(1) Subject to paragraph (2), where at commencement a person ("E") is performing a function for an unauthorised credit union under an arrangement entered into by that credit union or by a contractor of that credit union, then if E's continued performance of that function after commencement would, but for this article, require the approval of the Authority under section 59(1) or (2) of the Act, then that continued performance by E of that function after commencement is to be taken to have been approved by the Authority for the purposes of section 59 of the Act.

(2) Paragraph (1) does not apply if E performs a function by virtue of the fact that he holds or has held an office in a credit union and, immediately before commencement, E was ineligible by virtue of section 27 of the 1979 Act to hold that office.