I don't want BG managing it (and I know they were hawking for this at one of the meetings)
Seeing as that's not been mentioned in any of their blurb, I wonder if such a change in direction would be constitutionally possible by the terms of their set up.
I imagine that the constitution is what they refer to as their rules.
It contains a lot of detail about the shares - how many can you have (not more than £20,000 unless you are another Industrial and Provident Society), can you sell or transfer the shares (no).
It also stipulates a quorum of two for board meetings. The chair has a casting vote. Members must declare interests - if so they are not counted towards the quorum and cannot vote.
The bit of the rules called "Powers" seems quite wide ranging:
33 Powers
33.1 To carry out the society‘s objects, the society may:
33.1.1 Acquire assets and property which, in the trustees‘ opinion, may benefit the society‘s objects;
33.1.2 set up subsidiary companies, societies and other organisations;
33.1.3 take and hold shares, memberships, stock, debentures and other interests in other companies, societies and other organisations for the society and others;
33.1.4 buy, lease, hire, rent and own any real or personal property (tangible and intangible) of any description which, in the trustees‘ opinion, is appropriate for the needs of the society‘s objects;
33.1.5 make arrangements with any government or authority (local, municipal, national or international) that, in the trustees‘ opinion, is appropriate for the society‘s objects;
33.1.6 invest the society‘s funds in such property and investments as the trustees may consider appropriate, and subject to any applicable legal restrictions;
33.1.7 carry on any other activity which, in the trustees‘ opinion, may benefit the society‘s objects;
33.1.8 lend, deposit and advance money and give credit or procure others to do the same to or with partnerships, companies other businesses, undertakings and concerns of all kinds;
33.1.9 act as agent;
33.1.10 act as trustee;
33.1.11 give or procure guarantees and indemnities for the payment of money or for the performance of obligations by any person (even where the society receives no direct or indirect financial benefit);
33.1.12 make or procure grants, gifts, donations and investments of a social nature;
33.1.13 take mortgages, charges, liens and other security to secure obligations of others to the society;
33.1.14 borrow money and accept credit and grant mortgages, charges, liens and other security to secure the society‘s obligations, but
33.1.14.1 the society may not carry on a deposit taking business (within the meaning of the Banking Act 1987; and
33.1.14.2 where:
33.1.14.2.1 the loan is unsecured, and
33.1.14.2.2 the lender is not itself authorised under the Banking Act 1987,
33.1.14.3 the society will not pay a rate of interest that is higher than the society needs to fund its activities; in setting the rate, the trustees will take particular account of the society‘s intention to provide an opportunity for other public-spirited people and organisations to contribute financially to the community, with the expectation of a social dividend, rather than personal financial reward;
33.1.15 provide and procure services such as giving advice in relation to financial and non-financial facilities for people, undertakings and businesses of all kinds.
33.1.16 Create, make, draw, accept, endorse, execute, issue, discount, buy, sell, negotiate and deal in bills, notes, bills of lading, warrants, coupons, debentures and other negotiable or transferable instruments;
33.1.17 Do such other things that the trustees regard as incidental or conducive to the pursuit of the society‘s objects and the exercise of the society‘s express and implied powers.
33.1.18 Registration of a society or its rules under the Industrial and Provident Societies Act 1965 does not give any permission for a society to carry on financial services as regulated by the Financial Services and Markets Act 2000 ("FSMA"). Any society which wishes to carry on such activities must seek advice and make an authorisation application to the FSA under Part IV of FSMA. Carrying on such activities without authorisation from the FSA under FSMA may lead to prosecution.
33.2 The society‘s borrowing limit is £10,000,000.
33.3 Rules 2 and 33 should be interpreted in the broadest way possible and not to limit or restrict the society‘s objects. Each object should be read as an independent main object.
Full document
