(1) The auditors of a registered society or branch shall make a report to the society or branch on the accounts examined by them and on the revenue account or accounts and the balance sheet of the society or branch for the year of account in respect of which they are appointed.
(2) The report shall state whether the revenue account or accounts and the balance sheet for that year comply with the requirements of this Act and whether, in the opinion of the auditors—
(a) the revenue account or accounts give a true and fair view, in accordance with section 30 above, of the income and expenditure of the society or branch as a whole for that year of account and, in the case of each such account which deals with a particular business conducted by the society or branch, a true and fair view in accordance with that section of the income and expenditure of the society or branch in respect of that business for that year; and
(b) the balance sheet gives a true and fair view, in accordance with that section, either of the state of the affairs of the society or branch or of the assets and current liabilities of the society or branch and the resulting balances of its funds (as the case may require) as at the end of that year of account.
(3) Without prejudice to the provisions of subsection (2) above, where the report of the auditors relates to any accounts other than the revenue account or accounts for the year of account in respect of which they are appointed, that report shall state whether those accounts give a true and fair view of any matter to which they relate.
(4) It shall be the duty of the auditors of a registered society or branch, in preparing their report under this section, to carry out such investigations as will enable them to form an opinion as to the following matters, that is to say,—
(a) whether the society or branch has kept proper books of account in accordance with the requirements of section 29(1)(a) above; and
(b) whether the society or branch has maintained a satisfactory system of control over its transactions in accordance with the requirements of section 29(1)(b) above; and
(c) whether the revenue account or accounts, the other accounts (if any) to which the report relates, and the balance sheet are in agreement with the books of account of the society or branch;
and if the auditors are of opinion that the society or branch has failed to comply with paragraph (a) or paragraph (b) of section 29(1) above, or if the revenue account or accounts, the other accounts (if any) and the balance sheet are not in agreement with the books of account of the society or branch, the auditors shall state that fact in their report.
(5) If the auditors fail to obtain all the information and explanations which, to the best of their knowledge and belief, are necessary for the purposes of their audit, they shall state that fact in their report.
39 Auditors’ right of access to books and to attend and be heard at meetings.
(1) Every auditor of a registered society or branch—
(a) shall have a right of access at all times to the books, deeds and accounts of the society or branch and to all other documents relating to its affairs; and
(b) shall be entitled to require from the officers of the society or branch such information and explanations as he thinks necessary for the performance of the duties of the auditors.
(2) The auditors of a registered society or branch shall be entitled—
(a) to attend any general meeting of the society or branch, and to receive all notices of, and other communications relating to, any general meeting which any member of the society or branch is entitled to receive; and
(b) to be heard at any meeting which they attend on any part of the business of the meeting which concerns them as auditors.
39A Duty to obtain accountant’s report where section 31 disapplied.
(1) Subsection (2) below applies where—
(a) at the end of a registered society’s or branch’s year of account a disapplication under section 32A(1) above is in force in relation to the year, and
(b) the society’s or branch’s turnover in the preceding year of account exceeded £90,000.
(2) The society or branch shall, before the end of the period of 28 days beginning immediately after the end of the year of account, appoint an appropriate person to make—
(a) a report on its accounts and balance sheet for the year which meets the requirements of subsection (3) below, and
(b) a report relating to the preceding year of account which meets the requirement of subsection (4) below.
(3) A report for the purposes of subsection (2)(a) above shall—
(a) state whether, in the opinion of the person making the report, the revenue account or accounts, the other accounts (if any) to which the report relates, and the balance sheet are in agreement with the books of account kept by the society or branch under section 29 above, and
(b) state whether, in that person’s opinion, on the basis of the information contained in those books of account, the revenue account or accounts and the balance sheet comply with the requirements of this Act.
(4) A report for the purposes of subsection (2)(b) above shall state whether in the opinion of the person making the report the financial criteria for the exercise of the power conferred by section 32A(1) above were met in relation to the year.
(5) In subsection (2) above, the reference to an appropriate person is to a person who is—
(a) a qualified auditor for the purposes of this Act, and
(b) not ineligible by virtue of section 37(1) above to be appointed as auditor of the society or branch.
(6) In this section, “turnover” has the same meaning as in section 32A above.
39B Rights of person appointed under section 39A(2).
(1) A person appointed under section 39A(2) above shall, for the purposes of his appointment—
(a) have a right of access at all times to the books, deeds and accounts of the relevant society or branch, and to all other documents relating to its affairs, and
(b) be entitled to require from the officers of the relevant society or branch such information and explanations as that person thinks necessary.
