FRIENDLY SOCIETIES ACT 1992 (c. 40)

(The document as of February, 2008)

-- Back --

Page 8

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15 | P.16

(4) The Commission may, by regulations made with the consent of the Treasury, make such provision in addition to subsection (3) above as it considers appropriate in connection with such records as are kept otherwise than in legible form; and the regulations may make modifications of this Act so far as it relates to the records of friendly societies.

(5) If default is made in complying with this section the society shall be guilty of an offence and liable on summary conviction--

(a) to a fine not exceeding level 4 on the standard scale; and

(b) in the case of a continuing offence, to an additional fine not exceeding one-tenth of that level for every day during which the offence continues.

113 Service of notices

(1) This section has effect in relation to any notice, directions or other document required or authorised by or under any provision of this Act or by the rules of a friendly society to be served on any person other than the Commission and the central office but subject, in the case of notices or other documents to be given or sent to members of a friendly society, to any provision of its rules.

(2) Any such document may be served on the person in question--

(a) by delivering it to him;

(b) by leaving it at his proper address; or

(3) Any such document may--

(a) in the case of a friendly society, be served on the secretary of the society;

(b) in the case of a body corporate (other than an incorporated friendly society), be served on the secretary or clerk of that body;

(d) in the case of an unincorporated association, other than a partnership or a registered friendly society or registered branch, be served on any member of its governing body.

(4) For the purposes of this section and section 7 of the [1978 c. 30.] Interpretation Act 1978 (service of documents) in its application to this section, the proper address of any person is--

(a) in the case of a friendly society or its secretary, the address of its registered office;

(b) in the case of a member of an incorporated friendly society, his registered address;

(c) in the case of a member of the committee of management or the chief executive of a friendly society, his officially notified address;

(d) in the case of a body corporate (other than an incorporated friendly society), its secretary or clerk, the address of its registered or principal office in the United Kingdom;

(e) in the case of an unincorporated association (other than a partnership, registered friendly society or registered branch) or a member of its governing body, its principal office in the United Kingdom;

and, in any other case, his last-known address (whether of his residence or of a place where he carries on business or is employed).

114 Form of documents and power to prescribe fees

(1) The Chief Registrar may, by directions under this subsection, make provision with respect to the form of, and the particulars to be included in, any document to be issued or sent by, or to be sent to, the central office under this Act or the 1974 Act.

(2) The Treasury may make regulations providing for fees, of such amounts as may be prescribed in the regulations, to be paid to the Chief Registrar for the inspection, or the furnishing of copies, of any documents in the custody of the central office, or in respect of the exercise by the central office of any of its functions, under this Act or the 1974 Act.

(3) Any amounts received by the Chief Registrar under subsection (2) above shall be applied as an appropriation in aid of money provided by Parliament for the expenses of the Chief Registrar under this Act and the 1974 Act and, in so far as not so applied, shall be paid by the Chief Registrar into the Consolidated Fund.

115 Provision as to information supplied for purposes of social security

(1) Subject to any exceptions or conditions prescribed by regulations of the Secretary of State, the Secretary of State shall at the request of any person claiming benefit from an incorporated friendly society provide the society for the purposes of the claim with a copy or abstract of any medical certificate relating to that person and supplied by him to the Secretary of State for the purposes of the enactments relating to social security.

(2) Where the Secretary of State furnishes an incorporated friendly society, in connection with a claim for benefit from the society with information relating to a claim or award under those enactments, the expenses incurred in connection with his doing so by the Secretary of State or any other government department shall be treated as expenses in carrying those enactments into effect.

Interpretation

116 Friendly societies etc

In this Act--

"friendly society" means an incorporated friendly society or a registered friendly society;
"incorporated friendly society" means a society incorporated under this Act;
"registered branch" means a branch of a registered friendly society which is separately registered within the meaning of the 1974 Act;
"registered friendly society" means a society registered within the meaning of the 1974 Act by virtue of section 7(1)(a) of that Act or any enactment which it replaced.

117 Insurance business etc

(1) For the purposes of this Act--

"annual contribution income" means, in relation to a friendly society's long term business, the income of the society in a financial year without any deduction for reinsurance cessions;
"insurance business" means long term business and general business but does not include the operations of a society whose benefits vary according to the resources available and which require each of its members to contribute on a flat-rate basis;
"long term business" means insurance business of any of the classes specified in head A of Schedule 2 to this Act; and
"general business" means insurance business of any of the classes specified in head B of that Schedule.

