Legalize / United Kingdom / Public General Act

Co-operative and Community Benefit Societies Act 2014

Type Public General Act

Publication 2014-05-14

Last updated 2020-07-18

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(4) At a general meeting such as is mentioned in subsection (2), a declaration by the chair that the resolution has been carried is conclusive evidence of that fact.

(5) Within 14 days from the day the special resolution is confirmed at the second meeting, the society must send the FCA a copy of it—

(a) signed by the chair of the second meeting, and

(b) countersigned by the society's secretary.

(6) The FCA must register the copy of the special resolution received under subsection (5).

(7) The special resolution does not take effect until the copy of it has been registered.

(8) Nothing in subsection (5) invalidates registration after the end of the 14 days mentioned there.

(9) If one or more of the societies is a PRA-authorised person, the FCA must send a copy of the special resolution to the PRA.

Conversion of society into company etc

Conversion of society into a company, amalgamation with a company etc

112

(1) A registered society may by special resolution determine to—

(a) convert itself into a company,

(b) amalgamate with a company, or

In this section “company” means a company under the Companies Acts.

(2) A registered society's registration under this Act becomes void and (subject to section 126) must be cancelled by the FCA if the society—

(a) is registered as a company,

(b) amalgamates with a company, or

(3) Section 113 contains provisions about special resolutions under this section.

(4) Section 114 contains further provisions about the conversion of a society into a company.

(5) An amalgamation or transfer of engagements does not prejudice any right of a creditor of the society.

Special resolutions under section 112

113

(1) This section supplements section 112.

(2) A resolution is a “special resolution” if—

(a) the resolution is passed at a general meeting by at least 75% of the eligible members who vote,

(b) at least 50% of the eligible members vote on the resolution,

(c) notice of this meeting (“the first meeting”), specifying the intention to propose the resolution, is duly given in accordance with the society's rules,

(d) the resolution is confirmed at a subsequent general meeting by over 50% of the eligible members who vote,

(e) notice of this meeting (“the second meeting”) is duly given, and

(f) the second meeting is held at least 14 days, and no more than one month, from the day of the first meeting.

(3) In this section—

(a) “eligible member” means a member entitled under the society's rules to vote;

(b) references to voting are to voting in person or, where the rules allow proxies, by proxy.

(4) At a general meeting such as is mentioned in subsection (2), a declaration by the chair that—

(a) all reasonably practicable steps have been taken to ascertain the number of eligible members, and

(b) the resolution has been carried,

is conclusive evidence of those facts.

(5) Within 14 days from the day of the second meeting, the society must send the FCA a copy of the special resolution that is—

(a) signed by the chair of the second meeting, and

(b) countersigned by the society's secretary.

(6) The FCA must register the copy of the special resolution received under subsection (5).

(7) The special resolution does not take effect until the copy of it has been registered.

(8) Nothing in subsection (5) invalidates registration after the end of the 14 days mentioned there.

(9) If the society is a PRA-authorised person, the FCA must send a copy of the special resolution to the PRA.

Conversion of society into a company: supplementary

114

(1) This section applies in relation to the conversion of a society into a company under section 112.

(2) Where—

(a) a special resolution for converting a registered society into a company contains the particulars required by the Companies Acts to be contained in a company's memorandum of association, and

(b) the FCA has registered a copy of it,

a copy of it under the FCA's stamp and seal has the same effect as a memorandum of association duly authenticated under the Companies Acts.

(3) Registration of a registered society as a company does not affect—

(a) any right or claim for the time being subsisting against the society, or

(b) any penalty for the time being incurred by the society.

(4) For the purpose of enforcing any such right, claim or penalty, the society may be sued and proceeded against in the same way as if it had not become registered as a company.

(5) Any such right or claim, and the liability to any such penalty, has priority as against the company's property over all other rights or claim against, or liabilities of, the company.

Conversion of company into society

Conversion of company into a registered society

115

(1) A company registered under the Companies Acts may by special resolution determine to convert itself into a registered society.

(2) The resolution must—

(a) be accompanied by a copy of the society's rules, and

(b) appoint 3 members of the company (“the appointed members”) to perform the functions mentioned in subsections (3) and (4).

(3) The appointed members and the company's secretary (or, if it has no secretary, a director of the company) must sign the rules.

(4) The resolution must provide either—

(a) that the appointed members are authorised to accept any alterations to the rules made by the FCA without further consulting the company, or

(b) that the appointed members must lay any such alterations before the company in general meeting for acceptance.

(5) A copy of the special resolution and the society's rules must be sent to the FCA.

(6) On registering the society under this Act, the FCA must (in addition to giving it an acknowledgement of registration under section 3) give it a certificate similarly sealed or signed that the society's rules have been registered.

(7) The name under which the company is registered as a registered society must not include the word “company”.

(8) A copy of the special resolution and the FCA's certificate must be sent to the registrar of companies, for registration by the registrar.

(9) The conversion takes effect on the registrar registering the resolution and certificate.

(10) On the conversion taking effect, the company's registration under the Companies Acts becomes void and the registrar must cancel the registration.

Conversion of company into a society: member’s shareholding in company exceeds maximum permitted amount

116

(1) This section applies in relation to a resolution under section 115 where the nominal value of the company's shares held by a member other than a registered society exceeds the amount specified in section 24(1) (maximum shareholding).

(2) The resolution may provide for the conversion of the shares representing that excess into a transferable loan stock—

(a) bearing such rate of interest as may be fixed, and

(b) repayable on such conditions as are determined by the resolution.

Conversion of company into a society: no effect on liabilities

117

(1) Registration of a company as a registered society does not affect—

(a) any right or claim for the time being subsisting against the company, or

(b) any penalty for the time being incurred by the company.

(2) For the purpose of enforcing any such right, claim or penalty, the company may be sued and proceeded against in the same way as if it had not been registered as a society.

(3) Any such right or claim, and the liability to any such penalty, has priority as against the society's property over all other rights or claims against, or liabilities of, the society.

Voluntary arrangements and administration

Power to apply provisions about company arrangements and administration

118

(1) The Treasury may with the concurrence of the Secretary of State by order —

(a) provide for Part A1 of the Insolvency Act 1986 (moratorium) to apply (with or without modifications) in relation to registered societies;

(b) provide for a company arrangement or administration provision to apply (with or without modifications) in relation to registered societies.

(2) “Company arrangement or administration provision” means—

(a) a provision of Part 1 of the Insolvency Act 1986 (company voluntary arrangements);

(b) a provision of Part 2 of that Act (administration);

(d) Part 26A of that Act (compromise or arrangement with creditors where company in financial difficulty).

(3) The order may not provide for a company arrangement or administration provision to apply in relation to a society that is—

(a) a private registered provider of social housing, or

(b) registered as a social landlord under Part 1 of the Housing Act 1996 or Part 2 of the Housing (Scotland) Act 2010 (asp 17).

(3A) The order may not make any provision that could be made under subsection (3B) or (3C).

