(1) Subject to subsection (1A), before a conversion resolution is moved pursuant to section 101 a statement in accordance with subsection (2) shall be sent by the building society to every member entitled to notice of the meeting of the society at which the conversion resolution is to be moved or, as the case may be, of the postal ballot.

(1A) Subsection (1) does not apply to a building society that has issued special investment shares where it is proposed that the holder of those shares would pass the conversion resolution by written resolution.

(2) Every statement required by subsection (1) shall -

(a) summarise in sufficient detail, to enable persons entitled to vote to decide how to vote on the resolution, the matters required to be referred to in, and the documents required to be annexed to, the conversion scheme by section 101;

(b) state the reasons for the proposal to convert;

(c) specify any proposed change in the principal activities of the society to be carried on by its successor with particular reference to its proposed policy in relation to the making of loans for the provision and improvement of housing and the determination of the rate of interest to be charged on such subsisting and future loans;