The Friendly Societies (Accounts and Related Provisions) Regulations 1994

Construction of references to shares held by society or group

20.—(1) References in this Part of this Schedule to shares held by the society or the group must be construed as follows.

(2) For the purposes of paragraphs 10 and 13(4) and (5) and 14 to 16:

(a)there must be attributed to the society shares held on its behalf by any person; and

(b)there must be treated as not held by the society shares held on behalf of a person other than the society.

(3) References to shares held by the group are to any shares held by or on behalf of the society or any of its subsidiaries; but there must be treated as not held by the group any shares held on behalf of a person other than the society or any of its subsidiaries.

(4) Shares held by way of security must be treated as held by the person providing the security:

(a)where apart from the right to exercise them for the purpose of preserving the value of the security, or of realising it, the rights attached to the shares are exercisable only in accordance with his instructions; and

(b)where the shares are held in connection with the granting of loans as part of normal business activities and apart from the right to exercise them for the purpose of preserving the value of security, or of realising it, the rights attached to the shares are exercisable only in his interests.