Building Societies (Amendment) Act 2006
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Amendment of section 16 of Principal Act. |
7.— Section 16 of the Principal Act is amended by inserting the following after subsection (2A) (inserted by the Asset Covered Securities Act 2001 ): | |
“(2B) Subject to subsection (2C), a building society may permit any or all of the following to be a member: | ||
(a) a person who is indebted in respect of a loan (other than or in addition to a loan of the type referred to in subsection (2)), made by the building society or an associated body of that society; | ||
(b) a person who holds any savings or investment products of the society or an associated body of that society; | ||
(c) a person who holds securities issued by the society or an associated body of that society; | ||
(d) a person who holds a deposit with the society or an associated body of that society; and | ||
(e) a shareholder of an associated body of that society, | ||
but no person referred to in paragraphs (a) to (e) shall be required to hold a share in the society and the person’s liability as such a member must not be any greater than would be the case if the rules treated the person as being a holder of shares in the society because any of paragraphs (a) to (e) refers to that person. | ||
(2C) A society may permit membership under subsection (2B) only if— | ||
(a) its rules so permit, | ||
(b) its members have passed a special resolution approving such membership, and | ||
(c) the board of directors has passed a resolution approving such membership. | ||
(2D) Where the conditions referred to in subsection (2E) are met a society may establish and operate one or more schemes, on such terms and conditions as its board of directors considers appropriate, under which members of the society become entitled to reward or benefit in recognition of the period for which they have been members of the society or the extent to which they have availed of the services of the society. | ||
(2E) A society may establish and operate a scheme under subsection (2D) only if— | ||
(a) its rules so permit, | ||
(b) its members have passed a special resolution approving such a scheme, and | ||
(c) the board of directors has passed a resolution approving such a scheme.”. |