IMPORTANT NOTE

From 1st June 2000 we introduced a condition as part of the declaration for opening a share account. To avoid disruption to business by speculators, all new customers are required to assign any windfall conversion benefits to which they might become entitled. The assignment is in favour of the Charities Aid Foundation and is for a period of five years.

If you were a shareholding member of the Society on 31st May 2000 and have continued to be a member ever since, this condition does not apply to you. Further details can be found below and on the Savings Application Form.

How will this affect me?

If you are an existing investor

Those who already have an investment account(s) (other than Permanent Interest Bearing Shares) with the Society prior to 1 June 2000 are not affected by this new condition. If, however, you decide to close your existing account(s) and cease to be a shareholding member you may be affected by this requirement if you open a new account in the future.

If you are a new investor

If you wish to become an investing member of the Manchester on or after 1 June 2000, you will be asked to sign an agreement that will, if a conversion or takeover is announced within five years from when you open the account, mean any windfall benefits must be donated to the Charities Aid Foundation.

What do we mean by windfall benefits?

This means a benefit in the form of a distribution to shareholding members in the unlikely event of any transfer of the business of the Society to a company on a conversion or take-over.

What do we mean by assigning benefits?

A customer whose membership begins on or after 1 June 2000 will have the same rights as any other member. In particular, members’ voting rights are not affected by assignments to charity. However, the declaration will have the effect that, if a conversion or takeover is announced within five years of shareholding membership commencing, any windfall rights to which that customer might become entitled would automatically be passed over to the charitable foundation.

Does this mean that the Manchester is planning to convert?

No. It is the Society's stated intention to continue being an independent mutual Building Society. As a mutual organisation our members’ interests come first and we can offer more attractive products and better service. These arrangements will ensure that we can continue to deliver better value, without the need to close our doors in order to counter the disruptive actions of speculators.

What is the Charities Aid Foundation?

The Charities Aid Foundation is a long established and well-known charity and its purpose is to make sure that giving to charities is as effective as it can be.

What if I am already a member?

The assignment declaration is included in all Savings Application Forms. However, it is drafted in such a way that if you are already a member through having a shareholding account (other than PIBS) and have continuously maintained such membership with the Society since before 1 June 2000, it does not affect you at all.

How can I find out more?

If you need further information, please ask at your local agency office or telephone 0161 923 8000.