The Building Societies Act 1986 (Assimilation to Company Law and Changes to Funding Limit) Order 2026
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Change 1
2 Amendments to the Building Societies Act 1986
(1) In section 5(8) of the Act (establishment, constitution and powers)— (a) omit “and” at the end of paragraph (b); (b) after paragraph (b) insert— (ba) Part 2A makes provision with respect to common seals and the execution of documents; and . (2) Schedule 2 to the Act (establishment, incorporation and constitution) is amended in accordance with sub-paragraphs (3) to (5). (3) In the table in paragraph 3(4) (matters to be covered by building society’s rules), in item 12, for “The form, custody and use of the society’s common seal” substitute “If the society has a common seal, the form, custody and use of that seal”. (4) In paragraph 9, omit sub-paragraph (1) (requirement for seal to bear registered name). (5) After paragraph 19 insert— PART2A COMMON SEALS AND EXECUTION OF DOCUMENTS Common seals under the law of England and Wales or Northern Ireland 19A. (1) A building society may have a common seal, but need not have one. (2) A building society which has a common seal must have its name engraved in legible characters on the seal. (3) If a building society fails to comply with sub-paragraph (2) an offence is committed by— (a) the building society; and (b) every officer of the building society who is in default. (4) An officer of a building society, or a person acting on behalf of a building society, commits an offence if the officer or person uses, or authorises the use of, a seal purporting to be the building society’s common seal which does not comply with sub-paragraph (2). (5) A person guilty of an offence under this paragraph is liable— (a) on summary conviction in England and Wales, to a fine; (b) on summary conviction in Northern Ireland, to a fine not exceeding level 3 on the standard scale. (6) This paragraph does not form part of the law of Scotland. Execution of documents under the law of England and Wales or Northern Ireland 19B. (1) Under the law of England and Wales or Northern Ireland a document is executed by a building society— (a) by the affixing of its common seal, or (b) by signature in accordance with this paragraph. (2) A document is validly executed by a building society if it is signed on behalf of the building society— (a) by two authorised signatories, or (b) by a director of the building society in the presence of a witness who attests the signature. (3) The following are “authorised signatories” for the purposes of sub-paragraph (2)— (a) every director of the building society, and (b) the secretary of the building society. (4) A document signed in accordance with sub-paragraph (2) and expressed, in whatever words, to be executed by the building society has the same effect as if executed under the common seal of the society. (5) In favour of a purchaser a document is deemed to have been duly executed by a building society if it purports to be signed in accordance with sub-paragraph (2). (6) In sub-paragraph (5), a “purchaser” means a purchaser in good faith for valuable consideration and includes a lessee, mortgagee or other person who for valuable consideration acquires an interest in property. (7) Where a document is to be signed by a person on behalf of more than one building society, it is not duly signed by that person for the purposes of this paragraph unless the person signs it separately in each capacity. (8) References in this paragraph to a document being (or purporting to be) signed by a director or secretary are to be read, in a case where that office is held by a firm, as references to its being (or purporting to be) signed by an individual authorised by the firm to sign on its behalf. (9) This paragraph applies to a document that is (or purports to be) executed by a building society in the name or on behalf of another person whether or not that person is also a building society. Execution of deeds under the law of England and Wales or Northern Ireland 19C. (1) A document is validly executed by a building society as a deed for the purposes of section 1(2)(b) of the Law of Property (Miscellaneous Provisions) Act 1989 and for the purposes of the law of Northern Ireland if, and only if— (a) it is fully executed by the building society, and (b) it is delivered as a deed. (2) For the purposes of sub-paragraph (1)(b), a document is presumed to be delivered upon its being executed, unless a contrary intention is proved. Execution of deeds or other documents by attorney under the law of England and Wales or Northern Ireland 19D. (1) Under the law of England and Wales or Northern Ireland a building society may, by instrument executed as a deed, empower a person, either generally or in respect of specified matters, as its attorney to execute deeds or other documents on its behalf. (2) A deed or other document executed in accordance with sub-paragraph (1), whether in the United Kingdom or elsewhere, has effect as if executed by the building society. Common seals and execution of documents under the law of Scotland 19E. (1) This paragraph forms part of the law of Scotland only. (2) Despite the provisions of any enactment, a building society need not have a common seal. (3) For the purposes of any enactment— (a) providing for a document to be executed by a building society by affixing its common seal, or (b) referring (in whatever terms) to a document so executed, a document signed or subscribed (or, in the case of an electronic document, authenticated) by or on behalf of the building society in accordance with the provisions of the Requirements of Writing (Scotland) Act 1995 has effect as if so executed. Official seals for use abroad 19F. (1) A building society that has a common seal may have an official seal for use outside the United Kingdom. (2) The official seal must be a facsimile of the building society’s common seal, with the addition on its face of the place or places where it is to be used. (3) The official seal when duly affixed to a document has the same effect as the building society’s common seal. (4) Sub-paragraph (3) does not extend to Scotland. (5) A building society having an official seal for use outside the United Kingdom may— (a) by writing under its common seal, or (b) in relation to Scotland, by writing subscribed or authenticated in accordance with the Requirements of Writing (Scotland) Act 1995, authorise any person appointed for the purpose to affix the official seal to any deed or other document to which the building society is party. (6) As between the building society and a person dealing with such an agent, the agent’s authority continues— (a) during the period mentioned in the instrument conferring the authority, or (b) if no period is mentioned, until notice of the revocation or termination of the agent’s authority has been given to the person dealing with the agent. (7) The person affixing the official seal must certify in writing on the deed or other document to which the seal is affixed the date on which, and place at which, it is affixed. .
