(1) This section applies in relation to a resolution under section 115 where the nominal value of the company's shares held by a member other than a registered society exceeds the amount specified in section 24(1) (maximum shareholding).
(2) The resolution may provide for the conversion of the shares representing that excess into a transferable loan stock -
(a) bearing such rate of interest as may be fixed, and
(b) repayable on such conditions as are determined by the resolution.