Industrial And Provident Societies Citation, commencement and interpretation 1 1 This Order may be cited as the Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) Order 2014 , and comes into force on 6th April 2014. 2 In this Order— ... ... “ the 1986 Act ” means the Insolvency Act 1986 (see also paragraph (5)) ; “ the 2006 Act ” means the Companies Act 2006 ; “the 2014 Act ” means the Co-operative and Community Benefit Societies Act 2014; “the 2015 Act” means the Small Business, Enterprise and Employment Act 2015; “ authorised person ” has the meaning given in section 31(2) of FSMA; “ authorised deposit taker ” has the meaning given in section 359(4) of FSMA ; ... “ deposit ” has the meaning given by article 5 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ; ... “ FSMA ” means the Financial Services and Markets Act 2000 ; “ member ”, in relation to a relevant society, means a person whose name is entered as a member in the register kept by the society in accordance with section 30(1) of the 2014 Act ; ... “relevant CCBS” means a co-operative society or community benefit society, that is registered under the 2014 Act but not a society that is— registered as a social landlord under Part 1 of the Housing Act 1996 or Part 2 of the Housing (Scotland) Act 2010; or a credit union within the meaning of section 31(1) of the Credit Unions Act 1979 ; “ relevant person ” has the meaning given in section 213(9)(a) of FSMA ; and “ relevant society ” means a registered society which is not— a private registered provider of social housing; or registered as a social landlord under Part 1 of the Housing Act 1996 or under Part 2 of the Housing (Scotland) Act 2010 . 3 The definition of “ authorised deposit taker ” is to be construed in accordance with— a section 22 of, and Schedule 2 to, FSMA ; and b any relevant order under section 22 . 4 For the purposes of this Order a relevant society is “in administration” while the appointment of an administrator of the society under Schedule B1 to the 1986 Act has effect. 5 In this Order a reference to the 1986 Act is to the 1986 Act without the amendments made by section 1 of, and Schedules 1 to 3 to, the Corporate Insolvency and Governance Act 2020. Application to relevant societies and relevant CCBS of law about company arrangements, administration and moratoriums 2 A1 Part A1 of the 1986 Act (moratorium) applies in relation to relevant CCBS with the modifications set out in paragraph 1(2) of Part 1, and Part 1A, of Schedule 1 1 Part 1 of the 1986 Act (company voluntary arrangements) applies in relation to a relevant society with the modifications set out in Parts 1 and 2 of Schedule 1. 2 Part 2 of the 1986 Act (administration) applies in relation to a relevant society with the modifications set out in Parts 1, 3 and 4 of Schedule 1. 2A Schedule 1A applies in relation to a proposal by the members of the committee of a relevant CCBS for a moratorium under Part A1 of the 1986 Act (as applied in relation to a relevant CCBS), and— a the courts in England and Wales have jurisdiction to wind up the relevant CCBS, or b a sheriff court in Scotland has jurisdiction to wind up the relevant CCBS. 3 Part 26 of the 2006 Act (arrangements and reconstructions) applies in relation to a relevant society with the modifications set out in Schedule 2. 4 Part 26A of the 2006 Act (arrangements and reconstructions: companies in financial difficulty) applies in relation to a relevant society with the modifications set out in Schedule 2A. 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Application of section 176ZB of the 1986 Act 2A Section 176ZB of the 1986 Act (application of proceeds of office-holder claims) applies in relation to a relevant society which is in administration, and for that purpose— a a reference to a company includes a reference to a relevant society; b a reference to a section of the 1986 Act is a reference to that section as applied in relation to a relevant society; and c the reference to Part 26 of the 2006 Act is a reference to that Part as applied in relation to a relevant society. Application of section 176A of the 1986 Act 3 Section 176A of the 1986 Act (share of assets for unsecured creditors) applies in relation to a relevant society which is in administration, and for that purpose— a a reference to a company includes a reference to a relevant society; b a reference to a receiver is to be ignored; and c in subsection (4)(b) the reference to Part 26 of the 2006 Act is a reference to that Part as applied in relation to a relevant society. Application of other provisions of the 1986 Act 4 The following provisions of the 1986 Act, so far as they have effect for the purposes of Part A1, Part 1 or Part 2 of that Act as applied in relation to a relevant society, apply with the modifications set out in Schedule 3— a Part 6 (miscellaneous provisions applying to companies which are insolvent or in liquidation); b Part 7 (interpretation for first group of Parts); and c Parts 12 to 19 (the third group of Parts). Application of section 215 of FSMA 5 1 Section 215 of FSMA (rights of the compensation scheme in insolvency) applies in relation to a relevant society— a which is a relevant person; and b in relation to which an administration application is made, an administrator is appointed or a copy of notice of intention to appoint an administrator is filed with the court under Schedule B1 to the 1986 Act. 2 For that purpose in subsection (3) the reference to a company includes a reference to a relevant society. Application of sections 355A and 355B of FSMA 5A 1 Sections 355A (powers of FCA and PRA to participate in proceedings) and 355B (enforcement of requirements imposed by section 355A) of FSMA apply in relation to a relevant society which meets the criteria in section 355A(1). 