24 Modifications of requirements as to audit of accounts.
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In force since 2023-08-29, as the publisher states.
Copy read on 2026-11-08. The page it was read from
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.
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Propose a changeA credit union shall not have any subsidiary within the meaning of Part 7 of the 2014 Act .
Propose a change(1) In Part 10 of the 2014 Act (offences) as it applies to credit unions, references to that Act include this Act. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Without prejudice to the operation of subsection (1) above in relation to offences under the 2014 Act committed by or in relation to a credit union, section 132(4) of that Act (extension of time limit for summary prosecutions in certain cases) shall not apply to proceedings for an offence under this Act. (4) Where under section 128 of the 2014 Act (offences by registered societies to be also offences by officers, etc.) as it applies by virtue of subsection (1) above an individual is convicted on indictment of an offence under this Act, he shall be liable not only to a fine but, in the alternative or in addition, to imprisonment for a term not exceeding two years. (5) Where an offence under this Act which has been committed by a body corporate other than a registered society is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or similar officer of the body corporate, or any person who was purporting to act in any such capacity, he as well as the body corporate shall be guilty of that offence and shall be liable to be proceeded against and punished accordingly. (6) In any proceedings for an offence under this Act it shall be a defence for the person charged to prove that he took all reasonable precautions and exercised all due diligence to avoid the commission of such an offence by himself or any person under his control.
Propose a change(1) Any power to make an order or regulations conferred on the Treasury by any provision of this Act shall be exercisable by statutory instrument. (2) Except as provided by sections 1ZB(5) and 23A(7), and subject to subsection (3), a statutory instrument made under this Act shall be subject to annulment in pursuance of a resolution of either House of Parliament. (3) A statutory instrument containing an order under section 5A or section 11(1A) of this Act may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.
Propose a change(1) In this Act— “ the 2014 Act ” means the Co-operative and Community Benefit Societies Act 2014; . . . “body corporate” includes a partnership regarded as a legal person under the law of the country or territory in which it was established; “charitable", in the application of this Act to Scotland, shall be construed in the same way as in the Income Tax Acts; “ civil partner ” includes former civil partner and reputed civil partner ; “conditional sale agreement” means an agreement for the sale of goods under which— the purchase price or part of it is payable by instalments, and the property in the goods is to remain with the seller (notwithstanding that the buyer is to be in possession of the goods) until such conditions as to the payment of instalments or otherwise as may be specified in the agreement are fulfilled; “corporate member”, in relation to a credit union, has the meaning assigned to it by section 5A above; “credit union”, except in the expression “Northern Ireland credit union", means a society registered under the 2014 Act by virtue of section 1 above; “enactment” includes— an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978; an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament; an enactment contained in, or in an instrument made under, Northern Ireland legislation within the meaning of the Interpretation Act 1978; an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales; “hire purchase agreement” means an agreement— which is not a conditional sale agreement, under which goods are bailed or (in Scotland) hired to a person (“P”) in return for periodical payments by P, and the property in the goods will pass to P if the terms of the agreement are complied with and one or more of the following occurs— the exercise by P of an option to purchase the goods; the doing by any party to the agreement of any other act specified in the agreement; the happening of any event specified in the agreement; “interest-bearing share” has the meaning assigned to it by section 7A(6) above; “the 1965 Act” means the Industrial and Provident Societies Act 1965; “non-qualifying member”, in relation to a credit union, has the meaning assigned to it by sections 5(5) and 21(4) above; ... “partnership” means a partnership not regarded as a legal person under the law of the country or territory in which it was established; “relative”, in relation to any person, means any of the following— his spouse or civil partner ; any lineal ancestor, lineal descendant, brother, sister, aunt, uncle, nephew, niece or first cousin of his or his spouse or civil partner; and the spouse or civil partner of any relative within paragraph (b) above; and for the purpose of deducing any such relationship an illegitimate child or step-child shall be treated as the legitimate child of the relationship in question ; “spouse” includes former spouse and reputed spouse; and . . . (1A) In this Act, references to a deposit or accepting deposits must be read with— (a) section 22 of the 2000 Act; (b) any relevant order under that section; and (c) Schedule 2 to that Act. (1B) In this Act, “insurance distribution activity” means any of the following activities— (a) dealing in rights under a contract of insurance as agent; (b) arranging deals in rights under a contract of insurance; (c) assisting in the administration and performance of a contract of insurance; (d) advising on buying or selling rights under a contract of insurance; (e) agreeing to do any of the activities specified in paragraphs (a) to (d). (1C) Subsection (1B) must be read with— (a) section 22 of the 2000 Act; (b) any relevant order under that section; and (c) Schedule 2 to that Act. (2) Sections 141, 143 to 146, 148 and 149 of the 2014 Act (supplementary provisions as to recovery of costs, fees, regulations, documents . . . and general interpretation provisions) shall apply for the purposes of this Act as they apply for the purposes of that Act. (3) In its application to credit unions the 2014 Act shall have effect subject to the provisions of this Act and with the omission of the following provisions (which are replaced by, or are inconsistent with, provisions of this Act), that is to say sections 22, 24, 26, 27, 32, 33 and 34 and paragraph 6 of Schedule 3. (4) The following provisions of the 2014 Act ... do not apply to credit unions — (a) section 67(1) (society with withdrawable share capital not to carry on the business of banking); (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (c) section 81 (duty to display latest balance sheet); (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (e) section 90 (duty to provide copy of annual return).
