Co-operative and Community Benefit Societies Bill (HC Bill 181)

Co-operative and Community Benefit Societies BillPage 100

(a) in sub-paragraph (2) for paragraphs (a) to (c) substitute—

(a) section 109 of the Co-operative and Community
Benefit Societies Act 2014 (“the 2014 Act”)
(amalgamation of societies),

(b) 5section 110 of that Act (transfer of engagements
between societies), or

(c) section 112 of that Act (conversion of society into a
company etc),;

(b) in sub-paragraph (4)(b) for the words from “section 55(3)” to the end
10substitute “section 123(3)(a) of the 2014 Act.”;

(c) in sub-paragraph (5)—

(i) for the words from “section” to “1965” substitute “section 121
of the 2014 Act”;

(ii) for “section 58(6)” substitute “section 122”.

(7) 15In paragraph 13(4) for the words from “section 53” to “society)” substitute
“section 115 of the Co-operative and Community Benefit Societies Act 2014
(conversion of company into registered society)”.

(8) In paragraph 14(1)(b) for “section 55(1)(a) of the Industrial and Provident
Societies Act 1965” substitute “section 123 of the Co-operative and
20Community Benefit Societies Act 2014”.

(9) In paragraph 15—

(a) in sub-paragraph (1)(a) for the words from “section 55(1)(a)” to
“dissolution)” substitute “section 119 or 123 of the Co-operative and
Community Benefit Societies Act 2014 (dissolution by instrument of
25dissolution or by winding up)”;

(b) in sub-paragraph (2) for “the Industrial and Provident Societies Act
1965” substitute “the Co-operative and Community Benefit Societies
Act 2014”.

(10) In paragraph 15H—

(a) 30in sub-paragraph (1)(b) for “another industrial and provident
society” substitute “another registered society”;

(b) in sub-paragraph (3) for “another industrial and provident society”
substitute “another registered society”;

(c) in sub-paragraph (4) for “section 50 of the Industrial and Provident
35Societies Act 1965” substitute “section 109 of the Co-operative and
Community Benefit Societies Act 2014”.

(11) In the heading before paragraph 17 for “Industrial and provident societies”
substitute “Registered societies”.

(12) In paragraph 17—

(a) 40in sub-paragraph (1) for “industrial and provident societies”
substitute “registered societies”;

(b) for sub-paragraph (2) substitute—

(2) Section 85 of the Co-operative and Community Benefit
Societies Act 2014 (“the 2014 Act”) (duty to obtain
45accountant’s report) has effect, in its application to such a
landlord, with the omission of subsection (1)(b)
(accountant’s report required only where turnover
exceeds a specified sum).;

Co-operative and Community Benefit Societies BillPage 101

(c) in sub-paragraph (4) for paragraph (b) substitute—

(b) section 83 of the 2014 Act (duty to appoint auditors)
did not apply for the year because of a resolution
under section 84 of that Act (power to disapply
5auditing requirements).;

(d) for sub-paragraph (5) substitute—

(5) In this paragraph “qualified auditor” and “year of account”
have the same meaning as in Part 7 of the 2014 Act (for
“year of account” see sections 77 and 78 of that Act).

10Scotland Act 1998 (c. 46)1998 (c. 46)

66 In Part 2 of Schedule 5 to the Scotland Act 1998, in the definition of “social
landlord” in Section C2 (insolvency), for “a society registered under the
Industrial and Provident Societies Act 1965” substitute “a registered society
within the meaning of the Co-operative and Community Benefit Societies
15Act 2014”.

Greater London Authority Act 1999 (c. 29)1999 (c. 29)

67 In section 34A(4) of the Greater London Authority Act 1999 (restriction on
exercise of certain powers except through a taxable body) in paragraph (b)
of the definition of “company” for the words from the beginning to “1965 or”
20substitute “a registered society within the meaning of the Co-operative and
Community Benefit Societies Act 2014 or a society registered or deemed to
be registered under”.

Financial Services and Markets Act 2000 (c. 8)2000 (c. 8)

68 The Financial Services and Markets Act 2000 is amended as follows.

69 25In section 138K(5)(c) (consultation: mutual societies) for “the Industrial and
Provident Societies Act 1965” substitute “the Co-operative and Community
Benefit Societies Act 2014”.

70 In section 355(1) (interpretation of Part 24) in the definition of “body” for “an
industrial and provident society” substitute “a registered society”

71 30Section 417(1) (definitions) is amended as follows.

(1) Omit the definition of “industrial and provident society”.

