The Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) Order 2014

• Citation: S.I. 2014/229
• Sections: 244

Section 1 Citation, commencement and interpretation

(1) This Order may be cited as the Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) Order 2014 , and comes into force on 6th April 2014.

(2) In this Order—

...

...

“ the 1986 Act ” means the Insolvency Act 1986 (see also paragraph (5)) ;

“ the 2006 Act ” means the Companies Act 2006 ;

“the 2014 Act ” means the Co-operative and Community Benefit Societies Act 2014;

“the 2015 Act” means the Small Business, Enterprise and Employment Act 2015;

“ authorised person ” has the meaning given in section 31(2) of FSMA;

“ authorised deposit taker ” has the meaning given in section 359(4) of FSMA ;

...

“ deposit ” has the meaning given by article 5 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ;

...

“ FSMA ” means the Financial Services and Markets Act 2000 ;

“ member ”, in relation to a relevant society, means a person whose name is entered as a member in the register kept by the society in accordance with section 30(1) of the 2014 Act ;

...

“relevant CCBS” means a co-operative society or community benefit society, that is registered under the 2014 Act but not a society that is—

registered as a social landlord under Part 1 of the Housing Act 1996 or Part 2 of the Housing (Scotland) Act 2010; or

a credit union within the meaning of section 31(1) of the Credit Unions Act 1979 ;

“ relevant person ” has the meaning given in section 213(9)(a) of FSMA ; and

“ relevant society ” means a registered society which is not—

a private registered provider of social housing; or

registered as a social landlord under Part 1 of the Housing Act 1996 or under Part 2 of the Housing (Scotland) Act 2010 .

(3) The definition of “ authorised deposit taker ” is to be construed in accordance with—

(a) section 22 of, and Schedule 2 to, FSMA ; and

(b) any relevant order under section 22 .

(4) For the purposes of this Order a relevant society is “in administration” while the appointment of an administrator of the society under Schedule B1 to the 1986 Act has effect.

(5) In this Order a reference to the 1986 Act is to the 1986 Act without the amendments made by section 1 of, and Schedules 1 to 3 to, the Corporate Insolvency and Governance Act 2020.

Section 2 Application to relevant societies and relevant CCBS of law about company arrangements, administration and moratoriums

(A1) Part A1 of the 1986 Act (moratorium) applies in relation to relevant CCBS with the modifications set out in paragraph 1(2) of Part 1, and Part 1A, of Schedule 1

(1) Part 1 of the 1986 Act (company voluntary arrangements) applies in relation to a relevant society with the modifications set out in Parts 1 and 2 of Schedule 1.

(2) Part 2 of the 1986 Act (administration) applies in relation to a relevant society with the modifications set out in Parts 1, 3 and 4 of Schedule 1.

(2A) Schedule 1A applies in relation to a proposal by the members of the committee of a relevant CCBS for a moratorium under Part A1 of the 1986 Act (as applied in relation to a relevant CCBS), and—

(a) the courts in England and Wales have jurisdiction to wind up the relevant CCBS, or

(b) a sheriff court in Scotland has jurisdiction to wind up the relevant CCBS.

(3) Part 26 of the 2006 Act (arrangements and reconstructions) applies in relation to a relevant society with the modifications set out in Schedule 2.

(4) Part 26A of the 2006 Act (arrangements and reconstructions: companies in financial difficulty) applies in relation to a relevant society with the modifications set out in Schedule 2A.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 2A Application of section 176ZB of the 1986 Act

Section 176ZB of the 1986 Act (application of proceeds of office-holder claims) applies in relation to a relevant society which is in administration, and for that purpose—

(a) a reference to a company includes a reference to a relevant society;

(b) a reference to a section of the 1986 Act is a reference to that section as applied in relation to a relevant society; and

(c) the reference to Part 26 of the 2006 Act is a reference to that Part as applied in relation to a relevant society.

Section 3 Application of section 176A of the 1986 Act

Section 176A of the 1986 Act (share of assets for unsecured creditors) applies in relation to a relevant society which is in administration, and for that purpose—

(a) a reference to a company includes a reference to a relevant society;

(b) a reference to a receiver is to be ignored; and

(c) in subsection (4)(b) the reference to Part 26 of the 2006 Act is a reference to that Part as applied in relation to a relevant society.

