The Industrial and Provident Societies (Increase in Deposit-taking Limits) Order 1981

Powers of society's committee

4.—(1) Where immediately before the coming into operation of this Order the registered rules of a society registered under the Act permitted depositors under the said section 7(3) to deposit a maximum of two hundred and fifty pounds then laid down thereby, the committee may, by a resolution recorded in writing, resolve that depositors may be permitted to hold such greater amount not exceeding four hundred pounds as may be specified in the resolution, and the registered rules shall have effect accordingly.

(2) Where immediately before the coming into operation of this Order the registered rules of a society registered under the Act permitted depositors under the said section 7(3) to deposit a maximum of not more than ten pounds in any one payment, the committee may, by a resolution recorded in writing, resolve that depositors may be permitted to deposit a maximum of not more than four hundred pounds in any one payment as may be specified in the resolution, and the registered rules shall have effect accordingly.

(3) The powers conferred on the committees of registered societies by paragraphs (1) and (2) above shall not be exercisable after the expiration of the period of eighteen months beginning with the date on which this Order comes into operation; and if any amendment of the rules of a society is made after the coming into operation of this Order and before the expiration of the time allowed by this paragraph for exercising that power the power shall cease to be exercisable by the committee of that society on the date on which the amendment is registered under section 10 of the Act.

(4) The committee of a registered society shall not have power to vary or revoke a resolution under paragraphs (1) or (2) above.

(5) Where the committee of a registered society have exercised the power to pass a resolution under paragraphs (1) or (2) above and an amendment of the society's rules is subsequently registered under section 10 of the Act the registered rules of the society shall thereupon have effect as if the resolution had not been passed, so, however, that this paragraph shall not affect any interest in the funds of the society held by a depositor immediately before the date on which the amendment is registered.