HL Deb 27 July 1960 vol 225 cc887-8

After Clause 54, insert the following new clause:—

Transfers of engagements and unions which involve a building society of Northern Ireland

(".—(1) A building society may, subject to the provisions of this section, by a special resolution transfer its engagements to a building society of Northern Ireland which undertakes to fulfil those engagements; and a building society may, subject to the provisions of this section, undertake to fulfil the engagements of a building society of Northern Ireland by a special resolution or, with the consent of the registrar, by a resolution of a general meeting or of the board of the building society.

(2) The transfer of engagements shall not take effect by virtue of this section unless or until the consent thereto in writing of the holders of not less than two-thirds of the whole number of shares of the building society acting under this section has been obtained:

Provided that if that building society makes an application to the registrar and publishes notice of the application in the London and Edinburgh Gazettes, the registrar may, after hearing the building society and any other persons whom he considers entitled to be heard, confirm the transfer of engagements notwithstanding that the concurrence of the holders of two-thirds of the whole number of shares in the building society has not been obtained in the manner required by the foregoing provisions of this subsection.

(3) The transfer of engagements shall not take effect by virtue of this section until the registrar has given his consent in writing to the transfer, and he shall not give that consent unless he is satisfied that the transfer of engagements will also take effect under the law of Northern Ireland.

(4) The registrar on giving his consent under the last foregoing subsection shall register the transfer of engagements and thereupon section five of the Building Societies Act, 1877 (which provides for giving effect to transfers of engagements) shall, so far as it forms part of the law of Great Britain, apply to the transfer of engagements.

(5) Section fifty-four of this Act shall apply in relation to a building society which proposes to act under this section as it applies to a building society proposing to become a party to a transfer of engagements under section five of the Societies (Miscellaneous Provisions) Act, 1940, but as if in the said section fifty-four—

  1. (a) references to the other building societies concerned included references to any building society of Northern Ireland concerned, and
  2. (b) references to section five of the said Act of 1940, were references to this section.
and the statement under the said section fifty-four as applied by this subsection shall indicate that the other party to the transfer of engagements is a building society of Northern Ireland or, as the case may be, that one or more of the other parties is or are a building society or building societies of Northern Ireland.

(6) A building society may not, under section thirty-three of the principal Act, unite with a building society of Northern Ireland.

(7) In this section the expression "building society of Northern Ireland" means a building society which is, or, for the purposes of the Building Societies Acts, 1874 to 1894, is deemed to be, registered in Northern Ireland; and references to a building society acting under this section do not include references to any such society.")

VISCOUNT HAILSHAM

My Lords, Amendment No. 54 is a new clause and represents the fulfilment of an undertaking which I gave to the noble Lord. Lord Milner of Leeds. Its effect is to permit societies registered in this country to transfer their engagements to, or to accept the transfer of engagements from, societies registered in Northern Ireland. Such transfers will be subject to the same procedure as transfers between British societies, and to the additional requirement of the approval of the Registrar. Complementary provision will doubtless be made in Northern Ireland legislation when circumstances permit. I beg to move that this House doth agree with the Commons in the said Amendment.

Moved, That this House doth agree with the Commons in the said Amendment.—(Viscount Hailsham.)

On Question, Motion agreed to.