(2) Insert in the appropriate place—

  • “registered society” (except where otherwise indicated)
    means—

    (a)

    35a 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
    40Ireland) 1969;.

72 In Part 2 of Schedule 11A (transferable securities) in paragraph 7(2) for sub-
paragraph (d) substitute—

(d) a registered society that—

Co-operative and Community Benefit Societies BillPage 102

(i) is registered under the Co-operative and
Community Benefit Societies Act 2014 as a
community benefit society,

(ii) is a pre-commencement society within the meaning
5of that Act that was registered in accordance with
section 2(2)(a)(ii) of that Act, or

(iii) is registered in accordance with section 1(2)(b) of
the Industrial and Provident Societies Act
(Northern Ireland) 1969;.

10Terrorism Act 2000 (c. 11)2000 (c. 11)

73 (1) Paragraph 2(1)(a) of Schedule 3A to the Terrorism Act 2000 (regulated sector
and supervisory authorities) is amended as follows.

(2) For “section 6 of the Industrial and Provident Societies Act 1965 (maximum
shareholding in society)” substitute “section 24 of the Co-operative and
15Community Benefit Societies Act 2014 (maximum interest in a society’s
withdrawable shares)”.

(3) For “section 7(3)” substitute “section 67(2)”.

Political Parties, Elections and Referendums Act 2000 (c. 41)2000 (c. 41)

74 The Political Parties, Elections and Referendums Act 2000 is amended as
20follows.

75 In section 26(8)(b) (financial structure of registered party: adoption of
scheme) for the words from “or a society” to “1965 or” substitute “, a
registered society within the meaning of the Co-operative and Community
Benefit Societies Act 2014 or a society registered (or deemed to be registered)
25under”.

76 In section 54(2)(g) (permissible donors) for the words from “or a society” to
“1965 or” substitute “, a registered society within the meaning of the Co-
operative and Community Benefit Societies Act 2014 or a society registered
(or deemed to be registered) under”.

77 30In Schedule 6 (details to be given in donation reports) in paragraph 2A(11)
for “or industrial and provident society” substitute “, a registered society
within the meaning of the Co-operative and Community Benefit Societies
Act 2014 or a society registered (or deemed to be registered) under the
Industrial and Provident Societies Act (Northern Ireland) 1969,”.

78 35In Schedule 6A (details to be given in transaction reports) in paragraph
2A(10) for “or industrial and provident society” substitute “, a registered
society within the meaning of the Co-operative and Community Benefit
Societies Act 2014 or a society registered (or deemed to be registered) under
the Industrial and Provident Societies Act (Northern Ireland) 1969,”.

40Housing (Scotland) Act 2001 (asp 10)2001 (asp 10)

79 (1) Section 83 of the Housing (Scotland) Act 2001 (interpretation of Part 3) is
amended as follows.

(2) In subsection (1)(a)—

Co-operative and Community Benefit Societies BillPage 103

(a) for “an industrial and provident society” substitute “a co-operative
or community benefit society”;

(b) for “section 74 of the Industrial and Provident Societies Act 1965”
substitute “section 149 of the Co-operative and Community Benefit
5Societies Act 2014”.

(3) In subsection (2), for “an industrial and provident society” substitute “a co-
operative or community benefit society”.

Land Registration Act 2002 (c. 9)2002 (c. 9)

80 In section 91 of the Land Registration Act 2002 (electronic dispositions:
10formalities), for subsection (9A) substitute—

(9A) If subsection (3) of section 53 of the Co-operative and Community
Benefit Societies Act 2014 (execution of documents) applies to a
document because of subsection (4) above, subsection (5) of that
section (presumption of due execution) shall have effect in relation to
15the document with the substitution of “authenticated” for “signed”.

Proceeds of Crime Act 2002 (c. 29)2002 (c. 29)

81 (1) Paragraph 2(1)(a) of Schedule 9 to the Proceeds of Crime Act 2002 (regulated
sector and supervisory authorities) is amended as follows.

(2) For “section 6 of the Industrial and Provident Societies Act 1965 (maximum
20shareholding in society)” substitute “section 24 of the Co-operative and
Community Benefit Societies Act 2014 (maximum interest in a society’s
withdrawable shares)”.

(3) For “section 7(3) of that Act (carrying on of banking by societies)” substitute
“section 67(2) of that Act (registered society with withdrawable share capital
25not to carry on banking etc)”.

(4) For “a society registered under that Act” substitute “a registered society
within the meaning of that Act”.

