Meeting of the Parliament (Hybrid) 03 December 2020
I, too, thank my colleagues on the committee, the clerks and the promoter for their work in getting the bill to this stage, and I thank the convener, Christine Grahame, for moving the motion and for her professional way of chairing the committee.
As the convener mentioned, the bill is necessary as the promoter has noted the changing demographics in the society. The office bearers are currently faced with an ageing membership that may result in their one day having to wind up the society. The committee therefore agrees with the promoter that it is necessary to ensure that, should that unfortunate circumstance take place, the society has the powers that it requires to allow for an orderly closure of the society, the dependents fund or both.
The Solicitors in the Supreme Courts of Scotland Act 1871 set out the procedures that govern the society’s widows fund. The bill has renamed that fund the dependents fund and has inserted new detailed procedures that would allow for it to be closed to new members or closed completely. Those procedures include an actuarial investigation, a meeting of the members to consider a resolution to close the fund and the offer of
“such lump sum or other payment as seems reasonable”
for the annuitants or potential future annuitants. Any residual money would then transfer to the society.
Although the committee generally agreed with those provisions, we noted that the promoter might want to consider, as part of the winding-up procedures, a provision in the bill that the beneficiaries and any prospective beneficiaries should be notified of a proposal to close the fund. The promoter accepted that recommendation and amendments were lodged at the consideration stage to address that. Those amendments mean that the bill now requires that all annuitants and prospective annuitants be notified in advance of any decision to close the dependents fund completely.
The committee also examined the procedures involved in winding up the society; our intention was to ensure that the procedures were as robust as possible and that the promoter would not find itself in the position of having to come back to Parliament again to amend the 1871 act. Although we agreed that it is the right of the society’s members to make their own decisions about its future, we considered that some of the practical procedures around the decision making could be strengthened.
At the preliminary stage, the committee heard that
“typically, only around 10 of the 220 current members attend the statutory general meetings.”
We noted our concerns about the lack of requirement in the bill for a quorum in the decision-making process and the fact that a voting threshold was not mandatory for meetings where winding-up decisions were to be taken. The committee therefore welcomed the promoter’s proposed amendments to ensure that, for any decision to wind up the society, a voting threshold must be set, which the bill now requires.
It has been interesting to experience the private bill process and to play a slightly different role from the usual one of a committee member. Generally speaking, I enjoy a bit of controversy, but there has been none of that in the bill. However, it has been interesting.
I agree with the committee’s recommendation that the Scottish Parliament agrees that the bill be passed.
15:49