(3B) The Welsh Ministers may by regulations made by statutory instrument make provision under the law of England and Wales for Part A1 of the Insolvency Act 1986 to apply (with or without modifications) in relation to a society that is registered as a social landlord under Part 1 of the Housing Act 1996.

(3C) The Scottish Ministers may by regulations make provision under the law of Scotland for Part A1 of the Insolvency Act 1986 to apply (with or without modifications) in relation to a society that is registered as a social landlord under Part 2 of the Housing (Scotland) Act 2010 (asp 17).

(4) An order or regulations under this section may—

(a) make provision generally or for a specified purpose only;

(b) make different provision for different purposes;

(5) Provision made by virtue of subsection (4)(c) may, in particular—

(a) apply an enactment (with or without modifications);

(b) amend an enactment (including any provision of this Act except this section).

(5A) A statutory instrument containing regulations under subsection (3B) is subject to annulment in pursuance of a resolution of Senedd Cymru.

(5B) Regulations made by the Scottish Ministers under subsection (3C) are subject to the negative procedure (see section 28 of the Interpretation and Legislative Reform (Scotland) Act 2010 (asp 10)).

(6) Section 277 of the Enterprise Act 2002 (power of Secretary of State to make supplementary, consequential or incidental provision) has effect as if this section were part of that Act.

Dissolution by an instrument of dissolution

Dissolution of society by an instrument of dissolution

119

(1) A registered society may be dissolved by an instrument of dissolution that—

(a) complies with subsection (2), and

(b) is approved in a way mentioned in subsection (3).

(2) The instrument must set out—

(a) the society's assets and liabilities in detail;

(b) the number of members and the nature of their interests in the society;

(d) the intended appropriation or division of the society's funds and property (unless the instrument states that this is to be left to the award of the FCA or PRA).

(3) The ways in which the instrument may be approved are as follows—

(a) by at least 75% of the society's members consenting to it, that consent being testified by their signatures to the instrument;

(b) in the case of a dormant society that is not a credit union, by a special resolution of the society;

(c) in the case of a credit union, by a special resolution of the society that is confirmed by the appropriate authority.

(4) An alteration in an instrument of dissolution may be made—

(a) by the consent of at least 75% of the society's members, testified by their signatures to the alteration, or

(b) if the instrument was approved by a special resolution of the society, by a further special resolution.

(5) Section 120 contains provisions about special resolutions under this section.

(6) In subsection (3)(b) “dormant society” means a society—

(a) whose accounts for the current year of account and the two years of account preceding it show no accounting transactions except—

(i) fees paid to the FCA;

(ii) fees paid to the PRA;

(iii) payments of dividends;

(iv) payments of interest; and

(b) that has notified the FCA that it is dormant.

(7) For the purposes of subsection (3)(c) the appropriate authority is treated as confirming a special resolution unless it notifies the society in writing to the contrary within 21 days of the society sending a copy of the resolution to it.

Special resolutions under section 119

120

(1) This section supplements section 119.

(2) A resolution is a “special resolution” if—

(a) the resolution is passed at a general meeting by at least two-thirds of the eligible members who vote,

(b) notice of this meeting (“the first meeting”), specifying the intention to propose the resolution, is duly given in accordance with the society's rules,

(d) notice of this meeting (“the second meeting”) is duly given, and

(e) the second meeting is held at least 14 days, and no more than one month, from the day of the first meeting.

(3) In this section—

(a) “eligible member” means a member entitled under the society's rules to vote;

(b) references to voting are to voting in person or, where the rules allow proxies, by proxy.

Instruments of dissolution: notification to FCA etc

121

(1) This section applies in relation to an instrument of dissolution within section 119(1).

(2) The instrument must be sent to the FCA (and, if the society is a PRA-authorised person, the PRA), accompanied by a statutory declaration that all relevant provisions of this Act have been complied with.

(3) The statutory declaration must be made by the society's secretary and—

(a) 3 members, or

(b) both members (if the society consists solely of 2 registered societies).

(4) A copy of any special resolution under section 119—

(a) signed by the chair of the second meeting, and

(b) countersigned by the society's secretary,

must be sent to the FCA (and, if the society is a PRA-authorised person, the PRA) within the period of 14 days beginning with the day of the second meeting.

(5) The FCA must register the instrument of dissolution (and any alterations to it) in the same way as an amendment of the society's rules.

But it must not register it until it has received the society's annual return for its last year of account (see section 77(8) or 78(7)).

(6) The FCA must register a copy special resolution received under subsection (4) at the same time as it registers the instrument of dissolution (and any alterations to it).

(7) The instrument of dissolution (and any alterations to it) are binding on the society's members.

(8) In this section “the second meeting” has the same meaning as in section 120.

Instruments of dissolution: advertisement, dissolution etc

122

(1) Where the FCA receives an instrument of dissolution of a society under section 121, it must ensure that notice of the dissolution is advertised in—

(a) the Gazette, and

(b) a newspaper circulating in or about the locality in which the society's registered office is situated.

(2) Subject to subsection (3), the society is dissolved from—

(a) the date of the advertisement, or

(b) if later, the date the certificate under section 126 is lodged with the FCA;

and the requisite consents to, or approval of, the instrument of dissolution are treated as duly obtained without proof of the signatures to it or of the special resolution (as the case may be).

(3) Subsection (2) does not apply if—

(a) within the period of 3 months from the date of the Gazette in which the advertisement appears, a member of the society or a person interested in or having a claim on its funds commences proceedings in the appropriate court to set aside the dissolution of the society, and

(b) the dissolution is accordingly set aside.

(4) The “appropriate court” means—

(a) the county court, or

(b) in Scotland, the sheriff having jurisdiction in the locality in which the society's registered office is situated.

(5) A person who takes proceedings to set aside the dissolution of a society must send the FCA (and, if the society is a PRA-authorised person, the PRA) notice of the proceedings—

(a) within 7 days after the commencement of proceedings, or

(b) if earlier, by the end of the period mentioned in subsection (3)(a).

(6) If an order setting aside the dissolution of a society is made, the society must send the FCA (and, if the society is a PRA-authorised person, the PRA) notice of the order within 7 days after the making of the order.

Dissolution on winding up

Dissolution of society on winding up

123

(1) A registered society may be dissolved on its being wound up in pursuance of an order or resolution made as is directed in the case of companies.

(2) The provisions relating to the winding up of companies have effect in relation to a registered society as if the society were a company, subject to the following modifications—

(a) a reference to the registrar of companies is to be read as the FCA;

(b) a reference to a company registered in Scotland is to be read as a registered society whose registered office is in Scotland;

(c) if the society is wound up in Scotland, the court having jurisdiction is the sheriff court whose jurisdiction contains the society's registered office.

(3) Where a resolution for the voluntary winding up of a registered society is passed—

(a) the society must send a copy of it to the FCA (and, if the society is a PRA-authorised person, the PRA) within 15 days after it is passed, and

(b) a copy of it must be annexed to every copy of the society's registered rules issued after it is passed.

