§ 3.36 p.m.
§ Lord Brabazon of Tara rose to move, That the draft order laid before the House on 1st July be approved [24th Report from the Joint Committee].
§ The noble Lord said: My Lords, the purpose of this order is to amend relevant provisions of the Building Societies Act 1986 to reflect certain changes in company law. It has always been the intention to keep company law and building society law in line as far as possible and Section 104 of the Building Societies Act enables necessary modifications to the Act to be made by order.
§ These modifications are required as part of the process of implementing the EC Bank Accounts Directive, whose provisions also apply to building societies. The changes to company law were made by the Companies Act 1989 and the Companies (Northern Ireland) Order 1990.
§ There are two changes. First, the order repeals the statutory exemptions from including the accounts of subsidiary undertakings of a building society in the society's group accounts. But the group accounts of a society will have to cover all its subsidiary undertakings. Secondly, the order redefines subsidiaries as subsidiary undertakings in the terms laid down for b gilding society accounts. The changes will come into effect on 1st January 1993.
§ These are necessary technical changes and I commend the order to the House.
§ Moved, That the draft order laid before the House on 1st July be approved [24th Report from the Joint Committee].—(Lord Brabazon of Tara.)
§ Lord PestonMy Lords, I thank the noble Lord for introducing the order in a way that was totally cogent and fully persuasive. On behalf of the Opposition perhaps I may say how much we support it.
§ On Question, Motion agreed to.