Mutuals’ Deferred Shares Act 2015

1 Power to permit or facilitate the issue of deferred shares

(1) The Treasury may by regulations make provision to permit or facilitate the issue of deferred shares by a friendly society or mutual insurer.

(2) “Deferred shares” are instruments that—

(a) are issued by a friendly society or mutual insurer (“the issuer”) with the consent of the appropriate authority,

(b) can be transferred but not withdrawn,

(c) prohibit repayment of principal other than—

(i) on the winding up or dissolution of the issuer where all other sums due from the issuer to creditors claiming in the winding up or dissolution are paid in full, or

(ii) where the appropriate authority has consented to the repayment, and

(d) have such characteristics as are specified in regulations made by the Treasury under this paragraph.

(3) Regulations under subsection (1) may modify any of the following—

(a) the Friendly Societies Act 1992 (as amended from time to time);

(b) the Companies Act 2006 (as amended from time to time);

(c) any other primary legislation relating to friendly societies or mutual insurers (whenever passed);

(d) any instrument made under the legislation mentioned in any of paragraphs (a) to (c) (whenever made).

(4) Regulations under subsection (1)—

(a) may not make provision that would permit or facilitate the issue of deferred shares by a friendly society or mutual insurer where it is not authorised to do so by its memorandum, rules or constitution;

(b) may make consequential, supplementary, incidental, transitional or saving provision;

(c) may make different provision for different purposes.

(5) A deferred share issued by virtue of regulations made under subsection (1) is not a share within the meaning of the Companies Acts.

(6) The power to make regulations under this section is exercisable by statutory instrument.

(7) A statutory instrument containing regulations under this section may not be made unless a draft of it has been laid before and approved by a resolution of each House of Parliament.