Section 4 Application of other provisions of the 1986 Act

The following provisions of the 1986 Act, so far as they have effect for the purposes of Part A1, Part 1 or Part 2 of that Act as applied in relation to a relevant society, apply with the modifications set out in Schedule 3—

(a) Part 6 (miscellaneous provisions applying to companies which are insolvent or in liquidation);

(b) Part 7 (interpretation for first group of Parts); and

(c) Parts 12 to 19 (the third group of Parts).

Section 5 Application of section 215 of FSMA

(1) Section 215 of FSMA (rights of the compensation scheme in insolvency) applies in relation to a relevant society—

(a) which is a relevant person; and

(b) in relation to which an administration application is made, an administrator is appointed or a copy of notice of intention to appoint an administrator is filed with the court under Schedule B1 to the 1986 Act.

(2) For that purpose in subsection (3) the reference to a company includes a reference to a relevant society.

Section 5A Application of sections 355A and 355B of FSMA

(1) Sections 355A (powers of FCA and PRA to participate in proceedings) and 355B (enforcement of requirements imposed by section 355A) of FSMA apply in relation to a relevant society which meets the criteria in section 355A(1).

(2) For that purpose, in sections 355A and 355B a reference to a company is a reference to a relevant society of a kind specified in paragraph (1).

Section 6 Application of section 356 of FSMA

(1) Section 356 of FSMA (powers of FCA and PRA to participate in proceedings: company voluntary arrangements) applies in relation to a relevant society—

(a) which is an authorised person; and

(b) in relation to which a voluntary arrangement has effect under Part 1 of the 1986 Act.

(2) For that purpose—

(a) in subsection (1) the reference to a company includes a reference to a relevant society; and

(b) in subsection (3) the reference to an application to the court in relation to the company is a reference to an application to the court under section 6 or 7 of the 1986 Act in relation to a relevant society of the kind described in paragraph (1).

Section 7 Application of section 359 of FSMA

(1) Section 359 of FSMA (administration order) applies in relation to a relevant society which—

(a) is or has been an authorised person; or

(b) is carrying on or has carried on a regulated activity in contravention of the general prohibition.

(2) For that purpose—

(a) in subsection (1) the words from “which” to the end are to be ignored; and

(b) except in the definition of “company” in subsection (4), a reference to a company is a reference to a relevant society of the kind described in paragraph (1).

Section 8 Application of section 361 of FSMA

Section 361 of FSMA (administrator's duty to report to FCA and PRA) applies in relation to a relevant society, and for that purpose a reference to a company includes a reference to a relevant society.

Section 9 Application of sections 362 and 362A of FSMA

(1) Section 362 of FSMA (powers of FCA and PRA to participate in proceedings) and section 362A (administrator appointed by company or directors) apply in relation to a relevant society which—

(a) is or has been an authorised person; or

(b) is carrying on or has carried on a regulated activity in contravention of the general prohibition.

(2) For that purpose—

(a) in section 362—

(i) in subsection (1) the words from “which” to the end are to be ignored;

(ii) in subsection (1A) the words “of a kind described in subsection (1)(a) to (c)” are to be ignored;

(iii) a reference to a company is a reference to a relevant society of the kind described in paragraph (1); and

(b) in section 362A—

(i) in subsection (1) the words “of a kind described in section 362(1)(a) to (c)” are to be ignored;

(ii) a reference to a company is a reference to a relevant society of the kind described in paragraph (1).

Section 10 Application of provisions of FSMA: general provision

(1) In the application in relation to a relevant society of any of the provisions applied by articles 5 to 9, except sections 359(4) and 362(1B)—

(a) a reference to a provision of the 1986 Act is a reference to that provision as applied in relation to a relevant society; and

(b) a reference to Schedule B1 to the Insolvency (Northern Ireland) Order 1989 is to be ignored.

