HM Treasury News Release
37/98                                            23 March 1998
--------------------------------------------------------------

              REVIEW ON INDUSTRIAL AND PROVIDENT 
                      SOCIETY LEGISLATION
                                

Proposals to update and modernise the legislation covering
industrial and provident societies were published in a
consultation document issued jointly today by the Treasury and
Registry of Friendly Societies.

Views are sought on modernising the Industrial and Provident
Societies 1965 from all of the main types of industrial and
provident society including co-operatives, housing associations
and clubs on the changes they would wish to see if a legislative
opportunity arose.

The main issues are:

     whether any new legislation should contain specific
     provisions defining different types of society;

     whether ways can be found to simplify, and reduce the cost
     of the registration process, perhaps by adopting a
     'statutory declaration' system along the lines of that used
     under the Companies Act;

     aligning the legislation with developments in general
     company law, including corporate governance; and

     provisions relating to mergers, conversions and transfers.

Commenting on the document, Economic secretary Helen Liddell
said:

     "The Act, as it stands, is a consolidation of 19th century
     legislation, so it is not surprising it is showing its age.

     "Although there can be no guarantee of legislation in the
     near future, we want to find out what societies' views are
     now, so we can be ready if an opportunity arises."

The consultation period will last six weeks.


NOTES TO EDITORS

1.   Industrial and provident societies are mutual, incorporated
     organisations which are either co-operatives or conduct
     their business for the benefit of the community. In
     practice, societies fall into seven classifications
     depending on their business: Retail, Wholesale and
     Productive, Agricultural, Fishing, Clubs, Housing, and
     General service. There are around 11,000 currently at the
     Registry of Friendly Societies.

2.   Media copies of the consultation document are available
     from the Treasury Press Office on 0171 270 5185.

3.   Non-media copies are available from Keith Johnson, Registry
     of Friendly Societies, Victory House, 30-34 Kingsway,
     London, WC2B 6ES on 0171 663 5282.

4.   If you have access to the Internet you can find this news
     release and consultation document and other Treasury
     material at http://www.hm-treasury.gov.uk.