Change 1 Article Choose an article Title and introductory text 1 Functions of the Financial Conduct Authority and the Prudential Regulation Authority in relation to building societies. 2 Financial provision for Commission. 3 Accounts of Commission and audit. 4 Annual and other reports. 5 Establishment, constitution and powers. 6 The lending limit. 6A Loans secured on land. 6B Loans fully secured on land. 6C Discharge of mortgages. 7 The funding limit. 8 Raising funds and borrowing. 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9A Restrictions on certain transactions. 9B Restriction on creation of floating charges. 10 Advances secured on land. 11 Class 1 and class 2 advances 12 Class 1 and class 2 advances: supplementary provisions. 13 Security for advances: valuation and supplementary and related provisions. 14 Power to make advances secured on land overseas. 14A Power to participate in secured syndicated lending. 15 Loans for mobile homes. 16 Power to lend to individuals otherwise than by class 1 or class 2 advances etc. 17 Power to hold and develop land as commercial asset. 18 Power to invest in subsidiaries and other associated bodies. 19 Power for Treasury to add powers to hold other descriptions of class 3 assets. 20 Commercial asset structure requirements for building societies. 21 Liquid assets. 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Power to hedge. 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Special provisions as regards investors. 33 Assistance by building societies to other building societies. 34 Powers to provide financial services or services relating to land. 35 Prohibition on linking services. 36 Power to direct restructuring of business etc. 36A Power to make prohibition orders. 37 Powers to petition for winding up etc. 38 Power to determine building society’s powers. 39 The determination: notification, effect, appeal. 40 Power to make prohibition orders. 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42B Power to direct transfers of engagements or business. 42C Variation and revocation of transfer directions 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45AA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46A Notices, hearings and appeals. 46 Rights of appeal. 47 Determination of appeals. 48 Costs, procedure and evidence. 49 Further appeals on points of law. 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Powers to avoid apparent association with other bodies. 52 Powers to obtain information and documents etc. 52B Entry of premises under warrant under section 176 of the Financial Services and Markets Act 2000. 53A Disclosure of information. 54 Information disclosed to FCA or PRA from other sources. 55 Investigations on behalf of FCA or PRA . 56 Inspections and special meetings: general. 57 Inspections: supplementary provisions. 58 Directors: number. 59 Chief executive and secretary. 60 Directors: elections and retirements. 61 Directors: supplementary provisions as to elections, etc. 62 Prohibition of tax-free payments to directors. 63 Directors to disclose interests in contracts and other transactions. 64 Substantial property transactions involving directors and connected persons. 65 Restriction on loans, etc. to directors and persons connected with them. 66 Sanctions for breach of s. 65. 66A Transactions with directors and persons connected with them. 67 Directors, etc, not to accept commissions in connection with loans. 68 Records of loans, etc. for directors falling within s. 65. 69 Disclosure and record of income of related businesses. 70 Interpretation of this Part. 71 Accounting records . . . 72 Duty of directors to prepare annual accounts. 72A Duty to prepare individual accounts 72B Building Societies Act individual accounts 72C Form and contents of Building Societies Act individual accounts 72D IAS individual accounts 72E Duty to prepare group accounts 72F Building Societies Act group accounts 72G Form and contents of Building Societies Act group accounts 72H IAS group accounts 72I Consistency of accounts 72J Disclosures relating to directors, other officers and employees of society required in notes to accounts 72K Disclosures about related undertakings required in notes to accounts 72L Disclosures relating to off-balance-sheet arrangements required in notes to accounts 72M Disclosure of auditor remuneration required in notes to accounts 73 Contents and form of annual accounts. 74 Duty of directors to prepare annual business statement. 75 Directors’ report. 75A Business review 76 Summary financial statement for members and depositors. 77 Auditors: appointment, tenure ... , etc. 78 Auditor’s report . 78A Signature of auditors' report 78B Senior statutory auditor 78C Names to be stated in copies of auditor’s report filed or published 78D Circumstances in which names may be omitted 79 Auditor’s duties and powers . 80 Signing of balance sheet: documents to be annexed. 81 Laying and furnishing accounts, etc., to members , the FCA and the PRA . 81A Requirements in connection with publication of accounts 81B Interpretation of Part 8 82 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Settlement of disputes. 86 Modes of dissolution and winding up. 87 Dissolution by consent. 88 Voluntary winding up. 89 Winding up by court: grounds and petitioners. 