(2) For the purposes of any provision of Parts IV, V, VI and VIII of this Act, unless the context otherwise requires--

(a) references to insurance business include references to reinsurance business; and

(b) reinsurance business consisting of the effecting and carrying out of a contract of reinsurance of risks of any class shall be taken to constitute the carrying on of insurance business of that class;

and "reinsurance business" means the effecting and carrying out of contracts of reinsurance.

(3) For the purposes of this Act the effecting and carrying out of a contract whose principal object is within one class of insurance business, but which contains related and subsidiary provisions within another class or classes, shall be taken to constitute the carrying on of insurance business of the first-mentioned class, and no other, if subsection (4) or (5) below applies to the contract.

(4) This subsection applies to a contract whose principal object is within any class of long term business, but which contains subsidiary provisions within general business class 1 or 2, if the society concerned is authorised under section 32 above to carry on long term business class I.

(5) This subsection applies to a contract whose principal object is within one of the classes of general business but which contains subsidiary provisions within another of those classes.

(6) In relation to a contract of insurance with a friendly society references in this Act to the member State where the risk is situated are references to the member State where the person who has entered into the contract has his habitual place of residence.

118 Financial year of friendly societies

(1) Subject to subsection (2) below, in this Act "financial year" means the period of 12 months ending with 31st December.

(2) The initial financial year of a friendly society shall be such period as expires with the end of the calendar year in which it is registered under the 1974 Act or incorporated under this Act and the final financial year of the society shall be such shorter period than 12 months as expires with the date as at which the society makes up its final accounts.

119 General interpretation

(1) In this Act, unless the context otherwise requires--

"the 1974 Act" means the [1974 c. 46.] Friendly Societies Act 1974;
"actuary" means an actuary possessing the qualifications prescribed by regulations under section 44 above;
"annuities on human life" does not include superannuation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of persons engaged or who have been engaged in any particular profession, trade or employment, or of the dependants of such persons;
"appointed actuary" means the actuary appointed under section 44 above;
"the appropriate actuary" means--

(a) if the society is under the duty imposed by section 44(1) above, the society's appointed actuary; and

(b) if it is not under that duty, an actuary appointed to perform the function in question;

"the central office" means the central office of the registry of friendly societies except in relation to Scotland where it means the assistant registrar of friendly societies for Scotland;
"the Chief Registrar" means the Chief Registrar of Friendly Societies;
"collecting society" has the same meaning as in the [1923 c. 8.] Industrial Assurance Act 1923 or the [S.I. 1979/1574 (N.I. 13).] Industrial Assurance (Northern Ireland) Order 1979;
"the Commission" means the Friendly Societies Commission established by section 1 above;
"committee of management" means the committee of management or other directing body of a society or branch;
"contract of insurance" includes any contract the effecting of which constitutes the carrying on of insurance business by virtue of section 117 above;
"the court" except in relation to the winding-up of an incorporated friendly society, means--

(a) in the case of a body whose registered office is situated in England and Wales or in Northern Ireland, the county court for the district in which the office is situated;

(b) in the case of a body whose registered office is situated in Scotland, the sheriff in whose jurisdiction the office is situated;

and, in relation to the winding-up of an incorporated friendly society, means the court which has jurisdiction under the applicable winding-up legislation to wind-up the society;

"the criteria of prudent management" means the criteria set out in section 50 above;
"financial year" is to be construed in accordance with section 118;
"the first general insurance Directive" means Council Directive 73/239/EEC of 24th July 1973 on the coordination of laws, regulations and administrative provisions relating to the taking-up and pursuit of the business of direct insurance other than life assurance;
"the first life Directive" means Council Directive 79/267/EEC of 5th March 1979 on the co-ordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of direct life assurance;
"the general insurance Directives" means the first general insurance Directive and the second general insurance Directive as amended, and such other Directives as make provision with respect to the business of direct insurance other than life assurance;
"group business" is to be construed in accordance with section 11 above;
"jointly controlled body" is to be construed in accordance with section 13 above;
"the life Directives" means the first life Directive and the second life Directive as amended, and such other Directives as make provision with respect to the business of direct life assurance;
"memorandum" has the meaning given by paragraph 4(3) of Schedule 3 to this Act;
"modifications", in relation to enactments, includes additions, omissions and amendments;
"non-insurance business" means business falling within head C of Schedule 2 to this Act;
"notice" means written notice and "notice to" a person means notice given to that person, and "notify" shall be construed accordingly;
"officer" means--

(a) in relation to a registered friendly society or a registered branch--

(i) a trustee;