(2) If a person appointed under section 39A(2) above fails to obtain all the information and explanations which, to the best of that person’s knowledge and belief, are necessary for purposes of doing what he has been appointed to do, that fact shall be stated in his report.
(3) A person appointed under section 39A(2) above shall be entitled—
(a) to receive notice of, and attend, any general meeting of the relevant society or branch at which any relevant matter is discussed, and
(b) to be heard at any such general meeting which he attends on any part of the business of the meeting which relates to any relevant matter.
(4) For the purposes of subsection (3) above, the following are relevant matters, namely—
(a) any report of the person appointed under subsection (2) of section 39A above, and
(b) any matter which is relevant to what that person has been appointed under that subsection to do.
(5) In this section, references to the relevant society or branch, in relation to a person appointed under section 39A(2) above, are to the society or branch responsible for his appointment under that provision.
39C Power of appropriate authority to require accounts of past years to be audited.
(1) The appropriate authority may give a direction to a registered society or branch in respect of any relevant year of account of the society or branch before the year of account in which the direction is given—
(a) requiring it to appoint a qualified auditor or qualified auditors to audit its accounts and balance sheet for that year, and
(b) where it has sent to the FCA and, if the registered society or branch is a PRA-authorised person, the PRA its annual return for that year before the date of the direction, requiring it, after its accounts and balance sheet have been audited by a qualified auditor, to send the FCA and, if the registered society or branch is a PRA-authorised person, the PRA within three months from receipt of the direction a further annual return complying with the requirements of this Act (other than that as to time of sending).
(2) A failure by a registered society or branch to comply with any direction given by the appropriate authority under subsection (1) above shall be an offence under this Act.
(3) For the purposes of subsection (1) above, a year of account of a registered society or branch is relevant year of account if it is one at the end of which there is in force in relation to it a disapplication under section 32A(1) above.
(1) Regulations made by the . . . Treasury under section 97 of the Co-operative and Community Benefit Societies Act 2014 may prescribe the maximum rates of remuneration to be paid by registered societies and branches for the audit of their accounts and balance sheets by qualified auditors or for the making of a report for the purposes of section 30A(4)(a) or (5) or 39A(2)(a) or (b) above.
(2) No auditor or reporting accountant of a registered society or branch shall ask for, receive, or be entitled to receive, remuneration in excess of the rate prescribed in respect of his services by regulations made by virtue of this section.
(3) For the purposes of regulations made by virtue of this section, section 97 of the Co-operative and Community Benefit Societies Act 2014 shall be taken to extend to Northern Ireland.
(4) In this section, “ reporting accountant ” means a person appointed to make a report for the purposes of section 30A(4)(a) or (5) or 39A(2)(a) or (b) above
(1) Subject to the following provisions of this section, every registered society and branch, once at least in every five years, shall—
(a) cause its assets and liabilities to be valued by a qualified actuary appointed by the society or branch; and
(b) send to the FCA and, if the registered society or branch is a PRA-authorised person, the PRA a report on the condition of the society or branch;
and every valuation report shall be made in such form and shall contain such particulars as the appropriate authority may direct.
(2) For the purpose of any such valuation as is referred to in subsection (1) above, the Treasury—
(a) may appoint valuers (in this Act referred to as “public valuers”) who shall be qualified actuaries; and
(b) may determine the rates of remuneration to be paid by societies and branches for the services of those public valuers.
(3) When a valuation is made under subsection (1) above, the report sent ... under paragraph (b) of that subsection—
(a) shall be signed by the actuary who made the valuation and shall state his address; and
(b) shall contain an abstract to be made by the actuary of the results of his valuation, together with a statement containing such information with respect to the benefits assured and the contributions receivable by the society or branch, and of its funds and effects, debts and credits, as the appropriate authority may require.
(4) Subsection (1) above shall not apply—
(a) to a benevolent society, working men’s club, old people’s home society, cattle insurance society or to a branch of any such society or club; or
(b) to a specially authorised society or branch unless it is so directed in the authority for registering that society or branch.
(5) The appropriate authority may dispense with the provisions of subsection (1) above in respect of societies or branches to whose purposes, or to the nature of whose operations, it may deem those provisions inapplicable.
(6) The appropriate authority may dispense with the provisions of subsection (1) above in respect of any particular business conducted by a registered society or branch if, in its opinion, those provisions are inapplicable to that business because of the nature of the business or the manner in which it is conducted, and in relation to any such society or branch on which a partial exemption is conferred under this subsection, subsection (1) above shall have effect (subject to any regulations made or direction given under section 42 below) as if—
(a) it required that society or branch once at least in every five years to cause its assets and liabilities in respect of any business other than the business to which the partial exemption relates to be valued under this section; and
(b) the report required to be sent ... under subsection (1) above were a report on the assets and liabilities so valued.
