Overview

This bill aims to modernize the legal framework governing co-operative and community benefit societies and credit unions in the UK. It simplifies registration processes, updates existing legislation, and brings these organizations more in line with company law where appropriate.

Description

The bill makes several key changes:

• New Registration Categories: Societies can now register as either "co-operative societies" or "community benefit societies," subject to specific criteria demonstrating their commitment to co-operative principles or community benefit respectively.
• Act Renaming: Several Industrial and Provident Societies Acts are renamed to reflect the changes introduced by this bill.
• Directors' Disqualification: The Company Directors Disqualification Act 1986 is extended to apply to the committees and officers of registered societies.
• Alignment with Company Law: The Treasury gains the power to apply or adapt provisions from company law relating to investigations, company names, and dissolution to registered societies.
• Credit Unions: The Treasury is empowered to create provisions for credit unions that mirror those applicable to building societies.
• Consequential Amendments: The Treasury is given broad authority to make necessary amendments to related legislation to ensure consistency.

Government Spending

The bill doesn't directly specify government spending. However, the costs of implementing the new regulations and amendments to existing legislation will be borne by the UK government, although no figures are provided in the bill text.

Groups Affected

• Co-operative and Community Benefit Societies: These societies will be affected by the changes to registration processes, governance requirements, and legal liabilities.
• Credit Unions: These will be impacted by potential new regulations aligning their operations more closely with building societies.
• The Treasury: Will have increased responsibilities in creating and implementing new regulations.
• The Financial Services Authority (and its successor): Will have an expanded role in overseeing registered societies.

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