Part 1

Registration

Registration

Registration etc: special cases
4
1
A society which has any withdrawable share capital may not be registered with the object of carrying on the business of banking.
2
Section 67(2) (taking of deposits below limits specified there not to be treated as carrying on the business of banking) applies for the purposes of subsection (1).
3
For the prohibition on registering a society whose objects are wholly or substantially those of a credit union otherwise than as a credit union, see section 2(3) of the Credit Unions Act 1979.
4
Subsection (5) applies where, for the purposes of securing (and maintaining) approval of its profit sharing scheme in accordance with Part 1 of Schedule 9 to the Income and Corporation Taxes Act 1988, the rules of a society that is a workers' co-operative contain any of the following—
a
provision for membership of the society by trustees of the scheme;
b
provision denying voting rights to those trustees;
c
other provisions which appear to the FCA to be reasonably necessary for that purpose.
5
The provisions are to be disregarded in determining—
a
whether the society should be registered as a co-operative society under this Act;
b
if the society is a registered society, whether for the purposes of this Part the society is a bona fide co-operative society.
S. 4(2) excluded by 1979 c. 34, s. 2(1) (as substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 3(2) (with Sch. 5))