Friendly and Industrial and Provident Societies (Channel Islands)
Order 1968
FRIENDLY AND INDUSTRIAL AND PROVIDENT SOCIETIES (CHANNEL ISLANDS)
ORDER,
1968.
____________
STATES OF JERSEY.
____________
17th December, 1968.
____________
THE STATES, adopting a Proposition of the
Legislation Committee, requested the Bailiff to inform the Secretary of State
that it was the wish of the Assembly that an Order in Council be made to
provide for the extension of the Friendly and Industrial and Provident Societies Act, 1968,
to the Island.
A.D. Le BROCQ,
Greffier of the States.
A LA COUR ROYALE DE
L’ILE DE JERSEY.
____________
L’An 1969, le 14e jour de mars.
____________
MONSIEUR LE BAILLI
ayant présenté à la Cour deux Ordres de Sa Très
Excellente Majesté en Conseil en date du 10 février, 1969,
transmettant pour enregistrement et publication dans l’Ile copies de
certains Actes de Parlement intitulés : -
“The Friendly and Industrial and Provident Societies Act, 1968
(1968 Chapter 55)” ; et
“The Expiring Laws Continuance Act, 1968 (1968 Chapter
76)” ;
Lecture en ayant
été donnée :
LA COUR,
conformément aux conclusions du Procureur Général de la
Reine, a ordonné, en exécution desdits Ordres, que tant lesdits
Actes de Parlement que lesdits Ordres les transmettant soient
enregistrés sur les records de cette Ile et publiés par
l’Officier au lieu ordinaire à jour de marché, afin que
toutes personnes puissent en avoir connaissance.
P.E. Le COUTEUR,
Greffier Judiciaire.
A LA COUR ROYALE DE
L’ILE DE JERSEY.
____________
L’An 1969, le 14e jour de mars.
____________
MONSIEUR LE BAILLI
ayant présenté à la Cour un Ordre de Sa Très
Excellente Majesté en Conseil en date du 20 décembre, 1968, fait
en vertu de l’alinéa 22(1) de l’Acte de Parlement
intitulé “The Friendly and Industrial and Provident Societies Act, 1968”, ledit Ordre intitulé
: -
“The Friendly and Industrial and Provident Societies (Channel Islands)
Order, 1968” ;
Lecture en ayant
été donnée :
LA COUR,
conformément aux conclusions du Procureur Général de la
Reine, a ordonné que ledit Ordre soit enregistré sur les records
de l’Ile et publié par l’Officier au lieu ordinaire à
jour de marché, afin que toutes personnes puissent en avoir connaissance.
P.E. Le COUTEUR,
Greffier Judiciaire.
FRIENDLY AND INDUSTRIAL AND PROVIDENT SOCIETIES (CHANNEL ISLANDS)
ORDER, 1968
____________
At the Court at Buckingham Palace.
____________
The
20th day of December, 1968.
____________
PRESENT,
The Queen’s Most Excellent Majesty in Council
____________
HER MAJESTY, in pursuance of the power
conferred upon Her by section 22(1) of the Friendly and Industrial
and Provident Societies Act, 1968, is pleased, by and with the
advice of Her Privy Council, to order, and it is hereby ordered, as follows
: -
1. The
Friendly and
Industrial and Provident Societies Act, 1968 shall extend to the
Bailiwick of Jersey and to the Bailiwick of Guernsey, subject to the following
modifications : -
(a) in section 6(8) the reference to
the High Court shall be construed as a reference –
(i) in
Jersey, to the Inferior Number of the Royal
Court of Jersey ;
(ii) in Guernsey, Herm and Jethou, to
the Royal Court of Guernsey sitting as an Ordinary Court ;
(iii) in Alderney, to the Court of Alderney ;
(iv) in Sark, to the Court of the Seneschal of Sark
;
(b) for section 8(2)(b) there shall be substituted the
following paragraph : -
“(b) he is –
(i) an
officer or servant (otherwise than as auditor) of a company which is a
subsidiary of that society ; or
(ii) a
person who is a partner of or in the employment of a person who is an officer
or servant (otherwise than as auditor) of such a company.” ;
(c) in section 14(1) the reference to Great Britain
shall be construed as including any of the Channel Islands.
2. This
Order may be cited as the Friendly and Industrial and Provident Societies (Channel Islands)
Order, 1968 and shall come into operation on 1st January, 1969.
W.G. AGNEW
FRIENDLY AND INDUSTRIAL AND PROVIDENT SOCIETIES ACT, 1968.
____________
CHAPTER
55.
ARRANGEMENT OF SECTIONS
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Societies : accounts and audits, etc.
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Section
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1.
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Books of account, etc.
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2.
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Form in which books of account may be
kept.
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3.