42 Regulations and directions . . . relating to valuations.
(1) The Treasury may by regulations provide that in relation to any registered society or branch of a class specified in the regulations, section 41 above shall have effect as if for the period of five years specified in subsection (1) of that section there were substituted a period of three years.
(2) The Treasury may by regulations provide that in relation to any registered society or branch of a class specified in the regulations, section 41 above shall have effect as if it required the society or branch—
(a) to cause its assets and liabilities in respect of any business of a class so specified to be valued under that section and to send to the FCA and, if the registered society or branch is a PRA-authorised person, the PRA a report of those assets and liabilities at least once in every three years; and
(b) to cause its assets and liabilities in respect of any other business (other than business to which a partial exemption under subsection (6) of section 41 above relates) to be so valued and to send to the FCA and, if the registered society or branch is a PRA-authorised person, the PRA a report on those assets and liabilities at least once in every five years.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) Without prejudice to the preceding provisions of this section, if in the opinion of the appropriate authority it is expedient in the interests of the members of any particular registered society or branch to do so, the appropriate authority may direct that, in relation to that society or branch, section 41 above shall have effect—
(a) as if for the period of five years specified in subsection (1) of that section there were specified a period of three years; or
(b) as if it required that society or branch—
(i) to cause its assets and liabilities in respect of any particular business specified in the direction to be valued under that section and to send to the FCA and, if the registered society or branch is a PRA-authorised person, the PRA a report on those assets and liabilities at least once in every three years; and
(ii) to cause its assets and liabilities in respect of any other business (other than business to which a partial exemption under subsection (6) of that section relates) to be so valued and to send to the FCA and, if the registered society or branch is a PRA-authorised person, the PRA a report on those assets and liabilities at least once in every five years.
(5) The appropriate authority may at any time revoke a direction given by itunder subsection (4) above.
(6) Any power to make regulations under this section may be exercised so as to make different provision in relation to different cases or different circumstances to which the power is applicable.
(1) Every registered society and branch shall once in every year, not later than 31st July, send to the FCA a return (in this Act called an “annual return”) relating to its affairs for the year of account preceding that in which the return is required to be sent.
(2) In the case of a branch, the annual return shall be sent to the FCA through an officer appointed in that behalf by the society of which the branch forms part.
(3) Every annual return of a registered society or branch—
(a) shall be made up for the year of account to which the return relates; and
(b) shall contain the revenue account or accounts of the society or branch prepared in accordance with section 30(2) above in respect of the year of account to which the return relates and a balance sheet as at the end of that year; and
(c) shall not contain any accounts other than the revenue account or accounts for that year unless those other accounts have been examined by the auditors of the society or branch under section 38 above or been the subject of a report under section 39A(2)(a) above.
(4) Together with every annual return, a registered society or branch shall send
(a) where the year of account is one at the end of which there is in force in relation to the year a disapplication under section 32A(1) above, copies of the reports, if any, which the society or branch is required, because of the disapplication, to obtain under section 39A above; and
(b) where it is not,
a copy of the report of the auditors on the accounts and balance sheet contained in the return.
(5) Every annual return sent to the FCA by a registered society or branch to which section 41(1) above applies shall include a statement specifying either—
(a) in the case of a society or branch on which no exemption from the provisions of subsection (1) of section 41 above has been conferred, either under subsection (5) or subsection (6) of that section, the date of the last report under that section on the condition of the society or branch or the dates respectively of the last reports under that section on the assets and liabilities of the society or branch in respect of particular businesses conducted by it, and a place where a copy of that report or copies of those reports (as the case may be) may be inspected; or
(b) in the case of a society or branch on which a complete exemption from the provisions of section 41 above has been conferred under subsection (5) of that section, the reason for that exemption; or
(c) in the case of a society or branch on which a partial exemption from the provisions of section 41 above has been conferred under subsection (6) of that section, the reason for that partial exemption and the date of the last report, or the dates respectively of the last reports, under that section on the assets and liabilities of the society or branch in respect of any business or businesses conducted by it, and a place where a copy of that report or copies of those reports (as the case may be) may be inspected.
(6) Without prejudice to subsection (3) above, every annual or other return required for the purposes of this Act shall be made in such form and shall contain such particulars as the FCA may direct.
