The Building Societies (Insolvency and Special Administration) (Amendment) Order 2010

• Citation: S.I. 2010/1189
• Sections: 4

Section 1 Citation and commencement

(1) This Order may be cited as the Building Societies (Insolvency and Special Administration) (Amendment) Order 2010.

(2) It comes into force on the day after the day on which it is made.

Section 2 Amendment of the Building Societies (Insolvency and Special Administration) Order 2009

(1) The Building Societies (Insolvency and Special Administration) Order 2009 is amended as follows.

(2) In Schedule 1 (modified application of Parts 2 and 3 of the Banking Act 2009 to building societies)—

(a) in paragraph 13, after sub-paragraph (4) insert—

(4A) For the entry for section 195 substitute—

The power to have regard to the wishes of creditors and contributories is subject to Objective 1 in section 99.

In subsection (3), for “the number of votes conferred on each contributory by the Companies Act or the articles”, substitute “the value of the shares each contributory holds in the building society”.

(b) in paragraph 16, at the end insert—

(e) after subsection (8) insert—

(9) Sections 1012 to 1023 and 1034 of the Companies Act 2006 (provisions as to property of dissolved company) apply in relation to the property of a building society dissolved under this section as they apply to the property of a dissolved company.

(c) for paragraph 17 substitute—

(17) In section 116 of the 2009 Act (dissolution: supplemental)—

(a) in subsections (1) and (2) the references to the Secretary of State have effect as references to the FSA;

(b) for subsection (4) substitute—

(4) On giving a direction under subsection (1) the FSA shall place it on the public file of the society concerned.

(c) ignore subsection (5).

(d) omit paragraph 18;

(e) in paragraph 27, for sub-paragraph (5) substitute—

(5) For the entry for para. 80 (termination: successful rescue) substitute—

Ignore sub-para. (2).

See section 153.

(f) in paragraph 30, at the end insert—

(12) Sections 1012 to 1023 and 1034 of the Companies Act 2006 (provisions as to property of dissolved company) apply in relation to the property of a building society dissolved under this paragraph as they apply in relation to the property of a dissolved company.

(g) omit paragraph 31;

(h) before paragraph 33 (under the heading “Termination”) insert—

(32A) In section 153 of the 2009 Act (successful rescue), for subsections (2) and (3) substitute—

(2) The building society special administrator shall make an application under paragraph 79 of Schedule B1 to the Insolvency Act 1986 (court ending administration on achievement of objectives).

(3) A building society special administrator who makes an application in accordance with subsection (2) must send a copy to the FSA.

(3) In Schedule 2 (modified application of subordinate legislation), in paragraph 3, after sub-paragraph (e) insert—

(ea) after article 8 insert—

(8A)

(1) The Pension Protection Fund (Entry Rules) Regulations 2005 apply with the following modifications.

(2) In regulation 9(1) and (2) (confirmation of scheme status by insolvency practitioner), the references to “company” are to be read as references to “building society”;

(3) In regulation 10(3) (confirmation of scheme status by Board), the reference to “company” is to be read as a reference to “building society”.

(eb) after article 9 insert—

(9A)

(1) The Pension Protection Fund (Entry Rules) Regulations (Northern Ireland) 2005 apply with the following modifications.

(2) In regulation 9(1) and (2) (confirmation of scheme status by insolvency practitioner), the references to “company” are to be read as references to “building society”;

(3) In regulation 10(3) (confirmation of scheme status by Board), the reference to “company” is to be read as a reference to “building society”.

Section 3 Consequential amendment: Pension Protection Fund (Entry Rules) Regulations 2005

(1) The Pension Protection Fund (Entry Rules) Regulations 2005 are amended as follows.

(2) In regulation 5 (prescribed insolvency events), in paragraph (1)(c), at the end insert “, where a building society insolvency order is made under Part 2 of the Banking Act 2009 (bank insolvency) (as applied in relation to building societies by an order under section 130 of the Banking Act 2009) or where a building society special administration order is made under Part 3 of that Act (bank administration) (as applied in relation to building societies by an order made under section 158 of the Banking Act 2009)”.

(3) In regulation 6 (circumstances in which insolvency proceedings in relation to the employer are stayed or come to an end), in paragraph (1), after sub-paragraph (c) insert—

(d) in a case where the employer is a building society, where—

(i) the appointment of a building society special administrator under Part 3 of the Banking Act 2009 (bank administration) (as applied in relation to building societies by an order under section 158 of that Act) in respect of the building society ceases to have effect; or

(ii) the building society insolvency procedure is stayed under section 130 of the 1986 Act (as applied by section 103 of the Banking Act 2009 and an order made under section 130 of that Act), or the building society insolvency order is rescinded or discharged, except in circumstances where the court has made an administration order in accordance with section 114 of the Banking Act 2009 (as applied by an order made under section 130 of that Act).

Section 4 Consequential amendment: Pension Protection Fund (Entry Rules) Regulations (Northern Ireland) 2005

(1) The Pension Protection Fund (Entry Rules) Regulations (Northern Ireland) 2005 are amended as follows.

(2) In regulation 5 (prescribed insolvency events), in paragraph (1)(c), at the end insert “, where a building society insolvency order is made under Part 2 of the Banking Act 2009 (bank insolvency) (as applied in relation to building societies by an Order under section 130 of that Act) or where a building society special administration order is made under Part 3 of that Act (bank administration) (as applied in relation to building societies by an Order made under section 158 of that Act)”.

(3) In regulation 6 (circumstances in which insolvency proceedings in relation to the employer are stayed or come to an end), in paragraph (1), after sub-paragraph (c) insert—

(d) in a case where the employer is a building society, where—

(i) the appointment of a building society special administrator under Part 3 of the Banking Act 2009 (bank administration) (as applied in relation to building societies by an order under section 158 of that Act) in respect of the building society ceases to have effect, or

(ii) the building society insolvency procedure is stayed under Article 110 of the Insolvency Order (as applied by sections 103 and 134 of the Banking Act 2009 and an order made under section 130 of that Act), or the building society insolvency order is rescinded or discharged, except in circumstances where the court has made an administration order in accordance with section 114 of the Banking Act 2009 (as applied by an order made under section 130 of that Act).