MATTERS TO BE PROVIDED FOR IN RULES OF CREDIT UNION (Hansard, 30 March 1979)

§ Mr. Denzil Davies
I beg to move amendment No. 35, in page 21, line 14, after 'meetings' insert: ',including provision as to the quorum necessary for the transaction of any description of business,'.

Mr. Deputy Speaker
With this we may discuss amendment No. 36, in page 21, line 15, leave out from 'rules' to end of line 16.

§ Mr. Davies
These are drafting amendments. The hon. and learned Member for Dover and Deal (Mr. Rees) carried an amendment in Committee to require credit unions to define the quorum for meetings. As it stands, it is not clear whether this requirement applies to all meetings or only meetings that deal with the rules. The amendment makes clear that this applies to all meetings.

§ Mr. Powell
In the absence of the hon. Member for Bradford, North (Mr. Ford), I beg to move amendment No. 37, in page 21, line 30, after'society' insert—either— (a)'.

Mr. Deputy Speaker
With this we may discuss amendment No. 40, in page 21, line 31, at end insert— or (b) from among persons, other than those referred to in section 7 of that Act, approved by the Secretary of State for the purposes of this paragraph.'.

§ Mr. Powell
I understand that the effect of these amendments would be to bring within the scope of the auditing of credit unions the holders of certificates under section 161(1)(b) of the Companies Act 1948 who would otherwise be excluded. This is a somewhat esoteric matter to the accountancy profession. Nevertheless it is important.
It has no doubt been brought to the attention of the right hon. Gentleman that probably these amendments are not the appropriate way in which to deal with the problem. But it would seem to be undesirable that persons who are otherwise authorised under the Companies Act to carry out statutory audits should be debarred from doing so under the Bill.

§ Mr. Denzil Davies
These amendments are somewhat esoteric although they are important to accountants and auditors. However, they are not amendments that I am disposed to accept. The point is that the amendments would allow auditors who are not qualified—I qualify that word, in taking it out of the legislation—to audit the accounts of other industrial and provident societies. The list of "qualified" auditors in the Industrial and Provident Societies Act is open-ended in the sense that it includes anybody recognised for the purposes of the Companies Act, strictly for sections 161(1)(a) of the Act. For credit unions of any size, I do not think that we would wish to admit accountants who fail to meet that test. Small credit unions are allowed by the 1968 Act to appoint auditors who are not qualified. To be small, they must have not more than 500 members, not more than £5,000 in assets, and not more than £5,000 a year in total receipts and payments. To some extent the point 895 is met under the 1968 measure, but I would not wish to go any further or to go all the way with these amendments and allow credit unions to be audited by auditors who were not qualified under the Companies Act.

§ Mr. Powell
It would have been wrong for this point, even at this late stage in the proceedings, not to be ventilated. I suspect that those concerned will wish to urge it further. But for the present, Mr. Deputy Speaker, I beg to ask leave to withdraw the amendment.