The Building Societies (Designated Capital Resources) (Deferred Shares) Order 1989
This Order specifies that where a building society has issued shares (“old deferred shares”) in accordance with the terms of regulations made under the Building Societies Act 1962 or shares (“new deferred shares”) in accordance with the terms prescribed for deferred shares by the Building Societies (Deferred Shares) Order 1989 (S.I. 1989/207), they may be treated as capital resources which may be aggregated to the limits mentioned below with reserves for the purposes of the first criterion of prudent management (maintenance of adequate reserves and other designated capital resources) under section 45(3) of the Building Societies Act 1986. The prescribed terms restrict payment of interest and repayment of capital until all other shareholders have been paid. The limits to which such aggregation is permitted are, in the case of old deferred shares, £75,000, and, in the case of new deferred shares, £250,000 less the amount of any old deferred shares for the time being so aggregated.