Transferring building societies may issue shares equivalent to membership shares
12.8.11 Transferring building societies may issue shares equivalent to membership shares
A transferring building society that is a company limited by shares may issue a share in the company giving the holder of the share the same rights and obligations in relation to the share as the holder of a membership share in the building society that is taken to have been issued on the transfer date under clause 12 of the transfer provisions has in relation to that share.
However, the transferring building society must not issue the share if its constitution has been modified under paragraph 24(1)(c) of the transfer provisions.
The provisions of the Act that apply in relation to the issue of a share in a company limited by shares that is not issued under this regulation also apply to a share that is issued under this regulation for all matters that are not dealt with in subregulations (1) and (2).
This regulation does not affect:
the capacity of a transferring building society to issue shares in the company otherwise than under this regulation; or
a share issued otherwise than under this regulation.
This Act’s bill:Explanatory statement
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