(ii) the treasurer, secretary and chief executive (however described);

(iii) a member of the committee of management; and

(iv) a person appointed by the society or branch to sue or be sued on its behalf; or

(b) in relation to an incorporated friendly society, a member of the committee of management, the chief executive (however described) and the secretary;

"the public file", in relation to a friendly society, means the file relating to the society which the central office is required to maintain under section 104 above;
"registered address", in relation to a member of an incorporated friendly society, has the meaning given by paragraph 14(6) of Schedule 3 to this Act;
"the second general insurance Directive" means Council Directive 88/357/EEC of 22nd June 1988 on the coordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive 73/239/EEC;
"the second life Directive" means Council Directive 90/619/EEC of 8th November 1990 on the co-ordination of laws, regulations and administrative provisions relating to direct life assurance, laying down provisions to facilitate the effective exercise of freedom to provide services and amending Directive 79/267/EEC;
"special resolution" has the meaning given by paragraph 7 of Schedule 12 to this Act;
"subscription" includes any premium or other sum (however described) payable, in respect of the provision of benefits, by (or on behalf of) a member of a friendly society under the rules of the society;
"subsidiary" is to be construed in accordance with section 13 above; and
"valuation regulations" means regulations under section 45 above.

(2) References in this Act to the "ECU" are to the unit of account of that name defined in Council Regulation (EEC) No.3180/78 as amended; and the exchange rates as between the ECU and pounds sterling to be applied for each year beginning on 31st December shall be the rates applicable on the last day of the preceding October for which exchange rates for the currencies of all the member States were published in the Official Journal of the Communities.

Supplementary

120 Amendments and repeals

(1) The enactments specified in Schedule 21 to this Act shall have effect with the amendments made by that Schedule.

(2) The enactments specified in Schedule 22 to this Act are repealed to the extent specified in the third column of that Schedule.

121 Orders and regulations

(1) Any power of the Treasury or the Commission to make regulations or an order under this Act is exercisable by statutory instrument.

(2) Any statutory instrument containing such regulations or such an order, other than an order under section 5 above or section 126 below, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(3) Any power conferred by this Act to make such regulations or such an order includes power--

(a) to make different provision for different cases; and

(b) to make transitional, consequential or supplementary provision.

122 Expenses

There shall be paid out of money provided by Parliament--

(a) any expenses incurred by the Commission which are attributable to the provisions of this Act;

(b) any expenses incurred by the Chief Registrar which are attributable to any functions of his or of the central office under this Act;

123 Power to make transitional, consequential etc. provisions

(1) The Treasury may by regulations make such transitional and consequential provisions and such savings as they consider necessary or expedient in preparation for, in connection with, or in consequence of--

(a) the coming into force of any provision of this Act; or

(b) the operation of any enactment repealed or amended by a provision of this Act during any period when the repeal or amendment is not wholly in force.

(2) Regulations under this section may make modifications of any enactment contained in this or in any other Act.

124 Northern Ireland

(1) This Act extends to Northern Ireland.

(2) Subject to any Order made after the passing of this Act by virtue of subsection (1)(a) of section 3 of the [1973 c. 36.] Northern Ireland Constitution Act 1973, the regulation of friendly societies and the other societies to which the 1974 Act applies shall not be a transferred matter for the purposes of that Act but shall for the purposes of subsection (2) of that section be treated as specified in Schedule 3 to that Act.

125 Channel Islands and Isle of Man

(1) Her Majesty may by Order in Council direct that any of the provisions of this Act or any instrument made under it shall extend, with such modifications (if any) as may be specified in the Order, to--

(a) any of the Channel Islands; or

(b) the Isle of Man.

(2) An Order in Council under this section may make such transitional, incidental or supplementary provision as appears to Her Majesty to be necessary or expedient.

126 Short title and commencement

(1) This Act may be cited as the Friendly Societies Act 1992.

(2) This Act shall come into force on such day as the Treasury may by order appoint and different days may be appointed for different provisions or different purposes.

(3) An order under subsection (2) above may contain such transitional provisions and savings (whether or not involving the modification of any statutory provision) as appear to the Treasury necessary or expedient in connection with the provisions brought into force.

SCHEDULES

Section 1.

SCHEDULE 1 The Friendly Societies Commission

Status

1 The Commission shall be a body corporate.

Tenure of office of member

2 (1) Subject to the provisions of this paragraph, a person shall hold and vacate office as a member or the chairman or deputy chairman of the Commission in accordance with the terms of the instrument appointing him to that office.

