Building Societies are owned by the members so to get around the thorny issue of
the members (owners) voting against the proposed merger of the Derbyshire with the Nationwide they come up with
this little known clause (extract below)
In order to ensure
the merger is completed as quickly as possible it will be facilitated under sections 42B(3)(b) of the Building Societies Act
in relation to The Derbyshire and 94(5)(b) in relation to Nationwide. As a result the merger will proceed on the basis of
Board resolutions of the Derbyshire and Nationwide Boards, rather than by member vote. The Societies’ Boards believe
it is in the interests of their members that the merger completes as quickly as possible to avoid a period of prolonged uncertainty.
The announcement of the merger was made on the 8th September 2008 and was completed
on 1st December 2008. The merger appears to have been pushed through by the financial services authority and no windfall were
paid to any of the members. Nationwide Building Society has said that for the first 2 years it will retain the Derbyshire name
and will then look at it again.
Head Office
Derbyshire Building Society
Duffield Hall,
Duffield
Derbyshire
DE56 1AG
The
Derbyshire Building Society also has 50 branches.
