The Building Societies (Designation of Qualifying Bodies) (No. 3) Order 1993

Meaning of business percentage condition for estate agency bodies

5.—(1) In this Schedule “the business percentage condition for estate agency bodies” means a condition to the effect that where a society holds directly or indirectly 15% or more of the issued shares or corresponding membership rights in an estate agency body–

(a) for each financial year of the body ending more than 18 months after the acquisition of such shares or corresponding membership rights, within four months after the end of such financial year, the society shall satisfy itself whether at least 40% of the gross income of that body, unless paragraph (b) below applies, or, if an estate agency body has any subordinate organisations, that at least 40% of the consolidated gross income of that body and its subordinate organisations is derived from carrying on estate agency work in countries or territories where estate agency bodies may be incorporated;

(b) if a society holds indirectly 15% or more of the issued shares or corresponding membership rights in an estate agency body which is a subordinate organisation of another estate agency body in which the society directly holds 15% or more of the issued shares or corresponding membership rights, the society need not calculate whether 40% of the gross income of the body in which it indirectly holds 15% or more of the issued shares or corresponding membership rights is derived from carrying on estate agency work in countries or territories where estate agency bodies may be incorporated;

(c) if, in relation to an estate agency body to which paragraph (a) above applies, for two successive financial years of that estate agency body less than 40% of the gross income (or, if appropriate, consolidated gross income as referred to in paragraph (a) above), is derived from carrying on estate agency work, the society shall, as soon as it is conveniently practicable to do so without undue loss, dispose of sufficient of its shares or corresponding membership rights so that is ceases to hold, directly or indirectly, 15% or more of the issued shares or corresponding membership rights in that body.

(2) For the purposes of this Schedule “holds directly or indirectly” shall be construed in accordance with paragraph 3(2) above.