Building Societies Act 1997
Part I
Constitution and powers
1
Principal purpose and powers.
2
Membership and liability of members.
3
Capacity etc.
4
The lending limit.
5
Loans secured on land.
6
Loans fully secured on land.
7
Discharge of mortgages.
8
The funding limit.
9
Raising funds and borrowing.
10
Restrictions on certain transactions.
11
Restriction on creation of floating charges.
12
Superseded provisions of 1986 Act.
Part II
Powers of control of Commission
13
Power to direct restructuring of business etc.
14
Power to make prohibition orders.
15
Powers to petition for winding up etc.
16
Imposition or variation of conditions in urgent cases.
17
Power to direct transfers of engagements or business.
18
Notification and confirmation of transfer directions.
19
Revocation: supplementary directions.
20
Notification and confirmation of supplementary directions.
21
The criteria of prudent management.
22
Statements of principles etc. by Commission.
23
Rights of appeal.
24
Determination of appeals.
Part III
Accountability to members
25
Special meeting on members’ requisition.
26
Failure to comply with members’ requisition.
27
Election of directors: general.
28
Election of directors: supplementary.
29
Acquisition or establishment of a business.
30
Information about transfers or proposed transfers of business.
31
Transfers of business: increased remuneration etc.
Part IV
Protection of investors and investigation of complaints
32
Amalgamation of building society and banking protection schemes.
33
Liability of insolvent society in respect of payments made by Board.
34
Recognised schemes for investigation of complaints.
35
Persons entitled to have complaints investigated.
Part V
Miscellaneous and supplemental
Miscellaneous
36
Registered and business names.
37
Access to registers of members.
38
Transactions with directors and persons connected with them.
39
Application of certain insolvency legislation.
40
Abolition of priority liquidation distribution rights.
41
Protective provisions for specially formed successors.
42
Registration of charges by building societies.
43
Other amendments of 1986 Act.
Supplemental
44
Financial provisions.
45
Minor and consequential amendments.
46
Transitional provisions, savings and repeals etc.
47
Short title, interpretation, commencement and extent.
SCHEDULES
SCHEDULE 1
[Part II of Schedule 2 to 1986 Act]
SCHEDULE 2
[Schedule 2a to 1986 Act]
SCHEDULE 3
[Schedule 7a to 1986 Act]
SCHEDULE 4
[Schedule 8a to 1986 Act]
SCHEDULE 5
Information about transfers or proposed transfers of business
Part I
[Part I of Schedule 17 to 1986 Act]
Issue of statement or summary to members Preliminary In this Part of this Schedule— “prescribed matters” in relation...
Part II
[Part IA of Schedule 17 to 1986 Act]
Notification of proposals for transfers of business Preliminary In this Part of this Schedule— “requisite particulars”, in relation...
SCHEDULE 6
[Schedule 15a to 1986 Act]
SCHEDULE 7
Other amendments of 1986 Act
The Building Societies Commission
1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Annual and other reports
2
In section 4 of the 1986 Act (annual and other...
Authorisation to raise funds and borrow money
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Building Societies Investor Protection Board
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Investor Protection Fund
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Meaning of “insolvency” etc.
6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments to investors
7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Membership of insolvency committees etc
8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liability of insolvent society in respect of payments made by Board
9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Power to obtain information
10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Voluntary schemes
11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Power to direct application to renew authorisation
12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Imposition of conditions on current authorisation
13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Revocation of authorisation
14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reauthorisation
15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Powers to avoid apparent association with other bodies
16
Section 51 of the 1986 Act (powers to avoid apparent...
Powers to obtain information and documents etc.
17
(1) In subsection (1)(a) of section 52 of the 1986...
Right of entry to obtain information and documents
18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Confidentiality of information obtained by Commission
19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Information disclosed to Commission from other sources
20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investigations on behalf of Commission
21
In subsection (2) of section 55 of the 1986 Act...
Inspections and special meetings: general
22
(1) In subsection (1) of section 56 of the 1986...
Inspections: supplementary provisions
23
In subsection (1) of section 57 of the 1986 Act...
Restrictions on loans etc. to directors
24
(1) In subsection (1) of section 65 of the 1986...
Directors etc. not to accept commissions in connection with loans
25
(1) In subsection (1) of section 67 of the 1986...
Records of loans etc. for directors
26
In subsection (6) of section 68 of the 1986 Act...
Records of income of related businesses
27
(1) In subsection (2) of section 69 of the 1986...
Interpretation of Part VII
28
In subsection (3)(a) of section 70 of the 1986 Act...