Income Tax (Earnings and Pensions) Act 2003 (c. 1)2003 (c. 1)

82 (1) In Part 4 of Schedule 2 to the Income Tax (Earnings and Pensions) Act 2003
30(approved share incentive plans: types of shares that may be awarded)
paragraph 28 is amended as follows.

(2) In sub-paragraph (4) for “a registered industrial and provident society
which is a co-operative society” substitute “a registered co-operative
society”.

(3) 35For sub-paragraph (5) substitute—

(5) In sub-paragraph (4) “registered co-operative society” means—

(a) a society registered as a co-operative society under the Co-
operative and Community Benefit Societies Act 2014,

(b) a pre-commencement society (within the meaning of that
40Act) that is a co-operative society within the meaning of
section 2 of that Act, or

(c) a society registered or deemed to be registered under the
Industrial and Provident Societies Act (Northern Ireland)

Co-operative and Community Benefit Societies BillPage 104

1969 that is a co-operative society within the meaning of
section 1 of that Act.

Licensing Act 2003 (c. 17)2003 (c. 17)

83 The Licensing Act 2003 is amended as follows.

84 5In section 64(2) (additional conditions for supply of alcohol) for “industrial
and provident societies” substitute “registered societies”.

85 (1) Section 65 (industrial and provident societies, friendly societies etc) is
amended as follows.

(2) In the heading for “Industrial and provident societies” substitute
10“Registered societies”.

(3) In subsection (1) for paragraph (a) substitute—

(a) a registered society within the meaning of the Co-operative
and Community Benefit Societies Act 2014,.

Fire and Rescue Services Act 2004 (c. 21)2004 (c. 21)

86 15In section 5B(3)(b) of the Fire and Rescue Services Act 2004 (boundaries of
power under section 5A) for the words from the beginning to “1965 or”
substitute “a registered society within the meaning of the Co-operative and
Community Benefit Societies Act 2014 or a society registered or deemed to
be registered under”.

20Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27)2004 (c. 27)

87 The Companies (Audit, Investigations and Community Enterprise) Act 2004
is amended as follows.

88 (1) Section 15D(4)(g) (permitted disclosure of information obtained under
compulsory powers) is amended as follows.

(2) 25In sub-paragraph (i) omit “or to industrial and provident societies”.

(3) After that sub-paragraph insert—

(ia) the Credit Unions Act 1979,.

(4) At the end of sub-paragraph (iv) (before the “or”) insert—

(v) the Co-operative and Community Benefit Societies
30Act 2014;.

89 In section 53(b) (ceasing to be a community interest company) for “an
industrial and provident society” substitute “a registered society”.

90 (1) Section 56 (becoming an industrial and provident society) is amended as
follows.

(2) 35In subsection (1) for “section 53 of the Industrial and Provident Societies Act
1965” substitute “section 115 of the Co-operative and Community Benefit
Societies Act 2014”.

(3) In the heading for “an industrial and provident society” substitute “a
registered society”.

Co-operative and Community Benefit Societies BillPage 105

Housing Act 2004 (c. 34)2004 (c. 34)

91 (1) In Schedule 14 to the Housing Act 2004 (buildings that are not HMOs for
certain purposes) paragraph 2B is amended as follows.

(2) In sub-paragraph (3) for paragraph (a) (not including the “and” at the end of
5it) substitute—

(a) is registered as a co-operative society under the 2014 Act or
is a pre-commencement society (within the meaning of
that Act) that meets the condition in section 2(2)(a)(i) of
that Act,.

(3) 10In sub-paragraph (4) for the definition of “the 1965 Act” substitute—

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

Income Tax (Trading and Other Income) Act 2005 (c. 5)2005 (c. 5)

92 The Income Tax (Trading and Other Income) Act 2005 is amended as
15follows.

93 In sections 367(3) and 369(2) for “industrial and provident society
payments” substitute “payments by registered societies or certain co-
operatives”.

94 (1) Section 379 (industrial and provident society payments) is amended as
20follows.

(2) For the heading substitute “Payments by registered societies or certain co-
operatives”.

(3) In subsection (1)(a) for “registered industrial and provident society”
substitute “registered society”.

(4) 25In subsection (2) for the definition of “registered industrial and provident
society” (not including the “and” at the end of it) substitute—

  • “registered society” means—

    (a)

    a registered society within the meaning of the Co-
    operative and Community Benefit Societies Act 2014,
    30or

    (b)

    a society registered or treated as registered under the
    Industrial and Provident Societies Act (Northern
    Ireland) 1969,.

