(1) Section 75 of the 1986 Act (directors' report) is amended as follows.

(2) In subsection (1) for paragraph (a) substitute -

"(a) a fair review of the business of the society and its connected undertakings (if any), complying with section 75A,

(aa) a description of the principal risks and uncertainties facing the society and its connected undertakings (if any),"

(3) After subsection (1A) [Inserted by the Building Societies Act 1997, section 43, Schedule 7, paragraph 32(2).] insert-

"(1B) If the building society has subsidiary undertakings, the report may, where appropriate, give greater emphasis to those matters which are significant to the society and its subsidiary undertakings taken as a whole.".

(4) Omit subsection (2).