Overview

The Co-operative and Community Benefit Societies and Credit Unions Act 2010 modernized the legal framework for co-operative societies, community benefit societies, and credit unions in the UK, allowing for clearer registration processes and aligning their regulations more closely with those governing companies and building societies.

Description

This Act introduced two new categories of registered societies: co-operative societies and community benefit societies. It clarified the registration process, requiring societies to meet specific criteria and include provisions in their rules (Schedule 1, not included in provided text). The Act also renamed several older Industrial and Provident Societies Acts. Importantly, it extended provisions of the Company Directors Disqualification Act 1986 to cover registered societies. Furthermore, the Treasury gained the power to apply or adapt certain company law provisions (e.g., investigations, company names, dissolution) to registered societies via regulations, after consultation. A similar power was granted to adapt building society legislation to credit unions. The Act included provisions for consequential amendments to related legislation and allowed for regulations, subject to parliamentary approval.

Government Spending

The Act itself did not directly allocate any specific government spending. The potential cost implications relate to the administrative burden of implementing the new regulations and overseeing the changes to the regulatory framework for these societies, including any potential enforcement costs. No specific figures were provided in the Act text.

Groups Affected

• Co-operative Societies: New registration requirements and greater alignment with company law.
• Community Benefit Societies: New registration framework, potentially impacting their operations and access to funding.
• Credit Unions: Potential for expanded powers and regulations, mirroring changes in building society legislation.
• Directors and Officers of Registered Societies: Subject to director disqualification provisions similar to those applying to companies.
• The Treasury: Gained significant power to make regulations impacting registered societies and credit unions.
• The Financial Services Authority (FSA): Took on responsibilities related to the regulation of these societies, including aspects of director disqualification.

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