The Building Societies (Designated Capital Resources) (Deferred Shares) Order 1989

• Citation: S.I. 1989/208
• Sections: 5

Section 1 Citation and commencement

This Order may be cited as the Building Societies (Designated Capital Resources) (Deferred Shares) Order 1989 and shall come into operation on 1st April 1989.

Section 2 Interpretation

In this Order–

“ the Act ” means the Building Societies Act 1986;

“old deferred shares” means shares issued by a building society on or before 31st December 1986 on the terms set out in paragraph 2 of Schedule 1 to the previous regulations;

“new deferred shares” means shares of the class defined for the purposes of section 119(1) of the Act by the Building Societies (Deferred Shares) Order 1989 ;

“the previous regulations” means the Building Societies (Authorisation) Regulations 1981 or the Building Societies (Authorisation) Regulations (Northern Ireland) 1982 .

Section 3 Capital resources which may be aggregated with reserves

When a building society has issued old deferred shares those shares may for the purpose of the first criterion of section 45(3) of the Act be aggregated with reserves, but only in so far as the nominal value of shares so aggregated does not exceed £75,000.

Section 4 Capital resources which may be aggregated with reserves

(1) Where a building society issues new deferred shares those shares may subject to paragraph (2) below for the purposes of the first criterion of section 45(3) of the Act be aggregated with reserves, but only in so far as the nominal value of the shares so aggregated does not together with the nominal value of any old deferred shares for the time being aggregated with reserves for those purposes, exceed £250,000.

(2) Any new deferred shares issued upon terms which are subject to a provision having the effect of the permitted exception set out in paragraph 2 of the Schedule to the Building Societies (Deferred Shares) Order 1989 shall cease to be aggregated for the foregoing purposes with reserves when the Commission has signified to the society its approval of any resolution for the purposes of that provision and shall not thereafter be so aggregated notwithstanding that that resolution is not passed or is revoked.

Section 5 Revocation

The Building Societies (Designated Capital Resources) Order 1986 is hereby revoked.