The Building Societies (Supplementary Capital) Order 1988

Overall limit on extent of aggregation

4.—(1) In determining the extent to which supplementary capital of a society is to be aggregated with the reserves of the society there shall be disregarded the amount (if any) by which the total of the relevant amounts of the society’s supplementary capital as identified in accordance with paragraph 2(2) and (3) of Part I of the Schedule to this Order exceeds half the amount of the society’s primary capital as shown in the society’s latest balance sheet.

(2) For the purposes of paragraph (1) above—

(a) “primary capital” means—

(i) where there is no revaluation reserve shown in the society’s latest balance sheet, the total reserves so shown, and

(ii) where a revaluation reserve is shown therein, those total reserves less that revaluation reserve, and

(b) where a society has been formed by the amalgamation of two or more societies under section 93 (amalgamations) of the Act and, as such, has no latest balance sheet, any amount in the latest balance sheet of the society shall be taken to mean the total of the corresponding amounts in the latest respective balance sheets of those two or more societies.