(7) If the registered society or branch is a PRA-authorised person, it shall send to the PRA a copy of the annual return sent to the FCA under subsection (1).
44 Copies of annual return to be supplied on demand.
(1) On the application of a member or person interested in its funds a registered society or branch shall supply to him gratuitously either—
(a) a copy of the last annual return of the society or branch; or
(b) a balance sheet or other document duly audited containing the same particulars relating to the affairs of the society or branch as are contained in the annual return.
(2) Together with every copy of an annual return supplied in accordance with paragraph (a) of subsection (1) above and together with every balance sheet or other document supplied in accordance with paragraph (b) of that subsection, a registered society or branch shall provide a copy of the report of the auditors on the accounts and balance sheet contained in the return or on the balance sheet or document supplied, as the case may require.
(3) Where the last annual return of a registered society or branch relates to a year of account at the end of which there is in force in relation to the year a disapplication under section 32A(1) above, this section shall have effect with the following modifications—
(a) in subsection (1)(b), the words “duly audited” shall be omitted, and
(b) in subsection (2), for the words from “the report” to the end there shall be substituted “ any report which the society or branch is required, because of the disapplication, to obtain under section 39A(2)(a) above. ”
45 Copies of balance sheet and valuation to be displayed.
Every registered society and branch shall keep always hung up in a conspicuous place at the registered office of the society or branch—
(a) a copy of the last annual balance sheet . . .; and
(b) a copy of the last report under section 41 above on the condition of the society or branch or, where a report or reports are required under that section in respect of a particular business or particular businesses conducted by the society or branch, a copy of the last report under that section in respect of that business or in respect of each of those businesses, as the case may require.
(1) Subject to subsection (2) below, the trustees of a registered society or branch may, with the consent of the committee or of a majority of the members present and entitled to vote in general meeting, invest the funds of the society or branch or any part thereof, to any amount in any of the following ways, that is to say,—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) in the purchase of land, or in the erection or alteration of offices or other buildings thereon; or
(d) upon any other security expressly directed by the rules of the society or branch, other than personal security, except as is in this Act authorised with respect to loans; or
(e) in any investment in which trustees are for the time being by law authorised to invest trust funds.
(2) The rules of a society with branches and of any branch thereof may provide for the investment of funds of the society or of that branch by the trustees of any branch, or by the trustees of the society, and the consent required for any such investment shall be the consent of the committee, or of such a majority of the members as is mentioned in subsection (1) above, of the society or branch by whom the funds are invested.
(2A) Subsections (2) to (12) of section 14 of the 1992 Act shall apply in respect of the powers of investment of the trustees of a registered friendly society as they apply to the powers of investment of an incorporated friendly society; and the consent required for any such investment as is available to the trustees of a registered friendly society by virtue of this subsection shall be the same as that required under subsection (1) above.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47 Power to set up funds for purchase of Government securities on behalf of members.
(1) A registered society or branch may in accordance with its rules set up and administer a fund for the purchase, on behalf of members contributing thereto, of Defence Bonds or National Savings Certificates or such other securities of Her Majesty’s Government in the United Kingdom as the Treasury may prescribe.
(2) A registered society or branch may, in amending its rules for the purpose of this section, make provision for enabling persons to become members of the society for the purpose only of contributing to the said fund and without being entitled to any rights as members other than rights as contributors to the said fund.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) A registered society and, subject to the rules of the society of which it is a branch, a registered branch may advance to a member of at least one full year’s standing any sum not exceeding one-half of the amount of an assurance on his life, on the written security of himself and two satisfactory sureties or, in Scotland, cautioners for repayment.
(2) The amount so advanced, with all interest thereon, may be deducted from the sum assured, without prejudice in the meantime to the operation of the security.
A registered society may, out of any separate loan fund to be formed by contributions or deposits from its members, make loans to members on their personal security, with or without sureties or, in Scotland, cautioners, as may be provided by the rules, subject to the following restrictions, that is to say,—
(a) a loan shall not at any time be made out of money contributed for the other purposes of the society;
(b) a member shall not be capable of holding any interest in the loan fund exceeding £800;
(c) the society shall not make any loan to a member on personal security beyond the amount fixed by the rules, or make any loan which, together with any money owing by a member to the society, exceeds £200; and
(d) the society shall not hold at any one time on deposit from its members any money beyond the amount fixed by the rules, and the amount so fixed shall not exceed two-thirds of the total sums owing to the society by the members who have borrowed from the loan fund.
