Source: http://www.legislation.gov.uk/ukpga/1986/53/part/X/crossheading/transfer-of-business-to-commercial-company
Timestamp: 2020-02-23 20:41:09
Document Index: 581693909

Matched Legal Cases: ['art. 2', 'art. 2', 'art. 2', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 10', 'art. 1', 'art. 2', 'art. 2', 'art. 2', 'art 4', 'art. 2', 'art. 2', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 1', 'art. 13', 'art. 13', 'art. 2', 'art. 2', 'art. 4', 'art. 5', 'art. 2', 'art. 2', 'art. 2', 'art. 2', 'art. 1', 'art. 1', 'art. 1', 'art. 13', 'art. 2', 'art. 1', 'art. 12', 'art. 1', 'art. 12', 'art. 1', 'art. 12', 'art. 2', 'art. 13', 'art. 13', 'art. 2', 'art. 1', 'art. 10', 'art. 13', 'art. 2', 'art. 4', 'art. 5', 'art. 2', 'art. 1', 'art. 10', 'art. 4', 'art. 2', 'art. 2', 'art. 13', 'art. 13', 'art. 2', 'art. 4', 'art. 5', 'art. 2']

Changes over time for: Cross Heading: Transfer of business to commercial company
Building Societies Act 1986, Cross Heading: Transfer of business to commercial company is up to date with all changes known to be in force on or before 23 February 2020. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(2)The applicable provisions of this Act other than this section are section 98, section 99, [F1section 99A,] section 100, section 101, section 102 [F2sections 102B, 102C and 102D], paragraph 30 of Schedule 2 and Schedule 17.
(3)The successor may be a company formed by the society wholly or partly" for the purpose of assuming and conducting the society’s business in its place or an existing company which is to assume and conduct the society’s business in its place; [F3and for the purposes of the transfer the society may, notwithstanding anything in section 18, form, or acquire and hold shares in, a company whose objects extend to the carrying on of activities which the building society has no power to carry on.]
(d)obtain the confirmation of the [F4appropriate authority] of the transfer and its terms.
(6)If the [F5appropriate authority] confirms the transfer under section 98 then, on the vesting date, all the property, rights and liabilities of the society making the transfer (whether or not capable of being transferred or assigned), except any shares in its successor, shall by virtue of this subsection and in accordance with transfer regulations be transferred to and vested in the successor.
(8)A building society which has obtained confirmation of the transfer of its business shall [F6send to each of the FCA and, if the society is a PRA-authorised person, the PRA] notice of the date which is to be the vesting date and shall do so not later than seven days before that date; and the [F7FCA must] record the date and, if a later date is notified under subsection (10) below, that date, in the public file of the society.
“company” means a company [F8as defined in section 1(1) of the Companies Act 2006] which is a public company limited by shares; and a company is a “specially formed” company if it is formed by a building society (and by no others than its nominees) for the purpose of assuming and conducting its business in its place and is an “existing” company if it is a company carrying on business as a going concern on the date of the transfer agreement;
“confirmation”, in relation to a transfer, means the confirmation of the [F9appropriate authority] required by subsection (4)(d) above;
[F10“the requisite shareholders” resolution’ has the meaning given by paragraph 30(1) of Schedule 2;]
[F11(13)References in this section, and the other applicable provisions of this Act, to a company include references to a body corporate which—
and in this subsection “EEA State” [F12has the meaning given by Schedule 1 to the Interpretation Act 1978 (c. 30)].]
F1Words in s. 97(2) inserted (9.6.1997) by 1997 c. 32, s. 43, Sch. 7 para. 45(1); S.I. 1997/1427, art. 2(f)
F2Words in s. 97(2) inserted (21.3.1997 with application as mentioned in s. 2(2) of the amending Act) by 1997 c. 41, s. 1(2)
F3Words in s. 97(3) repealed (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 46(2), 47(3), Sch. 7 para. 45(2), Sch. 9; S.I. 1997/2668, art. 2, Sch. Pt. II(w)(y)(z)(xxvii)(cc)(xiii)
F4Words in s. 97(4)(d) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 41(2) (with Sch. 12)
F5Words in s. 97(6) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 41(3) (with Sch. 12)
F6Words in s. 97(8) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 41(4)(a) (with Sch. 12)
F7Words in s. 97(8) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 41(4)(b) (with Sch. 12)
F8Words in s. 97(12) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 1(2), Sch. 1 para. 87(5) (with art. 10)
F9Words in s. 97(12) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 41(5) (with Sch. 12)
F10Definition in s. 97(12) inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 45(3); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xxvii)
F11S. 97(13) inserted (9.6.1997) by 1997 c. 32, s. 43, Sch. 7 para. 45(4); S.I. 1997/1427, art. 2(k)(n)(xi)
F12Words in s. 97(13) substituted (29.6.2008) by The Building Societies Act 1986 (Accounts, Audit and EEA State Amendments) Order 2008 (S.I. 2008/1519), arts. 1(2), 8
(1)Part I of Schedule 17 to this Act shall have effect for imposing on a building society proposing to transfer its business to a company an obligation to issue statements [F13or summaries] to its members relating to the proposed transfer.