(2) In articles 5 to 9—

(a) a reference to a provision of the 1986 Act is a reference to that provision as applied in relation to a relevant society;

(b) “ general prohibition ” has the meaning given in section 19(2) of FSMA; and

(c) “ regulated activity ” has the meaning given in section 22 of FSMA .

Section 11 Application of insolvency rules

(1) Part 1 (company voluntary arrangements) and, so far as applicable to voluntary arrangements, Parts 7 to 13 (the third group of Parts) of the Insolvency Rules 1986 apply where—

(a) it is intended to make, and there is made, a proposal to a relevant society and its creditors for a voluntary arrangement within the meaning given in section 1 of the 1986 Act (as applied in relation to a relevant society); and

(b) the courts in England and Wales have jurisdiction to wind up the society.

(2) Part 1 (company voluntary arrangements) and, so far as applicable to voluntary arrangements, Part 7 (provisions of general application) of the Insolvency (Scotland) Rules 1986 apply where—

(a) it is intended to make, and there is made, a proposal to a relevant society and its creditors for a voluntary arrangement within the meaning given in section 1 of the 1986 Act (as applied in relation to a relevant society); and

(b) a sheriff court in Scotland has jurisdiction to wind up the society.

(3) Part 2 (administration procedure) and, so far as applicable to administration procedure, Parts 7 to 13 of the Insolvency Rules 1986 apply in relation to the appointment of an administrator of a relevant society which the courts in England and Wales have jurisdiction to wind up.

(4) Part 2 (administration procedure) and, so far as applicable to administration procedure, Part 7 of the Insolvency (Scotland) Rules 1986 apply in relation to the appointment of an administrator of a relevant society which a sheriff court in Scotland has jurisdiction to wind up.

(5) Schedule 4 (which makes further provision about the application in relation to a relevant society of the Insolvency Rules 1986 and the Insolvency (Scotland) Rules 1986) has effect.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 12 Application of other subordinate legislation

Schedule 5 applies other subordinate legislation in relation to a relevant society with the modifications set out in that Schedule.

Section 13 Modified application of section 111 of the 2014 Act

(1) Paragraph (2) applies where, in relation to a relevant society which is in administration, the administrator’s proposals under paragraph 49 or a revision to proposals under paragraph 54 include relevant provision.

(2) Section 111 of the 2014 Act (special resolutions under section 109 or 110) has effect as if—

(a) it provided that—

(i) the second meeting referred to in subsection (2) is to be treated as having been summoned by the administrator for consideration of the proposals or the revision under paragraph 53 or 54;

(ii) where that meeting confirms the resolution passed in relation to the relevant provision at the first meeting referred to in subsection (2), the relevant provision is to be treated as approved by the members of the society for the purposes of paragraph 53(1) or 54(5);

(b) in subsection (5) for the words from “Within 14 days” to “a copy of it” there were substituted “The society must send the FCA a copy of the special resolution that is”; and

(c) subsection (8) were omitted.

(3) In this article—

(a) a reference to a numbered paragraph, except the reference to paragraph (2) of this article, is a reference to the paragraph so numbered in Schedule B1 to the Insolvency Act 1986 as applied in relation to a relevant society by this Order; and

(b) “relevant provision” means provision for amalgamation in pursuance of section 109 of the 2014 Act (amalgamation of societies) or for a transfer of engagements in pursuance of section 110 of that Act (transfer of engagements between societies).

Section 14 Modified application of section 113 of the 2014 Act

(1) Paragraph (2) applies where, in relation to a relevant society which is in administration, the administrator’s proposals under paragraph 49 or a revision to proposals under paragraph 54 include relevant provision.

(2) Section 113 of the 2014 Act (special resolutions under section 112) has effect as if—

(a) it provided that—

(i) the second meeting referred to in subsection (2) is to be treated as having been summoned by the administrator for consideration of the proposals or the revision under paragraph 53 or 54;

(ii) where that meeting confirms the resolution passed in relation to the relevant provision at the first meeting referred to in subsection (2), the relevant provision is to be treated as approved by the members of the society for the purposes of paragraph 53(1) or 54(5);

(b) in subsection (5) the words from “Within 14 days from the day of the second meeting,” were omitted; and

(c) subsection (8) were omitted.

