Birmingham Corporation Savings Bank
I have been asked to report to the Committee upon two matters arising upon
the approaching winding up of the above Bank, namely:-
(a) Whether the deficit shown on the final accounts might be repaid to
the Borough Fund by the Birmingham Municipal Bank, and
(b) the proper manner in which to effect the final settlement of affairs.
head (a) I believe it has been suggested that repayment might take the form of purchase by the Birmingham Municipal Bank of the furniture,
equipment and goodwill of the Savings Bank. I do not think this device sound because no real goodwill attaches to the Savings Bank
the latter being necessarily moribund in consequence of the Municipal Savings Banks (War Loan Investment) Act, 1916, while the furniture
and equipment has been merely allocated by the Corporation from the old department to the new. In my view the matter might be met
by the payment in question being effected out of the income derived from the Municipal Bank's investments. The regulations of the
Municipal Bank require all moneys received from depositors to be invested with the Corporation at call. It would not accordingly be
open for the Corporation to devote any part of the corpus, (ie the money received from the depositors) to any purpose contrary to
the regulations, but I do not think this restriction applies to the income derived from such investments. In my opinion it is accordingly
open for your Committee to apply that income to the repayment of the deficit of the Corporation Savings Bank. At the same time I am
by no means sure that this matter is covered by the existing instructions and resolutions which have been passed by the City Council,
and perhaps the Committee may think proper to embody reference to the proposal in the report to the Council to which I refer below.
As the Committee are aware the Corporation Savings Bank is by the operation of the regulations applicable thereto being wound up in
a manner analogous to the procedure applicable to the winding up of a company under the Companies (Consolidation) Act, 1908. Certain
advertisements have in consequence been inserted in the London Gazette and notifications sent to the Registrar of Joint Stock Companies.
It is, however, a necessary feature in the voluntary winding up of a Company to hold a final meeting and dissolution which must be
advertised in the London Gazette at least one month before the meeting. After the meeting has taken place the liquidator (in this
case the City Council) has to make a return to the Registrar of Companies and three months after the registration of that return the
Company is deemed to be dissolved. It seems to me very desirable that the Committee should be in a position to point to a definite
date after which the Corporation Savings Bank is to be considered at an end, and I think in the circumstances a meeting of the City
Council would be regarded for all purposes analogous to the final general meeting of the Company contemplated by the Accompanies Act.
I suggest accordingly that the Council Meeting to which the Committee report the final accounts of the Savings Bank should be treated
for the purposes of winding up as the final general meeting and that I be authorised to insert the necessary advertisement giving
one month's notice of the meeting in the London Gazette, and to make the return of the holding of that meeting and of its date to
In the circumstances, as I understand them, I think that following the two courses I suggest above should finally
dispose of any difficulties and should complete the winding up of the Corporation Savings Bank.
I ask for the Committee's instructions.
its meeting held on March 21st 1921 the Bank Committee passed two resolutions in relation to the Town Clerk's report:
That the Council be asked to authorise this Committee to apply such portion of the income arising out of the investment of the Birmingham
Municipal Bank Funds, as the Committee may from time to time consider desirable, to the repayment of the deficit on the accounts of
the Corporation Savings Bank.
760 RESOLVED:- That a Report be presented to a Meeting of the City Council in May next; that such
Meeting should be treated for the purpose of winding up the Corporation Savings Bank as the final General Meeting the final Accounts
to be submitted thereto; and that the Town Clerk be authorised and instructed to insert the necessary advertisement giving one month's
notice of the Meeting in the London Gazette.
The winding-up of the temporary Bank took place at a meeting of creditors held at the Council House on November 17th 1919.
The procedure was described in Chapter 9 of Britain's First Municipal Savings Bank