[F14(1A)Part IA of that Schedule shall have effect for imposing requirements for notification by a building society, to its members and to the [F15FCA and, if the society is a PRA-authorised person, the PRA] , of the receipt by the society of a proposal for the transfer of the whole of its business to a company.]
(2)Where application is made to the [F16appropriate authority] for confirmation of a transfer of business to a company it shall, except as provided in subsections (3) to (5) below, confirm the transfer; and Part II of that Schedule shall have effect with respect to the procedure on an application for such confirmation.
(3)Subject to subsection (4) below, the [F17appropriate authority] shall not confirm a transfer of business if it considers that—
(c)there is a substantial risk that the successor will not [F18have—
(i)such permission under [F19Part 4A] of the Financial Services and Markets Act 2000, or
as will enable it to carry on the business which it will have as a result of the transfer without being taken (by virtue of section 20 of that Act) to have contravened a requirement imposed on it by the [F17appropriate authority] under that Act; or]
(4)The [F20appropriate authority] shall not be precluded from confirming a transfer of business by virtue only of the non-fulfilment of some relevant requirement of this Act or the rules of the society if it appears to the [F20appropriate authority] that it could not have been material to the members’ decision about the transfer and the [F20appropriate authority] gives a direction that the failure is to be disregarded for the purposes of this section.
(5)Where the [F20appropriate authority] would be precluded from confirming a transfer of business by reason of any of the defects specified in paragraphs (a), (b), (c) and (d) of subsection (3) above, it may direct the society making the transfer—
(b)to furnish the [F20appropriate authority] with evidence satisfying it that it has been done so;
and, if the [F20appropriate authority] is satisfied that the steps have been taken and the defect or defects has or have been substantially remedied, the [F20appropriate authority] shall confirm the transfer; but, if it is not so satisfied, it shall refuse its confirmation.
[F21(9)The PRA must consult the FCA before confirming a transfer or giving a direction under this section.
F13Words in s. 98(1) inserted (1.12.1997) by 1997 c. 32, s. 30(1); S.I. 1997/2668, art. 2, Sch. Pt. I(e)
F14S. 98(1A) inserted (1.12.1997) by 1997 c. 32, s. 30(2); S.I. 1997/2668, art. 2, Sch. Pt. I(e)
F15Words in s. 98(1A) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 42(2) (with Sch. 12)
F16Words in s. 98(2) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 42(3) (with Sch. 12)
F17Words in s. 98(3) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 42(4)(a) (with Sch. 12)
F18Words in s. 98(3)(c) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 196(2)
F19Words in s. 98(3) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 42(4)(b) (with Sch. 12)
F20Words in s. 98(4)(5) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 42(5) (with Sch. 12)
F21S. 98(9)(10) inserted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 42(6) (with Sch. 12)
(3)The [F22Treasury] may by regulations authorise payments of compensation to directors or other officers attributable to transfers of business under section 97 subject to limits specified in or determinable under the regulations and the regulations may make different provision for different classes of person.
“loss of office” includes, in relation to a director or other officer of a building society holding office in [F23any other body] by virtue of his position in that society, the loss of that office; and
F22Words in s. 99(3) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, art. 13(1), Sch. 3 Pt. II, para. 182 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(a)
F23Words in s. 99(6) substituted (1.12.1997) by 1997 c. 32, s. 43, Sch. 7 para. 46; S.I. 1997/2668, art. 2, Sch. Pt. I(j)(l)(xi)
C5S. 99(3): Functions of Building Societies Commission transferred (1.12.2001) to the Treasury by S.I. 2001/2617, art. 4(1), Sch. 1 Pt. III (with art. 5); S.I. 2001/3538, art. 2(a)
[F2499A Transfers of business: increased remuneration etc.U.K.