(4) In this section “company” means a company registered under the Companies Acts.

(5) This section is subject to section 126 (dissolution to occur only after society's property has been dealt with).

Liability of existing and former members in winding up

124

(1) This section applies where a registered society is wound up by virtue of section 123.

(2) The liability of an existing or former member to contribute for payment of the society's debts and liabilities, the expenses of winding up, and the adjustment of the rights of contributories amongst themselves, is qualified as follows—

(a) a former member whose membership ceased at least one year before the beginning of the winding up is not liable to contribute;

(b) a former member is not liable to contribute in respect of a debt or liability contracted after the person's membership ceased;

(c) a former member is not liable to contribute unless it appears to the court that the contributions of the existing members are insufficient to satisfy the just demands on the society;

(d) the maximum contribution that a person may be required to make is the amount (if any) unpaid on the shares in respect of which the person is liable as an existing or former member;

(e) in the case of a withdrawable share that has been withdrawn, a person is treated as ceasing to be a member in respect of that share as from the date of the notice or application for withdrawal.

Dissolution following administration

125

(1) A relevant society may also be dissolved under paragraph 84 of Schedule B1 to the 1986 Act as applied in relation to a relevant society by an order under section 118.

(2) In this section “relevant society” means a registered society which is not—

(a) a private registered provider of social housing, or

(b) registered as a social landlord under Part 1 of the Housing Act 1996 or under Part 2 of the Housing (Scotland) Act 2010.

Restriction on dissolution etc

Dissolution etc to occur only after society’s property dealt with

126

(1) This section applies where—

(a) a registered society's engagements are transferred under section 110 or 112, or

(b) a registered society is to be dissolved in accordance with section 119 or 123.

(2) The society must not be dissolved, and its registration must not be cancelled, until a relevant certificate has been lodged with the FCA.

(3) “Relevant certificate” means a certificate certifying that all property vested in the society has been duly conveyed or transferred by the society to the persons entitled, signed by—

(a) the liquidator, or

(b) the secretary or some other officer of the society approved by the FCA.

Part 10 — Offences

Offences

General offences

127

(1) A person (whether a registered society, an officer or member of a registered society, or any other person) commits an offence if the person—

(a) fails to do anything (including giving a notice or sending a return or other document) that the person is by this Act required to do,

(b) fails to allow anything to be done that the person is by this Act required to allow to be done,

(c) wilfully neglects or refuses to do any act, or to provide any information, required for the purposes of this Act by the FCA or PRA or by any other person authorised under this Act,

(d) does anything forbidden by this Act, or

(e) makes a return required by this Act, or wilfully provides information required by this Act, that is in any respect false or insufficient.

(2) A registered society commits an offence if it—

(a) contravenes, or fails to comply with, any provision of Part 7 except section 77, 78, 81, 89(1) or 90(1), or

(b) fails to comply with a direction under section 83(3).

(3) A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

Offences by societies to be also offences by officers etc

128

(1) Where a registered society commits an offence under this Act, the offence is treated as also having been committed by—

(a) every officer of the society who is bound by its rules to fulfil the duty of which the offence is a breach, or

(b) if there is no such officer, every member of its committee.

(2) In proceedings against a person alleged to have committed an offence under this Act by virtue of subsection (1)(b), it is a defence to prove—

(a) that the person was ignorant of the commission of the offence, or

(b) that the person attempted to prevent the commission of the offence.

(3) Subsection (1) does not apply to an offence under section 127 consisting of a failure to comply with section 12 or 50(2) or (3).

(4) For the purposes of this section as it applies in relation to a failure to comply with section 123(3)(a), a liquidator of a society is treated as an officer of it.

Continuing offences

129

An act or default constituting an offence under this Act constitutes a new offence in every week during which it continues.

Misappropriation of a society’s property etc

130

(1) A person who, by false representation or deception, and with fraudulent intent, obtains possession of any property of a registered society commits an offence.

(2) A person who has any property of a registered society in the person's possession commits an offence if, with fraudulent intent, the person—

(a) withholds or misapplies the property, or

(b) wilfully applies any part of the property to purposes which are not authorised by the society's rules or which are not in accordance with this Act.

(3) A person guilty of an offence under this section is liable on summary conviction—

(a) to a fine not exceeding level 2 on the standard scale with costs or expenses,

(b) to be ordered to deliver up the property or to repay all moneys improperly applied, and

(c) in default of such delivery or repayment or of the payment of any such fine, to be imprisoned for a term not exceeding 3 months.

(4) If in proceedings against a person for an offence under this section it is not proved that the person acted with fraudulent intent, the person may be ordered to deliver up any property belonging to the society or to repay any money improperly applied, with costs or expenses.

Falsification of a society’s records etc

131

(1) A person commits an offence if, with intent to falsify a relevant document or to evade any of the provisions of this Act, the person—

(a) makes an entry in the relevant document,

(b) removes or omits anything from the relevant document, or

(2) “Relevant document” means—

(a) any balance sheet of a registered society,

(b) any contribution or collecting book of a registered society, or

(3) A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 3 on the standard scale.

Prosecution of offences

Prosecution of offences: persons who may bring proceedings and time for bringing them

132

(1) This section applies to proceedings for—

(a) an offence under this Act that is punishable with a fine, or

(b) an offence under a registered society's rules (see section 20).

(2) The proceedings may be brought by the following—

(a) in the case of proceedings in respect of an offence under a society's rules, the society;

(b) in the case of proceedings by virtue of section 127 in respect of neglect or a failure to do any act, or provide any information, required by the PRA—

(i) the FCA (after notifying the PRA), or

(ii) the PRA (after notifying the FCA);

(i) the registered society in question,

(ii) any member of that society authorised by the society, the society's committee or the FCA, or

(iii) the FCA (except in Scotland);

(d) in any other case, any person aggrieved or (except in Scotland) the FCA.

(3) Except in Scotland, no other person may bring proceedings.

(4) The FCA, the PRA or the Lord Advocate (“the prosecutor”)—

(a) may (despite any limitation on the time for bringing proceedings contained in any Act) bring proceedings for the offence at any time within one year of the discovery of the offence by the prosecutor, but

(b) may not bring proceedings more than 3 years after the commission of the offence.

Prosecution of societies: service of summons etc

133

(1) This section applies to proceedings taken against a registered society for an offence under this Act that is punishable with a fine.

(2) The summons or other process is sufficiently served—

(a) by leaving a true copy of it at the society's registered office, or

(b) if that office is closed, by posting that copy on the outer door of the office.

Part 11 — Miscellaneous and general

Application of company law etc

Power to amend this Act to assimilate to company law

134

(1) This section applies where, on any modification of the enactments in force relating to companies, it appears to the Treasury to be expedient to modify the relevant provisions of this Act for the purpose of assimilating the law relating to companies and the law relating to registered societies.

(2) The Treasury may by order make such modifications of the relevant provisions of this Act as they consider appropriate for that purpose.

