Financial Mutuals Arrangements Bill – in a Public Bill Committee am 10:00 am ar 25 Ebrill 2007.
David Taylor
Llafur, North West Leicestershire
With this it will be convenient to discuss Government Amendment No. 5.
Edward Balls
The Economic Secretary to the Treasury
New Clause 4 applies if the terms of a transfer from a mutual society to a subsidiary of another mutual society includes a distribution of funds or bonus. Any such distribution must be approved by a resolution of the society that approves the transfer, whose terms will be set out in secondary legislation. If the distribution exceeds certain limits, it must be approved by resolution of each society concerned. Those limits will be set by the Treasury in an order.
The aim of the amendments is to ensure that similar procedures for approving distribution of funds apply where the new procedure is used as currently apply in the case of mergers between building societies. The mutuals sector will be consulted on whether to adopt that approach in the implementing order, and Amendment No. 9 would make an appropriate change in the long title to reflect new clauses 3 and 4.
A parliamentary bill is divided into sections called clauses.
Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.
During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.
When a bill becomes an Act of Parliament, clauses become known as sections.
As a bill passes through Parliament, MPs and peers may suggest amendments - or changes - which they believe will improve the quality of the legislation.
Many hundreds of amendments are proposed by members to major bills as they pass through committee stage, report stage and third reading in both Houses of Parliament.
In the end only a handful of amendments will be incorporated into any bill.
The Speaker - or the chairman in the case of standing committees - has the power to select which amendments should be debated.
A parliamentary bill is divided into sections called clauses.
Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.
During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.
When a bill becomes an Act of Parliament, clauses become known as sections.
As a bill passes through Parliament, MPs and peers may suggest amendments - or changes - which they believe will improve the quality of the legislation.
Many hundreds of amendments are proposed by members to major bills as they pass through committee stage, report stage and third reading in both Houses of Parliament.
In the end only a handful of amendments will be incorporated into any bill.
The Speaker - or the chairman in the case of standing committees - has the power to select which amendments should be debated.