F24S. 99A inserted (9.6.1997) by 1997 c. 32, s. 31; S.I. 1997/1427, art. 2(f)
(b)confer a right, subject to subsection (7) below, to a distribution of funds, whether of the society or its successor, by way of bonus on every qualifying member of the society equal to the relevant proportion of the value of the qualifying shares held by him in the society; F25. . .
(4)For the purposes of the rights conferred under subsection (2)(b) above on members of the society, a member is a qualifying member is he held shares in the society on the qualifying day and was not eligible to vote on the [F26requisite shareholders’ resolution], his qualifying shares are those held by him on that day and the relevant proportion is the portion which (as shown in the latest balance sheet of the society) the society’s reserves bear to its total liability to its members in respect of shares.
(7)The [F28appropriate authority] may, where it confirms a transfer of a society’s business to an existing company, as it thinks fit having regard to what is equitable between the members of the society, direct that no bonus distribution of funds in pursuance of subsection (2)(b) above shall be made or that the amount distributed shall be such lesser amount as it provides for in the direction; and where the [F28appropriate authority] gives a direction under this subsection no liability to make such a distribution shall arise or, as the case may be, that liability shall be discharged by payment of the lesser amount.
[F29(8)The terms of a transfer of a society's business may confer a right to acquire shares in the successor on a member of the society only if the member—
F25S. 100(2)(c) and word preceding it repealed (21.3.1997) by 1997 c. 32, ss. 40(a), 46(2), Sch. 9
F26Words in s. 100(4) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 47; S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xxviii)
F27S. 100(5)(6) repealed (21.3.1997) by 1997 c. 32, ss. 40(b), 46(2), Sch. 9
F28Words in s. 100(7) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 43 (with Sch. 12)
F29S. 100(8) substituted (18.2.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(2), Sch. 9 para. 8(2)
C6S. 100 modified (21.3.1997) by 1997 c. 32, s. 46(1), Sch. 8 para. 9(1)
[F30101 Protective provisions for specially formed successors.U.K.
(a)a [F31person who is an authorised person within the meaning of section 31 of the Financial Services and Markets Act 2000] becomes a subsidiary undertaking of the company, or the company or such an undertaking acquires the whole, or substantially the whole, of the business of such [F32a person];
(c)the [F33appropriate authority] by notice to the company gives a direction to that effect;
and the [F33appropriate authority] shall not give such a direction unless it considers it desirable to do so in the interests of the depositors and potential depositors of the company.
[F34(4A)The PRA must consult the FCA before giving a direction under this section.]
“concert party agreement” means an agreement to which [F36section 824 of the Companies Act 2006] applies;
and any expression used in this section and in [F38the Companies Acts (as defined in section 2 of the Companies Act 2006)] has the same meaning in this section as in [F39those Acts].
F30S. 101 substituted (21.3.1997) by 1997 c. 32, s. 41 (with s. 46(1), Sch. 8 para. 10)
F31Words in s. 101(4)(a) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 197(2)(a)
F32Words in s. 101(4)(a) substituted (1.12.2001) by S.I. 2001/3649, arts. 1, 197(2)(b)
F33Words in s. 101(4) substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 44(2) (with Sch. 12)
F34S. 101(4A) inserted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 8 para. 44(3) (with Sch. 12)
F35Definition of “the Authority" in s. 101(6) repealed (1.12.2001) by S.I. 2001/2617, art. 13(2), Sch. 4; S.I. 2001/3538, art. 2(a)
F36Words in s. 101(6) substituted (1.10.2007) by The Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 (S.I. 2007/2194), art. 1(3)(a), Sch. 4 para. 48(2) (with art. 12)
F37Definition of “financial institution" in s. 101(6) repealed (1.12.2001) by S.I. 2001/3649, arts. 1, 197(3)
F38Words in s. 101(6) substituted (1.10.2007) by The Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 (S.I. 2007/2194), art. 1(3)(a), Sch. 4 para. 48(3)(a) (with art. 12)
F39Words in s. 101(6) substituted (1.10.2007) by The Companies Act 2006 (Commencement No. 3, Consequential Amendments, Transitional Provisions and Savings) Order 2007 (S.I. 2007/2194), art. 1(3)(a), Sch. 4 para. 48(3)(b) (with art. 12)
C7S. 101(4) modified (22.3.2001) by 2001 c. i, s. 14 (with s. 13)
C8S. 101(4): functions transferred (1.6.1998) by 1998 c. 11, s. 21(a)(iii); S.I. 1998/1120, art. 2
(1)The [F40Treasury] may, by transfer regulations under this section, make provision regulating transfers of business under section 97.