(2) A person may at any time resign office as a member or the chairman or deputy chairman of the Commission by giving the Treasury a signed notice stating that he resigns that office.

(3) When a member becomes or ceases to be the chairman or deputy chairman, the Treasury may vary the terms of his appointment so as to alter the date on which he is to vacate office as a member.

(4) If the chairman or deputy chairman ceases to be a member, he shall cease to be the chairman or deputy chairman, as the case may be.

(5) If the Treasury are satisfied--

(a) that a member has been absent from meetings of the Commission for a period longer than three consecutive months without the permission of the Commission, or

(b) that a member has become bankrupt or made an arrangement with or granted a trust deed for his creditors, or

(d) that a member is incapacitated by physical or mental illness, or

(e) that a member is otherwise unable or unfit to discharge the functions of his office,

the Treasury may declare his office as a member vacant, and shall notify the declaration in such manner as they think fit; and thereupon the office shall become vacant.

3 No person who has attained the age of 70 years is eligible to be or to remain a part-time member of the Commission.

Remuneration and pensions, etc. for part-time members

4 The Commission shall pay to its part-time members such fees for services and such allowances in respect of expenses as may be determined by the Treasury.

5 (1) If the Treasury so determine in the case of any person who is or has been a part-time member of the Commission, the Commission shall pay or make arrangements for the payment of such pensions to or in respect of that person as the Treasury may determine.

(2) Where a person who is a part-time member of the Commission ceases to be a member otherwise than on the expiry of his term of office and it appears to the Treasury that there are special circumstances which make it right for that person to receive compensation, the Treasury may direct the Commission to make to that person a payment of such amount as the Treasury may determine.

Parliamentary disqualification

6 (1) In Part II of Schedule 1 to the [1975 c. 24.] House of Commons Disqualification Act 1975 (bodies of which all members are disqualified under that Act) there shall be inserted at the appropriate place the entry: "The Friendly Societies Commission".

(2) A corresponding amendment shall be made in Part II of Schedule 1 to the [1975 c. 25.] Northern Ireland Assembly Disqualification Act 1975.

Staff

7 The Commission may appoint such staff as the chairman of the Commission thinks fit, subject to the approval of the Treasury as to numbers and as to terms and conditions of service.

Proceedings

8 The quorum of the Commission and the arrangements relating to its meeting shall be such as the Commission may determine.

9 The validity of any proceedings of the Commission shall not be affected by any vacancy among the members or by any defect in the appointment of a member.

Performance of functions

10 (1) With the exception specified in sub-paragraph (2) below, the Commission may authorise any member or members of the Commission to perform on behalf of the Commission such of the Commission's functions (including the power conferred by this paragraph) as are specified in the authorisation.

(2) The Commission shall not delegate any power exercisable by statutory instrument.

11 The [1946 c. 36.] Statutory Instruments Act 1946 shall apply to all powers of the Commission of making statutory instruments under this Act as if the Commission were a Minister of the Crown.

12 In Schedule 2 to the [1967 c. 13.] Parliamentary Commissioner Act 1967 (which lists the departments etc. subject to investigation under that Act) there shall be inserted in the appropriate place in alphabetical order the words "Friendly Societies Commission".

Instruments

13 The fixing of the common seal of the Commission shall be authenticated by the signature of the chairman or deputy chairman or by some other person authorised by the Commission to act for that purpose.

14 (1) A document purporting to be duly executed under the seal of the Commission shall be received in evidence and shall, unless the contrary is proved, be deemed to be so executed.

(2) A document purporting to be signed on behalf of the Commission shall be received in evidence and shall, unless the contrary is proved, be deemed to be so signed.

Execution of documents in Scotland

15 (1) This paragraph shall have effect as regards the execution of documents in Scotland.

(2) For any purpose other than those mentioned in sub-paragraph (3) below, a document is validly executed by the Commission if it is signed on its behalf by the chairman or deputy chairman or by a person authorised to sign the document on its behalf.

(3) For the purposes of any enactment or rule of law relating to the authentication of documents, a document is validly executed by the Commission if it is subscribed on its behalf by being executed in accordance with the provisions of sub-paragraph (2) above.

(4) A document which bears to have been executed by the Commission in accordance with sub-paragraph (3) above shall, in relation to such execution, be a probative document if--

(a) the subscription of the document bears to have been attested by at least one witness; or

(b) the document bears to be sealed with the seal of the Commission.

Sections 5 and 7.