(3) The “relevant provisions” of this Act are the provisions of this Act for the time being in force except—

(a) this section;

(b) section 2(1), (2)(a), (c) and (d), (3) and (4);

(d) section 16(1) and (2);

(e) section 17;

(f) section 29;

(g) sections 36 to 40;

(h) sections 109 to 122;

(i) section 126;

(j) sections 135 and 136;

(k) paragraphs 2, 10 and 15 of Schedule 3.

(4) An order under this section may modify the relevant provisions of this Act so as to—

(a) confer power to make orders, regulations, rules or other subordinate legislation;

(b) create criminal offences;

(5) An order under this section may—

(a) make consequential amendments of, or repeals in, the provisions listed in subsection (3);

(b) make such transitional or saving provisions as appear to the Treasury to be necessary or expedient.

(6) In this section “modification” includes any additions.

(7) The reference in subsection (1) to modifications of the enactments relating to companies includes any modification whether effected by—

(a) an Act passed after the passing of the Industrial and Provident Societies Act 2002, or

(b) an instrument made after the passing of that Act, under an Act whenever passed.

Power to apply company law provisions on investigations, names and dissolution etc

135

(1) The Treasury may by regulations—

(a) make provision applying any provision mentioned in subsection (2) to registered societies, or

(b) make provision for registered societies corresponding to any such provision,

in either case, with such modifications as appear to the Treasury to be appropriate.

(2) The provisions are—

(a) Parts 14 and 15 of the Companies Act 1985 (investigations);

(b) Part 5 of the Companies Act 2006 (company names);

(3) Regulations made by virtue of subsection (2)(a) may amend or repeal any of sections 105 to 107 (inspections, information powers etc).

(4) Regulations made by virtue of subsection (2)(b) may amend or repeal section 10 or 11 (or both) (provisions about a society's name).

(5) Regulations made by virtue of subsection (2)(c) may amend or repeal—

(a) section 5(3)(c) (cancellation of registration: society having ceased to exist);

(b) section 126 (dissolution etc to occur only after society's property dealt with).

(6) Subsections (3) to (5) are not to be read as restricting the power conferred by section 136 (power to make consequential amendments).

(7) The regulations may—

(a) confer power to make orders, regulations and other subordinate legislation;

(b) create criminal offences, but only—

(i) in circumstances corresponding to an offence under the Companies Acts, and

(ii) subject to a maximum penalty no greater than is provided for in respect of the corresponding offence;

(8) The regulations may contain such supplementary, incidental and transitional provisions as appear to the Treasury to be necessary or expedient.

(9) Before making any regulations under this section the Treasury must consult such persons as appear to them to be appropriate.

Section 135: power to make consequential amendments

136

(1) The Treasury may by regulations make such amendments of enactments as appear to them to be appropriate in consequence of any provision made by or under section 135.

(2) This power is exercisable in relation to—

(a) this Act (except this section), and

(b) any enactment passed or made before the commencement of the relevant provision.

(3) In this section “enactment” includes—

(a) an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978,

(b) an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament,

(d) an enactment contained in, or in an instrument made under, Northern Ireland legislation within the meaning of the Interpretation Act 1978.

(4) The regulations may contain such supplementary, incidental and transitional provisions as appear to the Treasury to be necessary or expedient.

Determination of disputes

Determination of disputes in accordance with a society’s rules

137

(1) If a registered society's rules give directions as to the way in which relevant disputes are to be determined, a relevant dispute is to be determined in the way directed by the rules (subject to the following provisions of this section).

(2) “Relevant dispute” means a dispute between a registered society or an officer of a registered society and—

(a) a member,

(b) a person aggrieved who ceased to be a member not more than 6 months previously (“a relevant former member”),

(d) a person claiming under the society's rules.

(3) Any dispute which would, under the rules, fall to be determined by the FCA or PRA is to be referred to the county court (or, in Scotland, to the sheriff) for determination.

(4) In England and Wales, any dispute which would, under the rules, be referred to justices is to be determined by a magistrates' court (subject to subsection (6)).

(5) In Scotland, any dispute which would, under the rules, be referred to justices, a justice of the peace court or a court of summary jurisdiction is to be determined by the sheriff.

(6) If the parties to the dispute consent, the dispute may be determined—

(a) in England and Wales, by the county court;

(b) in Scotland, by the sheriff.

(7) Neither subsection (1) nor the society's rules prevents a person, in accordance with the Financial Ombudsman scheme, from having a complaint dealt with under the scheme before or instead of being determined in the way directed by the rules.

Determination of disputes under section 137: application to the court

138

(1) This section applies where—

(a) section 137 applies in relation to a relevant dispute,

(b) an application is made to the society in question for a reference under its rules, and

(2) A person within a paragraph of section 137(2) who is a party to the dispute may apply to the appropriate court, which may hear and determine the matter in dispute.

(3) The appropriate court is—

(a) in England and Wales, the county court or a magistrates' court;

(b) in Scotland, the sheriff.

(4) “Relevant dispute” has the same meaning as in section 137.

Determination of disputes otherwise than under a society’s rules

139

(1) This section applies in relation to a relevant dispute if the registered society's rules contain no directions as to the determination of relevant disputes.

(2) The dispute may be determined—

(a) in England and Wales, by the county court;

(b) in Scotland, by the sheriff.

(3) Alternatively, in England and Wales, a person within a paragraph of section 137(2) who is a party to the dispute may apply to a magistrates' court, which may hear and determine the matter in dispute.

(4) “Relevant dispute” has the same meaning as in section 137.

Determination of disputes: supplementary

140

(1) Where a determination under section 137(1) is made in a dispute—

(a) the determination is binding and conclusive on all parties without appeal;

(b) in England and Wales, the determination is not removable into any court of law or restrainable by injunction;

(2) The county court (or, in Scotland, the sheriff) may order the expenses of determining a dispute under section 137, 138 or 139 to be paid—

(a) out of the society's funds, or

(b) by such parties to the dispute as the court (in Scotland, the sheriff) considers appropriate.

(3) In England and Wales a magistrates' court may, for the purposes of the hearing or determination of a dispute under section 137, 138 or 139, grant either party—

(a) such disclosure as to documents and otherwise, and

(b) such inspection of documents,

as it considers necessary for the just and expeditious disposal of the dispute.

(4) An order under subsection (3) for disclosure to be made on behalf of a society is to be disclosure by such of its officers as the court may determine.

(5) The court to which a dispute is referred under section 137(3) to (6), 138 or 139 may at the request of either party state a case on any question of law arising in the dispute for the opinion of the High Court or the Court of Session (as the case may be).

Other miscellaneous provisions

Recovery of costs and expenses

141

Any costs or expenses ordered or directed by the FCA or PRA to be paid by any person under this Act are recoverable summarily (or, in Scotland, are recoverable) as a civil debt.

Northern Ireland societies

Northern Ireland societies whose rules are recorded by the FCA

142

(1) This section applies to a Northern Ireland society (“the Northern Ireland society”) if—

(a) the society notifies the FCA that it wishes to be treated as a registered society, and

(b) the FCA places the notice on a file which it keeps in respect of the society.