2 Amendments to the Building Societies Act 1986
(1) In section 5(8) of the Act (establishment, constitution and powers)— (a) omit “and” at the end of paragraph (b); (b) after paragraph (b) insert— (ba) Part 2A makes provision with respect to common seals and the execution of documents; and . (2) Schedule 2 to the Act (establishment, incorporation and constitution) is amended in accordance with sub-paragraphs (3) to (5). (3) In the table in paragraph 3(4) (matters to be covered by building society’s rules), in item 12, for “The form, custody and use of the society’s common seal” substitute “If the society has a common seal, the form, custody and use of that seal”. (4) In paragraph 9, omit sub-paragraph (1) (requirement for seal to bear registered name). (5) After paragraph 19 insert— PART2A COMMON SEALS AND EXECUTION OF DOCUMENTS Common seals under the law of England and Wales or Northern Ireland 19A. (1) A building society may have a common seal, but need not have one. (2) A building society which has a common seal must have its name engraved in legible characters on the seal. (3) If a building society fails to comply with sub-paragraph (2) an offence is committed by— (a) the building society; and (b) every officer of the building society who is in default. (4) An officer of a building society, or a person acting on behalf of a building society, commits an offence if the officer or person uses, or authorises the use of, a seal purporting to be the building society’s common seal which does not comply with sub-paragraph (2). (5) A person guilty of an offence under this paragraph is liable— (a) on summary conviction in England and Wales, to a fine; (b) on summary conviction in Northern Ireland, to a fine not exceeding level 3 on the standard scale. (6) This paragraph does not form part of the law of Scotland. Execution of documents under the law of England and Wales or Northern Ireland 19B. (1) Under the law of England and Wales or Northern Ireland a document is executed by a building society— (a) by the affixing of its common seal, or (b) by signature in accordance with this paragraph. (2) A document is validly executed by a building society if it is signed on behalf of the building society— (a) by two authorised signatories, or (b) by a director of the building society in the presence of a witness who attests the signature. (3) The following are “authorised signatories” for the purposes of sub-paragraph (2)— (a) every director of the building society, and (b) the secretary of the building society. (4) A document signed in accordance with sub-paragraph (2) and expressed, in whatever words, to be executed by the building society has the same effect as if executed under the common seal of the society. (5) In favour of a purchaser a document is deemed to have been duly executed by a building society if it purports to be signed in accordance with sub-paragraph (2). (6) In sub-paragraph (5), a “purchaser” means a purchaser in good faith for valuable consideration and includes a lessee, mortgagee or other person who for valuable consideration acquires an interest in property. (7) Where a document is to be signed by a person on behalf of more than one building society, it is not duly signed by that person for the purposes of this paragraph unless the person signs it separately in each capacity. (8) References in this paragraph to a document being (or purporting to be) signed by a director or secretary are to be read, in a case where that office is held by a firm, as references to its being (or purporting to be) signed by an individual authorised by the firm to sign on its behalf. (9) This paragraph applies to a document that is (or purports to be) executed by a building society in the name or on behalf of another person whether or not that person is also a building society. Execution of deeds under the law of England and Wales or Northern Ireland 19C. (1) A document is validly executed by a building society as a deed for the purposes of section 1(2)(b) of the Law of Property (Miscellaneous Provisions) Act 1989 and for the purposes of the law of Northern Ireland if, and only if— (a) it is fully executed by the building society, and (b) it is delivered as a deed. (2) For the purposes of sub-paragraph (1)(b), a document is presumed to be delivered upon its being executed, unless a contrary intention is proved. Execution of deeds or other documents by attorney under the law of England and Wales or Northern Ireland 19D. (1) Under the law of England and Wales or Northern Ireland a building society may, by instrument executed as a deed, empower a person, either generally or in respect of specified matters, as its attorney to execute deeds or other documents on its behalf. (2) A deed or other document executed in accordance with sub-paragraph (1), whether in the United Kingdom or elsewhere, has effect as if executed by the building society. Common seals and execution of documents under the law of Scotland 19E. (1) This paragraph forms part of the law of Scotland only. (2) Despite the provisions of any enactment, a building society need not have a common seal. (3) For the purposes of any enactment— (a) providing for a document to be executed by a building society by affixing its common seal, or (b) referring (in whatever terms) to a document so executed, a document signed or subscribed (or, in the case of an electronic document, authenticated) by or on behalf of the building society in accordance with the provisions of the Requirements of Writing (Scotland) Act 1995 has effect as if so executed. Official seals for use abroad 19F. (1) A building society that has a common seal may have an official seal for use outside the United Kingdom. (2) The official seal must be a facsimile of the building society’s common seal, with the addition on its face of the place or places where it is to be used. (3) The official seal when duly affixed to a document has the same effect as the building society’s common seal. (4) Sub-paragraph (3) does not extend to Scotland. (5) A building society having an official seal for use outside the United Kingdom may— (a) by writing under its common seal, or (b) in relation to Scotland, by writing subscribed or authenticated in accordance with the Requirements of Writing (Scotland) Act 1995, authorise any person appointed for the purpose to affix the official seal to any deed or other document to which the building society is party. (6) As between the building society and a person dealing with such an agent, the agent’s authority continues— (a) during the period mentioned in the instrument conferring the authority, or (b) if no period is mentioned, until notice of the revocation or termination of the agent’s authority has been given to the person dealing with the agent. (7) The person affixing the official seal must certify in writing on the deed or other document to which the seal is affixed the date on which, and place at which, it is affixed. .
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