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Industrial and Provident Societies: administration, schemes and CVAs

10/04/14

Industrial and Provident Societies: administration, schemes and CVAs

Members may have noted that in September last year, the Technical Committee responded to HM Treasury's consultation on extending rescue procedures to industrial and provident societies .

The Industrial and Provident Societies and Credit Unions (Arrangements, Reconstruction and Administration) Order 2014 (SI 2014 No 229) has just come into force (6 April 2014). The Order applies to societies registered  under the Industrial and Provident Societies Act 1965 (other than providers of social housing), and extends the provisions of the Insolvency Act 1986 and the Companies Act 2006 relating to administration, CVAs and schemes (together with a number of other provisions of the 1986 Act and FSMA) to such societies.

The Cooperative and Community Benefit Societies Bill is also now waiting for Royal Assent.  The Bill consolidates existing legislation and would replace, amongst others, the 1965 Act in full, to apply to any "registered society".