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MPs urge change in conversion law

Tuesday 27 July 1999 23:02 BST
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THE LAW should be amended as soon as possible to make it harder for building societies to convert to banks, the Treasury Committee recommended in a report yesterday.

The MPs favoured giving borrowers an equal weight with savers in demutualisation votes and setting higher turnout hurdles on resolutions brought by "carpetbaggers". In addition, the report suggested windfall share handouts should be restricted to members of two years' standing. The Building Societies Association and the Consumers' Association gave a warm welcome to the proposals, intended to preserve a mutual sector.

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