(3) In this article—

(a) a reference to a numbered paragraph, except the reference to paragraph (2) of this article, is a reference to the paragraph so numbered in Schedule B1 to the Insolvency Act 1986 as applied in relation to a relevant society by this Order; and

(b) “relevant provision” means provision in pursuance of section 112 of the 2014 Act (conversion of society into a company, amalgamation with a company etc ) for conversion into a company, amalgamation with a company or a transfer of engagements to a company.

Section 15 Modified application of section 126 of the 2014 Act

Section 126 of the 2014 Act (dissolution etc to occur only after society’s property dealt with) has effect in relation to a relevant society which is in administration as if in subsection (3) the reference to the liquidator included a reference to the administrator.

Section 16 Modified application of section 59 of the 1965 Act

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Section 17 Amendment of the 1965 Act

(1) The 1965 Act is amended as follows.

(2) After section 43 (duties of receiver or manager of society's property) insert—

Floating charge holder not to appoint administrative receiver

(43A)

(1) The holder of a qualifying floating charge in respect of the property of a relevant society whose registered office is situated in England and Wales may not appoint an administrative receiver of the society.

(2) This section applies to a floating charge which is created by a relevant society on or after 6th April 2014 and is either—

(a) a charge in respect of which an application has been made for the purposes of section 1 of the Industrial and Provident Societies Act 1967 ; or

(b) created by a debenture registered under section 9 of the Agricultural Credits Act 1928 as applied by section 14 of that Act.

(3) This section applies in spite of any provision of an agreement or instrument which purports to empower a person to appoint an administrative receiver (by whatever name).

(4) In this section—

“ administrative receiver ”, in relation to a relevant society, means—

a receiver or manager of the whole (or substantially the whole) of the society's property appointed by or on behalf of the holder of a floating charge; or

a person who would be such a receiver or manager but for the appointment of some other person as the receiver of part of the society's property; and

“ holder of a qualifying floating charge in respect of the property of a relevant society ” has the meaning given in paragraph 14 of Schedule B1 to the Insolvency Act 1986 as applied in relation to a relevant society by an order made under section 255 of the Enterprise Act 2002.

(3) In section 49 (appointment of inspectors and calling of special meetings) after subsection (1) insert—

(1A) The power of the FCA to call a special meeting of a relevant society in respect of which a moratorium is in force under section 1A of the Insolvency Act 1986 is subject to paragraph 12(1)(b) of Schedule A1 to that Act as applied in relation to a relevant society by an order made under section 255 of the Enterprise Act 2002.

(4) In section 55 (dissolution of society) after subsection (1C) insert—

(1D) A relevant society may also be dissolved under paragraph 84 of Schedule B1 to the 1986 Act as applied in relation to a relevant society by an order made under section 255 of the Enterprise Act 2002.

(5) In section 74 (interpretation — general), in subsection (1) at the end insert—

“ relevant society ” means a registered society which is not—

a private registered provider of social housing; or

registered as a social landlord under Part 1 of the Housing Act 1996 or under Part 2 of the Housing (Scotland) Act 2010.

Section 1

(1) Unless the context otherwise requires and subject to any further modification in this Schedule, in Parts 1 and 2 of the 1986 Act—

(a) a reference to a provision of that Act or to Part 26 of the 2006 Act is a reference to that provision or that Part as applied in relation to a relevant society;

(b) an expression defined in that Act (but not an expression modified by this paragraph) has the meaning given in the Act with the modification that a reference to a company includes a reference to a relevant society;

(c) a reference to a company includes a reference to a relevant society;

(d) a reference to a company registered in England and Wales includes a reference to a relevant society whose registered office is situated in England and Wales;

(e) a reference to a company registered in Scotland includes a reference to a relevant society whose registered office is situated in Scotland;

(f) a reference to a company's creditors does not include a reference to a member of a relevant society to whom an amount is owed by the society if, but only in so far as, the amount concerned is owed in respect of the member's shares;

(g) a reference to the directors of a company is a reference to the members of the committee of a relevant society;

(h) a reference to a meeting of a company or of the members of a company is a reference to a general meeting of a relevant society and, in relation to a society whose rules allow the members to appoint delegates for meetings of the society or its members, includes a reference to a general meeting for which delegates have been appointed;

(i) a reference to a member of a company is a reference to a person whose name is entered as a member in the register kept by a relevant society in accordance with section 30(1) of the 2014 Act (register of members and officers);

(j) a reference to an officer of a company is a reference to an officer of a relevant society; and

(k) a reference to the registrar of companies is a reference to the FCA in its capacity as the authority responsible for the registration of a relevant society under the 2014 Act .

