liability to any other person claiming the property).

39Section 37: procedure on death

(1)This section applies where a member of a registered society has made a nomination under section 37.

(2)On receiving satisfactory proof of the member’s death, the society’s committee must—

(a)transfer to a person any property to which the person is entitled under the nomination, or

(b)pay the person the full value of that property.

(3)Subsection (2) applies in relation to property consisting of shares in the society even if the society’s rules provide that its shares are not transferable.

(4)But if the transfer of shares to a person in accordance with the nomination would raise the person’s share capital beyond the maximum for the time being permitted in the case of the society, the society’s committee—

(a)must not transfer to the person more of those shares than raises the person’s share capital to that maximum, and

(b)must pay the person the value of any of those shares not transferred.

(5)The society may pay any sum falling to be paid under subsection (2) or (4) to a person under the age of 16 (“the nominee”) to—

(a)a parent or guardian of the nominee, or

(b)any other person aged 18 or over who undertakes to hold it on trust for the nominee or to apply it for the nominee’s benefit and whom the society considers to be a fit and proper person for the purpose.

The receipt of the parent, guardian or other person is a valid discharge to the society for any sum paid under this subsection.

40Death of member: distribution of property not exceeding £5,000

(1)This section applies if—

(a)a member of a registered society dies,

(b)the member’s property in the society (as at death) in respect of shares, loans or deposits does not exceed £5,000, and

(c)that property is not the subject of a nomination under section 37 (nomination by member of entitlement to property in society on member’s death).

(2)The society’s committee may, without letters of administration or probate of any will (or, in Scotland, confirmation) having been obtained, distribute that property among such persons as appear to the committee (on such evidence as it considers satisfactory) to be entitled by law to receive it.

(3)A payment or transfer made under this section to a person appearing to the committee at the time of the payment or transfer to be entitled under this section is valid and effectual against any demand made upon the committee or society by any other person.

(4)An order under section 6 of the Administration of Estates (Small Payments) Act 1965 (power to provide for increases in amounts disposable on death without representation) has effect in relation to the limit in subsection (1)(b) as it has effect in relation to the limits referred to in section 1 of that Act.

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