(a)make provision for and in connection with the transition from regulation by and under this Act to regulation by and under [F41the Companies Acts] F42. . .
(c)make provision for the purposes of and incidental to section 100 [F43and sections 101, 102B, 102C and 102D].
F40Words in s. 102(1) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, art. 13(1), Sch. 3 Pt. II, para. 185(a) (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(a)
F41Words in s. 102(2)(a) substituted (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 1(2), Sch. 1 para. 87(6) (with art. 10)
F42Words in s. 102(2)(a) repealed (1.12.2001) by S.I. 2001/2617, art. 13(2), Sch. 4 ; S.I. 2001/3538, art. 2(a)
F43Words in s. 102(2)(c) substituted (21.3.1997 with application as mentioned in s. 2(2) of the amending Act) by 1997 c. 41, s. 1(3)
C9S. 102(1)(2): Functions of the Building Societies Commission transferred (1.12.2001) to the Treasury by S.I. 2001/2617, art. 4(1), Sch. 1 Pt. III (with art. 5); S.I. 2001/3538, art. 2(a)
[F44102A Rights of second-named joint shareholders.U.K.
F44S. 102A inserted (1.5.1995 with application as mentioned in s. 2(2) of the amending Act) by 1995 c. 5, s. 1(1)
[F45102B Protection of interests of beneficiaries in the case of trustee account holders.U.K.
F45Ss. 102B-102D inserted (21.3.1997 with application as mentioned in s. 2(2) of the amending Act) by 1997 c. 41, s. 1(1)
[F46102C Consequences of false declaration.U.K.
F47F48(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F47(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
F46Ss. 102B-102D inserted (21.3.1997 with application as mentioned in s. 2(2) of the amending Act) by 1997 c. 41, s. 1(1)
F47S. 102C(5)(6) repealed (1.10.2009) by The Companies Act 2006 (Consequential Amendments, Transitional Provisions and Savings) Order 2009 (S.I. 2009/1941), art. 1(2), Sch. 2 (with art. 10)
F48S. 102C(5) repealed (1.10.2009) by Companies Act 2006 (c. 46), s. 1300(2), Sch. 16; S.I. 2008/2860, art. 4, Sch. 1 Pt. 1 (with arts. 7 8 Sch. 2) (which transitional provisions in Sch. 2 are amended (1.10.2009) by S.I. 2009/2476, arts. 1(3), 2(3)(4) and by S.I. 2009/1802, arts. 1, 18, Sch.)
[F49102D Provisions supplementary to sections 102B and 102C.U.K.
(a)to any person holding an account for another person in pursuance of any order, direction or authority made or given under [F50the Mental Capacity Act 2005] or under Part VIII of the M3Mental Health (Northern Ireland) Order 1986;
[F51(b)to an attorney holding an account for another person under—
(11)The [F52Treasury may] make regulations prescribing—
F49Ss. 102B-102D inserted (21.3.1997 with application as mentioned in s. 2(2) of the amending Act) by 1997 c. 41, s. 1(1)
F50Words in s. 102D(9)(a) substituted (1.10.2007) by Mental Capacity Act 2005 (c. 9), s. 68(1), Sch. 6 para. 32(a) (with ss. 27-29, 62); S.I. 2007/1897, art. 2(1)(d)
F51S. 102D(9)(b) substituted (1.10.2007) by Mental Capacity Act 2005 (c. 9), s. 68(1), Sch. 6 para. 32(b) (with ss. 27-29, 62); S.I. 2007/1897, art. 2(1)(d)
F52Words in s. 102D(11) substituted (17.8.2001 for specified purposes and otherwise 1.12.2001) by S.I. 2001/2617, art. 13(1), Sch. 3 Pt. II, para. 186 (with art. 13(3), Sch. 5); S.I. 2001/3538, art. 2(a)
C10S. 102D(11): Functions of Building Societies Commission transferred (1.12.2001) to the Treasury by S.I. 2001/2617, art. 4(1), Sch. 1 Pt. III (with art. 5); S.I. 2001/3538, art. 2(a)