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[As brought from the Commons]

A

bill

to

Make provision to permit the capital surplus of co-operatives, mutuals and friendly societies to be non-distributable; and for connected purposes.

B e it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

1 Power to restrict use of assets of relevant mutual entities

(1)

The Treasury may by regulations made by statutory instrument make
provision for enabling a relevant mutual entity to ensure that—

(a)

assets of the entity of a prescribed kind,

(b)

assets of the entity specified by it in accordance with the regulations,
or

(c)

all of the entity's assets,


cannot be used or dealt with except in a case mentioned in subsection (2) .

(2)

The cases are—

(a)

where the use or dealing is, directly or indirectly, for a purpose for
which the activities of the mutual entity are carried on and is of a
prescribed kind, or

(b)

where the circumstances are such as may be prescribed.

(3)

A mutual entity is “relevant” if it is of a prescribed description.

(4)

In this section “dedicated assets” means assets in respect of which regulations
under this section have been made.

(5)

Regulations under this section may, in particular—

(a)

provide for the procedure by which a relevant mutual entity may
impose, or otherwise secure, a restriction on how dedicated assets are
used or dealt with;

(b)

provide for such of a relevant mutual entity's rules as are of a
prescribed kind to be unalterable, or for them to be alterable only in
prescribed circumstances or in circumstances specified in rules of a
prescribed kind;

(c)

provide for the case mentioned in subsection (2)(a) to be subject to
such exceptions as may be prescribed;

(d)

provide that, in any circumstances prescribed under subsection (2) (b)
, dedicated assets must be dealt with in a prescribed way;

(e)

make provision for ensuring that a person to whom dedicated assets
are transferred in prescribed circumstances cannot use or deal with
those assets except in a case mentioned in subsection (2) ;

(f)

provide for members of a mutual entity who lose property rights as
a result of regulations under this section to be compensated for that
loss (whether by payment of a prescribed amount or of an amount
determined in a prescribed way or otherwise), subject to such
exceptions as may be prescribed;

(g)

provide for the enforcement of restrictions imposed as a result of
regulations under this section;

(h)

make provision for the carrying out of investigations by persons
appointed by a prescribed person;

(i)

confer power on a prescribed person to require persons of a prescribed
description to provide the prescribed person with information in order
to enable or assist that person to perform any of the person's functions
under the regulations;

(j)

provide for restrictions on the use and disclosure of information
obtained by any person in the performance of any function under the
regulations.

(6)

Regulations under this section may—

(a)

impose criminal liability;

(b)

confer functions on a prescribed person;

(c)

confer jurisdiction on any court;

(d)

authorise a prescribed person to make rules, binding on persons of a
prescribed description, for the purpose of enabling or assisting the
prescribed person to perform any of the person's functions under the
regulations;

(e)

make provision as to the making, publication and enforcement of such
rules;

(f)

provide for a prescribed person to charge fees sufficient to meet the
costs of performing any of the person's functions under the regulations;

(g)

modify, exclude or apply (with or without modifications) any provision
made by or under an enactment or any rule of law;

(h)

contain such incidental, consequential and supplementary provision
as the Treasury consider appropriate;

(i)

make different provision for different cases.

(7)

Regulations under this section may not create any new criminal offence
punishable with imprisonment for more than 7 years.

(8)

A statutory instrument containing regulations under this section may not be
made unless a draft of the instrument has been laid before and approved by
a resolution of each House of Parliament.

(9)

In this section


mutual entity
means—

(a)

a co-operative society,

(b)

a friendly society with the meaning of the Friendly Societies
Act 1992 (see section 116 of that Act), or

(c)

a body corporate that carries on a business of mutual insurance;


co-operative society
means—

(a)

a society registered as a co-operative society under the
Co-operative and Community Benefit Societies Act 2014, or

(b)

a pre-commencement society (within the meaning of that Act)
that meets the condition in section 2(2)(a)(i) of that Act;


enactment
includes an enactment comprised in an Act of the Scottish
Parliament;


prescribed
means prescribed by regulations under this section .

2 Short title


This Act may be cited as the Co-operatives, Mutuals and Friendly Societies
Act 2023.

Co-operatives, Mutuals and Friendly Societies Bill
[As brought from the Commons]

A

bill

to

Make provision to permit the capital surplus of co-operatives, mutuals and friendly societies to be non-distributable; and for connected purposes.

Brought from the Commons on

Ordered to be Printed, .

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