50 Loans of surplus funds to registered society or branch of different description.
(1) Subject to the provisions of this section and of section 51 below, a registered society or branch (other than a benevolent society or branch thereof) may, if its rules so provide, make advances by way of loan to a registered society or registered branch of a society which is not of the same description and may take such part in the government and control of the society or branch to which any such advance is made or agreed to be made as may be provided by the rules of that society or branch.
(2) An advance shall not be made by a society or branch by virtue of this section unless the rule of its assets showed a surplus over the amount of its liabilities according to the last valuation under section 41 above or, in the case of a society or branch of which the assets and liabilities are not valued under that section, according to its last annual return under section 43 above; and—
(a) no advance shall be so made to an amount greater, with any amounts outstanding in respect of previous advances so made, than the amount for the time being unapplied of that surplus;
(b) for any purpose other than the purposes of paragraph (a) above, in determining the amount so unapplied there shall be deducted any amounts outstanding in respect of advances so made after the date to which the valuation or return relates.
(2A) Subsection (2) above does not apply to advances made by a registered friendly society or a branch of such a society.
(3) An advance under this section may be interest free.
(4) Nothing in this section shall be taken to prejudice the power of a registered society or branch under section 52(2) below to contribute to the funds and take part in the management of another registered society or branch of the same description.
(5) For the purposes of this section a society or branch shall be deemed to be of the same description as another society or branch if, but only if, they are both registered by virtue of the same paragraph of section 7(1) above and, where each of them is a specially authorised society or branch, they are both established for the same purpose or purposes.
51 Power of friendly society to invest in housing association.
(1) Without prejudice to section 46 above, if the rules of a registered friendly society or branch thereof expressly so direct, the trustees thereof may, with the consent of the committee or of a majority of the members present and entitled to vote in general meeting, invest the funds of the society or branch or any part thereof, in subscribing up to any amount permitted by this section for any of the share or loan capital of a housing association, other than shares or debentures not fully paid up at the time of issue.
(2) The power to make investments conferred by this section is subject to the same restrictions as are imposed by section 50(2) above on the power to make advances conferred by that section but those restrictions shall not apply to investments made by the trustees of a registered friendly society or of a branch of such a society;
(3) For the purposes of subsection (2) of section 50 above any amounts for the time being invested by virtue of this section shall be taken into account in the same way as amounts outstanding in respect of advances made by virtue of that section, but so that, except in the case of investments made after the date to which the valuation or return relates, the amounts invested shall be taken to be amounts equal to the value of the investments according to the valuation or return referred to in the said subsection (2).
(4) For the purposes of this section, “housing association”has the same meaning as in the Housing Associations Act 1985 or Part II of the Housing (Northern Ireland) Order 1981..
52 Charitable subscriptions and contributions to other registered societies.
(1) A registered society or branch may subscribe out of its funds to any hospital, infirmary, charitable or provident institution, any annual or other sum which may be necessary to secure to members of the society or branch and their families the benefits of the hospital, infirmary or other institution.
(2) In accordance with its rules, a registered society or branch may contribute to the funds and take part by delegates or otherwise in the government of any other registered society or registered branch of a society without becoming a branch under this Act of that other society or branch.
(3) A registered society or branch shall not withdraw from contributing to the funds of any medical society, that is to say, a society for the purpose of relief in sickness by providing medical attendance and medicine, except on three months’ notice to the society and on payment of all contributions accrued or accruing due to the date of expiry of the notice.
(1) A registered society or branch may, if its rules so provide, acquire and hold land for the purpose of carrying on any of its activities in the names of its trustees and may dispose of, or otherwise deal with, any land so held; and—
(a) no person shall be bound to enquire as to the authority of the trustees to dispose of or deal with land;
(b) the receipt of the trustees shall be a discharge for all sums of money arising from, or in connection with, the disposal of or other dealing with land.
(2) A branch of a registered society need not for the purposes of this section be separately registered.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) Subject to section 55 below, all property belonging to a registered society, whether acquired before or after the society is registered, shall vest in the trustees for the time being of the society, for the use and benefit of the society and the members thereof and all persons claiming through the members according to the rules of the society.
(2) The property of a registered branch of a society shall vest wholly or partly in the trustees for the time being of that branch, or of any other branch of which that branch forms part (or, if the rules of the society so provide, in the trustees for the time being of the society), for the use and benefit either of the members of any such branch and persons claiming through those members or of the members of the society generally and persons claiming through them according to the rules of the society.
(3) Notwithstanding anything in subsections (1) and (2) above, the trustees of a registered society or branch shall not be liable to make good any deficiencies in the funds of the society or branch, but each trustee shall be liable only for sums of money actually received by him on account of the society or branch.