(2) Unless the context otherwise requires and subject to any further modification in this Schedule, in Part A1 of the 1986 Act, subparagraph (1) of this paragraph applies as if “relevant CCBS” was substituted for “relevant society” in each place it appears.

Section 1A

Part A1 of the 1986 Act (moratorium) applies in relation to a relevant CCBS with the further modifications set out in this Part and with any other necessary modification.

Section 1B

Section A5 (obtaining a moratorium for other overseas companies) is omitted.

Section 1C

Section A20 (restrictions on insolvency proceedings etc) has effect as if after subsection (3) there were inserted—

(4) In subsection (1)(h) “administrative receiver” in relation to a relevant CCBS means—

(a) a receiver or manager of the whole “or substantially the whole” of the society’s property appointed by or on behalf of the holder of a floating charge, or

(b) a person who would be such a receiver or manager but for the appointment of some other person as the receiver of part of the society’s property.

Section 1D

Section A28 (restrictions on payment of certain pre-moratorium debts) has effect as if after subsection (1) there were inserted—

(1A) During a moratorium, withdrawal of shares from the relevant CCBS is prohibited.

Section 1E

Section A35 (monitoring) has effect as if after subsection (2) there were inserted—

(3) In carrying out its functions under this chapter the monitor must have regard to the rules of the relevant CCBS and the obligations of the relevant CCBS under the Co-operative and Community Benefit Societies Act 2014.

Section 1F

Section A48 of the 1986 Act (prosecution of delinquent officers of company) has effect as if—

(a) in subsection (3), in the definition of “the appropriate authority”—

(i) at the end of paragraph (a) there were added “or the Financial Conduct Authority (“the FCA”)”;

(ii) at the end of each of paragraph (b) and paragraph (c)(i), (ii) and (iv) there were added “or the FCA”; and

(iii) in paragraph (c)(iii), after “Lord Advocate” there were inserted “or the FCA”;

(b) for subsection (4) there were substituted—

(4) Subsection (4A) applies where a report is made to the Secretary of State or the FCA under subsection (2) in relation to a relevant CCBS whose registered office is situated in England and Wales.

(4A) The Secretary of State or the FCA may, for the purpose of investigating the matter reported and such other matters relating to the CCBS affairs as appear to require investigation, exercise the power to appoint inspectors which would be exercisable by the FCA under section 106 of the Co-operative and Community Benefit Societies Act 2014 upon an application made for that purpose under subsection (1) of that section.

(c) subsections (5) to (8) were omitted; and

(d) in subsection (10), for the definition of “prosecuting authority” there were substituted—

“prosecuting authority” means—

in the case of a relevant CCBS whose registered office is situated in England and Wales, the Director of Public Prosecutions, the Secretary of State or the FCA; and

in the case of a relevant society whose registered office is situated in Scotland, the Lord Advocate.

Section 1G

Chapter 8 of Part A1 of the 1986 Act (miscellaneous and general) has effect as if before section A49 there were inserted—

(A48A) This Part has effect as if it required any proposal under it to be framed so as to enable a relevant CCBS to comply with the rules of the society and the provisions of the 2014 Act.

Section 1H

Section A50 (power to modify this Part etc in relation to certain companies) is omitted.