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General provisions as to accounts and
balance sheets of societies.
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4.
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Obligation to appoint auditors.
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5.
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Re-appointment and removal of
qualified auditors.
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6.
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Provisions as to
resolutions relating to appointment and removal of auditors.
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7.
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Qualified auditors.
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8.
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Restrictions on appointment of
auditors.
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9.
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Auditors’
report and right of access to books and to attend and be heard at meetings.
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10.
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Remuneration of qualified auditors.
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11.
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Amendments relating to annual returns
of societies.
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12.
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Consequential amendments of rules by
societies.
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Industrial and provident societies : group accounts.
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13.
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Group accounts of industrial and
provident societies.
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14.
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Exemption from requirements in
respect of group accounts.
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15.
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Meaning of “subsidiary”.
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Societies registered under the Act of 1896 :
valuations and rules.
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Section
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16.
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Amendments with
respect to valuations of societies registered under the Act of 1896.
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17.
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Amendments with
respect to the rules of societies registered under the Act of 1896.
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Miscellaneous and supplementary.
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18.
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Offences.
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19.
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Regulations.
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20.
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Minor and
consequential amendments, repeals and transitional provisions.
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21.
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Interpretation.
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22.
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Channel Islands and Isle of Man.
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23.
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Short title, citation, construction
and extent.
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SCHEDULES :
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Schedule 1–Minor and
consequential amendments.
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Schedule 2–Repeals.
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Schedule 3–Transitional
provisions.
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ELIZABETH II
1968 CHAPTER 55
AN ACT to make further provision with respect
to the accounts of friendly societies and industrial and provident societies
and the auditing of those accounts, and with respect to the rules and valuations
of friendly societies.
[26th July, 1968.]
BE it enacted by the Queen’s most
Excellent Majesty, by and with the advice and consent of the Lords Spiritual
and Temporal, and Commons, in this present Parliament assembled, and by the
authority of the same, as follows :
-
Societies : accounts and audits, etc
BOOKS OF ACCOUNT, ETC
1.-(1) Every society shall –
(a) cause to be kept proper books of
account with respect to its transactions and its assets and liabilities, and
(b) establish and maintain a satisfactory
system of control of its books of account, its cash holdings and all its
receipts and remittances.
(2) For the
purposes of paragraph (a) of the
preceding subsection proper books of account shall not be taken to be kept with
respect to the matters mentioned in that paragraph if there are not kept such
books as are necessary to give a true and fair view of the state of the affairs
of the society and to explain its transactions.
FORM IN WHICH BOOKS OF ACCOUNT MAY BE KEPT
2.-(1) Any book of account to be kept by a
society may be kept either by making entries in bound books or by recording the
matters in question in any other manner.
(2) Where any such
book of account is not kept by making entries in a bound book but by some other
means, the society shall take adequate precautions for guarding against
falsification and facilitating its discovery.
GENERAL PROVISIONS AS TO ACCOUNTS AND BALANCE SHEETS OF SOCIETIES
3.-(1) Every revenue account of a society shall
give a true and fair view –
(a) if it deals with the affairs of the
society as a whole, of the income and expenditure of the society as a whole, or
(b) if it deals with a particular
business conducted by the society, of the income and expenditure of the society
in respect of that business,
for the period to which the account relates.
(2) Every society
shall, in respect of each year of account, cause to be prepared either –
(a) a revenue account which deals with
the affairs of the society as a whole for that year, or
(b) two or more revenue accounts for
that year which deal separately with particular businesses conducted by the
society.
(3) In a case
falling within paragraph (b) of
the last preceding subsection, without prejudice to the application of
subsection (1)(b) of this section to
each revenue account dealing with a particular business conducted by the
society, the revenue accounts in question, when considered together, shall give
a true and fair view of the income and expenditure of the society as a whole
for the year of account to which they relate.
(4) Every balance
sheet of a society shall give a true and fair view as at the date of the
balance sheet –
(a) in the case of a society to which
section 28 of the Act of 1896 (quinquennial valuations) applies, of the assets
and current liabilities of the society and the resulting balances of its funds,
and
(b) in the case of any other society,
of the state of the affairs of the society.
(5) A society
shall not publish any revenue account or balance sheet unless –
(a) it has been previously audited by
the auditor or auditors last appointed to audit the accounts and balance sheet
of the society,
(b) it incorporates a report by the
auditor or auditors stating whether in their opinion it complies with the
provision of subsection (1) or subsection (4) of this section which is
applicable in that case, and
(c) it has been signed by the secretary
of the society and by two members of the committee of the society acting on
behalf of that committee.
(6) Without
prejudice to the provisions of subsection (5) of this section a society to
which section 28 of the Act of 1896 applies shall not publish any balance sheet
which does not include a statement containing the same particulars as the
statement required to be included in the annual return of that society by section
11(6) of this Act.