Accounting records and systems of business control etc.
29
(1) In subsection (3)(c) of section 71 of the 1986...
Contents and form of annual accounts
30
In subsection (8)(c) of section 73 of the 1986 Act...
Duty of directors to prepare annual business statement
31
In subsection (2) of section 74 of the 1986 Act...
Directors’ report
32
(1) In subsection (1) of section 75 (directors’ report)—
Summary financial statement for members and depositors
33
(1) In subsection (2) of section 76 of the 1986...
Auditor’s report and powers
34
(1) In subsection (4) of section 79 of the 1986...
Auditor’s duties to Commission and related rights
35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investigation of complaints: supplementary provisions
36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlement of disputes
37
In subsection (1) of section 85 of the 1986 Act...
Dissolution by consent
38
In subsection (8) of section 87 of the 1986 Act...
Winding up: grounds and petitioners
39
In subsection (4) of section 89 of the 1986 Act...
Winding up or dissolution: supplementary
40
For section 92 of the 1986 Act there shall be...
Amalgamations
41
In subsection (2) of section 93 of the 1986 Act...
Transfer of engagements
42
In subsections (2), (4) and (5) of section 94 of...
Mergers: provisions supplementing sections 93 and 94
43
(1) In subsection (3) of section 95 of the 1986...
Mergers: compensation for loss of office etc.
44
(1) In subsection (1) of section 96 (mergers: compensation for...
Transfer of business to commercial company
45
(1) In subsection (2) of section 97 of the 1986...
Regulated terms: compensation for loss of office etc.
46
In subsection (6) of section 99 of the 1986 Act...
Distribution and share rights
47
In subsection (4) of section 100 of the 1986 Act...
Power to amend etc. to assimilate to company law
48
In subsection (2) of section 104 of the 1986 Act...
Limited power to anticipate future statutory instrument powers
49
Section 105 of the 1986 Act (limited power to anticipate...
Power to require building society to change misleading name
50
Section 108 of the 1986 Act (power to require building...
Offences: liability of officers etc.
51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Qualifying asset holding for certain powers
52
Section 118 of the 1986 Act (qualifying asset holding for...
Interpretation
53
(1) In subsection (1) of section 119 of the 1986...
Northern Ireland
54
In subsection (1) of section 122 of the 1986 Act...
The Commission
55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Establishment, incorporation and constitution
56
(1) Part I of Schedule 2 to the 1986 Act...
Meetings, resolutions and postal ballots
57
(1) Part III of Schedule 2 to the 1986 Act...
The Building Societies Investor Protection Board
58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Directors: requisite particulars of restricted transactions
59
In paragraph 2(2)(c) of Schedule 9 to the 1986 Act...
Requisite particulars of income of related business
60
(1) In paragraphs 1 to 8 of Schedule 10 to...
Auditors: appointment, tenure and qualifications
61
In paragraph 5 of Schedule 11 to the 1986 Act...
Schemes for investigation of complaints
62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognition etc. of schemes for investigation of complaints
63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlement of disputes
64
(1) In paragraph 1(4) of Schedule 14 to the 1986...
Application of companies winding up legislation to building societies
65
In paragraph 3(2) of Schedule 15 to the 1986 Act...
Mergers: supplementary provisions
66
(1) In paragraph 1 of Schedule 16 to the 1986...
Transitional and saving provisions
67
In Schedule 20 to the 1986 Act (transitional and saving...
SCHEDULE 8
Transitional provisions and savings
Alterations of purpose, powers and rules
1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Default powers
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Existing members to whom advances have been made
4
(1) Nothing in section 2 of this Act shall affect...
Existing borrowing members which are corporations
5
Nothing in section 2 of this Act shall affect the...
Existing fully secured loans
6
(1) Subject to subsection (7) of section 6B of the...
Existing shareholders
7
Unless the contrary is shown, a building society may assume...
Existing depositors and shareholders
8
(1) Nothing in section 9 of this Act shall affect...
Existing transfer statements referring to the abolition of priority liquidation distribution rights
9
(1) Where before the commencement of section 40 of this...
Existing specially formed successor companies
10
(1) This paragraph applies where before the passing of this...
SCHEDULE 9
Repeals and revocations

Building Societies Act 1997
1997 c. 32
An Act to amend the Building Societies Act 1986; to make provision for amalgamating the Building Societies Investor Protection Board and the Deposit Protection Board into a single board and the Building Societies Investor Protection Fund and the Deposit Protection Fund into a single fund; and for connected purposes.
[21st March 1997]
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—