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Make provision for societies to be registered as co-operative or community |
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benefit societies and to re-name the Industrial and Provident Societies Acts; to |
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apply to registered societies the provisions relating to directors’ |
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disqualification and to make provision for the application of certain other |
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enactments relating to companies; to confer power to make provision for |
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credit unions corresponding to any provision applying to building societies; |
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and for connected purposes. |
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Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and |
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consent of the Lords Spiritual and Temporal, and Commons, in this present |
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Parliament assembled, and by the authority of the same, as follows:— |
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Co-operative and community benefit societies |
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1 | Registration of societies as co-operative or community benefit societies |
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(1) | For section 1 of the Industrial and Provident Societies Act 1965 (c. 12) (societies |
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that may be registered) substitute— |
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“1 | Societies that may be registered |
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(1) | A society for carrying on any industry, business or trade (including |
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dealings of any kind with land) may be registered under this Act as— |
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(a) | a co-operative society, or |
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(b) | a community benefit society. |
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| As to registration under this Act as a credit union, see the Credit Unions |
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(2) | A society may be registered as a co-operative society only if it is shown |
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to the satisfaction of the Authority that the society is a bona fide co- |
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| For this purpose “co-operative society” does not include a society that |
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carries on, or intends to carry on, business with the object of making |
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profits mainly for the payment of interest, dividends or bonuses on |
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money invested or deposited with, or lent to, the society or any other |
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(3) | A society may be registered as a community benefit society only if it is |
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shown to the satisfaction of the Authority that in view of the fact that |
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the business of the society is being, or is intended to be, conducted for |
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the benefit of the community, there are special reasons why the society |
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should be registered under this Act rather than as a company under the |
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(4) | A society may not be registered as a co-operative society or community |
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(a) | the society’s rules contain provision in respect of the matters |
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mentioned in Schedule 1, and |
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(b) | the place that under those rules is to be the society’s registered |
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office is situated in Great Britain or the Channel Islands.” |
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(2) | After section 4 of that Act insert— |
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“4A | Pre-2009 Act societies |
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(1) | In this Act “pre-2009 Act society” means a society (other than a credit |
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union) that was registered or treated as registered under this Act |
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immediately before the commencement of section 1 of the Co-operative |
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and Community Benefit Societies and Credit Unions Act 2009. |
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(2) | Nothing in that section affects the status of a pre-2009 Act society as |
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registered or treated as registered under this Act.”. |
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(3) | In section 16(1) of that Act (cancellation of registration: grounds), in paragraph |
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(c)(ii) for “neither of the conditions specified in section 1(2) of this Act is |
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fulfilled” substitute “the relevant registration condition is not met”. |
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(4) | After that subsection insert— |
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“(1A) | For the purposes of subsection (1)(c)(ii) the relevant registration |
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(a) | in the case of a society registered as a co-operative society, the |
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condition specified in section 1(2) is not met; |
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(b) | in the case of a society registered as a community benefit |
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society, the condition specified in section 1(3) is not met; |
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(c) | in the case of a pre-2009 Act society, neither of the conditions |
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specified in section 1(2) and (3) is met.”. |
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(5) | In section 74(1) of that Act (interpretation - general), before the definition of |
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““pre-2009 Act society” has the meaning given by section 4A(1);”. |
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(6) | In section 20(1)(b) of the Credit Unions Act 1979 (c. 34) (cancellation of |
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registration as credit union: adaptation of grounds), for “neither of the |
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conditions in section 1(2) of that Act is fulfilled” substitute “the relevant |
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registration condition is not met”. |
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(7) | In section 1(9) of the Co-operatives and Community Benefit Societies Act 2003 |
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(c. 15) (community benefit societies: power to restrict use of assets), for the |
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definition of “community benefit society” subsitute— |
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““community benefit society” means— |
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(a) | a society registered under the 1965 Act as a community |
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(b) | a pre-2009 Act society (as defined by section 4A(1) of the |