(2) For the purposes of the operation of this Act in Great Britain and the Channel Islands (“the relevant area”)—

(a) references in the provisions specified in subsection (3) to a registered society include the Northern Ireland society (but see subsection (5)), and

(b) for the purposes of those provisions—

(i) the Northern Ireland society,

(ii) the society’s rules, registered under the relevant Northern Ireland law, and

(iii) any amendment to the rules registered under that law,

are in the relevant area treated as a society, rules and amendments duly registered under this Act by the FCA.

(3) The provisions are—

(a) sections 2(2)(b)(ii), 3(1)(a)(ii) and (3) to (6), 5(3)(b), 11(1) to (4), 13(3), 15, 16(2)(a), 18, 19, 20, 24(2)(a), 26, 27(2)(b), 28, 30(9), 33, 35, 36, 41, 42, 50, 53 to 56, 58, 67, 69, 71 to 74, 108 to 111, 114(3) to (5), 127(1), 128, 130 to 132, 137 to 140, 143 and 146;

(b) paragraph 3 of Schedule 3.

(4) In the application of section 108 (general restriction on inspection of books) by virtue of this section, the reference to this Act is to be read as the relevant Northern Ireland law.

(5) This section does not confer any power, or impose any obligation or liability, with respect to the doing (or not doing) of anything outside the relevant area.

(6) In this section—

“Northern Ireland society” means a society registered under the relevant Northern Ireland law;

“the relevant Northern Ireland law” means the law for the time being in force in Northern Ireland for purposes corresponding to the purposes of this Act.

(7) Nothing in Article 22 of the Government of Ireland (Companies, Societies, &c.) Order 1922 (SR & O 1922/184) applies—

(a) in relation to a Northern Ireland society, or

(b) in relation to this Act.

Documents

Form of documents etc

143

(1) Every return and other document required for the purposes of this Act—

(a) must be made in such form as the FCA may direct,

(b) must contain such particulars as it may direct, and

(2) The FCA must register and record those documents, together with any observations it considers appropriate to make on them.

(3) The FCA must consult the PRA before issuing a direction which relates to a return or other document a copy of which is required to be sent to the PRA.

Form etc of electronic documents sent to FCA or PRA

144

(1) The FCA or PRA (“the authority”) may impose requirements as to the form, authentication and manner of delivery of documents sent electronically to it under this Act.

(2) As regards authentication, the authority may—

(a) require the document to be authenticated by a particular person or a person of a particular description;

(b) specify the means of authentication;

(c) require the document to contain or be accompanied by the name or registered number of the society to which it relates (or both).

(3) As regards the manner of delivery, the authority may specify requirements as to the hardware and software to be used, and technical specifications (for example, matters relating to protocol, security, anti-virus protection or encryption).

(4) The power conferred by this section does not authorise the authority to require documents to be delivered electronically.

(5) Requirements imposed under this section must not be inconsistent with requirements imposed by this Act or any other enactment with respect to the form, authentication and delivery of the document concerned.

(6) In this section, a document is sent electronically if it is sent by electronic means or in electronic form.

Fees for inspection and copying of documents

145

The FCA or PRA may charge a person a reasonable fee before—

(a) allowing the person to inspect a document held by it in connection with this Act, or

(b) providing the person with a copy of such a document (or a copy of part of such a document).

Certain documents to be received in evidence

146

(1) This section applies to a document issued, received or created by—

(a) the FCA, or

(b) an inspector under this Act,

for the purposes of, or in connection with, this Act.

(2) A document bearing the FCA's seal or stamp is to be received in evidence without further proof.

(3) A document purporting to have been signed by—

(a) a person authorised to do so on behalf of the FCA, or

(b) an inspector under this Act,

is, in the absence of any evidence to the contrary, to be received in evidence without proof of the signature.

Regulations and orders

147

(1) Regulations and orders of the Treasury under this Act are to be made by statutory instrument.

(2) A statutory instrument containing—

(a) regulations under section 29, 135 or 136, or

(b) an order under section 134,

may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(3) A statutory instrument containing regulations or an order under section 18, 25, 49, 68, 83, or 97, or an order under section 118, is subject to annulment in pursuance of a resolution of either House of Parliament.

Interpretation

Meaning of “electronic form”, “by electronic means” etc

148

(1) The following provisions apply for the purposes of this Act.

(2) A document or information is sent in electronic form if it is sent—

(a) by electronic means (for example, by email or fax), or

(b) by any other means while in electronic form (for example, sending a disk in the post).

References to electronic copy have a corresponding meaning.

(3) A document or information is sent by electronic means if it is—

(a) sent initially and received at its destination by means of electronic equipment for the processing (which expression includes digital compression) or storage of data, and

(b) entirely transmitted, conveyed and received by wire, by radio, by optical means or by other electromagnetic means.

References to “electronic means” have a corresponding meaning.

(4) A document or information sent in electronic form must be sent in a form, and by a means, that the sender reasonably considers will enable the recipient—

(a) to read it, and

(b) to retain a copy of it.

(5) For the purposes of this section, a document or information can be read only if—

(a) it can be read with the naked eye, or

(b) to the extent that it consists of images (for example photographs, pictures, maps, plans or drawings), it can be seen with the naked eye.

(6) The provisions of this section apply whether the provision of this Act uses the word “send” or uses other words (such as “deliver”, “issue”, “produce”, “provide” or “supply”) to refer to the sending of a document or information.

Interpretation of Act

149

In this Act, except where the context otherwise requires—

“the 1965 Act” has the meaning given by section 1;

“amendment”, in relation to a registered society's rules, includes a new rule and a resolution rescinding a rule;

“annual return” has the same meaning as in section 89;

“the appropriate authority” means—in relation to a society that is a PRA-authorised person, the PRA;in relation to any other society, the FCA;

“charitable registered society” means a registered society that is a charity;

“charity” (except in section 10)—has the meaning given by section 1(1) of the Charities Act 2011 (as modified, in the case of a society whose registered office is in Scotland, by section 7(2) of that Act);but in relation to a society whose registered office is in any of the Channel Islands, it means a society established for charitable purposes only (“charitable purposes” having the meaning given by the law of that Island);and similar expressions are to be read accordingly;

“committee”, in relation to a society, means the society's management committee or other directing body;

“the Companies Acts” means—the Companies Acts as defined in section 2(1) of the Companies Act 2006, orany law for corresponding purposes in force in any of the Channel Islands,and includes corresponding earlier Acts or laws;

“credit union” means a registered society that is registered as a credit union;

“electronic address” means any number or address used for the purposes of sending or receiving documents or information by electronic means;

“electronic copy”, “electronic form” and “electronic means” have the same meaning as in section 148;

“enactment” (except in section 136 and Schedule 5) includes—an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978,an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament, andan enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales;

“the FCA” means the Financial Conduct Authority;

