HC Deb 22 July 1960 vol 627 cc999-1001
Sir K. Joseph

I beg to move, in page 25, line 7, to leave out from "society" to the end of line 11 and to insert: of which notice specifying the intention to move the resolution as a special resolution has been duly given.

Mr. Speaker

It might be for the convenience of the House if we were to discuss at the same time the following Amendments:

Page 25, line 21, leave out from "of" to end of line 23 and insert: a meeting shall be deemed to be duly given if the notice is given in the manner provided by this Act and the rules of the building society.

Page 25, leave out lines 27 to 44.

Clause 30, page 26, line 15, leave out from "to" to end of line 18 and insert: include in the notice of the meeting a notice specifying the intention to move that resolution as a special resolution at the meeting.

Line 15, leave out "send written" and insert: give not less than twenty-one days before the date of the meeting.

Line 17, leave out from "meeting" to end of line 18.

Line 21, leave out "twenty-eight" and insert "fifty-six."

Line 24, leave out "twenty-eight" and insert "fifty-six."

Page 26, leave out lines 26 to 40 and insert: (3) If a building society fails to comply with an application duly made under this section, the building society and every officer of the building society who is in default shall be guilty of an offence under this Act.

Line 27, leave out "send" and insert "give."

Line 30, after "be," insert: given by an advertisement in a newspaper having an appropriate circulation or.

Page 26, leave out lines 31 to 40.

Clause 34, page 29, line 12, at end insert: (3) Notice of a meeting of a building society shall not be sent to members of the building society more than fifty-six days before the date of the meeting.

Clause 35, page 29, line 13, at beginning insert: (1) Written notice of any meeting of a building society which specifies the intention to propose a resolution as a special resolution at the meeting shall be sent to every member qualified to vote on a special resolution at the meeting. (2) Subject to the provisions of subsection (1) of this section.

Line 21, at end insert: (2) The accidental omission to give notice of a meeting to, or the non-receipt of notice of a meeting by, any person entitled to receive notice shall not invalidate the proceedings at that meeting.

Third Schedule, page 56, leave out lines 26 to 28.

Sir K. Joseph

This group of Amendments meets the criticism raised during the Committee stage that it would be possible for the directors of a building society to avoid having to give notice of any special resolution by so organising their meeting. The proposed Amendments require that a building society shall be obliged to give notice of any special resolution to all those who have a right to vote on a special resolution in the same notice which conveys information that a meeting at which that special resolution is to be discussed is to be held.

The machinery for this is that a building society may not give longer notice of a meeting than 56 days and that notice of a special resolution must be given 56 days before the meeting at which it is to be discussed is to be held. The final part of the machinery is that 21 days' notice of a meeting must be given and that if a special resolution is to be discussed at that meeting the notice must contain the special resolution which is going to be discussed.

A further point that was raised in Committee is also now included, namely that a failure to comply with this by the building society and its officers is made an offence. I hope that the House will feel that this meets the criticism levied during the Committee stage in a satisfactory manner.

Mr. Mitchison

This meets our views aril meets, I think, the point raised by the hon. Member for Wimbledon (Sir C. Black) about the time by altering the 28 days to 56.

I must thank the hon. Gentleman for having removed subsection (4), which put in certain circumstances, the expenses of circulating the notice on a member of the building society. That was the point to which we objected most strongly in Committee. I am glad that it has been met and that our own proposals have been superseded by what the Government have done.

Sir C. Black

I thank my hon. Friend for having met the points which other hon. Members and I raised during the Committee stage. These various Amendments seem to me to cover extremely neatly and conveniently the difficulties we then foresaw. I am grateful to the Government for having met the points.

Amendment agreed to.

Further Amendments made: In page 25, line 21, leave out from "of" to end of line 23 and insert: a meeting shall be deemed to be duly given if the notice is given in the manner provided by this Act and the rules of the building society".

In page 25, leave out lines 27 to 44.—[Sir K. Joseph.]