Q&As

Can the board of a co-operative and community benefit society (a registered society) delegate powers to any third party, and can the registered society grant a power of attorney to a third party to execute documents on its behalf?

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Published on LexisPSL on 20/07/2020

The following Corporate Q&A provides comprehensive and up to date legal information covering:

  • Can the board of a co-operative and community benefit society (a registered society) delegate powers to any third party, and can the registered society grant a power of attorney to a third party to execute documents on its behalf?
  • Delegation of powers
  • Formalities for execution—contracts

Can the board of a co-operative and community benefit society (a registered society) delegate powers to any third party, and can the registered society grant a power of attorney to a third party to execute documents on its behalf?

A registered society is a body corporate with limited liability and its own legal personality, registered by the Financial Conduct Authority under the Co-operative and Community Benefit Societies Act 2014 (CCBSA 2014) (not the Companies Act 2006). It is owned by its members who hold shares in the society and managed by its officers in accordance with both CCBSA 2014 and the rules of the registered society. Unlike companies, there are no model governing rules for registered societies. CCBSA 2014 does not use the terms ‘directors’ or ‘board’, but many registered societies still give their officers such titles. For further general information on registered societies, see Practice Note: Co-operative and community benefit societies.

Delegation of powers

The rules of the registered society are required to set out the powers of the officers, committees and managers (CCBSA 2014, s 14). If powers are capable of delegation, including by way of power of attorney, this should also be set out in the rules, as it is not expressly covered in CCBSA 2014. Accordingly, the rules of the registered society should be reviewed in order to assess whether any particular powers

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