Section 1I

Section A54 has effect as if—

(a) in subsection (1), after the definition of “qualified person” there were inserted—

“CCBS” means a co-operative society or community benefit society that is registered under the 2014 Act but not a society that is—

a private registered provider of social housing;

registered as a social landlord under Part 1 of the Housing Act 1996 or Part 2 of the Housing (Scotland) Act 2010; or

a credit union within the meaning of section 31(1) of the Credit Unions Act 1979

(b) after subsection (3) there were inserted—

(3A) In this Part a reference to a floating charge, in relation to a relevant society—

(a) whose registered office is situated in England or Wales, is a reference to a floating charge which is either—

(i) a charge in respect of which an application has been made for the purposes of section 59 of the Co-operative and Community Benefit Societies Act 2014; or

(ii) created by a debenture registered under section 9 of the Agricultural Credits Act 1928 as applied by section 14 of that Act;

(b) whose registered office is situated in Scotland, is a reference to a floating charge which is either—

(i) a charge created by an instrument a copy of which has been delivered to the Financial Conduct Authority in pursuance of section 63 of the Co-operative Benefit Societies Act 2014; or

(ii) created and registered under Part 2 of the Agricultural Credits (Scotland) Act 1929.

Section 1J

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Section 1K

Schedule ZA1 has effect as if—

(a) in paragraph 15—

(i) in subparagraph (2)(e) for “holding company” there were substituted “parent society”; and

(ii) after subparagraph (4) there were inserted—

(5) For the purposes of this paragraph a “parent society” is a society in relation to which another society is treated as a subsidiary society within the meaning of section 101 of the Co-operative and Community Benefit Societies Act 2014.

(b) paragraph 18 were omitted.

Section 2

Part 1 of the 1986 Act applies in relation to a relevant society with the further modifications set out in this Part and with any other necessary modification.

Section 3 Part 1 (company voluntary arrangements)

Section 1 of the 1986 Act (those who may propose an arrangement) has effect as if—

(a) it required any proposal under Part 1 to be so framed as to enable a relevant society to comply with the rules of the society and the provisions of the 2014 Act and the Credit Unions Act 1979 ; and

(b) in subsection (1) the reference to debts included a reference to any amount owed by the society in respect of a member's shares where—

(i) the society is an authorised deposit taker; and

(ii) the amount concerned is owed in respect of a deposit.

Section 3A Part 1 (company voluntary arrangements)

Sections 2 to 6 and 7 of ... the 1986 Act have effect without the amendments of those provisions made by paragraphs 2 to 9 of Schedule 9 to the 2015 Act (further amendments relating to the abolition of requirements to hold meetings: company voluntary arrangements).

Section 4

Section 3 of the 1986 Act (summoning of meetings) has effect as if subsection (3) provided that the persons required to be summoned to a creditors' meeting included every member of the society to whom an amount is owed in respect of the member's shares where—

(a) the society is an authorised deposit taker; and

(b) the amount concerned is owed in respect of a deposit.

Section 5

Section 7A of the 1986 Act (prosecution of delinquent officers of company) has effect as if—

(a) in subsection (2), in the definition of “the appropriate authority”—

(i) at the end of sub-paragraph (i) there were added “ or the Financial Conduct Authority (“the FCA”) ” ;

(ii) at the end of sub-paragraph (ii) there were added “ or the FCA ” ;

(b) for subsection (3) there were substituted—

(3) Subsection (3A) applies where a report is made to the Secretary of State or the FCA under subsection (2) in relation to a relevant society (within the meaning given in article 1(2) of the Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) Order 2014 ) whose registered office is situated in England and Wales.

(3A) The Secretary of State or the FCA may, for the purpose of investigating the matter reported and such other matters relating to the society's affairs as appear to require investigation, exercise the power to appoint inspectors which would be exercisable by the FCA under section 106 of the Co-operative and Community Benefit Societies Act 2014 upon an application made for that purpose under subsection (1) of that section.

(c) subsections (4) to (7) were omitted; and

(d) in subsection (8), for the definition of “prosecuting authority” there were substituted—

“ prosecuting authority ” means—

in the case of a relevant society whose registered office is situated in England and Wales, the Director of Public Prosecutions, the Secretary of State or the FCA; and

in the case of a relevant society whose registered office is situated in Scotland, the Lord Advocate.

Section 6 Schedule A1 (moratorium where directors propose voluntary arrangement)

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Section 7 Schedule A1 (moratorium where directors propose voluntary arrangement)

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Section 8

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Section 9

Part 2 of the 1986 Act applies in relation to a relevant society with the further modifications set out in this Part and with any other necessary modification.

