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Co-operative and Community Benefit Societies BillPage 80

Part 12 Final provisions

150 Pre-commencement societies

(1) Any reference to a society registered under this Act includes a society that,
5immediately 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
10acknowledgement 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
15anything 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-
20commencement societies.

151 Amendments, repeals etc

(1) Schedule 4 contains consequential amendments.

(2) Schedule 5 contains transitional provisions and savings.

(3) Schedule 6 contains transitory modifications etc.

(4) 25The provisions listed in Schedule 7 are repealed or revoked to the extent
specified.

152 Channel Islands

(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
30any 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.

153 Extent

(1) 35Subject 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—

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(a) this section;

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

(c) Schedule 5.

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5the United Kingdom to which the provision amended, repealed or revoked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

154 10Commencement

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).

155 Short title

15This Act may be cited as the Co-operative and Community Benefit Societies
Act 2014.

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SCHEDULES

Section 41

SCHEDULE 1 Forms of bond for officers of society

Part 1 5Forms applicable in England, Wales and Channel Islands

Form A

Know all persons by these presents, that we, AB of .. .. .. , one of the officers
of the .. .. .. .. Limited, hereinafter referred to as “the Society”, whose
registered office is at .. .. .. ..in the county of .. .. .. , and CD, of .. .. .. (as surety
10on behalf of the said AB), are jointly and severally held and firmly bound to
the said society in the sum of .. .. .. .. , to be paid to the said society, or its
certain attorney, for which payment well and truly to be made we jointly
and severally bind ourselves, and each of us by himself or herself, our and
each of our heirs, executors, and administrators, firmly by these presents.
15Sealed with our seals. Dated the .. .. .. day of .. .. .. ..

Whereas the above-bounden AB has been duly appointed to the office of .. ..
.. .. of the .. .. .. .. Society, and AB, together with the above-bounden CD as
surety, have entered into the above-written bond, subject to the condition
hereinafter contained:

20Now therefore the condition of the above-written bond is such, that if the
said AB do render a just and true account of all moneys received and paid
by AB on account of the society, at such times as the rules thereof appoint,
and do pay over all the moneys remaining in AB’s hands, and assign and
transfer or deliver all property (including books and papers) belonging to
25the society in AB’s hands or custody to such person or persons as the society
or the committee thereof appoints, according to the rules of the society,
together with the proper and legal receipts or vouchers for such payments,
then the above-written bond shall be void, but otherwise shall remain in full
force.

30Sealed and delivered in the presence of

Form B

Know all persons by these presents that I, .. .. .. .. , of .. .. .. .. , in the county of
.. .. .. .. .. , am firmly bound to .. .. .. .. Limited, hereinafter referred to as “the
Society,” whose registered office is at .. .. .. .. , in the county of .. .. .. .. , in the
35sum of .. .. .. pounds sterling to be paid to the said society or its assigns, for

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which payment to be truly made to the said society or its certain attorney or
assigns I bind myself, my heirs, executors, and administrators, by these
presents sealed with my seal.

[And know further that I [we], .. .. .. .., as surety [sureties] for the above-
5named principal obligor and such obligor are jointly and severally bound to
the society in the sum aforesaid to be paid to the society or its assigns, for
which payment to be truly made to the society or its certain attorney or
assigns we firmly bind ourselves and each of us and each of our heirs,
executors, and administrators by these presents sealed with our seals.]

10Dated the .. .. .. .. day of .. .. .. .. .. .

The condition of the above-contained bond is that if the said AB faithfully
execute the office of .. .. .. to the society during such time as AB continues to
hold the same in virtue either of AB’s present appointment, or of any
renewal thereof if such office is of a renewable character [without wasting,
15embezzling, losing, misspending, misapplying, or unlawfully making away
with any of the moneys, goods, chattels, wares, merchandise or effects
whatsoever of the said society at any time committed to AB’s charge,
custody, or keeping by reason or means of AB’s said office], and render a
true and full account of all moneys received or paid by AB on its behalf as
20and when AB is required by the committee of the society for the time being,
and pay over all the moneys remaining in AB’s hands from time to time, and
assign, transfer, and deliver up all securities, books, papers, property, and
effects whatsoever of or belonging to the society in AB’s charge, custody, or
keeping, to such person or persons as the said committee may appoint,
25according to the rules or regulations of the society for the time being,
together with the proper or legal receipts or vouchers for such payments;
and in all other respects well and faithfully perform and fulfil the said office
of .. .. .. .. to the society according to the rules thereof, then the above-
mentioned bond shall be void and of no effect; but otherwise shall remain in
30full force.

