ANNEX [to HM Treasury's Memorandum]|
Non-exhaustive list of issues the Treasury regard
as needing detailed work and consultation before an asset 'lock-in'
regime can be introduced under Clause 1 of the Bill.
the degree of flexibility for consolidation and mergers
which is needed within the sector; it is important the regulations
allow societies with the 'lock-in' to continue to evolve and change
their purposes and activities appropriately;
the need, referred to by the Strategy Unit in its
report (Private Action, Public Benefit), for "robust mechanisms"
to ensure takeovers, mergers and dissolutions of societies are
fair and transparent;
defining which societies should be able to adopt
an asset 'lock-in'. The community benefit society sector is extremely
diverse, ranging from drinking clubs to housing associations.
Therefore it might not be appropriate to extend the option of
'locking-in' assets to all societies or it may be necessary to
specify more narrowly the purposes for which assets may be 'locked-in';
procedures by which a society could adopt a 'lock-in'
on its assets. The procedure to adopt an asset 'lock-in' needs
to reflect the importance of the decision and ensure that there
is an appropriate level of member participation and protection
of the interests of those members who do not wish there to be
whether there are any circumstances under which a
'lock-in' could be reversed - for example, following dissolution
of a society, where the approval of some overseeing body might
be obtained to transfer the assets to a new body with different
whether some circumstances or issues should be left
for a body with supervisory functions to handle on a case-by-case
basis or by rules, rather than being dealt with in the secondary