Section 10

In this Part—

(a) a reference to a numbered paragraph is a reference to the paragraph so numbered in Schedule B1 to the 1986 Act (administration) ; and

(b) a reference to a sub-paragraph is a reference to a sub-paragraph of such a paragraph.

Section 10A Creditors’ meetings and creditors’ notices

Schedule B1 to the 1986 Act has effect without the amendments made by paragraph 10 of Schedule 9 to the 2015 Act (further amendments relating to the abolition of requirements to hold meetings; opted-out creditors: administration).

Section 11 Nature of administration

Paragraph 3 (purpose of administration) has effect as if a reference to the company's creditors as a whole included a reference to any member of the society to whom an amount is owed in respect of the member's shares where—

(a) the society is an authorised deposit taker; and

(b) the amount concerned is owed in respect of a deposit.

Section 12 Appointment of administrator by court

Paragraph 12 (administration application) has effect as if—

(a) in sub-paragraph (1)(c) the reference to the company's creditors included a reference to any member of the society who would be entitled to petition for the winding up of the society;

(b) sub-paragraph (1) provided that—

(i) an application to the court for an administration order may also be made by the FCA in its capacity as the authority responsible for the registration of the society under the 2014 Act ; and

(ii) in the case of a relevant society which is or has been an authorised person, such power is in addition to the power to make an administration application conferred on the FCA by section 359 of FSMA (administration order); and

(c) sub-paragraph (2) required the applicant also to notify the FCA (unless the FCA is the applicant).

Section 13 Appointment of administrator by holder of floating charge

In paragraph 14 (power to appoint) sub-paragraph (2) has effect as if—

(a) paragraph (a) required the instrument to include the following statement—

Paragraph 14 of Schedule B1 to the Insolvency Act 1986, as applied in relation to relevant societies by article 2(2) of the Industrial and Provident Societies and Credit Unions (Arrangements, Reconstructions and Administration) Order 2014, applies to this floating charge.

(b) in paragraph (c) the words “within the meaning given by section 29(2)” were omitted; and

(c) paragraph (d) were omitted.

Section 14 Appointment of administrator by holder of floating charge

Paragraph 15 (restrictions on power to appoint) has effect as if for sub-paragraph (3) there were substituted—

(3) In relation to a relevant society whose registered office is situated in Scotland, sub-paragraph (2) has effect as if the following were substituted for paragraph (a)—

(a) it has priority of ranking in accordance with section 464(4)(b) of the Companies Act 1985 as applied in relation to a relevant society by section 62 of the Co-operative and Community Benefit Societies Act 2014 ,

Section 15 Effect of administration

In paragraph 41 (dismissal of administrative or other receiver), in sub-paragraph (3) ignore paragraph (b).

Section 16 Effect of administration

In paragraph 45 (publicity) sub-paragraph (3) has effect as if after paragraph (b) there were inserted—

(ba) a statement of account,

(bb) an advertisement,

Section 17

Paragraph 46 (announcement of administrator's appointment) has effect as if sub-paragraph (2) required the administrator to send a notice of appointment also to every member of the society.

Section 18 Process of administration

Paragraph 49 (administrator's proposals) has effect as if—

(a) after sub-paragraph (3) there were inserted—

(3A) In the case of a relevant society, proposals under this paragraph may include provision for amending the society's rules only if the Financial Conduct Authority has issued a statement to the effect that it would register an amendment in the terms proposed if copies were given to it for registration in accordance with section 16 of the Co-operative and Community Benefit Societies Act 2014 (“the 2014 Act ”) .

(3B) The proposals must not include any measure which would be contrary to the provisions of the 2014 Act or the Credit Unions Act 1979.

(3C) Sub-paragraph (3A) does not apply if the intended effect of the proposals is that the society will cease to be a registered society (within the meaning given by section 1(1) of the 2014 Act ) .

(b) in sub-paragraph (4)(c) the words “of whose address he is aware” were omitted; and

(c) sub-paragraph (6) were omitted.