95 In section 483(3) (exclusion of credit union group life policies) for paragraph
35(a) (not including the “or” at the end of it) substitute—

(a) the Co-operative and Community Benefit Societies Act
2014,.

Charities and Trustee Investment (Scotland) Act 2005 (asp 10)2005 (asp 10)

96 The Charities and Trustee Investment (Scotland) Act 2005 is amended as
40follows.

97 (1) Section 56 (conversion of charity which is a company or registered friendly
society: applications) is amended as follows.

Co-operative and Community Benefit Societies BillPage 106

(2) In subsection (1)(b) for “the Industrial and Provident Societies Act 1965”
substitute “the Co-operative and Community Benefit Societies Act 2014”

(3) In subsection (7) for “section 52(3) of the Industrial and Provident Societies
Act 1965” substitute “section 113(2) of the Co-operative and Community
5Benefit Societies Act 2014”.

98 In section 58(3)(b) (conversion: supplementary) for “Industrial and
Provident Societies Act 1965” substitute “Co-operative and Community
Benefit Societies Act 2014”.

Companies Act 2006 (c. 46)2006 (c. 46)

99 10The Companies Act 2006 is amended as follows.

100 (1) Section 461(4)(g) (permitted disclosure of information obtained under
compulsory powers) is amended as follows.

(2) In sub-paragraph (i) omit “or to industrial and provident societies”.

(3) After that sub-paragraph insert—

(ia) 15the Credit Unions Act 1979,.

(4) At the end of sub-paragraph (iv) (before the “or”) insert—

(v) the Co-operative and Community Benefit Societies
Act 2014;.

101 In section 1099(3)(e) (registrar’s index of company names etc) for “the
20Industrial and Provident Societies Act 1965” substitute “the Co-operative
and Community Benefit Societies Act 2014”.

102 (1) In Part 2 of Schedule 2 (permitted disclosure for purposes of section 948 of
Act) paragraph 37 is amended as follows.

(2) In sub-paragraph (a) omit “or to industrial and provident societies”.

(3) 25After sub-paragraph (aa) insert—

(ab) the Credit Unions Act 1979;.

(4) After sub-paragraph (d) insert—

(e) the Co-operative and Community Benefit Societies Act
2014.

103 (1) 30In Part 2 of Schedule 11A (permitted disclosure for purposes of section
1224A of Act) paragraph 52 is amended as follows.

(2) In sub-paragraph (a) omit “or to industrial and provident societies”.

(3) After sub-paragraph (aa) insert—

(ab) the Credit Unions Act 1979;.

(4) 35After sub-paragraph (d) insert—

(e) the Co-operative and Community Benefit Societies Act
2014.

Income Tax Act 2007 (c. 3)2007 (c. 3)

104 The Income Tax Act 2007 is amended as follows.

Co-operative and Community Benefit Societies BillPage 107

105 (1) Section 151(1) (interpretation of Chapter 6 of Part 4) is amended as follows.

(2) In the definition of “excluded company” in paragraph (d) for “registered
industrial and provident society” substitute “registered society”.

(3) For the definition of “registered industrial and provident society”
5substitute—

  • “registered society” means—

    (a)

    a registered society within the meaning of the Co-
    operative and Community Benefit Societies Act 2014,
    or

    (b)

    10a society registered or treated as registered under the
    Industrial and Provident Societies Act (Northern
    Ireland) 1969,.

106 In section 198A(9) (excluded activities: subsidised generation or export of
electricity) for the definitions of “community benefit society” and “co-
15operative society” substitute—

  • “community benefit society” means—

    (a)

    a society registered as a community benefit society
    under the Co-operative and Community Benefit
    Societies Act 2014, or

    (b)

    20a pre-commencement society (within the meaning of
    that Act) that meets the condition in section 2(2)(a)(ii)
    of that Act;

  • “co-operative society” means—

    (a)

    a society registered as a co-operative society under
    25the Co-operative and Community Benefit Societies
    Act 2014, or

    (b)

    a pre-commencement society (within the meaning of
    that Act) that meets the condition in section 2(2)(a)(i)
    of that Act;.

107 30In section 309A(9) (excluded activities: subsidised generation or export of
electricity) for the definitions of “community benefit society” and “co-
operative society” substitute—

  • “community benefit society” means—

    (a)

    a society registered as a community benefit society
    35under the Co-operative and Community Benefit
    Societies Act 2014, or

    (b)

    a pre-commencement society (within the meaning of
    that Act) that meets the condition in section 2(2)(a)(ii)
    of that Act;

  • 40“co-operative society” means—

    (a)

    a society registered as a co-operative society under
    the Co-operative and Community Benefit Societies
    Act 2014, or

    (b)

    a pre-commencement society (within the meaning of
    45that Act) that meets the condition in section 2(2)(a)(i)
    of that Act;.