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1965 Act) which meets the condition in section 1(3) of |
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2 | Re-naming of Industrial and Provident Societies Acts |
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The Acts listed below may be cited by the new short title indicated: |
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| | | | | | | Co-operative and Community |
| | | | | Benefit Societies and Credit |
| | | | | | | | | | Co-operative and Community |
| | 10 | | | Benefit Societies and Credit |
| | | | | | | | | Friendly and Industrial and |
| Co-operative and Community |
| | | | Provident Societies Act 1968 |
| Benefit Societies and Credit |
| | | | | | | 15 | | | Co-operative and Community |
| | | | | Benefit Societies Act 1975 |
| | | | | Co-operative and Community |
| | | | | Benefit Societies Act 1978 |
| | | | | Co-operative and Community |
| | 20 | | | Benefit Societies and Credit |
| | | | | | | | | Co-operatives and Community |
| Co-operative and Community |
| | | | Benefit Societies Act 2003 |
| Benefit Societies Act 2003 |
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3 | Application of provisions relating to directors disqualification |
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In the Company Directors Disqualification Act 1986 (c. 46), after section 22C |
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“22D | Application of Act to societies registered under the Industrial and |
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Provident Societies Act 1965 |
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(1) | In this section “registered society” means a society registered or |
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deemed to be registered under the Industrial and Provident Societies |
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Act 1965 (“the 1965 Act”). |
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(2) | This Act applies to registered societies as it applies to companies. |
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(3) | Accordingly, in this Act— |
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(a) | references to a company include a registered society, and |
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(b) | references to a director or an officer of a company include a |
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member of the committee or an officer of a registered society. |
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| In paragraph (b) “committee” and “officer” have the same meaning as |
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in the 1965 Act: see section 74(1) of that Act. |
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(4) | As they apply in relation to registered societies, the provisions of this |
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Act have effect with the following modifications— |
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(a) | in section 2(1) (disqualification on conviction of indictable |
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offence), the reference to striking off includes cancellation of the |
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registration of a society under the 1965 Act; |
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(b) | in section 3 (disqualification for persistent breaches) and section |
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5 (disqualification on summary conviction), references to the |
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companies legislation shall be read as references to the |
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legislation relating to registered societies; |
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(c) | in section 8(1) (disqualification after investigation), the |
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reference to investigative material shall be read as including— |
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(i) | any report made under section 47 or 49(1) of the 1965 |
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Act (inspection of books or appointment of inspector), |
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(ii) | any information, books, accounts or other documents |
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obtained under section 48 of the 1965 Act; |
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(d) | references to the registrar shall be read as references to the |
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Financial Services Authority; |
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(e) | references to a shadow director shall be disregarded. |
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(5) | In the application of Schedule 1 to the members of the committee of a |
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registered society, references to provisions of the Companies Act 2006 |
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shall be read as including references to the corresponding provisions of |
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the legislation relating to registered societies. |
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(6) | In this section “the legislation relating to registered societies” means the |
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Industrial and Provident Societies Acts 1965 to 2003, the Credit Unions |
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Act 1979 and the Co-operative and Community Benefit Societies and |
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4 | Power to apply certain other provisions relating to companies |
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(1) | The Treasury may by regulations— |
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(a) | make provision applying to societies registered under the Industrial |
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and Provident Societies Act 1965 (c. 12) any provision mentioned in |
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(b) | make provision for such societies corresponding to any such provision, |
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| in either case, with such modifications as appear to the Treasury to be |
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(a) | Parts 14 and 15 of the Companies Act 1985 (c. 6) (investigations); |
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(b) | Part 5 of the Companies Act 2006 (c. 46) (company names); |
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(c) | Part 31 of that Act (dissolution and restoration to the register). |
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(3) | Regulations made by virtue of subsection (2)(a) may amend or repeal the |
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(a) | section 47 of the Industrial and Provident Societies Act 1965 (inspection |
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of books by order of Authority); |
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(b) | section 48 of that Act (production of documents and provision of |
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(c) | section 49 of that Act (appointment of inspectors and calling of special |
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meeting), so far as relating to the appointment of inspectors. |
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(4) | Regulations made by virtue of subsection (2)(b) may amend or repeal section 5 |
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of the Industrial and Provident Societies Act 1965 (c. 12) (name of society). |
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(5) | Regulations made by virtue of subsection (2)(c) may amend or repeal the |
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following provisions of the Industrial and Provident Societies Act 1965— |
