Societies: accounts and audit, etc.

4AF1 Power of societies to disapply section 4.

1

Subject to subsections (3) and (4) of this section, a society may disapply section 4 of this Act in relation to any year of account beginning on or after the day on which the Deregulation (Industrial and Provident Societies) Order 1996 comes into force if—

a

the value of its assets at the end of the preceding year of account did not in the aggregate exceed F6£2,800,000, and

b

its turnover for that year did not exceed F7£5,600,000.

2

The power conferred by subsection (1) of this section shall be exercisable by resolution passed at a general meeting at which—

a

less than 20 per cent. of the total votes cast are cast against the resolution, and

b

less than 10 per cent. of the members of the society for the time being entitled under the society’s rules to vote cast their votes against the resolution.

3

Subsection (1) of this section shall not apply to a society which—

a

is a credit union within the meaning of the Credit Unions Act 1979,

F8 b

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2ba

is registered in the register of social landlords maintained under F11section 20(1) of the Housing (Scotland) Act 2010 (asp 17),

c

is, or has, a subsidiary,

d

F9 ... or

e

holds, or has, at any time since the end of the preceding year of account, held, a deposit F3 . . ., other than a deposit in form of withdrawable share capital.

4

TheF12FCA may by notice to a society disapply subsection (1) of this section in relation to the year of account of the society in which the notice is given.

5

Where a society exercises the power conferred by subsection (1) of this section, the disapplication shall cease to have effect if, at any time before the end of the year of account to which it relates—

a

the society becomes one to which subsection (3) of this section applies, or

b

theF12FCA gives the society notice under subsection (4) of this section.

6

In the case of a society which is a charity F10as defined by section 1(1) of the Charities Act 2011, or a recognised body as defined by section 1(7) of the F4Law Reform (Miscellaneous Provisions) (Scotland) Act 1990, subsection (1) of this section shall have effect with the substitution for paragraph (b) of—“

b

its gross income for that year did not exceed £250,000."

7

For a period which is a society’s year of account, but not in fact a year, the maximum figure in subsection (1)(b) of this section (including that provision as it has effect by virtue of subsection (6) of this section) shall be proportionately adjusted.

8

In this section, “turnover", in relation to a society, means the amounts derived from the provision of goods and services falling within the society’s activities, after deduction of—

a

trade discounts,

b

value added tax, and

c

any other taxes based on the amounts so derived.

F59

In subsection (3), the reference to a deposit must be read with—

a

section 22 of the Financial Services and Markets Act 2000;

b

any relevant order under that section;

c

Schedule 2 to that Act.