§ Order of the Day for the House to be put into Committee, read.
§ Moved, That the House do now resolve itself into Committee.—(The Earl of Shaftesbury.)
§ On Question, Motion agreed to.
§ House in Committee accordingly.
§ [The EARL OF DONOUGHMORE in the Chair.]
§ Clauses 1 to 4 agreed to.
§ Clause 5:
§ Provisions of Rules.
§ 5. The rules of a thrift and credit society shall provide—
- (a) that it shall carry on business only within such area as may be specified in the rules (not exceeding ten miles from the registered office of the bank);
- (b) that no part of its funds arising out of its business of banking, be divided among its members by way of profit, bonus, dividend, or otherwise:
- (c) that all money lent to members shall be applied to such purposes as the society or its committee of management may approve;
- (d) that the profits of the society in each year shall be carried to the credit of a reserve fund;
- (e) that the society or the committee of management thereof shall in each year fix, by resolution, the maximum amount which may be lent during that year to anyone member; and that the amounts so lent shall not in the year to which the resolution relates exceed the limits fixed by the resolution, except to the extent which may be permitted by any amending resolution passed in accordance with the requirements of the rules;
- (f) that no member of the committee of management or council of inspection, or other managing and responsible body (by whatever name), or chairman of the society shall be paid for his services;
where a registered thrift and credit society has for one of its objects the carrying on of trade on co-operative principles, the rules shall provide— - (g) that no person other than a member shall purchase goods from the society;
- (h) that the surplus derived from such trading shall be distributed amongst the purchasers;
- (i) that separate accounts shall be kept of the trading transactions;
- (j) that the reserve fund shall not be available for making good any trade deficiency, except to such extent as the other assets of the society may be insufficient on its dissolution to meet the claims of trade creditors.
LORD MONTEAGLE OF BRANDONMy Lords, the Amendments which I have ventured to put down to Clause 5 are, with one exception, of a purely drafting character, and I understand that my noble friend Lord Shaftesbury accepts them. The only Amendment in my name which is not of that character is an alternative to one which the noble Earl subsequently put down, and therefore I shall not have to trouble your Lordships with my proposed clause as the noble Earl's Amendment meets my point. I do not think I need say more by way of explanation than that the object of these drafting Amendments is to divide the clause into two subsections, the first dealing with banking or loan business, and the second with trading. That is accomplished by slight changes in the numbering.
§
Amendments moved—
Clause 5, page 1, line 24, at the beginning of the clause insert ("(1)")
Clause 5, page 1, line 26, leave out: ("exceeding") and insert ("extending further than").—(Lord Monteagle of Brandon.)
§ On Question, Amendments agreed to.
THE EARL OF SHAFTESBURYI have a small drafting Amendment which is not on the Paper. It is to leave out the word "bank" at the end of paragraph (a) and insert the word "society" We call 106 these banks thrift and credit societies throughout, and therefore this alteration is in accordance with the rest of the Bill.
§
Amendment moved—
Clause 5, page 1, line 27, omit ("bank") and insert ("society").—(The Earl of Shaftesbury.)
§ On Question, Amendment agreed to.
§ Amendments moved—
§ Clause 5, page 2, line 7, after the first ("the") insert ("banking")
§ Clause 5, page 2, line 22, leave out ("where") and insert ("(2) Where")
§ Clause 5, page 2, line 25, leave out ("(g)") and insert ("(a")")
§ Clause 5, page 2, line 27, leave out ("(h") and insert ("(b)").—(Lord Monteagle of Brandon.)
§ On Question, Amendments agreed to.
THE EARL OF SHAFTESBURYI move to amend paragraph (h) of Clause 5 so that it would read—
(h) that, the surplus derived from such trading may, after all proper reserves have been made, be distributed among the purchasers.
§ This is really a drafting Amendment and meets Lord Monteagle's view with regard to this particular provision of the Bill.
§
Amendment moved—
Page 2, line 27, leave out ("shall") and insert ("may, after all proper reserves have been made").—(The Earl of Shaftesbury.)
§ On Question, Amendment agreed to.
§ Amendments moved—
§ Clause 5, page 2, line 29, leave out ("(l)") and insert ("(c)")
§ Clause 5, page 2, line 31, leave out ("(j)") and insert ("(d)").—(Lord Monteagle of Brandon.)
§ On Question, Amendments agreed to.
§ Clause 5, as amended, agreed to.
§ Remaining clauses agreed to.
§ The Report of Amendments to be received on Thursday the 16th instant, and Bill to be printed as amended. (No. 205.)