(1) A building society shall not enter into an arrangement -
(a) whereby a director of the society, or a person connected with a director of the society, acquires or is to acquire one or more non-cash assets of the requisite value from the society; or
(b) whereby the society acquires or is to acquire one or more non-cash assets of the requisite value from a director of the society or a person connected with a director of the society,
un the arrangement is first approved by a resolution of the society passed at a general meeting.
(2) For this purpose a non-cash asset is of the requisite value if at the time the arrangement in question is entered into its value is -
(a) except in a case falling within paragraph (b) below, not than £200,000; and
(b) where the last balance sheet of the society showed reserves amounting to than £1,000,000, not than the higher of £2,000 or the amount which represents 10 per cent, of the reserves so shown.
(3) The Treasury may by order amend subsection (2)
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