Page "Building society" Paragraph 7

In the 1980s, British banking laws were changed to allow building societies to offer banking services equivalent to normal banks.

The management of a number of societies still felt that they were unable to compete with the banks, and a new Building Societies Act was passed in 1986 in response to their concerns.

This permitted societies to ' demutualise '.

If more than 75 % of members voted in favour, the building society would then become a limited company like any other.

Members ' mutual rights were exchanged for shares in this new company.

A number of the larger societies made such proposals to their members and all were accepted.

Some became independent companies quoted on the London Stock Exchange, others were acquired by larger financial groups.