The Industrial and Provident Societies (Increase in Shareholding Limit) Order 1994

Powers of society’s committee

4.—(1) Where registered rules of a society provide for a fixed maximum shareholding limit in accordance with section 6(1) of the Act, the committee may, by a resolution recorded in writing, resolve that the maximum shareholding limit may be increased to such amount up to twenty thousand pounds as may be specified in the resolution, and subject to notice under paragraph (4) below having been given the registered rules shall have effect thereafter accordingly until such time as any subsequent amendment to the rules is registered whereupon the rules so registered shall have effect as if the earlier resolution had not been passed but so, however, that this paragraph shall not affect any interest in the shares of a society held by a member immediately before the date on which the subsequent amendment of rules is registered.

(2) The power conferred on the committees of societies by paragraph (1) above shall not be exercisable after the expiration of the period of eighteen months beginning with the date on which this Order comes into force; and if any amendment of the rules of a society is made after the coming into force 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.

(3) The committee of a society shall not have power to vary or revoke a resolution under paragraph (1) above.

(4) Notice in writing of any change in the rules of a society made by the committee of a society in exercise of the power conferred by paragraph (1) above to increase the maximum shareholding limit shall be given to the appropriate registrar within 60 days of the making of the necessary resolution in the form specified in the Schedule to this Order.