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(a) | section 16(1)(a)(iii) (cancellation of registration: society having ceased |
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(b) | section 59 (restriction on dissolution or cancellation of registration). |
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(6) | Subsections (3) to (5) above are not to be read as restricting the power conferred |
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by section 6 of this Act (general power to make consequential amendments). |
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(7) | Regulations under this section may— |
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(a) | confer power to make orders, regulations and other subordinate |
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(b) | create criminal offences; |
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(c) | provide for the charging of fees (but not any charge in the nature of |
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5 | Power to make provision corresponding to provision applying to building |
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(1) | In the Credit Unions Act 1979 (c. 34), before section 24 (under the heading |
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“General and miscellaneous”) insert— |
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“23A | Power to make provision corresponding to provision applying to |
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(1) | The Treasury may by regulations amend this Act so as to make |
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provision for credit unions corresponding to any enactment applying |
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(2) | The power conferred by subsection (1) may not be exercised so as to |
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modify any of the following provisions of this Act— |
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(a) | sections 1 and 2 (registration as a credit union); |
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(b) | section 3 (use of name “credit union”); |
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(c) | section 8 (general prohibition on deposit-taking), but without |
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prejudice to the power to add exceptions to those in sections 9 |
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and 10 and to modify those sections; |
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(d) | section 21 (amalgamations and transfers of engagements); |
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(e) | section 22 (no conversion of credit union into company, etc.); |
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(f) | section 23 (conversion of company into credit union). |
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(3) | Regulations under subsection (1) may— |
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(a) | confer power to make orders, regulations and other subordinate |
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(b) | create criminal offences; |
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(c) | provide for the charging of fees (but not any charge in the |
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(4) | The Treasury may by regulations make such amendments of |
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enactments as appear to them to be appropriate in consequence of any |
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provision made under subsection (1). |
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| This includes power to make consequential amendments of the |
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provisions listed in subsection (2). |
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(5) | In this section “enactment” includes— |
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(a) | an enactment contained in subordinate legislation within the |
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meaning of the Interpretation Act 1978 (c. 30), |
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(b) | an enactment contained in, or in an instrument made under, an |
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Act of the Scottish Parliament, |
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(c) | an enactment contained in, or in an instrument made under, |
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Northern Ireland legislation within the meaning of the |
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Interpretation Act 1978, and |
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(d) | an enactment contained in, or in an instrument made under, a |
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Measure or Act of the National Assembly for Wales. |
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(6) | Before making regulations under this section the Treasury must consult |
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such persons as appear to them to be appropriate. |
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(7) | No regulations under this section are to be made unless a draft has been |
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laid before and approved by a resolution of each House of Parliament.” |
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(2) | In section 29(2) of that Act (orders and regulations: negative resolution |
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procedure), at the beginning insert “Except as provided by section 23A(6),”. |
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(3) | In section 33(4) of that Act (extent: Northern Ireland), after “With the exception |
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of” insert “section 23A so far as it confers power to make consequential |
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amendments of enactments extending to Northern Ireland,”. |
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6 | Consequential amendments |
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(1) | The Treasury may by regulations make such amendments of enactments as |
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appear to them to be appropriate in consequence of any provision made by or |
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(2) | This power is exercisable in relation to any enactment passed or made before |
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the commencement of the relevant provision, and accordingly extends to the |
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provisions of this Act (apart from this section). |
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(3) | In this section “enactment” includes— |
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(a) | an enactment contained in subordinate legislation within the meaning |
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of the Interpretation Act 1978, |
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(b) | an enactment contained in, or in an instrument made under, an Act of |
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(c) | an enactment contained in, or in an instrument made under, Northern |
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Ireland legislation within the meaning of the Interpretation Act 1978, |
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(d) | an enactment contained in, or in an instrument made under, a Measure |
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or Act of the National Assembly for Wales. |
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(4) | The power conferred by this section may, in particular, be exercised so as to |
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replace the words “industrial and provident society” wherever occurring |
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(including in the title of an enactment). |
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