108 In section 853(2)(b)(iii) (meaning of “deposit-taker”) for “the Industrial and
Provident Societies Act 1965” substitute “the Co-operative and Community
Benefit Societies Act 2014”.

Co-operative and Community Benefit Societies BillPage 108

109 In section 874(5)(a) (duty to deduct from certain payments of yearly interest)
for “registered industrial and provident society” substitute “registered
society”.

110 (1) Section 887 (industrial and provident society payments) is amended as
5follows.

(2) For the heading substitute “Payments made by registered societies”.

(3) In subsection (1)(a) for “registered industrial and provident society”
substitute “registered society”.

(4) In subsection (2) for “registered industrial and provident society” substitute
10“registered society”.

(5) For subsection (5) substitute—

(5) In this Chapter “registered society” means—

(a) a registered society within the meaning of the Co-operative
and Community Benefit Societies Act 2014, or

(b) 15a society registered or treated as registered under the
Industrial and Provident Societies Act (Northern Ireland)
1969.

111 In section 991(3)(c) (meaning of “bank”) for “the Industrial and Provident
Societies Act 1965” substitute “the Co-operative and Community Benefit
20Societies Act 2014”.

112 (1) Schedule 4 (index of defined expressions) is amended as follows.

(2) Omit the entries for “registered industrial and provident society”.

(3) In the appropriate place insert—

registered society (in Chapter 6 of
Part 4)
section 151(1)
25
registered society (in Chapter 3 of
Part 15)
section 887(5).

Building Societies (Funding) and Mutual Societies (Transfers) Act 2007 (c. 26)2007 (c. 26)

113 The Building Societies (Funding) and Mutual Societies (Transfers) Act 2007
30is amended as follows.

114 (1) Section 3 (transfers to subsidiaries of other mutuals) is amended as follows.

(2) In subsection (10) for paragraph (c) substitute—

(c) a registered society within the meaning of the Co-operative
and Community Benefit Societies Act 2014;.

(3) 35In subsection (11) for paragraph (c) substitute—

(c) sections 112 to 114 of the Co-operative and Community
Benefit Societies Act 2014;.

115 In section 4(5) (transfers to subsidiaries: distribution of funds) for paragraph

Co-operative and Community Benefit Societies BillPage 109

(c) substitute—

(c) in relation to a registered society within the meaning of the
Co-operative and Community Benefit Societies Act 2014, the
resolution required by section 112 of that Act.

5Serious Crime Act 2007 (c. 27)2007 (c. 27)

116 (1) Section 27(12) of the Serious Crime Act 2007 (powers to wind up companies
etc: England and Wales and Scotland) is amended as follows.

(2) Omit the definition of “industrial and provident society”.

(3) In the definition of “relevant body” for paragraph (c) substitute—

(c) 10a registered society within the meaning of the Co-operative
and Community Benefit Societies Act 2014;.

Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp 3)2007 (asp 3)

117 Section 49 of the Bankruptcy and Diligence etc. (Scotland) Act 2007
(industrial and provident societies) is amended as follows.

118 (1) 15Subsection (1) is amended as follows.

(2) For the words from “section 3” to “1967” substitute “section 62 (floating
charges created by Scottish societies) of the Co-operative and Community
Benefit Societies Act 2014”.

(3) For the words from “3 Application to registered society” to the end
20substitute—

62 Floating charges: Scotland

(1) Part 2 of the Bankruptcy and Diligence etc. (Scotland) Act 2007 (asp
3) (“the 2007 Act”) applies to a registered society as it applies to an
incorporated company.

(2) 25Subsection (3) applies where any assets of a registered society are
subject to—

(a) a floating charge created under Part 2 of the 2007 Act (as
applied by this section), and

(b) an agricultural charge created under Part 2 of the
30Agricultural Credits (Scotland) Act 1929.

(3) For the purposes of determining the relative ranking of those
charges, the following provisions of the 2007 Act apply as if the
agricultural charge were a floating charge created under Part 2 of
that Act on the date of creation of the agricultural charge—

  • 35section 40(1) to (3) (including as subject to section 41(1) to (4)),

  • section 45(3)(c).

119 In subsection (2), for “4” substitute “63”.

120 (1) Subsection (3) is amended as follows.

(2) For “5 (supplemental provisions)” substitute “64 (notification of charges etc:
40Scotland)”.