PART 3

Mutual societies

Building societies: miscellaneous

Power to direct transfer of building society's business
56
1
Section 42B of the Building Societies Act 1986 (power to direct transfers of engagements or business) is amended as follows.
2
In subsection (1)—
a
before the “or” at the end of paragraph (a) insert—
aa
direct the society, within a specified period, to transfer its business under section 97 to an existing or specially formed company that is a subsidiary of another mutual society by a transfer to which provision made by order under section 3 of the 2007 Act (transfers to subsidiaries of other mutuals) applies;
, and
b
in paragraph (b), for “to an existing company under section 97” substitute “ under section 97 to an existing company that is not a subsidiary of another mutual society ”.
3
After subsection (1) insert—
1A
In this section—
a
“the 2007 Act” means the Building Societies (Funding) and Mutual Societies (Transfers) Act 2007;
b
“mutual society” has the same meaning as in section 3 of that Act.
4
In subsection (4)—
a
in paragraph (a), for “(1)(b)” substitute “ (1)(aa) or (b) ”, and
b
in paragraph (b), after “existing company” insert “ , or to a specially formed company that is a subsidiary of another mutual society, ”.
5
In Schedule 8A to that Act (directions under section 42B(4)), in paragraph 9(3), for “section 42B(1)(b)” substitute “ section 42B(1)(aa) or (b) ”.
S. 56 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.