SCHEDULE 2 The Activities of a Friendly Society

A. Long term business of one or more of the following classes:

Number	Description	Nature of business
I	Life and annuity	Effecting and carrying out contracts of insurance on human life or contracts to pay annuities on human life, but excluding (in each case) contracts within Class III below.
II	Marriage and birth	Effecting and carrying out contracts of insurance to provide a sum on marriage or on the birth of a child, being contracts expressed to be in effect for a period of more than one year.
III	Linked long term	Effecting and carrying out contracts of insurance on human life or contracts to pay annuities on human life where the benefits are wholly or partly to be determined by reference to the value of, or the income from, property of any description (whether or not specified in the contracts) or by reference to fluctuation in, or in an index of, the value of property of any description (whether or not so specified).
IV	Permanent health	Effecting and carrying out contracts of insurance providing specified benefits against risks of persons becoming incapacitated in consequence of sustaining injury as a result of an accident or of an accident of a specified class or of sickness or infirmity, being contracts that:
		(a) are expressed to be in effect for a period of not less than five years, or until the normal retirement age for the persons concerned, or without limit of time, and
		(b) either are not expressed to be terminable by the insurer, or are expressed to be so terminable only in special circumstances mentioned in the contract.
V	Tontines	Effecting and carrying out tontines.
VI	Capital redemption	Effecting and carrying out capital redemption contracts.
VII	Pension fund management	Effecting and carrying out--
		(a) contracts to manage the investments of pension funds; or
		(b) contracts of the kind mentioned in paragraph (a) above that are combined with contracts of insurance covering either conservation of capital or payment of a minimum interest.

B. General business of one or more of the following classes:

Number	Description	Nature of business
1	Accident	Effecting and carrying out contracts of insurance providing fixed pecuniary benefits or benefits in the nature of indemnity (or a combination of both) against risks of the person insured:
		(a) sustaining injury as the result of an accident or of an accident of a specified class, or
		(b) dying as the result of an accident or of an accident of a specified class, or
		(c) becoming incapacitated in consequence of disease or of disease of a specified class,inclusive of contracts relating to industrial injury and occupational disease but exclusive of contracts falling within Class 2 below or within Class IV in head A of this Schedule (permanent health).
2	Sickness	Effecting and carrying out contracts of insurance providing fixed pecuniary benefits or benefits in the nature of indemnity (or a combination of the two) against risks of loss to the persons insured attributable to sickness or infirmity, but exclusive of contracts falling within Class IV in head A of this Schedule.
3	Miscellaneous financial loss	Effecting and carrying out contracts of insurance against any of the following risks, namely:
		(a) risks of loss to the persons insured attributable to their being unemployed, or
		(b) risks of loss to the persons insured attributable to their being in distressed circumstances, or
		(c) risks of loss to the persons insured attributable to sickness or infirmity,
		but exclusive of contracts falling within Class 2 above or Class IV in head A of this Schedule.

C. Business, not falling within the descriptions of insurance business in head A or B above, consisting of the effecting and carrying out of contracts in accordance with which benefits are provided--

(a)

for the relief or maintenance of any persons during sickness or when in distressed circumstances; or

(b)

to meet the funeral expenses of any persons.

D. Activities carried out in accordance with the society's rules (or with arrangements made under the rules) whereby discretionary benefits are provided--

(a)

for the education of any persons;

(b)

for the relief or maintenance of any persons during sickness, when out of employment or when in distressed circumstances; or

(c)

for the funeral expenses of any persons.

Section 5.

SCHEDULE 3 Establishment, Incorporation and Constitution of Incorporated Friendly Societies

Requirements for establishment and incorporation

1 (1) Any 7 or more persons may establish a society under this Act by taking the following steps--

(a) agreeing upon the purposes of the society and upon the extent of its powers in a memorandum the provisions of which comply with the requirements of this Schedule;

(b) agreeing upon rules for the regulation of the society which comply with the requirements of this Schedule; and

(c) sending to the central office 3 copies of the memorandum and the rules, each copy signed by at least 7 of those persons (or, if there are only 7, by all of them) and (unless the secretary is to be elected) by the intended secretary.

(2) Where two or more friendly societies propose to amalgamate under section 85 above, they shall establish their successor society by--

(a) agreeing upon the purposes of their successor and upon the extent of its powers in a memorandum the provisions of which comply with the requirements of this Schedule;

(b) agreeing upon rules for the regulation of their successor which comply with the requirements of this Schedule;

(d) sending to the central office 3 copies of the rules and of the memorandum, each copy signed by the secretary of each of the societies participating in the amalgamation.