“the Financial Ombudsman scheme” means the scheme established under Part 16 of the Financial Services and Markets Act 2000;

“Gazette”, in relation to a registered society, means such one or more of the following as apply—the London Gazette, if the society's registered office is in England, Wales or the Channel Islands or it carries on business there;the Edinburgh Gazette, if the society's registered office is in Scotland or it carries on business there;the Belfast Gazette, if a notice given by the society has been filed under section 102 (Great Britain societies carrying on business in Northern Ireland) of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969;

“heritable security” has the same meaning as in the Conveyancing (Scotland) Act 1924 except that it includes a security constituted by ex facie absolute disposition or assignation;

“meeting”, in relation to a society, includes (where the society's rules allow it) a meeting of delegates appointed by members;

“officer”, in relation to a registered society—includes any treasurer, secretary, member of the committee, manager or employee of the society (except an employee appointed by the society's committee), butdoes not include an auditor appointed by the society in accordance with the requirements of Part 7;

“persons claiming through a member” includes the heirs, executors or administrators and assignees of a member and (where nomination is allowed) the person's nominee;

“the PRA” means the Prudential Regulation Authority;

“PRA-authorised person” has the meaning given by section 2B of the Financial Services and Markets Act 2000;

“pre-commencement society” has the meaning given by section 150;

“registered”, in relation to a society's name or office, means the name or office for the time being registered under this Act in respect of the society;

“registered rules”, in relation to a registered society, means the rules registered under this Act, as amended by any amendment of the rules that has been so registered;

“registered society” has the meaning given by section 1;

the FCA's “seal” means the seal provided for in regulations made under section 109(1)(b) of the Friendly Societies Act 1974 (and any reference to a document sealed by the FCA is to be read accordingly).

Part 12 — Final provisions

Pre-commencement societies

150

(1) Any reference to a society registered under this Act includes a society that, immediately before 1 August 2014, was registered or treated as registered under the 1965 Act (a “pre-commencement society”).

(2) In relation to a pre-commencement society—

(a) any reference to an acknowledgement of the registration under this Act of a society, its rules or any amendment of its rules includes an acknowledgement of the registration under the 1965 Act of the society, its rules or an amendment (and anything treated, immediately before 1 August 2014, as such an acknowledgement);

(b) any reference to rules or amendments of rules registered under this Act includes rules or amendments registered under the 1965 Act (and anything treated, immediately before 1 August 2014, as rules or amendments registered under that Act).

(3) In this section “reference” means a reference (expressed or implied) in this Act, another enactment or an instrument or document.

(4) Schedule 3 contain provisions applying in relation to certain pre-commencement societies.

Amendments, repeals etc

151

(1) Schedule 4 contains consequential amendments.

(2) Schedule 5 contains transitional provisions and savings.

(3) Schedule 6 contains transitory modifications etc.

(4) The provisions listed in Schedule 7 are repealed or revoked to the extent specified.

Channel Islands

152

(1) Her Majesty may by Order in Council provide for any provision of this Act, or of any instrument made under it, to extend (with or without modifications) to any of the Channel Islands.

(2) Any such Order in Council may make such transitional, incidental or supplementary provision as appears to Her Majesty to be necessary or expedient.

Extent

153

(1) Subject as follows, this Act extends to England and Wales and Scotland.

(2) Chapter 1 of Part 5 extends to England and Wales only.

(3) Chapter 2 of Part 5 extends to Scotland only.

(4) The following provisions also extend to Northern Ireland—

(a) this section;

(b) sections 136, 147, 154 and 155;

(5) Any amendment, repeal or revocation made by this Act extends to any part of the United Kingdom to which the provision amended, repealed or revoked extends.

(6) Nothing in this section applies to section 152 (and the repeals made by this Act do not affect any power by Order in Council to make provision extending to any of the Channel Islands).

Commencement

154

This Act comes into force on 1 August 2014, immediately after section 1 of the Co-operative and Community Benefit Societies and Credit Unions Act 2010 (registration of societies as co-operative or community benefit societies).

Short title

155

This Act may be cited as the Co-operative and Community Benefit Societies Act 2014.

SCHEDULE 1

Part 1 — Forms applicable in England, Wales and Channel Islands

Part 2 — Form applicable in Scotland

SCHEDULE 2

Part 1 — Forms applicable in England and Wales

Part 2 — Forms applicable in Scotland

SCHEDULE 3

Introduction

1

In this Schedule—

“the 1893 Act” means the Industrial and Provident Societies Act 1893;

“the 1975 Act” means the Industrial and Provident Societies Act 1975;

“the 1978 Act” means the Industrial and Provident Societies Act 1978.

Section 5 (cancellation of registration): societies registered before 26 July 1938

2

(1) Condition D of section 5 (cancellation of registration) does not apply to a society registered or treated as registered under the 1893 Act before 26 July 1938 if no invitation to subscribe for or to acquire or offer to acquire securities, or to lend or deposit money, has been made on or after that date by or on behalf of the society.

(2) See also paragraph 15 of this Schedule (power to apply for winding up of a society on grounds similar to that in Condition D).

Powers of a society registered on or before 1 January 1894

3

In the case of a society which was a registered society under the 1893 Act on 1 January 1894, the society or its members may exercise any power given by this Act and not made to depend on the provisions of the society's rules despite anything in any of its rules registered before 12 September 1893.

Section 15: amendments registered on or before 27 March 1928 increasing a member’s financial contribution

4

Section 15(2) (amendments of rules increasing members' financial contributions do not apply to existing members unless they consent in writing) does not apply to amendments registered on or before 27 March 1928.

Preservation of certain rules facilitating investment in government securities (section 21)

5

Any rule which, immediately before the coming into force of this Act, had effect as if duly passed by a registered society by virtue of section 11(2) of the 1965 Act (continuation of rules included by virtue of section 8(3) of the Societies (Miscellaneous Provisions) Act 1940) is to continue to be treated as duly passed by the society.

Maximum shareholding (section 24): effect of certain resolutions on society’s rules

6

(1) This paragraph applies to a resolution of a society's committee that, immediately before this Act comes into force, has effect by virtue of any of the following—

section 6(2) or (3) of the 1965 Act,

section 1(2) of the 1975 Act,

article 4(1) of the Industrial and Provident Societies (Increase in Shareholding Limit) Order 1981 (SI 1981/395),

article 4(1) of the Industrial and Provident Societies (Increase in Shareholding Limit) Order 1994 (SI 1994/341).

(The effect of such a resolution is to increase the limit on members' shareholdings, contained in a society's rules.)

(2) The society's rules continue to have effect subject to the resolution.

(3) The society's committee may not vary or revoke the resolution.

(4) But if any amendment of the society's rules is registered, the rules have effect as if the resolution had not been passed.

