Credit Unions Act 1979

23 Conversion of company into credit union.E+W+S

F1(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)A company shall not be registered as a credit union in accordance with [F3 section 115 of the 2014 Act (conversion of company into a registered society) ] unless the [F4FCA] is satisfied—

(a)that either there are no outstanding deposits by members with the company or that, in the case of every such outstanding deposit, the member concerned has consented in writing to the deposit being converted into an equivalent amount of shares in the credit union immediately upon the company being registered as a credit union; [F5and]

(b)that in no case does the nominal value of the company’s shares held by any member, together with the amount of any deposit of his which is to be converted as mentioned in paragraph (a) above, exceed the maximum shareholding for the time being permitted by section 5(3) above [F6any applicable rules F7...] in the case of a member of a credit union; F8. . .

F9(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F10(4)In subsection (3), “applicable rules” are—

(a) if the credit union is a PRA -authorised person, rules made by the PRA or the FCA under the 2000 Act; and

(b) if the credit union is not a PRA -authorised person, rules made by the FCA under the 2000 Act. ]

[F11(5)Section 116 of the 2014 Act (member's shareholding in company exceeds maximum permitted amount) does not apply in relation to the conversion of a company into a credit union.]

Textual Amendments

F5Word in s. 23(3)(a) inserted (2.7.2002) by S.I. 2002/1501, arts. 1(1), 2(17)(a)

F6Words in s. 23(3)(b) substituted (2.7.2002) by S.I. 2002/1501, arts. 1(1), 2(17)(b)

F8Word in s. 23(3)(b) omitted (2.7.2002) by virtue of S.I. 2002/1501, arts. 1(1), 2(17)(c)

F9S. 23(3)(c) omitted (2.7.2002) by virtue of S.I. 2002/1501, arts. 1(1), 2(17)(d)