Overview

This bill aims to allow co-operatives, mutuals, and friendly societies to prevent the distribution of their capital surplus. It grants the Treasury the power to create regulations enabling these entities to restrict how their assets are used, ensuring they are utilized for their core purposes.

Description

The Co-operatives, Mutuals and Friendly Societies Bill empowers the Treasury to issue regulations controlling the use of assets within specified mutual entities. These entities include co-operative societies (registered under the 2014 Act or pre-commencement societies meeting specific criteria), friendly societies (as defined in the 1992 Act), and mutual insurance businesses. The regulations can dictate that a specific type of asset, certain specified assets, or all assets cannot be used or dealt with except:

• Directly or indirectly for the entity's operational purpose (as prescribed).
• In other prescribed circumstances.

The regulations may also:

• Outline procedures for imposing asset use restrictions.
• Make some rules unalterable or alterable only under specific conditions.
• Establish exceptions to the permitted uses.
• Specify how assets must be handled in certain situations.
• Ensure that transferred assets are subject to the same restrictions.
• Provide compensation for members losing property rights due to the regulations.
• Detail enforcement mechanisms and investigation procedures.
• Grant information-gathering powers to prescribed persons.
• Include provisions for data protection.
• Impose criminal liability (with a maximum 7-year prison sentence).
• Modify existing laws.

The regulations must be approved by both Houses of Parliament.

Government Spending

The bill itself doesn't directly specify government spending figures. However, implementing the regulations will likely incur costs related to administration, enforcement, and potential compensation payments. The exact financial impact will depend on the specifics of the regulations created by the Treasury.

Groups Affected

• Co-operative societies: May benefit from increased control over their assets and long-term sustainability.
• Friendly societies: Similar benefits as co-operative societies.
• Mutual insurance businesses: Enhanced ability to manage their capital.
• Members of these entities: May experience changes in their property rights, potentially requiring compensation.
• Treasury: Responsible for creating and overseeing the regulations.
• Government agencies: Potentially involved in enforcement and investigation.

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