Law Reform Progress for I & P Societies and Credit Unions
The draft Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2010 has now been laid before Parliament. Here is the Explanatory Memorandum.
It follows on from the previous consultation documents and process.
Commencement seems to have gone back to 1st July 2010. The liberalisation of share capital rules (abolition of the £20,000 limit for non-withdrawable shareholdings) is probably the most exciting aspect for I & P's. For credit unions there are many new features, including: the possibility of corporate members; the possibility of paying interest rather than dividend on share capital; and a redefinition and further relaxation of the common bond concept.
It follows on from the previous consultation documents and process.
Commencement seems to have gone back to 1st July 2010. The liberalisation of share capital rules (abolition of the £20,000 limit for non-withdrawable shareholdings) is probably the most exciting aspect for I & P's. For credit unions there are many new features, including: the possibility of corporate members; the possibility of paying interest rather than dividend on share capital; and a redefinition and further relaxation of the common bond concept.
posted by Ian Snaith | 12:10 PM
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