§ Special advances
§ 1. The proportion of outstanding advances determined in accordance with paragraph (b) of subsection (3) of section one of this Act by the building society as at the end of the last financial year ending before the date of the application must not have exceeded ten per cent.
§ 2.—(1) At the end of the last financial year ending before the date of the application, the value of the liquid funds of the building society must have been seven and a half per cent. or more of the value of the assets of the building society.
§ (2) For the purposes of this paragraph—
- (a) the expression 'liquid funds' means the funds of the building society (whether represented by investments or on loan to a bank or held in cash) which were not immediately required for its purposes, less any amount due from the building society (whether immediately payable or not) otherwise than in respect of shares in, or deposits with, the building society, and
- (b) the value of such of the funds of the building society as were represented by investments shall be the value at which they were taken into account in the balance sheet for the said financial year, and not any alternative value shown in that balance sheet.
§ Advances to officers of society, or companies in which they are interested
§ 3.—(1) At the end of the last financial year ending before the date of the application there must not have been outstanding in whole or in part any advance made by the building society of which particulars were, in compliance with section fifty-four of this Act, shown in any annual return sent to the Chief Registrar by the building society, or in any auditors' report made to the building society.877
§ (2) If particulars of any advance were so shown in any such annual return or auditors' report before the date of the application, the application shall be accompanied by a statutory declaration by the manager or secretary of the building society stating that the advance has been wholly repaid.
§ Avoidance of losses
§ 4. The application shall contain or be accompanied by a report by the auditors of the building society stating that in their opinion the balance of the revenue and appropriation account for the last financial year ending before the date of the application represents a surplus after making any adjustments which in their opinion are necessary to provide for diminution in value of assets, or in respect of items of an exceptional or abnormal nature.
§ Interest on shares
§ 5. The building society must not at the date of the application be in arrear with any interest due on shares in the building society.
§ 6. The application must be accompanied by a statutory declaration by the manager or secretary of the building society stating that none of the directors of the building society held office at the date of the application for a fixed term exceeding five years from appointment, or for a term which was not fixed.
§ 7. Neither any director of the building society nor the manager or secretary may at the date of the application be a person who has been a director or the manager or secretary of a building society at a time when an order has been made against the building society under section six of this Act or section eleven of the Prevention of Fraud (Investments) Act. 1958, or section eleven of the Prevention of Fraud (Investments) Act, 1939, unless the order was made more than five years before the date of the application.")
§ VISCOUNT HAILSHAM
My Lords, may I now take Amendments Nos. 6 to 10 and 61, the new Schedule? These Amendments follow the Government's decision that no right of appeal from the discretionary decision of the Chief Registrar can be provided either to the courts or to an ad hoc tribunal. Your Lordships will remember the discussions we had, and this was really to be expected, although I think it is to be regretted. The Amendments have the effect, therefore, following that decision, of narrowing the scope of the Chief Registrar's discretion and of requiring the Chief Registrar to state the reasons for his actions. In this way, we have gone as far as we can to meet the point of view expressed in this House and in the House of Commons that the Registrar's discretion was too wide and should be limited. I beg to move that this House doth agree 878 with the Commons in the said Amendments.
§ Moved, That this House doth agree with the Commons in the said Amendments.—(Viscount Hailsham.)
§ On Question, Motion agreed to.