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BSA calls for new conversion laws

Thursday 20 May 1999 23:02 BST
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THE CHAIRMAN of the Building Societies Association yesterday called on the Government to put an end to flaws in legislation which allow carpetbaggers to force societies to become banks with only a simple majority in favour.

Speaking at the annual conference of the BSA in Harrogate, John Heaps (left), said the Government appeared indifferent to the survival of building societies in spite of the competitive benefits they bring to the mortgage and savings markets. He called for rules to be changed on voting for conversion to a bank by requiring 75 per cent of borrowers voting to vote in favour - even when the vote is informal. Currently 75 per cent of savers must be in favour but only a simple majority of borrowers.

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