Propose a change(1) In this Act, references to deferred shares are to a class of shares where— (a) the rights and obligations of the credit union and the member in respect of those shares are set out in a single document, or in a series of documents (“the issue documents”); (b) each of the issue documents is provided to every applicant for the shares; (c) one of the issue documents contains a prominent statement to the effect that the shares are deferred shares for the purposes of this Act; (d) each of the issue documents contains a prominent statement stating whether the shares are, or are not, an investment covered by the Financial Services Compensation Scheme (see section 213 of the Financial Services and Markets Act 2000); (e) any document evidencing title to the shares contains the statements required by paragraphs (c) and (d) above; (f) one of the issue documents contains a term which prohibits the repayment of any principal to the shareholder except in Case A or Case B. (2) Case A is the winding up or dissolution of the credit union in circumstances where all sums due from the credit union to creditors claiming in the winding up or dissolution are paid in full. (3) Case B is where— (a) the credit union applies to the appropriate authority for consent to repay principal to the shareholder, (b) the credit union so applies otherwise than in consequence of a provision in any of the issue documents which requires it to apply, grants it any benefit for applying or imposes a sanction against failure to apply, and (c) the appropriate authority grants consent. (4) “Creditors” in subsection (2) above includes members holding shares, other than deferred shares, in the credit union, as regards the principal of those shares and any interest or dividend due on them. (5) On any modification of the definition of “deferred shares” in the Building Societies Act 1986 or an instrument made under that Act, the Treasury may, by order, modify the meaning of deferred shares in this section so as to assimilate it to the modified definition.
Propose a change(1) The Treasury may make reciprocal arrangements with the Department of Commerce for Northern Ireland or such other authority as may be specified for the purposes of this subsection by any Measure of the Northern Ireland Assembly with a view to securing that, on or after the commencement of this Act,— (a) the law applicable in England and Wales, or (as the case may be) Scotland, to societies registered as credit unions under the 2014 Act may be applied, in such cases and subject to such modifications as may be provided in the arrangements, to Northern Ireland credit unions; and (b) the law applicable in Northern Ireland to Northern Ireland credit unions may be applied, in such cases and subject to such modifications as may be provided in the arrangements, to societies registered as credit unions under the 2014 Act ; and section 142 of the 2014 Act (which enables societies registered in Northern Ireland to be treated for certain purposes as if they were registered under that Act) shall not apply to Northern Ireland credit unions. (2) The Treasury may by regulations . . . make provision for giving effect to any arrangements made under subsection (1) above, and such regulations may in particular— (a) confer rights and obligations (appropriate to credit unions) under this Act and the 2014 Act on Northern Ireland credit unions in such circumstances as may be specified in the regulations; (b) confer functions on each of the FCA and the PRA in relation to Northern Ireland credit unions; and (c) make such modifications of this Act, the 2014 Act and the Government of Ireland (Companies, Societies, etc.) Order 1922 as appear to the Treasury to be expedient to give effect to the arrangements. (3) In this section “Northern Ireland credit union” means a society registered as a credit union under the law of Northern Ireland. (4) An Order in Council made under paragraph 1(1)(b) of Schedule 1 to the Northern Ireland Act 1974 which contains a statement that its purposes correspond to those of this Act shall be subject to annulment in pursuance of a resolution of either House of Parliament instead of the Order, or a draft of the Order, being subject to the procedure set out in paragraph 1(4) or (5) of that Schedule.
Propose a change(1) This Act may be cited as the Credit Unions Act 1979. (2) This section and section 32 above shall come into operation on the passing of this Act and the other provisions of this Act shall come into operation on such day as the Treasury may appoint by order made by statutory instrument; and different days may be so appointed for different provisions. (3) Any reference in this Act to the commencement of any provision of this Act shall be construed as a reference to the day appointed under this section for the coming into operation of that provision. (4) With the exception of section 23A so far as it confers power to make consequential amendments of enactments extending to Northern Ireland, section 25 and section 32(4) above, this Act does not extend to Northern Ireland.
