§ Mr. Squireasked the Chancellor of the Exchequer what are the reasons for the merger of the Blyth and Morpeth Building Society with the Northern Rock Society.
§ Mr. Bruce-GardyneI understand that the directors of the Blyth and Morpeth Building Society have not yet circulated to their members the statement commending to them the special resolution which will be required to give effect to the proposed merger. However, the press release issued by the directors announcing the proposal on 19 February stated
The decision to seek a merger has in part arisen from accounting irregularities noted in the annual audit of the Blyth and Morpeth Society's affairs".
§ Mr. Squireasked the Chancellor of the Exchequer what information is being sent to members of the Northern Rock Building Society about the merger with the Blyth and Morpeth Society; and whether the views of Northern Rock Members are being sought on the desirability of the merger.
§ Mr. Bruce-GardyneI understand that the chairman of the Northern Rock Building Society will be mentioning the proposed merger at the annual general meeting of the society later this week. It will be for the board of the Northern Rock Building Society to decide whether to put the proposed transfer of engagements to its members, either at a special meeting or in writing, or whether to seek from the Chief Registrar dispensations under sections 19 and 20 of the Building Societies Act 1962 from the requirement that the transfer of engagements should be put to the members. It is not for me to anticipate either the board's decision or the outcome of any application to the Chief Registrar.