Charitable Foundation

Assignments of windfalls to Charitable Foundation
Explanatory notes for new investing members

We are a local building society mainly serving people living in the Black Country area of the West Midlands. We aim to give our members the highest levels of service but have found that there have been numerous times when this has not been possible due to the actions of speculators. These people open a savings account with a small balance in the hope of receiving future windfall conversion benefits.

To avoid continual disruption from speculators we have taken steps that will enable us to provide the levels of service our true customers expect and at the same time widen the area from which we will accept new business.

Since 1 November 1999 all new investors have been required to assign any future windfall rights to our Charitable Foundation. These windfall rights are benefits that a member of the Society might receive in the highly unlikely event of any transfer of business to a company on a conversion or take-over. These arrangements do not apply to any existing shareholding members as at 31 October 1999 who continuously hold share accounts with us.

There are some categories of investor who will not be affected by these assignments. A list of these categories is available from any of our branch offices.

The Charitable Foundation, known as the Tipton & Coseley Building Society Charitable Foundation, will be supported by annual donations from the Society and will give financial grants to charities in our operating area.

Questions and answers
What do we mean by windfall rights?
This means a benefit in the form of a distribution to shareholding members under the terms of any transfer of the business of the Society to a company on a conversion or take-over.

What do we mean by assigning rights?
A customer whose membership began on or after 1 November 1999 will have the same rights as any other member. In particular members' voting rights are not affected by assignments to charity. However, any windfall rights to which that customer might become entitled would automatically be passed over to our charitable foundation.

Does this mean the Society is planning to convert?
No. We are fiercely opposed to conversion. As a mutual organisation our members' interests come first and we can offer attractive products and better service. These arrangements will ensure that we can continue to deliver better value, without the need to close our doors to true customers in order to counter the diruptive actions of speculators.

What is the Charitable Foundation?
The Tipton & Coseley Building Society Charitable Foundation is a registered charity that will make donations to various charitable causes that are registered with the Charities Commission. The Society will make donations to the Foundation every year.

What if I am already a member?
The assignment declaration is included in all investment application forms. However, it is drafted in such a way that if you are already a member through having a shareholding account and have continuously maintained such membership with the Society before 1 November 1999, it does not affect you at all.

How can I find out more?
If you need further information, please ask at your local branch office or telephone 0121 557 2551.