TWFY Bill Tracker

This dates from 2007, and is just a very quick rough-sketch demo idea; it in no way indicates what we would like Parliament to do, or how these pages should look nowadays, only that we would like machine-readable data in order for things like “Amendments rejected” to actually be possible.

Building Societies (Funding) and Mutual Societies (Transfers) Bill 2006-07

Read this Bill

This Bill formally proposes to “make provision in relation to funding limits in respect of building societies; to provide consequential rights to building society members; and to make provision in connection with the transfer of the business of certain mutual societies.”

From the Explanatory Notes:

5. The purposes of the Bill are to liberalise the wholesale funding limits on building societies, to place building society members on a par with creditors on a winding up, and to make it easier for mutual societies transfer their business to subsidiaries of other mutual societies.

7. The Bill has three aims. First, to increase the proportion of wholesale funding building societies may use. At present, building societies must raise at least 50 per cent of their funds from shares held by individual members of the society. The Bill will allow the Treasury to change that requirement, so that societies may raise up to 75 per cent of their funding from wholesale sources. This is intended to give societies access to cheaper funding and create a more level playing field with banks. However, the retention of at least 25 per cent individual member funding will mean that this source of funding will remain significant.

8. Second, to alter the position on the distribution of assets on dissolution or winding up of a building society, to give shareholding members of the society equality with creditors. At present, creditors have priority over members in a winding up. A change to the funding limit would increase the risk to members in an insolvency, as any available funds would first be used to satisfy a larger pool of (wholesale) creditors. This second change is intended to reduce that risk, by improving the position of building society members in an insolvency.

9. Third, to make it easier for a mutual society (building society, friendly society or industrial and provident society) to transfer its business to a subsidiary of another mutual society. A subsidiary for these purposes is a company controlled by another mutual society. The Bill will allow the Treasury to modify the statutory provisions which apply to such transfers, to make them less onerous. This is intended to make it easier for mutual societies to acquire other mutuals, and to develop group structures. The changes will ensure that certain safeguards, such as members' rights and safeguards against demutualization, remain in place.

10. The changes to the relevant legislation to give full effect to the policy will be made by the Treasury in secondary legislation. This approach will allow the Treasury to consult mutual societies and other interested parties before making any substantive changes to the legislation.


People in support of this bill have said:

  • “this legislation will help to ensure that societies have access to the right type of finance if needed” – Sir John Butterfill

MPs voting in support of this Bill:

  • Gordon Brown
  • Jack Straw
  • David Blunkett

See all 143…


People against this bill have said:

  • “Waste of time and money”

MPs voting against this Bill:

  • David Cameron
  • Ming Campbell
  • Ian Paisley

See all 82…

Next Activity

This Bill provisionally has its final debate in the House of Lords on 12th October. If it passes without amendment, it will then become law.

Previous stages of this Bill


13th December 2006
Bill formally introduced in the House of Commons
23rd March 2007
First debate, on the idea of the Bill as a whole
25th April 2007
Clause by clause debate in a Public Bill Committee:
    Amendments proposed, made, rejected; Bill before or after.
27th April 2007
Report/Final debate
    Amendments proposed, made, rejected; Bill before or after.


30th April 2007
Bill formally introduced in the House of Lords
14th June 2007
First debate, on the idea of the Bill as a whole
10th July 2007
Debated in a Committee of the Whole House
    Amendments proposed, made, rejected; Bill before or after.
24th July 2007
Reported to the House.