89A Building society insolvency as alternative order 90 Application of winding up legislation to building societies. 90A Application of other companies insolvency legislation to building societies. 90B Power to alter priorities on dissolution and winding up 90C Application of bank insolvency and administration legislation to building societies 90D Notice to the FCA and the PRA of preliminary steps 90E Disqualification of directors 91 Power of court to declare dissolution of building society void. 92 Supplementary. 92A Acquisition or establishment of a business. 93 Amalgamations. 94 Transfer of engagements. 95 Mergers; provisions supplementing ss. 93 and 94. 96 Mergers: compensation for loss of office and bonuses to members. 97 Transfer of business to commercial company. 98 Transfers of business: supplementary provisions. 99 Regulated terms: compensation for loss of office, etc. 99A Transfers of business: increased remuneration etc. 100 Regulated terms etc: distributions and share rights. 101 Protective provisions for specially formed successors. 102 Transfer regulations. 102A Rights of second-named joint shareholders. 102B Protection of interests of beneficiaries in the case of trustee account holders. 102C Consequences of false declaration. 102D Provisions supplementary to sections 102B and 102C. 103 Cancellation of registration. 104 Power to amend, etc. to assimilate to company law. 104A Registration of charges: application of company law. 105 Limited power to anticipate future statutory instrument powers. 106 Public file of the society. 107 Restriction of use of certain names and descriptions. 108 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Exemption from stamp duty. 109A Exemptions from stamp duty land tax 110 Officers and auditors not to be exempted from liability 111 Time limit for commencing proceedings. 112 Offences: liability of officers and defence of due diligence. 113 Evidence. 114 Records. 115 Service of notices. 115A Deemed agreement to use of web site 115B Right to hard copy version 115C Other agreed forms of communication 116 Form of documents. 117 Financial year of building societies. 117A Alteration of financial year 118 Qualifying asset holding for certain powers. 118A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Interpretation. 119A Meaning of “associated undertaking” 120 Amendments, repeals, revocations and transitional and saving provisions. 121 Power to make transitional and saving provisions. 122 Northern Ireland 123 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Short title. 126 Commencement. SCHEDULE 1 SCHEDULE 2 Establishment, Incorporation and Constitution of Building Societies SCHEDULE 2A Discharge of mortgages: supplementary provisions SCHEDULE 3 SCHEDULE 4 SCHEDULE 5 SCHEDULE 6 SCHEDULE 7 Investors: Special Provisions SCHEDULE 7A SCHEDULE 8 Powers to Provide Services SCHEDULE 8A Transfer directions: modifications of Part X SCHEDULE 9 Directors: Requisite Particulars of Restricted Transactions SCHEDULE 10 Requisite Particulars of Income or Related Businesses SCHEDULE 10A Disclosures about directors, other officers and employees in notes to accounts SCHEDULE 10B Disclosures about related undertakings required in note to accounts SCHEDULE10C Disclosure of auditor remuneration etc required in notes to accounts SCHEDULE 11 Auditors: Appointment, Tenure... SCHEDULE 12 SCHEDULE 13 SCHEDULE 14 Settlement of Disputes SCHEDULE 15 Application of Companies Winding Up Legislation to Building Societies SCHEDULE 15A Application of other companies insolvency legislation to building societies SCHEDULE 16 Mergers: Supplementary Provisions SCHEDULE 17 Transfers of Business: Supplementary Provisions SCHEDULE 18 Amendments of Enactments SCHEDULE 19 Repeals and Revocations SCHEDULE 20 Transitional and Saving Provisions
What to do with it
As published
62 Prohibition of tax-free payments to directors.
(1) A building society shall not pay a director remuneration (whether as director or otherwise) free of income tax, or otherwise calculated by reference to or varying with the amount of his income tax, or to or with any rate of income tax.
(2) Any rule of a building society and any provision of any contract, or in any resolution of a building society, for payment to a director of remuneration falling within subsection (1) above has effect as if it provided for payment, as a gross sum subject to income tax, of the net sum for which the rule, contract or resolution actually provides.
Your wording
Your change, as a redline
62 Prohibition of tax-free payments to directors.
(1) A building society shall not pay a director remuneration (whether as director or otherwise) free of income tax, or otherwise calculated by reference to or varying with the amount of his income tax, or to or with any rate of income tax.
(2) Any rule of a building society and any provision of any contract, or in any resolution of a building society, for payment to a director of remuneration falling within subsection (1) above has effect as if it provided for payment, as a gross sum subject to income tax, of the net sum for which the rule, contract or resolution actually provides.
A proposal here is not law. Support on Solon is evidence that people want the change; the official route says what it takes to make it law.