List of –
- Additional Groups of Exempt Customers
- Conditions for Retention of Benefits and
- Shorter Periods
Introduction
Anybody opening a share account, or having a share account transferred to him/her, on or after 1 March 2000 will be required to enter into an agreement (an "Agreement") to assign potential windfall benefits to charity, unless he or she:-
- has held shares in the Society (other than permanent interest bearing shares) on, and at all times since, 29 February 2000, or
- has previously entered into an Agreement and has continued to hold shares in the Society (other than permanent interest bearing shares) at all times since doing so, or
- is in one of the other groups in the "Additional Groups of Exempt Customers" section below.
The Agreement usually lasts for 5 years, but it will be for a shorter period in the circumstances set out in the "Shorter Periods" section below.
In some cases, a member may be entitled to retain some or all benefits. The "Conditions for Retention of Benefits" section below describes which members have this right and what benefits may be retained by them.
In the following lists:-
- a "Pre-Scheme Account" means a share account with the Society which was opened before 1 March 2000
- a "Post-Scheme Account" means a share account with the Society opened on or after 1 March 2000.
- references to the transfer of an account include a transfer of an account balance to a new account
- references to "PIBS" are to permanent interest bearing shares in the Society
- references to accounts or share accounts do not include PIBS
- an account will not be treated as a trust account, nor its holders as trustees, unless it is clear from the Society's records that it is held (in whole or in part) for the benefit of at least one person who is not a holder of the account
- the headings to the paragraphs are for convenience only, with the additional exempt customers, entitlements to retain benefits and shorter periods being described in those paragraphs.
The following lists are valid from 1 March 2000.
Additional groups of exempt customers
- Deceased's accounts
If the holder of a Pre-Scheme Account dies:
- the Pre-Scheme Account may be transferred to the deceased's personal representatives (i.e. executors or administrators of his/her estate) and to any successor(s) as personal representatives without an Agreement being required;
- no Agreement is required if any other account is opened by such personal representatives (in their capacity as such), provided a share account with the Society has been held in the name of the deceased or his personal representatives at all times since 29 February 2000.
- Clubs/Unincorporated Associations
Where a Pre-Scheme Account is shown in the Society's records as having been opened on behalf of a club or unincorporated association:
- it can be transferred to new office holders without an Agreement being required;
- no Agreement is required if any other account is shown in the Society's records as being opened on behalf of the club or unincorporated association, provided (i) a share account with the Society is shown in the Society's records as having been held for the club or unincorporated association at all times since 29 February 2000, and (ii) when the account is opened, at least one of the account holders is a person who is an account holder in respect of an existing account shown in the Society's records as being held for the club or unincorporated association.
- Trustees
Where a Pre-Scheme Account is shown in the Society's records as having been opened in the name of trustees:
- it can be transferred to new trustees (of the same trust) without an Agreement being required;
- no Agreement is required if any other account (shown in the Society's records as for the same trust) is opened by the trustees, provided (i) a share account with the Society is shown in the Society's records as having been held for the trust at all times since 29 February 2000, and (ii) when the account is opened, at least one of the account holders is a person who is an account holder in respect of an existing share account shown in the Society's records as being held for the trust.
- Overdrawn share accounts
If a shareholding member overdraws on his/her account, he/she will nevertheless continue to be treated as a holder of shares until such time as his/her shareholding membership ceases in accordance with the Society's Rules. No Agreement will be required if he/she is an exempt customer as defined in the Agreement and the other paragraphs in this section, when read in conjunction with this paragraph 4.
- PIBS
Where PIBS are issued or transferred, no Agreement is required.
- Post-Scheme Accounts
Where an account is opened or transferred in the circumstances described in the Shorter Periods section below, and the relevant Post-Scheme Account was opened 5 years or more earlier, no Agreement is required.
Conditions for retention of benefits
In this section a member holds an "Exempt Account" if, when it was transferred to or opened by him/her (and whether or not an Agreement was required at the time of such transfer or opening):
- the circumstances were as described in the Additional Groups of Exempt Customers section above, or
- the circumstances were as described in the Shorter Periods section below, and the relevant Post-Scheme Account referred to in that section was opened more than five years before the transfer of the Society's business to the successor (as defined in the Agreement) is publicly announced.
This section applies where a member:
- becomes bound by an Agreement on opening or taking a transfer of one account, but holds one or more Exempt Accounts immediately before the vesting date specified in the agreement for the transfer of the Society's business to the successor (as defined in the Agreement).
In such cases, the member will be entitled to retain such benefits as he/she would have received on conversion/take-over if his/her shareholdings in the Society had been limited solely to the Exempt Account(s). Any other benefits receivable by the member, in his/her capacity as a shareholding member of the Society, will count as "windfall benefits" (other than the right to have savings in a share account with the Society replaced by savings in a deposit account with the successor (as defined in the Agreement)) and may therefore be assigned to charity.
Shorter Periods
In the following cases, a shorter period than 5 years from the opening or transfer of the relevant account will apply. It will be the period of 5 years from the date on which the relevant Post-Scheme Account was opened.
- Deceased's accounts
Where the holder of a Post-Scheme Account dies, and the Post-Scheme Account is transferred to any of the following:
- the deceased's personal representatives (i.e. executors or administrators of his/her estate)
- any successor(s) as personal representatives.
- Clubs/Unincorporated Associations
2.1 Where a Post-Scheme Account shown in the Society's records as having been opened on behalf of a club or unincorporated association is transferred to new office holders.
2.2 Where a Post-Scheme Account is shown in the Society's records as being held on behalf of a club or unincorporated association, and any other account is shown in the Society's records as being opened on behalf of the club or unincorporated association provided that, when the account is opened, at least one of the account holders is a person who is an account holder in respect of another share account held for the club or unincorporated association.
- Trustees
3.1 Where a Post-Scheme Account shown in the Society's records as having been opened by trustees is transferred to new trustees.
3.2 Where a Post-Scheme Account is shown in the Society's records as being held by trustees, and any other account (shown in the Society's records as being for the same trust) is opened by the trustees provided that, when the account is opened, at least one of the account holders is a person who is an account holder in respect of another share account held for the trust.