SCHEDULES

1(1)No court other than the High Court or, in the case of a building society whose principal office is in Scotland the Court of Session, shall have jurisdiction to hear and determine disputes to which this paragraph applies; and, in this Part of this Schedule, “the court” means the High Court or, as the case may be, the Court of Session.

(2)This paragraph applies to any dispute—

(a)between a building society and a member of the society in his capacity as a member, or

(b)between a building society and a representative of such a member in that capacity,

in respect of any rights or obligations arising from the rules of the society or any provision of this Act or any statutory instrument under it.

(3)Except in the cases referred to in sub-paragraph (5) below, no disputes to which this paragraph applies may be referred to arbitration.

(4)The court shall not hear and determine any dispute arising out of section 61(8)(a) or [F1paragraph 20A(10)(a) or 31(4)(a)] of Schedule 2 to this Act.

(5)The court shall not hear and determine any dispute which is required to be referred to arbitration under paragraph 4 below or which is referred to the Commission under paragraph 6 or to an adjudicator under paragraph 7 below except as provided in paragraph 2 below.

Textual Amendments

F1Words in Sch. 14 para. 1(4) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 64(1); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xxxvii)

2U.K.The court may hear and determine a dispute falling within paragraph 1(5) above in any case where, on the application of any person concerned, it appears to the court—

(a)that application has been made by either party to the dispute to the other party for the purpose of having the dispute settled by arbitration, and

(b)that either arbitrators have not been appointed within 40 days of that application or the arbitrators have refused, or have neglected for a period of 21 days, to proceed with the reference or make an award.

Right of central office to be heardU.K.

3(1)Any person who institutes proceedings in the court in relation to a dispute to which paragraph 1 above applies shall give notice of the fact and of the matter in dispute to the central office.

(2)The court shall not proceed to hear a dispute to which paragraph 1 applies until the court is satisfied that the notice required by sub-paragraph (1) above has been given.

(3)The central office shall be entitled, with the leave of the court, to attend and to be heard at any hearing of a dispute to which paragraph 1 applies.

Part IIU.K. Arbitration

Circulation of election addresses, resolutions and statementsU.K.

4(1)If the rules of the society so provide, any dispute in respect of a refusal by a building society to send to its members—U.K.

(a)copies of an election address [F2or a revised election address], in accordance with section 61(7), or

(b)any document required to be sent under [F3paragraph 20A(1)(b) or 31(1)] of Schedule 2 to this Act,

shall, unless the refusal is on one of the grounds specified in sub-paragraph (2) below, be referred to arbitration.

(2)Those grounds are—

(a)that publicity for the document in question would be likely to diminish substantially the confidence in the society of investing members of the public, or

(b)that the rights conferred by section 61(7) or [F4paragraph 20A(1)(b) or 31(1)] are being abused to seek needless publicity for defamatory matter.

Textual Amendments

F2Words in Sch. 14 para. 4(1) inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 64(2)(a); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xxxvii)

F3Words in Sch. 14 para. 4(1) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 64(2)(b); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xxxvii)

F4Words in Sch. 14 para. 4(2) substituted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 64(3); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xxxvii)

[F5Calling of special meeting]U.K.

Textual Amendments

F5Sch. 14 para. 4A and cross-heading preceding it inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 64(4); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xxxvii)

[F64AU.K.If the rules of the society so provide, any dispute in respect of a refusal by a building society to call a special meeting required to be called under paragraph 20A(1)(a) of Schedule 2 to this Act shall be referred to arbitration.]

Textual Amendments

F6Sch. 14 para. 4A and cross-heading preceding it inserted (1.12.1997 in specified cases and for specified purposes and otherwise in accordance with art. 2(2)(3)(5) of S.I. 1997/2668) by 1997 c. 32, ss. 43, 47(3), Sch. 7 para. 64(4); S.I. 1997/2668, art. 2, Sch. Pt. II(w)(z)(xxxvii)

Procedure on a reference to arbitrationU.K.

5(1)This paragraph has effect in relation to an arbitration under paragraph 4(1) above.U.K.

(2)One or more arbitrators shall be appointed in the manner provided for by the rules of the building society; and so shall another arbitrator if an appointed arbitrator dies or refuses to act.

(3)No arbitrator acting on a reference shall be beneficially interested (whether directly or indirectly) in the funds of the society.

(4)The rules of the society may provide for the procedure to be followed on a reference to arbitration.

(5)An award made by arbitrators, or the majority of them, shall be final and binding.

(6)For the purposes of [F7Part I of the Arbitration Act 1996] the rules of the society shall be treated as an arbitration agreement.

(7)In relation to Scotland, sub-paragraph (6) above shall be omitted.

Textual Amendments

F7Words in Sch. 14 Pt. II para. 5(6) substituted (31.1.1997) by 1996 c. 23, s. 107(1), Sch. 3 para. 47 (with s. 81(2)); S.I. 1996/3146, art. 3 (with transitional provisions in art. 4, Sch. 2)

Access to register of membersU.K.

6(1)Any dispute as to the rights of a member of a building society under paragraph 15 of Schedule 2 to this Act shall be referred to the Commission.

(2)The reference of a dispute to the Commission under this paragraph shall be treated as a reference to arbitration; and its award shall have the same effect as that of an arbitrator acting in a reference under paragraph 4(1) above.

Disputes cognizable under a schemeU.K.

7(1)Any dispute relating to a [F8relevant service] action in relation to which is subject to investigation under section 83 may, if the complainant and the society or, as the case may be, the complainant and the [F9connected undertaking] agree, instead of being determined by the adjudicator under the scheme, be referred to him as arbitrator.

(2)The reference of a dispute to an adjudicator under sub-paragraph (1) above shall be treated as a reference to arbitration, and his award shall have the same effect as that of an arbitrator acting in a reference under paragraph 4(1) above.

(3)Any expression used in this paragraph and section 83 has the same meaning in this paragraph as in that section.

Textual Amendments

F8Words in Sch. 14 para. 7(1) substituted (1.12.1997) by 1997 c. 32, s. 43, Sch. 7 para. 64(5)(a); S.I. 1997/2668, art. 2, Sch. Pt. I(j)(l)(xviii)

F9Words in Sch. 14 para. 7(1) substituted (1.12.1997) by 1997 c. 32, s. 43, Sch. 7 para. 64(5)(b); S.I. 1997/2668, art. 2, Sch. Pt. I(j)(l)(xviii)

GeneralU.K.

8U.K.In this Part of this Schedule, in relation to an arbitration in Scotland, references to an arbitrator shall be read as references to an arbiter.