UK Offence Report

Offence in relation to operation as an SCE after cancellation of registration

regulation 37(1) of The European Cooperative Society Regulations 2006 (revoked)

This offence was read from the text as made, and no revised version was available, so a later revocation could not be ruled out. Check the current text at legislation.gov.uk.

What the provision says

1 A person commits an offence if he knowingly or recklessly carries on the business of an SCE after that SCE’s registration has been cancelled, unless the SCE was registered in another EEA State at the relevant time.

Text as made, from legislation.gov.uk. © Crown copyright, reused under the Open Government Licence v3.0. This is the text as originally made; later amendments are not shown here.

Who it binds, and what has to be proved

Binds
a person
Conduct
breaching the provision
Fault element
Requires proof of a state of mind
Burden of proof
No statutory defence — prosecution proves everything

The prosecution must prove both that the conduct happened and that it was done with the state of mind the provision names (knowingly, knowingly or recklessly, recklessly).

The provision states no defence, so the prosecution bears the burden on every element of the offence.

Classifier’s reasoning: mens rea word in the offence-creating words: knowingly, recklessly, knowingly or recklessly.

What would breach regulation 37(1)?

These are illustrations, not law. They are generated from the provision’s own words to show the shape of the offence. Whether any particular conduct is caught depends on the full text, on any amendment since, and on the facts.

  1. On these words an offence is committed where a person knowingly or recklessly carries on the business of an SCE after that SCE’s registration has been cancelled, unless the SCE was registered in another EEA State at the relevant time.
  2. Doing what the provision prohibits, or failing to do what it requires under the European Cooperative Society Regulations 2006.

Penalty

Mode of trial
Summary only — tried in a magistrates’ court
Maximum fine
£5,000
Standard scale
Level 5
Maximum prison (summary)
Not determined

this is the level 5 value when the instrument came into force (2006-08-18); the standard scale is keyed to the date the offence was committed, and for conduct today the same words mean an unlimited fine.

Sentencing

Offences of this kind are usually sentenced under the guidelines below. This is a mapping by subject, not a finding about this provision, and the links go to a search of the Sentencing Council’s own site.

Prosecution figures

No published per-offence figure was found for this provision, and it could not be matched to a Ministry of Justice offence code. Offences created by statutory instrument very largely do not have one. Absence of a figure is not evidence that the offence is unused.

Status and lifecycle

Current status
Status not determined
Made
25 July 2006
In force from
18 August 2006
Extent
Not stated

How this was established: read from the text as made; no revised version available, so later revocation could not be ruled out.

What the instrument is for

(This note is not part of the Regulations) — the explanatory note published with the instrument, © Crown copyright.

This instrument gives effect to Council Regulation (EC) No. 1435/2003 of 22nd July 2003 (on the Statute for a European Cooperative Society (SCE) (O.J. L.207, 18.8.2003 p.1) (the “EC Regulation”) in the United Kingdom. Regulation 3 designates, for the purposes of the EC Regulation, the Financial Services Authority as the competent authority in relation to SCEs and cooperatives which have their registered office in Great Britain and the Registrar of Credit Unions for Northern Ireland as the competent authority in relation to SCEs and cooperatives which have their registered office in Northern Ireland. Regulations 4, 5, 6 and 7 supplement Articles 2, 21 and 35 of the EC Regulation concerning the formation of SCEs. Regulation 4 permits bodies whose head offices are outside the EC to participate in the formation of an SCE subject to certain conditions. Regulations 5 and 7 prescribe the information and documents that a cooperative must provide if it wishes to form an SCE by merger or conversion. Regulation 6 enables the competent authority to oppose the participation of a cooperative in the formation of an SCE by merger. Regulation 8 provides for the establishment and maintenance of a register of SCEs by the competent authority. That register is designated for the purposes of Article 11 of the EC Regulation. Regulations 9 and 10 specify the process by which an SCE may register with the competent authority. Regulation 11 lists the documents that an SCE must send to the competent authority while it continues to be registered. Regulation 12 prescribes the circumstances in which the competent authority must or may cancel an SCE’s registration. Regulation 13 concerns SCEs with registered offices outside the United Kingdom which open a branch in the United Kingdom and specifies the information that such SCEs must send to the competent authority. Regulations 14, 15 and 16 supplement Article 7 of the EC Regulation concerning the transfer of an SCE’s registered office from one EEA State to another. Regulation 14 requires the relevant organ of an SCE to make a solvency statement concerning the SCE’s liabilities before its registered office is transferred to another EEA State. Regulation 15 prescribes the information and documents that an SCE must provide before its registered office is transferred to another EEA State. Regulation 16 enables the competent authority to oppose the transfer of an SCE’s registered office to another EEA State. Regulations 17 to 24 make provision for the structure and proceedings of SCEs. Regulation 25 provides the process by which a cooperative or SCE may appeal against a decision taken by the competent authority under regulation 6 or 16. Regulations 26, 27 and 28 supplement Article 76 of the EC Regulation concerning the conversion of an SCE into another cooperative form. Part 5 gives effect to the EC Regulation by providing mechanisms for the enforcement of the EC Regulation and this instrument. The competent authority may require information or documents from an SCE (regulation 29), order an inspection of an SCE’s accounts (regulation 30) or order an inquiry into an SCE’s business affairs (regulation 31). The competent authority may direct an SCE to comply with Articles 6 and 11(4) of the EC Regulation and may enforce their direction through an application for an injunction (regulation 32). Regulation 33(1) and (2) amends section 124 of and inserts section 124C into the Insolvency Act 1986 (c. 45) so that the Financial Services Authority may petition for an SCE that has its registered office in Great Britain to be wound up on the grounds set out in Article 73(1) of the EC Regulation or if the SCE breaches Article 6 of the EC Regulation. Regulation 33(3) and (4) makes corresponding changes to the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19). Regulations 34 to 37 make it an offence to breach the requirements in the EC Regulation and this instrument to provide information (regulation 34); to make a solvency statement under regulation 14 where the maker of the statement has no reasonable grounds for the opinion expressed in that statement (regulation 35); to fail to use the terms “SCE” or “limited” in the SCE’s title where that is required (regulation 36(1)); to use the term “SCE” where the entity is not an SCE (regulation 36(2)) and to carry on the business of an SCE after that SCE’s registration has been cancelled (regulation 37). Part 6 makes miscellaneous provision including for the publication and inspection of certain information and the provision of a power for the competent authority to charge fees. A full regulatory impact assessment of the effect that this instrument will have on the costs of business may be obtained from the General Insurance, Mutuals and Inclusion Team, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ or from HM Treasury’s website (www.hm-treasury.gov.uk). Copies of the regulatory impact assessment have been placed in the libraries of both Houses of Parliament.

Read the full note and every offence in this instrument

Other offences in the same instrument

How this was identified as an offence

Everything above rests on the judgement that this provision creates a criminal offence, rather than mentioning one. That judgement is made by rule, from the words of the provision, and this is the rule that made it — with a confidence of 0.92.

Basis
the provision says a person “commits an offence”
Confidence
0.92 of 1.00

A provision that states a penalty for an offence created elsewhere can read very like one that creates an offence, and the rules can mistake the one for the other. If the text quoted above sets a penalty for something made an offence by another provision, treat the classification on this page with that in mind, and read the instrument.

Check the source