HC Deb 02 June 1997 vol 295 c89W
Mr. Flight

To ask the Chancellor of the Exchequer what are the legal responsibilities of building societies which convert to banks in respect of informing investors that they are entitled to receive the share certificate for their windfall shares. [1221]

Mrs. Liddell

Once a building society has converted to a bank, the new company is obliged to issue certificates to its shareholders, unless the shares are dematerialised. Where this is so, the Uncertificated Securities Regulations 1995 requires that new shares are issued in uncertificated form only to those who are system members of CREST. As this requires positive action, the default position is that newly converted societies are obliged to issue shareholders with certificates, unless they have elected to become members of CREST, and receive uncertificated shares. So the question of an obligation to inform shareholders that they are entitled to a certificate does not arise.

In addition, shareholders are free to elect a nominee to hold shares on their behalf. Those who do so would also not receive a certificate, even if the shares have not been dematerialised, because they are registered in the name of the nominee, not the shareholder.

Mr. Flight

To ask the Chancellor of the Exchequer what representations he has received in respect of the issue of share certificates by the Halifax building society as a result of its flotation on the stock exchange; and if he will make a statement. [1222]

Mrs. Liddell

None.