The Building Societies (Mergers) Regulations 1987

• Citation: S.I. 1987/2005
• Sections: 4

Section 1 Citation and commencement

These Regulations may be cited as the Building Societies (Mergers) Regulations 1987 and shall come into force on 31st December 1987.

Section 2 Interpretation

In these Regulations —

“ the Act ” means the Building Societies Act 1986;

“merger” means an amalgamation of building societies under section 93 of the Act or a transfer of engagements of one building society to another under section 94 of the Act;

“participating society” means a building society which is party to a merger.

Section 3 Limit relating to bonuses to members

(1) Where the terms of a merger so provide, a distribution of funds may be made in consideration of the merger among any of the members of any of the participating societies, subject to the limit specified in paragraph (2) below.

(2) The maximum distribution that may be made among members of any one society under paragraph (1) above is —

(a) in any case other than that referred to in sub-paragraph (b) below, a sum equal to one per cent. of the value of that society’s total assets; and

(b) in a case where the terms of the merger provide for some but not all of that society’s liabilities to its members in respect of shares to be transferred, a sum equal to one per cent. of the value of the liabilities in respect of shares that are transferred.

(3) For the purposes of paragraph (2) above, the value of any assets or liabilities of a society is their value as given in any statement relating to the merger sent under Part I of Schedule 16 to the Act (which includes a provision requiring that statement to state the financial position of the society), or, if it is not given in the statement, their value as determined for the purpose of making that statement.

Section 4 Revocation of Regulations superseded by these Regulations

The Building Societies (Mergers) Regulations 1986 are hereby revoked.