Propose a changeSection 4(1). 1 The name of the society, which shall comply with section 3(1) above and with section 10(1) and (2) of the 2014 Act (name not to be undesirable and to end with the word “limited"). 2 The objects of the society. 3 The place which is to be the registered office of the society to which all communications and notices to the society may be addressed. 4 The qualifications for admission to membership of the society, including one or more common bonds appropriate to a credit union. 4A. The terms of admission to membership of the society, including any special provision for the insurance of members in relation to their shares. 5 The mode of holding meetings, including provision as to the quorum necessary for the transaction of any description of business, and the mode of making, altering or rescinding rules. 6 The appointment and removal of a committee, by whatever name, and of managers or other officers and their respective powers and remuneration. 7 Determination (subject to any applicable rules made by the FCA or the PRA under the 2000 Act) of the maximum amount of the interest in the shares of the society which may be held by any member. 8 Provision for the mode of withdrawal of shares and for payment of the balance due thereon on withdrawing from the society. 9 The mode and circumstances in which loans to members or other credit unions are to be made and repaid, including any special provision for the insurance of members or other credit unions in relation to loans made to them. 10 Provision for the custody and use of the society’s seal. 11 Provision for the audit of accounts in accordance with Part 7 of the 2014 Act. 12 Provision for the withdrawal of members from the society and for the claims of the representatives of deceased members or the trustees of the property of bankrupt members, or, in Scotland, members whose estate has been sequestrated, and for the payment of nominees. 13 Provision for— (a) terminating the membership of corporate members in order to comply with the limit on the number of corporate members (see section 5A above); and (b) the repayment of the shares held by a corporate member in any case where— (i) the membership is terminated to comply with the limit on the number of corporate members, or (ii) the shares must be repaid in order to comply with the limit on shares allotted to corporate members (see section 5A above). 13A. If the issue of interest-bearing shares is permitted, provision for converting such shares into shares which are not interest-bearing to comply with subsection (3) of section 7A above. 14 Provision for the dissolution of the society, including provision requiring any assets remaining after the payment of debts, repayment of share capital and discharge of other liabilities— (a) to be transferred to another credit union; or (b) if not so transferred, to be applied for charitable purposes.
Propose a changeSection 19. 1 Not less than fourteen days before giving a direction, the Authority shall serve on the credit union concerned, and on every member of its committee, a notice stating that it proposes to give such a direction and specifying the nature of the direction it proposes to give and the considerations which have led it to conclude that it should give such a direction. 2 The Authority shall consider any representations with respect to the notice which may be made to the Authority by the credit union within such period as the Authority may allow, not being less than fourteen days from the date on which the credit union is served with the notice, and, if the credit union so requests, shall afford the credit union an opportunity of being heard by the Authority within that period. 3 (1) On giving such a direction the Authority shall serve the direction on the credit union and shall serve on every member of its committee a notice of the giving of the direction. (2) The direction and notices served in accordance with subparagraph (1) above shall be accompanied by a notice specifying the considerations which have led the Authority to conclude that it should give the direction. (3) The Authority shall not have power to give such a direction unless all the considerations so specified were those, or were among those, which were specified in the notice under paragraph 1 above. 4 A notice under this Schedule may be served on a member of the committee of a credit union by sending it by post to his address, or latest address, as notified to the Authority by him or by the credit union. 5 Failure to serve a notice under this Schedule on a committee member shall not affect the validity of a direction. 6 Notice of the giving of a direction shall be published by the Authority in the Gazette and in any other manner which appears to it to be necessary for informing the public.
Propose a changePowers of chief registrar 1 (1) The chief registrar may, by order made with the consent of the Treasury, designate as an authorised bank for the purposes of this Act any body corporate or partnership carrying on the business of banking. (2) An order under sub-paragraph (1) above may be varied or revoked by a subsequent order made by the chief registrar with the consent of the Treasury. (3) Any order made under this paragraph shall be published in the Gazette. Duration of powers 2 (1) When it appears to the Treasury that, the relevant provisions of the Banking Act 1979 having come into operation, there are in existence such number of recognised banks (within the meaning of that Act) as to render no longer necessary the powers conferred by paragraph 1 above, the Treasury shall by order made by statutory instrument provide that those powers may no longer be exercised. (2) An institution which, immediately before the date on which the Treasury order referred to in sub-paragraph (1) above comes into effect, was an authorised bank for the purposes of this Act solely by virtue of an order of the chief registrar under this Schedule shall cease to be an authorised bank for those purposes on that date.
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