Sealed and delivered by the above named .. .. .. .. .

[The words between brackets against which we have set our initials being
first struck out*] in the presence of us .. .. .. .. and .. .. .. .. .. ..

*If no words are struck out in the bond or condition, strike out these words
35and let the witnesses set their initials in the margin.

Part 2 Form applicable in Scotland

Form C

I, AB, of##################.., bind and oblige myself to the extent of £#########.as
40cautioner for CD, a person employed by the###############society, that the said
CD shall on demand faithfully and truly account for all moneys received and

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paid to CD for the use, benefit or advantage of the society, and also assign
and transfer or deliver all property (including books and papers) belonging
to the said society in CD’s hands or custody, and that to such person or
persons as the said society or the committee thereof appoint, according to
5the rules of the said society.

Testing clause+

Sections 71 to 74

SCHEDULE 2 Form of receipt on mortgage, heritable security etc

Part 1 10Forms applicable in England and Wales

Form A

The .. .. .. Limited hereby acknowledges to have received all moneys
intended to be secured by the [within (or above) written] [annexed] deed
[and by a further charge dated etc or otherwise as required].

15Dated this .. .. day of .. .. ..

.. .. .. .. .. .. .. Members of the Committee

.. .. .. .. .. .. .. Secretary

Form B

The .. .. .. Limited hereby acknowledges that it has this .. .. day of .. .. ..
20received the sum of .. .. pounds representing all moneys intended to be
secured by the [within (or above) written] [annexed] deed [and by a further
charge dated etc or otherwise as required], the payment having been made by
C.D. of .. .. .. and E. F. of .. .. ..

.. .. .. .. .. .. .. Members of the Committee

25.. .. .. .. .. .. .. Secretary

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NOTE If the persons paying are not entitled to the equity of redemption but
are paying the money out of a fund applicable to the discharge of the
mortgage or other assurance, insert a statement to that effect.

5A statement may also be inserted as to whether the receipt is or is not to operate as a transfer of the benefit of the mortgage or other assurance.

Part 2 Forms applicable in Scotland

Form C

The .. .. .. Limited acknowledges that (1) the foregoing disposition granted
10by A (with consent) in favour of the said society dated .. .. .. and recorded in
the Division of the General Register of Sasines for .. .. .. on .. .. .. was granted
in security only of a loan of .. .. .. pounds made by the said society to the said
.. .. .., and (2) the said society have received payment of all moneys secured
by the said disposition.

15Testing clause (see the Note below).

Form D

The .. .. .. Limited acknowledges to have received repayment of all moneys
secured by the foregoing heritable security granted by A in the said society’s
favour dated .. .. .. and recorded in the Division of the General Register of
20Sasines for .. .. .. on .. .. ..

Testing clause (see the Note below).

Form E

The .. .. .. Limited acknowledges to have received repayment of all moneys
secured by the foregoing standard security granted by A in the said society’s
25favour dated .. .. .. and registered in the Land Register of Scotland on .. .. ..
over the subjects in title number(s) .. .. ..

Testing clause (see the Note below).

Form F

The .. .. .. Limited hereby acknowledges to have received repayment of all
30moneys secured by the foregoing [describe deed] by A in the said society’s
favour.

Testing clause (see the Note below).

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NOTE In the case of a traditional document, subscription of it by the granter
is sufficient for the document to be formally valid, but the witnessing of it
may be necessary or desirable for other purposes (see the Requirements of
Writing (Scotland) Act 1995, which also makes provision as regards the
5authentication of an electronic document).

Section 150

SCHEDULE 3 Provision for certain pre-commencement societies

Introduction

1 In this Schedule—

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
15society 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
20society 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
25despite 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
30writing) 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
351965 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.

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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—

(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) 15But 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) 20the 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) 25the 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) 30The 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,
35immediately before this Act comes into force, has effect by virtue of any of
the following—

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(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) 5But 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
10amendments 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
15on 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
20amendment, 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
25as 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 30Section 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 35Section 108 has effect despite any rule made by the society before 12
September 1893.

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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
5authority—

(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) 10The 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.

Section 151

SCHEDULE 4 Consequential amendments

15Part 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) 20for 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;

(c) 25in paragraph (e) for “the 1965 Act” substitute “the 2014 Act”;

(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
30society 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) 35In 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.

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