Co-operative and Community Benefit Societies and Credit Unions Act 2010

Document Number:2010 CHAPTER 7
 
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An Act to make provision for societies to be registered as co-operative or community benefit societies and to re-name the Industrial and Provident Societies Acts; to apply to registered societies the provisions relating to directors disqualification and to make provision for the application of certain other enactments relating to companies; to confer power to make provision for credit unions corresponding to any provision applying to building societies; and for connected purposes.

[18 th March 2010]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Co-operative and community benefit societies

1 Registration of societies as co-operative or community benefit societies

(1) For section 1 of the Industrial and Provident Societies Act 1965 (c. 12) (societies that may be registered) substitute—

“1 Societies that may be registered

(1) A society for carrying on any industry, business or trade (including dealings of any kind with land) may be registered under this Act as—

(a) a co-operative society, or

(b) a community benefit society.

As to registration under this Act as a credit union, see the Credit Unions Act 1979.

(2) A society may be registered as a co-operative society only if it is shown to the satisfaction of the Authority that the society is a bona fide co-operative society.

For this purpose “co-operative society” does not include a society that carries on, or intends to carry on, business with the object of making profits mainly for the payment of interest, dividends or bonuses on money invested or deposited with, or lent to, the society or any other person.

(3) A society may be registered as a community benefit society only if it is shown to the satisfaction of the Authority that in view of the fact that the business of the society is being, or is intended to be, conducted for the benefit of the community, there are special reasons why the society should be registered under this Act rather than as a company under the Companies Acts.

(4) A society may not be registered as a co-operative society or community benefit society unless—

(a) the society’s rules contain provision in respect of the matters mentioned in Schedule 1 , and

(b) the place that under those rules is to be the society’s registered office is situated in Great Britain or the Channel Islands.”.

(2) After section 4 of that Act insert—

“4 APre-2010 Act societies

(1) In this Act “pre-2010 Act society” means a society (other than a credit union) that was registered or treated as registered under this Act immediately before the commencement of section 1 of the Co-operative and Community Benefit Societies and Credit Unions Act 2010.

(2) Nothing in that section affects the status of a pre-2010 Act society as registered or treated as registered under this Act.”.

(3) In section 16(1) of that Act (cancellation of registration: grounds) , in paragraph (c)(ii) for “neither of the conditions specified in section 1(2) of this Act is fulfilled” substitute “the relevant registration condition is not met”.

(4) After that subsection insert—

“(1 A) For the purposes of subsection (1)(c)(ii) the relevant registration condition is not met if—

(a) in the case of a society registered as a co-operative society, the condition specified in section 1(2) is not met;

(b) in the case of a society registered as a community benefit society, the condition specified in section 1(3) is not...

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