(3) Where copies of the memorandum and the rules are sent to the central office in accordance with sub-paragraph (1)(c) or (2)(d) above, the central office, if satisfied that--

(a) the memorandum and the rules are in conformity with this Act; and

(b) the intended name of the society is not, in its opinion, undesirable,

shall register the society and issue it with a certificate of incorporation.

(4) The central office shall not register a society as the successor society to any friendly societies proposing to amalgamate unless it is satisfied that the Commission has confirmed the proposed amalgamation under section 85 above.

2 (1) A registered friendly society may be incorporated under this Act only if the following steps are taken--

(a) the proposal to apply for incorporation is submitted to the members of the society for their consent by the procedure required for a proposal to amend the rules (or, in the case of a society with branches, the general rules) of the society;

(b) consent to the application is given in accordance with that procedure;

(i) upon the purposes of the society after incorporation, and upon the extent of its powers, in a memorandum the provisions of which comply with the requirements of this Schedule; and

(ii) upon rules for the regulation of the society after incorporation which comply with the requirements of this Schedule; and

(d) there are sent to the central office--

(i) 3 copies of the memorandum and the rules, each signed by at least 7 members and by the secretary of the society; and

(ii) a statutory declaration by the secretary that the steps mentioned in paragraphs (a) and (b) above were taken.

(2) Where copies of the memorandum, the rules and the statutory declaration are sent to the central office in accordance with paragraph (c) of sub-paragraph (1) above, the central office, if satisfied that--

(a) the steps mentioned in sub-paragraph (1)(a) and (b) were taken;

(b) the provisions of the memorandum and the rules are in conformity with this Act; and

shall register the society and issue it with a certificate of incorporation.

3 On registering a society under paragraph 1 or 2 above, the central office shall--

(a) retain and register one copy of the memorandum and of the rules;

(b) return another copy to the secretary of the society, together with a certificate of registration; and

(c) keep another copy, a copy of the certificate of incorporation and a copy of the certificate of registration of the memorandum and the rules, in the public file of the society.

The memorandum

4 (1) The memorandum of an incorporated friendly society shall--

(a) specify the name of the society;

(b) state whether the registered office of the society is to be situated in England and Wales, or in Scotland, or in Northern Ireland;

(d) state the purposes of the society and the extent of its powers; and

(e) if any of those purposes are to include the carrying on of any business outside the United Kingdom, state with respect to those purposes that that is the case.

(2) The choice stated in a society's memorandum in pursuance of sub-paragraph (1)(b) above may not be altered by the society.

(3) In this Act, in relation to an incorporated friendly society, "memorandum" means the memorandum registered under paragraph 3 above, including the record of any alteration under paragraph 6 below.

The rules

5 (1) The rules of an incorporated friendly society shall provide for the matters specified in the Table in sub-paragraph (3) below.

(2) Nothing in this paragraph shall be taken to authorise any provision in the rules of a society which is inconsistent with, or rendered void by, this Act (or any instrument made under it).

(3) The Table referred to in sub-paragraph (1) above is as follows:--

TABLE OF MATTERS TO BE COVERED BY THE RULES

1. The terms of admission of members and the manner in which membership is to cease.

2. If the terms on which a benefit is provided are not in the rules, the manner in which they are to be determined.

3. Any forfeitures which may be imposed on any member.

4. The consequences of non-payment of any subscription.

5. The manner of remunerating the auditors.

6. As respects the officers--

(a) the manner of their election or appointment and their removal;

(b) the manner of remunerating them; and

(c) the circumstances in which pensions may be awarded to persons by virtue of their office and the method of determining the terms of such pensions.

7. The powers and duties of the committee of management.

8. The investment of the funds of the society.

9. The manner in which disputes are to be settled.

10. If the society has a common seal, the form, custody and use of the seal.

11. The calling and holding of meetings and, in particular--

(a) the right to requisition meetings;

(b) the right to move resolutions at meetings;

(d) the procedure to be observed at meetings;

(e) the form of notice for the convening of a meeting;

(f) the voting rights of members, the right to demand a poll and the manner in which a poll is to be taken.

12. The entitlement of members to participate in the distribution of any surplus assets after payments to creditors, on the winding up, or dissolution by consent, of the society.

13. The procedure for altering the society's memorandum and rules.

Requirements for alteration of memorandum and rules

6 (1) An incorporated friendly society may in the manner prescribed by its rules alter the memorandum or rules of the society by the addition, rescission or variation of any provision.

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15 | P.16

-- Back --

Stat