Process of building society liquidation
13.—(1) In section 103 of the 2009 Act (general powers, duties and effect), in subsection (4) ignore paragraph (h).
(2) In that section, the table (Insolvency Act 1986) applies with the modifications set out in this paragraph.
(3) For the entry for section 154 substitute—
| “Section 154 | Adjustment of rights of contributories | Any surplus is to be distributed in accordance with the rules of the society.”. |
(4) Ignore the entry for section 187 (transfer of assets to employees).
(5) Ignore the entries for sections 216 (restriction on re-use of names) and 217 (personal liability for debts).
(6) For the entries for sections 218 and 219 substitute—
| “Section 218 | Prosecution of officers and members of company | (a) the section does not apply in relation to offences committed by members of a building society acting in that capacity. (b) In subsection (3), treat the second reference to the official receiver as a reference to the Secretary of State. (c) Ignore subsections (4), (5) and (6). (d) Where a report is made to the Secretary of State under subsection (3), the Secretary of State may refer the matter to the FSA for further enquiry. (e) On such a reference to it the FSA shall exercise its power under section 55(1) of the Building Societies Act 1986 to appoint one or more competent persons to investigate and report on the matter. |
| Section 219 | Obligations under section 218 | (a) The section does not apply in relation to offences committed by members of a building society acting in that capacity. (b) Subsection (1) of section 219 does not apply. (c) Subsections (2), (2A) and (2B) of section 219 apply in relation to the powers referred to in the entry above for section 218. (d) In subsections (3) and (4) of section 219 the references to the Secretary of State shall have effect as references to the FSA.”. |
(7) For the entry for sections 423 – 425 substitute—
| “Sections 423 – 425 | Transactions defrauding creditors | (a) Sections 423-425 apply only where a building society insolvency order is made. (b) Anything done by the building society in connection with the exercise of a stabilisation power under Part 1 of this Act as applied to building societies by section 84 of this Act is not a transaction at an undervalue for the purposes of section 423.”. |