The HBOS Group Reorganisation Act 2006 is a private Act of Parliament, passed by the Parliament of the United Kingdom in June 2006. The aim of the act was to provide HBOS plc, a banking and insurance group in the UK, the legal authority to reorganise its subsidiaries into a simplified structure. It came into effect on 17 September 2007.
HBOS plc is a banking and insurance holding company and was created on 10 September 2001 from the merger of the Governor and Company of the Bank of Scotland and Halifax plc. These two banks are the main UK subsidiaries of HBOS, although they themselves operate various other subsidiary companies. The Bank of Scotland was incorporated by an Act of the Parliament of Scotland in 1695, and operates under the authority of this Act and subsequent other Acts passed in 1873, 1920, 1954 and 1970. Halifax is a public limited company and was created in 1997 from the demutualisation of the Halifax Building Society to plc status.
Aims of the Act
The main aim of the Act is to simplify HBOS’s operating structure, namely:
changing the legal status of the Governor and Company of the Bank of Scotland to a public limited company (Bank of Scotland plc);
transferring the assets and liabilities of HBOS's UK banking subsidiaries (Halifax plc, Capital Bank plc, and HBOS Treasury Services plc) to the new company ;
transferring the remaining assets of the Clerical, Medical and General Life Assurance Society to HBOS's subsidiairy, Clerical Medical......