55 Power of the Public Trustee to hold securities of certain friendly societies and branches.
(1) Notwithstanding anything in section 54 above any part of the funds of a friendly society which is registered by the FCA and the registered office of which is situated in England and Wales, or of any branch of such a society, and any stocks, shares or securities held by or on behalf of such a society or branch, may be transferred to the Public Trustee if, and only if,—
(a) the Public Trustee agrees to the transfer, and
(b) rules of the society or branch are, or have been, made for the purpose.
(2) The Public Trustee shall invest, in accordance with the rules, any funds so transferred to him and shall pay the interest on any stocks, shares or securities acquired by or transferred to him in pursuance of this section to the trustees of the society or branch, and shall, if and when the trustees so require, transfer the capital of the stocks, shares or securities to them, or realise the same and transfer the proceeds to them.
(3) The Public Trustee shall be completely exonerated from any liability in relation to any stock, shares or securities held by him in pursuance of this section, and no action shall lie against the Public Trustee in respect of any such stock, shares or securities provided that he acts in accordance with the provisions of this section.
(4) This section does not extend to Scotland or Northern Ireland.
In all legal proceedings whatsoever concerning any property vested in the trustees of a registered society or branch, the property may be stated to be the property of the trustees in their own names as trustees for the society or branch without further description.
(1) Where, in the case of any mortgage or other assurance to a registered society or branch of any property, a receipt in full for all money secured thereby on that property is endorsed on or annexed to the mortgage or other assurance, being a receipt—
(a) signed by the trustees of the society or branch and countersigned by the secretary thereof; and
(b) in the form set out in Schedule 4 to this Act or in any other form specified in the rules of the society or branch or any schedule thereto,
then, for the purposes of the provisions of section 115 of the Law of Property Act 1925 (reconveyance of mortgage by endorsed receipt) which are specified in subsection (2) below, that receipt shall be deemed to be a receipt which fulfils the requirements of subsection (1) of that section.
(2) The provisions of section 115 of the Law of Property Act 1925 which are referred to in subsection (1) above are—
(a) subsection (1), so far as it relates to the operation of such a receipt as is mentioned in that subsection;
(b) if, but only if, the receipt under this section states the name of the person who pays the money, subsection (2);
(c) subsections (3), (6), (8), (10) and (11); and
(d) where consistent with the terms of the form authorised by subsection (1)(b) above which is used for the receipt, subsection (7).
(3) This section extends to England and Wales only.
57A Discharge of certain mortgages in Northern Ireland.
(1) Where, in the case of any mortgage to a registered society or branch of any property, a receipt in full for any moneys secured thereby on that property is endorsed on or annexed to the mortgage, being a receipt—
(a) signed by the trustees of the society or branch and counter-signed by the secretary thereof; and
(b) in the form set out in Schedule 4 to this Act or in any other form specified in the rules of the society or branch or any schedule thereto,
that receipt shall be fully effective to vacate the mortgage and vest in the mortgagor the estate of and in the property comprised in the mortgage.
(2) If the mortgage is registered in accordance with the Registration of Deeds Act (Northern Ireland) 1970 the registrar under that Act shall—
(a) on production of the receipt mentioned in subsection (1) above make a note in the Abstract Book against the entry relating to the mortgage that the mortgage is satisfied; and
(b) grant a certificate, either on the mortgage or separately, that the mortgage is satisfied.
(3) The certificate granted under subsection (2)(b) above shall—
(a) be received in all courts and proceedings without further proof; and
(b) have the effect of clearing the register of the mortgage.
(4) In this section “mortgage” includes a further charge and “mortgagor”, in relation to a mortgage, means the person for the time being entitled to the equity of redemption.
(5) This section extends to Northern Ireland only.
58 Devolution of property on death, resignation or removal of trustee.
On the death, resignation or removal of a trustee of a registered society or branch, all property vested in him as such a trustee shall, without conveyance, assignment or assignation, vest subject to the same trusts in the succeeding trustees of that society or branch, either solely or together with any surviving or continuing trustees; and until the appointment of succeeding trustees that property shall so vest in the surviving or continuing trustees only or in the executors or administrators of the last surviving or continuing trustee.
59 Priority on death, bankruptcy, etc., of officer.
(1) The provisions of this section apply in the following cases, that is to say,—
(a) on the death or bankruptcy of any officer of a registered society or branch who has in his possession, by virtue of his office, any money or property belonging to the society or branch; and
(b) if any execution, attachment, or other process is issued, or action or diligence raised against any such officer or against his property.