Maximum deposits: effect of resolution on rules of societies registered before 27 April 1952

7

(1) This paragraph applies to a registered society that was registered under the 1893 Act before 27 April 1952 (“the relevant date”) if—

(a) the society's rules permit the taking of deposits up to, but not exceeding, 10 shillings in any one payment and £20 for any one depositor,

(b) no amendment of its rules has been registered since the relevant date, and

(c) the society's committee has since the relevant date resolved, by a resolution recorded in writing, that for the limits of 10 shillings and £20 there are to be substituted specified higher limits not exceeding £2 and £50 respectively.

(2) The society's registered rules have effect subject to the resolution.

(3) The society's committee may not vary or revoke the resolution.

(4) But if any amendment of the society's rules is registered, the rules have effect as if the resolution had not been passed.

Maximum deposits: effect on certain resolutions on society’s rules

8

(1) This paragraph applies to a resolution of a society's committee that, immediately before this Act comes into force, has effect by virtue of any of the following—

section 1(2) or (3) of the 1978 Act,

article 4(1) or (2) of the Industrial and Provident Societies (Increase in Deposit-taking Limits) Order 1981 (SI 1981/394).

(The effect of such a resolution is to increase the limit on deposits, contained in a society's rules.)

(2) The society's rules continue to have effect subject to the resolution.

(3) The society's committee may not vary or revoke the resolution.

(4) But if any amendment of the society's rules is registered, the rules have effect as if the resolution had not been passed.

The 1968 Act: consequential amendments to rules

9

(1) Despite anything contained in its rules, a registered society's committee may, by a resolution passed in the appropriate period, make such amendments of its rules as may be consequential on the provisions of the Friendly and Industrial and Provident Societies Act 1968.

(2) “The appropriate period” is the period—

(a) beginning with 26 July 1968, and

(b) ending with 25 July 1969 or, if later, the first date after 26 July 1968 on which an amendment of the society's rules is registered.

(3) The FCA is not required to register an amendment of the society's rules unless any consequential amendments made by virtue of sub-paragraph (1)—

(a) have been made before the application for registration of that amendment, or

(b) are to be effected by that amendment.

Section 37 (nomination by member of entitlement to property in society on member’s death): nominations made before 5 August 1954

10

Section 37(4) applies in relation to a nomination made before 5 August 1954 as if for “£5,000” there were substituted “ £100 ”.

Section 50 (common seals)

11

Section 50(3) does not apply to decisions made before 20 October 2003.

Section 59 (charges on assets of English and Welsh societies): instruments executed before 14 September 1967

12

Section 59 does not apply in relation to an instrument executed before 14 September 1967.

Section 104 (inspection of books: power to authorise inspection)

13

Section 104 does not apply to rules made before 12 September 1893.

Section 108 (inspection of books: general restriction)

14

Section 108 has effect despite any rule made by the society before 12 September 1893.

Part 9: winding up of societies registered before 26 July 1938

15

(1) The FCA or PRA (“the authority”) may present a petition to the court for the winding up of a registered society that was registered or treated as registered under the 1893 Act before 26 July 1938 if it appears to the authority—

(a) that it meets neither of the conditions in section 2(2)(a), and

(b) that the winding up of the society would be in the interests of persons who have invested or deposited money with the society or any other person.

(2) The FCA must consult the PRA before presenting a petition in respect of a PRA-authorised person.

(3) The PRA must consult the FCA before presenting a petition.

SCHEDULE 4

Part 1 — Amendments of the Credit Unions Act 1979

1

The Credit Unions Act 1979 is amended as follows.

2

(1) Section 1 (registration) is amended as follows.

(2) In subsection (1)—

(a) for the words before paragraph (a) substitute “ A society may be registered under the Co-operative and Community Benefit Societies Act 2014 (“the 2014 Act”) as a credit union if— ”;

(b) after paragraph (a) insert—

(aa) the society has at least 21 members;

(d) in paragraph (f) for “the 1965 Act” substitute “ the 2014 Act ”;

(e) in the words after paragraph (f) omit “shall be registered as, and”.

(3) After subsection (1) insert—

(1ZA) See section 4 of the 2014 Act for the prohibition on registering a society with withdrawable share capital with the object of carrying on the business of banking.

(4) In subsection (1B) for “issue an acknowledgement of registration under section 2(3) of the 1965 Act to a credit union” substitute “ register a society under the 2014 Act as a credit union ”.

(5) In subsection (1D) for “issues an acknowledgement of registration to a credit union under that section” substitute “ registers a society as a credit union ”.

(6) For the heading substitute “ Registration ”.

3

(1) Section 2 (supplementary provisions as to registration) is amended as follows.

(2) For subsections (1) and (2) substitute—

(1) The following provisions of the 2014 Act do not apply in relation to registration as a credit union— (a) section 2 (societies that may be registered); (b) section 4(2) (taking of certain deposits not to be regarded as carrying on the business of banking); (c) section 14 (content of a society's rules). (2) Section 3(2) of the 2014 Act (registration) applies to registration as a credit union as if the reference to compliance with the requirements of that Act were, subject to subsection (1) of this section, to compliance with the provisions as to registration of that Act and this Act.

(3) In subsection (3) for “the 1965 Act” substitute “ the 2014 Act ”.

4

(1) Section 3 (use of name “credit union” etc) is amended as follows.

(2) In subsection (3D)(b)(ii) for “the 1965 Act” substitute “ the 2014 Act ”.

(3) In subsection (4) for “section 5(5) of the 1965 Act” substitute “ section 10(3) and (4) of the 2014 Act ”.

5

(1) Section 4 (rules) is amended as follows.

(2) For subsection (3) substitute—

(3) In section 16(4) of the 2014 Act (registration of amendment of rules where not contrary to that Act) as it applies to credit unions, the reference to that Act is to be read as a reference to that Act and this Act.

(3) For subsection (5) substitute—

(5) Section 21 and paragraph 5 of Schedule 3 of the 2014 Act (rules as to fund for purchase of government securities) do not apply to credit unions.

6

(1) Section 6 (minimum number of members) is amended as follows.

(2) In subsection (1), omit the words from “and, accordingly” to the end.

(3) After that subsection insert—

(1A) Accordingly, references in the following provisions to 3 members are to be read as 21 members— (a) section 3(1)(a)(i) of the 2014 Act as it applies to an application for registration as a credit union; (b) section 5(3)(b) of that Act as it applies to the cancellation of a credit union's registration; (c) section 115(2) as it applies to the conversion of a company into a credit union.

7

In section 7(3) (shares) for “section 24(1) of the 1965 Act” substitute “ section 39(2) of the 2014 Act ”.

8

(1) Section 7A (power to issue interest-bearing shares) is amended as follows.

(2) In subsection (1)(c), for “section 9 of the Friendly and Industrial and Provident Societies Act 1968” substitute “ section 87 of the 2014 Act ”.

(3) In subsection (5) for “section 3A of the Friendly and Industrial and Provident Societies Act 1968” substitute “ section 82 of the 2014 Act ”.

9

(1) Section 18 (power to appoint inspector and call meeting) is amended as follows.

