keep The Building Societies (Insolvency and Special Administration) (Amendment) Order 2010
This Order amends the Building Societies (Insolvency and Special Administration) Order 2009, making technical modifications to how Parts 2 and 3 of the Banking Act 2009 apply to building societies. Key changes include: modifications to creditor/contributory meeting voting procedures (using share value instead of number of votes); application of Companies Act provisions on dissolved company property to building societies; transfer of certain dissolution functions from Secretary of State to FSA; and modifications to Pension Protection Fund Entry Rules regulations to apply them to building societies. The changes ensure the existing insolvency and special administration frameworks operate correctly for the distinct legal structure of building societies.
While this Order represents regulatory complexity, it consists of technical amendments necessary for the existing insolvency framework to function properly for building societies. Without these modifications, there would be legal uncertainty regarding how bank insolvency and administration procedures apply to building societies' cooperative structure. The voting rights modification based on share value reflects building societies' distinct nature as member-owned institutions. Critically, the Pension Protection Fund modifications ensure workers' pensions remain protected when a building society enters insolvency proceedings—removing this would leave employees worse protected in failure scenarios with no obvious market alternative.