2 For that purpose, in sections 355A and 355B a reference to a company is a reference to a relevant society of a kind specified in paragraph (1). Application of section 356 of FSMA 6 1 Section 356 of FSMA (powers of FCA and PRA to participate in proceedings: company voluntary arrangements) applies in relation to a relevant society— a which is an authorised person; and b in relation to which a voluntary arrangement has effect under Part 1 of the 1986 Act. 2 For that purpose— a in subsection (1) the reference to a company includes a reference to a relevant society; and b in subsection (3) the reference to an application to the court in relation to the company is a reference to an application to the court under section 6 or 7 of the 1986 Act in relation to a relevant society of the kind described in paragraph (1). Application of section 359 of FSMA 7 1 Section 359 of FSMA (administration order) applies in relation to a relevant society which— a is or has been an authorised person; or b is carrying on or has carried on a regulated activity in contravention of the general prohibition. 2 For that purpose— a in subsection (1) the words from “which” to the end are to be ignored; and b except in the definition of “company” in subsection (4), a reference to a company is a reference to a relevant society of the kind described in paragraph (1). Application of section 361 of FSMA 8 Section 361 of FSMA (administrator's duty to report to FCA and PRA) applies in relation to a relevant society, and for that purpose a reference to a company includes a reference to a relevant society. Application of sections 362 and 362A of FSMA 9 1 Section 362 of FSMA (powers of FCA and PRA to participate in proceedings) and section 362A (administrator appointed by company or directors) apply in relation to a relevant society which— a is or has been an authorised person; or b is carrying on or has carried on a regulated activity in contravention of the general prohibition. 2 For that purpose— a in section 362— i in subsection (1) the words from “which” to the end are to be ignored; ii in subsection (1A) the words “of a kind described in subsection (1)(a) to (c)” are to be ignored; iii a reference to a company is a reference to a relevant society of the kind described in paragraph (1); and b in section 362A— i in subsection (1) the words “of a kind described in section 362(1)(a) to (c)” are to be ignored; ii a reference to a company is a reference to a relevant society of the kind described in paragraph (1). Application of provisions of FSMA: general provision 10 1 In the application in relation to a relevant society of any of the provisions applied by articles 5 to 9, except sections 359(4) and 362(1B)— a a reference to a provision of the 1986 Act is a reference to that provision as applied in relation to a relevant society; and b a reference to Schedule B1 to the Insolvency (Northern Ireland) Order 1989 is to be ignored. 2 In articles 5 to 9— a a reference to a provision of the 1986 Act is a reference to that provision as applied in relation to a relevant society; b “ general prohibition ” has the meaning given in section 19(2) of FSMA; and c “ regulated activity ” has the meaning given in section 22 of FSMA . Application of insolvency rules 11 1 Part 1 (company voluntary arrangements) and, so far as applicable to voluntary arrangements, Parts 7 to 13 (the third group of Parts) of the Insolvency Rules 1986 apply where— a it is intended to make, and there is made, a proposal to a relevant society and its creditors for a voluntary arrangement within the meaning given in section 1 of the 1986 Act (as applied in relation to a relevant society); and b the courts in England and Wales have jurisdiction to wind up the society. 2 Part 1 (company voluntary arrangements) and, so far as applicable to voluntary arrangements, Part 7 (provisions of general application) of the Insolvency (Scotland) Rules 1986 apply where— a it is intended to make, and there is made, a proposal to a relevant society and its creditors for a voluntary arrangement within the meaning given in section 1 of the 1986 Act (as applied in relation to a relevant society); and b a sheriff court in Scotland has jurisdiction to wind up the society. 3 Part 2 (administration procedure) and, so far as applicable to administration procedure, Parts 7 to 13 of the Insolvency Rules 1986 apply in relation to the appointment of an administrator of a relevant society which the courts in England and Wales have jurisdiction to wind up. 4 Part 2 (administration procedure) and, so far as applicable to administration procedure, Part 7 of the Insolvency (Scotland) Rules 1986 apply in relation to the appointment of an administrator of a relevant society which a sheriff court in Scotland has jurisdiction to wind up. 5 Schedule 4 (which makes further provision about the application in relation to a relevant society of the Insolvency Rules 1986 and the Insolvency (Scotland) Rules 1986) has effect. 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Application of other subordinate legislation 12 Schedule 5 applies other subordinate legislation in relation to a relevant society with the modifications set out in that Schedule. Modified application of section 111 of the 2014 Act 13 1 Paragraph (2) applies where, in relation to a relevant society which is in administration, the administrator’s proposals under paragraph 49 or a revision to proposals under paragraph 54 include relevant provision. 