The draft Building Societies Act 1986 (Modifications) Order 2024 has been published, together with an explanatory memorandum. The Order amends Parts 7 and 8 of the Building Societies Act 1986 to assimilate the law relating to building societies and to companies concerning directors' retirement and balance sheet signature following modification of the statutory provisions in force in relation to companies. The draft Order will amend: (i) sections 60 and 61 of the Building Societies Act to remove all references to the normal retirement age or the compulsory retirement age for directors, as stated in the 1986 Act. This will update the 1986 Act in line with the Companies Act 2006, where there are no longer corresponding restrictions for company directors; and (ii) section 80(1) of the 1986 Act so that the current requirement for the balance sheet of a building society to be signed by two directors and the CEO is changed to allow one director to sign the balance sheet on behalf of the board. This amendment aims to modernize the 1986 Act, aligning the provisions with section 414(1) of the Companies Act 2006. This would reduce a small but unnecessary burden for building societies, providing building societies with the equivalent accounts sign-off procedures as to companies. The draft Order will come into force 21 days after the day on which it is made.
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