(2) Where this section applies, then, upon demand in writing of the trustees of the society or branch, or of any two of them, or of any person authorised by the society or branch or by the committee thereof to make the demand, the executors or administrators or trustee in bankruptcyor the sheriff or other person executing the process shall pay the money and deliver over the property to the trustees of the society or branch in preference to any other debt or claim against the estate of the officer.
(3) In subsection (1) above “bankruptcy” includes liquidation of a debtor’s affairs by arrangement.
(4) In the application of this section to Scotland, for the reference in subsection (1) above to the bankruptcy of any officer there shall be substituted a reference to an award of sequestration being made on any officer’s estate or his executing a trust deed for his creditors or his entering into a composition contract, and in subsection (2) above the expression “trustee in bankruptcy” includes a judicial factor.
(1) The rules of a registered society or branch may provide for the admission of minors as members.
(2) A member who is a minor may, if he is over sixteen by himself, and if he is under sixteen by his parent or guardian, execute all instruments and give all receipts necessary to be executed or given under the rules.
61 Members’ subscriptions not generally recoverable at law.
Except as provided by section 22 above, the subscription of a person who is or has been a member of a registered society or branch shall not be recoverable at law.
(1) Subject to subsection (2) below, a member or person having an interest in the funds of a registered society or branch may inspect the books at all reasonable hours at the registered office of the society or branch or at any place where the books are kept.
(2) Unless he is an officer of the society or branch or is specially authorised by resolution of the society or branch to do so, a member or person having an interest in the funds of a registered society or branch shall not have the right to inspect the loan account of any other member without the written consent of that member.
63 Accumulation of member’s surplus contributions.
The rules of a registered society or branch may provide for accumulating at interest, for the use of any member, any surplus of his contributions to the funds of the society or branch which may remain after providing for any assurance in respect of which they are paid and for the withdrawal of the accumulations.
63A Register of members of registered friendly societies.
(1) Every registered friendly society shall maintain a register of the names and addresses of the members of the society.
(1A) Where a member has notified to the society an electronic address for the purpose of receiving notices or documents under this Act, the requirement under subsection (1) includes a requirement to secure that the register shows—
(a) that electronic address; and
(b) the purposes for which it has been notified.
(2) The register shall be kept at the registered office of the society or at such other place or places as the committee of management thinks fit.
(3) A society need not enter in the register the address of a member who became a member before the commencement of this section while it has no address for him and his whereabouts are unknown.
(4) Where it appears to a society that the address shown in the register for a member is no longer current, the society—
(a) may remove that address from the register; and
(b) need not enter in the register an address for that member while it has no address for him and his whereabouts are unknown.
(4A) Where it appears to a society that an electronic address shown on the register pursuant to subsection (1) is no longer current, the society may remove that address from the register.
(5) If a society contravenes subsection (1) above, it shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale.
(6) In this section, “electronic address” has the meaning it has in the 1992 Act.
(1) If the rules of a registered friendly society expressly so direct, the society may carry on any group insurance business.
(2) In this Act “ group insurance business ” means business (carried on in accordance with the society’s rules and subject to any regulations under section 11 of the 1992 Act) which—
(a) is of a description falling within Head A, or class 2 of Head B, of Schedule 2 to the 1992 Act; and
(b) is carried on as the business of providing benefits, in pursuance of a contract with a qualifying person, for or in respect of the members of a group scheme.
(3) For the purposes of this section—
“ group scheme ” means a scheme or other arrangement under which benefits are to be provided for or in respect of persons who are members of the scheme and who qualify for membership by virtue of—
being employees of a particular employer; or
being members of some other group of persons of a description specified in regulations under section 11 of the 1992 Act;
“ qualifying person ” means a person who has established or is otherwise responsible for the operation of a group scheme or a trustee of such a scheme;
and “ member ”, in relation to a group scheme, includes any person for or in respect of whom benefits are to be provided under the scheme, whatever the terms in which such persons are described in the scheme.
(4) Group insurance business may be carried on by a registered friendly society whether or not members of the group scheme are, or are required by the society to be, members of the society.
(5) Where a registered friendly society carries on any group insurance business and the rules of the society so provide, any qualifying person with whom the society contracts (or his nominee) may be accorded the rights of a member of the society (including any right to vote) for the purpose of participating in the affairs of the society in the interests of the members of the group scheme with which he is concerned.
(6) The rules of an incorporated friendly society may not prevent a person from being a member of the society in his private capacity by reason only of the fact that he has been accorded the rights of a member by virtue of subsection (5) above.
