The Deregulation (Industrial and Provident Societies) Order 1996

Explanatory Note

(This note is not part of the Order)

This Order amends the Industrial and Provident Societies Acts 1965 and 1967, the Friendly and Industrial and Provident Societies Act 1968 and the Friendly Societies Act 1974.

Industrial and Provident Societies Act 1965 (the 1965 Act)

Article 3 amends section 2(1) of the 1965 Act to reduce the minimum number of members required to form a society from seven to three, where the applicants are not solely corporate bodies;

Article 4(1) amends section 2(2) of the 1965 Act to make it easier for federal societies to make application for registration. Currently up to nine signatures are required when a federal society applies for registration. In future only the secretary of each of two corporate members will be required to sign the application; also, societies which are founder members of a federal society need no longer send copies of their own rules to the Registrar— only the rules of the proposed federal society need be submitted;

Article 4(2) amends section 10(1)(a) of the 1965 Act to make it easier for federal societies to register a change to their rules. Currently up to nine signatures are required when a federal society changes its rules. In future only the secretary of each of two corporate members will be required to sign the application;

Article 5 amends section 39 of the 1965 Act to relax the requirement relating to the period for submission of the annual return so that all societies will have up to seven months for submitting their return;

Article 6 amends section 43(1) of the 1974 Act by extending the date for submission by two months to 31 July so that all societies will have up to seven months for submitting their return;

Industrial and Provident societies Act 1967 (the 1967 Act)

Article7 amends section 1(2) of the 1967 Act by extending the time limit for recording a charge against a society’s assets from 14 to 21 days and allows societies to submit late charges without a court order, subject to the protection of third parties;

Friendly and Industrial and Provident Societies Act 1968 (the 1968 Act) and Friendly Societies Act 1974 (the 1974 Act)

Articles 8 and 9 amend section 4 of the 1968 Act and section 39 of the 1965 Act and

Articles 10 and 11 amend sections 30-33 and 40 of the 1974 Act to increase the audit thresholds for non-deposit taking industrial and provident societies and societies other than friendly societies registered under the 1974 Act to bring those societies into line with the provisions for private companies so that many more societies than at present will not be required to have a professional audit;

Article 12 amends section 14 of the 1968 Act to remove the need for societies with subsidiaries, whose circumstances have not changed, to apply annually for exemption from the preparation of group accounts.