2 Section 111 of the 2014 Act (special resolutions under section 109 or 110) has effect as if— a it provided that— i the second meeting referred to in subsection (2) is to be treated as having been summoned by the administrator for consideration of the proposals or the revision under paragraph 53 or 54; ii where that meeting confirms the resolution passed in relation to the relevant provision at the first meeting referred to in subsection (2), the relevant provision is to be treated as approved by the members of the society for the purposes of paragraph 53(1) or 54(5); b in subsection (5) for the words from “Within 14 days” to “a copy of it” there were substituted “The society must send the FCA a copy of the special resolution that is”; and c subsection (8) were omitted. 3 In this article— a a reference to a numbered paragraph, except the reference to paragraph (2) of this article, is a reference to the paragraph so numbered in Schedule B1 to the Insolvency Act 1986 as applied in relation to a relevant society by this Order; and b “relevant provision” means provision for amalgamation in pursuance of section 109 of the 2014 Act (amalgamation of societies) or for a transfer of engagements in pursuance of section 110 of that Act (transfer of engagements between societies). Modified application of section 113 of the 2014 Act 14 1 Paragraph (2) applies where, in relation to a relevant society which is in administration, the administrator’s proposals under paragraph 49 or a revision to proposals under paragraph 54 include relevant provision. 2 Section 113 of the 2014 Act (special resolutions under section 112) has effect as if— a it provided that— i the second meeting referred to in subsection (2) is to be treated as having been summoned by the administrator for consideration of the proposals or the revision under paragraph 53 or 54; ii where that meeting confirms the resolution passed in relation to the relevant provision at the first meeting referred to in subsection (2), the relevant provision is to be treated as approved by the members of the society for the purposes of paragraph 53(1) or 54(5); b in subsection (5) the words from “Within 14 days from the day of the second meeting,” were omitted; and c subsection (8) were omitted. 3 In this article— a a reference to a numbered paragraph, except the reference to paragraph (2) of this article, is a reference to the paragraph so numbered in Schedule B1 to the Insolvency Act 1986 as applied in relation to a relevant society by this Order; and b “relevant provision” means provision in pursuance of section 112 of the 2014 Act (conversion of society into a company, amalgamation with a company etc ) for conversion into a company, amalgamation with a company or a transfer of engagements to a company. Modified application of section 126 of the 2014 Act 15 Section 126 of the 2014 Act (dissolution etc to occur only after society’s property dealt with) has effect in relation to a relevant society which is in administration as if in subsection (3) the reference to the liquidator included a reference to the administrator. Modified application of section 59 of the 1965 Act 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amendment of the 1965 Act 17 1 The 1965 Act is amended as follows. 2 After section 43 (duties of receiver or manager of society's property) insert— Floating charge holder not to appoint administrative receiver 43A 1 The holder of a qualifying floating charge in respect of the property of a relevant society whose registered office is situated in England and Wales may not appoint an administrative receiver of the society. 2 This section applies to a floating charge which is created by a relevant society on or after 6th April 2014 and is either— a a charge in respect of which an application has been made for the purposes of section 1 of the Industrial and Provident Societies Act 1967 ; or b created by a debenture registered under section 9 of the Agricultural Credits Act 1928 as applied by section 14 of that Act. 3 This section applies in spite of any provision of an agreement or instrument which purports to empower a person to appoint an administrative receiver (by whatever name). 4 In this section— “ administrative receiver ”, in relation to a relevant society, means— a receiver or manager of the whole (or substantially the whole) of the society's property appointed by or on behalf of the holder of a floating charge; or a person who would be such a receiver or manager but for the appointment of some other person as the receiver of part of the society's property; and “ holder of a qualifying floating charge in respect of the property of a relevant society ” has the meaning given in paragraph 14 of Schedule B1 to the Insolvency Act 1986 as applied in relation to a relevant society by an order made under section 255 of the Enterprise Act 2002. . 3 In section 49 (appointment of inspectors and calling of special meetings) after subsection (1) insert— 1A The power of the FCA to call a special meeting of a relevant society in respect of which a moratorium is in force under section 1A of the Insolvency Act 1986 is subject to paragraph 12(1)(b) of Schedule A1 to that Act as applied in relation to a relevant society by an order made under section 255 of the Enterprise Act 2002. . 4 In section 55 (dissolution of society) after subsection (1C) insert— 1D 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 made under section 255 of the Enterprise Act 2002. . 5 In section 74 (interpretation — general), in subsection (1) at the end insert— “ relevant society ” means a registered society which is not— a private registered provider of social housing; or registered as a social landlord under Part 1 of the Housing Act 1996 or under Part 2 of the Housing (Scotland) Act 2010. . Sam Gyimah Mark Lancaster Two of the Lords Commissioners of Her Majesty's Treasury I concur Jenny Willott Parliamentary Under Secretary of State for Employment Relations and Consumer Affairs Department for Business, Innovation and Skills