The Building Societies (Mergers) (Amendment) Regulations 1995

Amendment of Principal Regulations

2.  The Building Societies (Mergers) Regulations 1987(1) shall be amended by the substituition for paragraphs (2) and (3) of regulation 3 (Limit relating to bonuses to members) of the following paragraphs—

“(2) The maximum distribution that may be made among members of any one society under paragraph (1) above is—

(a) in any case other than that referred to in sub-paragraph (b) below, a sum equal to

(i) five per cent. of the value of that society’s total assets, or

(ii) the sum calculated in accordance with paragraph (3) below

whichever shall be the less; and

(b) in a case where the terms of the merger provide for some but not all of that society’s liabilities to its members in respect of shares to be transferred, a sum equal to

(i) five per cent. of the value of the liabilities in respect of shares that are transferred, or

(ii) such proportion of the sum calculated in accordance with paragraph (3) below as the value of the liabilities in respect of shares that are transferred bears to the value of the liabilities in respect of the totality of shares in the society (both those being transferred and those not being transferred)

whichever shall be the less.

(3) The sum referred to in paragraph (2) above shall be calculated by deducting the value of the society’s fixed assets, both tangible and intangible, from the aggregate of the society’s general reserves and, if any, revaluation and other reserves.

(4) For the purposes of paragraphs (2) and (3) above, the value of any assets or liabilities or reserves of a society is their value as given in any statement relating to the merger sent under Part I of Schedule 16 to the Act (which includes a provision requiring that statement to state the financial position of the society), or, if it is not given in the statement, their value as determined for the purpose of making that statement.”.

(1)

S.I. 1987/2005.