(7) A person who is accorded the rights of a member of a society by virtue of subsection (5) above shall, for the purposes of any power which is conferred on the FCA or the PRA by this Act or the 1992 Act and is exercisable in the interests of members of the society, be treated as if he were a member of the society.
(8) The Treasury may make regulations under section 11(7) of the 1992 Act which apply to group insurance business carried on by registered friendly societies.
65B Terms on which benefits are provided by friendly societies.
(1) The terms on which a registered friendly society provides any benefit shall be—
(a) specified in its rules; or
(b) determined in a manner specified in its rules.
(2) If they are not specified in the society’s rules, the society—
(a) shall make copies of them available free of charge to members of the society at every office of the society; and
(b) shall send, free of charge, copies of them to any member of the society who demands them.
(3) If, on demand made of it under subsection (2) above, a society fails, in accordance with that subsection, to make available or, as the case may be within 7 days of the demand, to send to a person a copy of the terms on which a benefit is to be provided, the society shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.
66 Power of member to nominate person to receive sums payable on his death.
(1) Subject to the following provisions of this section, a member of a registered society or of a branch thereof who is not under the age of sixteen years may, by writing under his hand delivered at or sent to the registered office of the society or branch, or made in a book kept at that office, nominate a person or persons to whom any sum of money payable by the society or branch on the death of that member or any specified amount of money so payable shall be paid at his decease.
(2) The total amount which may be nominated under this section shall not exceed £5,000but where a nomination under this section does not specify the maximum sum of money which is to be payable by virtue of the nomination, and the sum to which the nomination relates exceeds £5,000but would not exceed that amount if any such increase as is mentioned in section 64(2)(c) above were disregarded, the nomination shall not be invalidated by reason only of the excess.
(3) The sum payable on the death of a member by a registered society or branch shall include sums of money contributed to or deposited in the separate loan fund and any sum of money accumulated for the use of the member under the provisions of this Act, together with interest thereon.
(4) Any reference in subsections (1) to (3) above to a registered society does not include a benevolent society, a working men’s club or an old people’s home society.
(5) a person nominated under this section must not at the date of the nomination be an officer or servant of the society or branch, unless that officer or servant is the spouse, civil partner, father, mother, child, brother, sister, nephew or niece of the nominator.
(6) A nomination so made may be revoked or varied by any similar document under the hand of the nominator delivered, sent or made as mentioned in subsection (1) above.
(7) The marriage of a member of the society or branch shall operate as a revocation of any nomination previously made by that member under this section.
(7A) The formation of a civil partnership by a member of the society or branch revokes any nomination previously made by that member under this section.
(8) A nomination, or a variation or revocation of a nomination, by writing under the hand of a member of a registered branch and delivered at or sent to the registered office of that branch, or made in a book kept at that office, shall be effectual notwithstanding that the money to which the nomination relates, or some part thereof, is not payable by that branch but is payable by the society or some other branch.
(1) Subject to subsection (2) below, on receiving satisfactory proof of the death of a nominator, the society or branch shall pay to his nominee or nominees the amount due to the deceased or, as the case may be, the amount specified in the nomination.
(2) Subject to paragraph 12 of Schedule 10 to this Act, the total amount paid by a registered society or branch by virtue of a nomination (whether in favour of one nominee or more) shall not exceed £5,000except that, in the circumstances referred to in subsection (2) of section 66 above, the amount payable shall include the excess referred to in that subsection.
(3) The receipt of a nominee over sixteen years of age for any amount paid in accordance with this section shall be valid.
(1) If any member of a registered society or branch entitled from the funds thereof to a sum not exceeding £5,000dies without having made any nomination thereof then subsisting, the society or branch may, without letters of administration or probate of any will or, in Scotland, without any grant of confirmation, distribute the sum among such persons as appear to the committee, upon such evidence as they may deem satisfactory, to be entitled by law to receive that sum.
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) Where at the time of his death a member of a registered friendly society or branch is entitled from the funds thereof to a sum which exceeds £5,000but would not exceed that amount if any such increase as is mentioned in section 64(2)(c) above were disregarded, subsection (1) above shall apply to the whole of that sum, notwithstanding that it exceeds £5,000, ...
(1) A payment made by a registered society or branch under section 68 above shall be valid and effectual against any demand made upon the trustees or the society or branch by any other person, but the next of kin or personal representatives of the deceased member shall have a remedy for recovery of the money paid under that section against the person who has received that money.
(2) Where a society or branch has paid money to a nominee in ignorance of a marriage subsequent to the nomination, the receipt of the nominee shall be a valid discharge to the society or branch.