The Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011

Common bonds

14.—(1) In section 5 (membership and voting rights)—

(a) in subsection (5), for “ceases to fulfil the qualifications for admission to membership” substitute “ceases to fall within a common bond and as a result would not qualify for admission to membership”;

(b) in subsection (7), for “whether a common bond exists between the members of the credit union” substitute “whether the requirements of section 1B are met”.

(2) In section 20(1) (cancellation or suspension of registration and petition for winding up)—

(a) in subsection (1)(b), for “there is no longer a common bond between the members of a credit union” substitute “the rules of a credit union provide for one or more common bonds involving a connection with a locality and the requirements of section 1B are no longer met”;

(b) in subsection (2), for paragraph (c) substitute—

“(c) the rules of a credit union provide for one or more common bonds involving a connection with a locality and the requirements of section 1B are no longer met;”.

(3) In section 21(2) (amalgamations and transfers of engagements)—

(a) in subsection (3), for paragraph (b), substitute—

“(b) section 1B (further requirements where common bond relates to locality) would apply to the proposed amalgamated credit union or, as the case may be, the credit union proposing to accept the transfer of engagements and the requirements of that section would not be met.”;

(b) in subsection (4), for “does not fulfil the qualifications for admission to membership” substitute “does not fall within a common bond and as a result does not qualify for admission to membership”.

(4) In Schedule 1 (matters to be provided for in rules of credit union), for paragraph 4 substitute—

“4.   The qualifications for admission to membership of the society, including one or more common bonds appropriate to a credit union.

4A.   The terms of admission to membership of the society, including any special provision for the insurance of members in relation to their shares.”

(1)

Section 20 was amended by S.I. 2001/2617; there are other amending instruments but none is relevant.

(2)

Section 21 was amended by S.I. 2001/2617; there are other amending instruments but none is relevant.