(2) In subsection (1)—

(a) for “section 49 of the 1965 Act” substitute “ section 106 of the 2014 Act ”;

(b) for “the 1965 Act” (in the second place where it occurs) substitute “ the 2014 Act ”.

(3) In subsection (3) for “Subsections (5) and (6) of the said section 49” substitute “ Section 107 of the 2014 Act ”.

10

(1) Section 20 (cancellation or suspension of registration etc) is amended as follows.

(2) For subsections (1) and (1A) substitute—

(1) Section 5 of the 2014 Act (grounds for cancellation of registration) applies in relation to a credit union as if it were modified as specified in subsections (1ZA) to (1ZD). (1ZA) Subsection (1) applies as if for “any of conditions A to E” there were substituted “ any of conditions A to F ”. (1ZB) Subsection (4)(b) (condition C) applies as if after “this Act” there were inserted “ or the Credit Unions Act 1979 ”. (1ZC) The section applies as if for subsection (5) (condition D) there were substituted— (5) Condition D is that it appears to the FCA that the credit union's rules provide for one or more common bonds involving a connection with a locality and the requirements of section 1B of the Credit Unions Act 1979 are no longer met. (1ZD) The section applies as if after subsection (6) there were inserted— (7) Condition F is that the credit union's permission under Part 4A of the Financial Services and Markets Act 2000 has been cancelled or the credit union has received a warning notice under section 55Z of that Act.

(3) In subsection (1B) for “under section 16 of the 1965 Act by virtue of subsection (1A)” substitute “ by virtue of condition F in section 5 of the 2014 Act ”.

(4) For subsections (1C) and (1D) substitute—

(1C) Section 7 of the 2014 Act (cancellation of registration: additional procedure in certain cases) applies in relation to credit unions as if references to condition D included condition F. (1D) Section 9 of the 2014 Act (appeals) applies in relation to credit unions as if the reference to condition D included condition F (accordingly, no appeal may be made against a decision to cancel a credit union's registration on the ground that condition F is met).

(5) In subsection (1E) for “by virtue of subsection (1A)” substitute “ by virtue of condition F in section 5 of the 2014 Act ”.

(6) In subsection (2)(b) for “the Industrial and Provident Societies Acts 1965 to 1978” substitute “ the 2014 Act ”.

11

(1) Section 21 (amalgamations and transfers of engagements) is amended as follows.

(2) In subsection (1) for “sections 50 and 51 of the 1965 Act” substitute “ sections 109 to 111 of the 2014 Act ”.

(3) In subsection (3)—

(a) for “section 50 or section 51 of the 1965 Act” substitute “ section 109 or 110 of the 2014 Act ”;

(b) in paragraph (a) for “of the Industrial and Provident Societies Acts 1965 to 1978” substitute “ the 2014 Act ”.

(4) In subsection (3A)(a) for “section 50 or section 51 of the 1965 Act” substitute “ section 109 or 110 of the 2014 Act ”.

12

In section 22 (no conversion of credit union into company etc) for “Section 52 of the 1965 Act” substitute “ Sections 112 to 114 of the 2014 Act ”.

13

(1) Section 23 (conversion of company into credit union) is amended as follows.

(2) Omit subsections (1) and (2).

(3) In subsection (3) for “that section” substitute “ section 115 of the 2014 Act (conversion of company into a registered society) ”.

(4) After subsection (4) insert—

(5) Section 116 of the 2014 Act (member's shareholding in company exceeds maximum permitted amount) does not apply in relation to the conversion of a company into a credit union.

14

In section 26 (prohibition on subsidiaries) for the words from “section 15” to the end substitute “ Part 7 of the 2014 Act ”.

15

(1) Section 28 (provisions as to offences) is amended as follows.

(2) For subsection (1) substitute—

(1) In Part 10 of the 2014 Act (offences) as it applies to credit unions, references to that Act include this Act.

(3) In subsection (3)—

(a) for “the 1965 Act” substitute “ the 2014 Act ”;

(b) for “section 66(2) of that Act” substitute “ section 132(4) of that Act ”.

(4) In subsection (4) for “section 62 of the 1965 Act” substitute “ section 128 of the 2014 Act ”.

16

(1) Section 31 (interpretation etc) is amended as follows.

(2) In subsection (1)—

(a) insert (as the first definition)—

“the 2014 Act” means the Co-operative and Community Benefit Societies Act 2014;

;

(b) in the definition of “credit union” for “the 1965 Act” insert “ the 2014 Act ”.

(3) In subsection (2) for the words from the beginning to “the 1965 Act” substitute “ Sections 141, 143 to 146, 148 and 149 of the 2014 Act ”.

(4) In subsection (3)—

(a) for “the 1965 Act” substitute “ the 2014 Act ”;

(b) for “sections 6, 12, 19, 21, 30 and 31.” substitute “ sections 22, 24, 26, 27, 32, 33 and 34 and paragraph 6 of Schedule 3. ”

(5) In subsection (4)—

(a) for the words from the beginning to “the 1965 Act” substitute “ The following provisions of the 2014 Act ”;

(b) at the end insert

— (a) section 67(1) (society with withdrawable share capital not to carry on the business of banking); (b) sections 77 and 78 (year of account); (c) section 81 (duty to display latest balance sheet); (d) section 89 (annual returns); (e) section 90 (duty to provide copy of annual return).

17

(1) Section 32 (Northern Ireland) is amended as follows.

(2) In subsection (1) for “section 76 of the 1965 Act” substitute “ section 142 of the 2014 Act ”.

(3) In subsection (2) for “the Industrial and Provident Societies Acts 1965 to 1978” (in both places) substitute “ the 2014 Act ”.

18

(1) Schedule 1 (rules) is amended as follows.

(2) In paragraph 1 for “subsections (1) and (2) of section 5 of the 1965 Act” substitute “ section 10(1) and (2) of the 2014 Act ”.

(3) For paragraph 11 substitute—

(11) Provision for the audit of accounts in accordance with Part 7 of the 2014 Act.

Part 2 — Amendments of other Acts

Forged Transfers Act 1891 (c. 43)

19

(1) Section 3 of the Forged Transfers Act 1891 (application to industrial societies etc) is amended as follows.

(2) In the existing provision (which becomes subsection (1))—

(a) omit “industrial, provident,”;

(b) after “Parliament” insert “ , and to any registered society, ”.

(3) After that subsection insert—

(2) Registered society” means— (a) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, or (b) a society registered or deemed to be registered under the Industrial and Provident Societies Act (Northern Ireland) 1969.

Libraries Offences Act 1898 (c. 53)

20

In section 3 of the Libraries Offences Act 1898 (application of Act) for “registered under the Industrial and Provident Societies Act 1893, or” substitute “ that is a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014, or is registered ”.

Stock Transfer Act 1963 (c. 18)

21

In section 1(4) of the Stock Transfer Act 1963 (simplified transfer of securities) for “a society registered under the Industrial and Provident Societies Act 1893” substitute “ a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014 ”.

Transport Act 1968 (c. 73)

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