(7) If in relation
to any revenue account, revenue accounts or balance sheet of a society a member
of the committee of the society fails to take all reasonable steps to secure
compliance –
(a) with the provision of subsection
(1) or subsection (4) of this section which is applicable in that case, or
(b) in a case falling within subsection
(2)(b) of this section, with
subsection (3) of this section,
he shall be guilty of an offence under the appropriate registration
Act, unless he proves that he had reasonable grounds to believe, and did
believe, that a competent and reliable person was charged with the duty of
seeing that the relevant provision was complied with and was in a position to
discharge that duty.
(8) In the case of
a society to which this subsection applies, the preceding provisions of this
section shall not have effect in relation to –
(a) any revenue account of that society
for a period ending before the last day of the year of account in respect of
which the provisions of section 4(1) or section 4(5) of this Act (as the case
may be) first apply to that society, and
(b) any balance sheet of that society
relating to its affairs as at a date before that day.
(9) The last
preceding subsection applies in the case of any society which is registered
under the Act of 1896 or under the Act of 1965
(as the case may be) at the date of the commencement of this Act, or which is
first registered under either of those Acts on or after that date but before
1st January, 1969.
OBLIGATION TO APPOINT AUDITORS
4.-(1) Subject to the following provisions of
this section, every society shall in each year of account beginning on or after
1st January, 1969 appoint a qualified auditor or qualified auditors to audit
its accounts and balance sheet for that year.
(2) Subsection (1)
of this section shall not apply to any society (not being a collecting society)
if –
(a) the receipts and payments of that
society in respect of the preceding year of account did not in the aggregate
exceed £5,000 ;
(b) the number of its members at the
end of that year did not exceed five hundred ; and
(c) the value of its assets at the end
of that year did not in the aggregate exceed £5,000.
(3) Without
prejudice to the provisions of the last preceding subsection, subsection (1) of
this section shall not apply to a registered branch if –
(a) the conditions specified in
paragraphs (a) and (b) of the last preceding subsection are
satisfied in respect of that branch, and
(b) at the end of the preceding year of
account at least seventy-five per cent. of its assets had been transferred to
the society of which it is a branch or to another registered branch of that
society for the purpose of being invested, in accordance with section 44(2) of
the Act of 1896, by that society or that other branch, and the value of its
assets not so transferred did not in the aggregate exceed £5,000 :
Provided that this subsection shall not have effect so as to exempt
a registered branch from the requirements of subsection (1) of this section in
any year of account in respect of which that subsection does not apply to the
society or branch to which the assets have been transferred.
(4) A society to
which by virtue of subsection (2) or (3) of this section subsection (1) of this
section does not apply in respect of any year of account is in this Act
referred to as an exempt society in respect of that year of account.
(5) Subject to any
direction given by the registrar under the next following subsection, every
society which is an exempt society in respect of the current year of account
shall in that year appoint at its option either –
(a) a qualified auditor or qualified
auditors, or
(b) two or more persons who are not
qualified auditors,
to audit its accounts and balance sheet for that year.
(6) The registrar
may give a direction in the case of any particular society which is an exempt
society in respect of the current year of account requiring it to appoint a
qualified auditor to audit its accounts and balance sheet for that year.
(7) The registrar
may give a direction in the case of any particular society which was an exempt
society in respect of any year of account before the year of account in which
that direction is given and did not appoint a qualified auditor or qualified
auditors to audit its accounts and balance sheet for that year –
(a) requiring it to appoint a qualified
auditor to audit those accounts and that balance sheet, and
(b) in a case where that society has
sent to him 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 to him within three months from receipt of the
direction a further annual return complying with the requirements of this Act
and of section 27 of the Act of 1896 or, as the case may be, of section 39 of
the Act of 1965 (other than that as to time
of sending).
(8) Regulations
made by the Chief Registrar with the consent of the Treasury may –
(a) substitute for any sum or number
for the time being specified in subsection (2) of this section or for any sum
or percentage for the time being specified in subsection (3) of this section
such sum, number or percentage as may be specified in the regulations ; and
(b) prescribe what receipts and
payments of a society shall be taken into account for the purposes of those
subsections.
RE-APPOINTMENT AND REMOVAL OF QUALIFIED AUDITORS
5.-(1) A qualified auditor appointed to audit
the accounts and balance sheet of a society for the preceding year of account
shall be re-appointed as auditor of the society for the current year of account
unless –
(a) a resolution has been passed at a
general meeting of the society appointing somebody instead of him or providing
expressly that he shall not be re-appointed, or
(b) he has given to the society notice
in writing of his unwillingness to be re-appointed, or
(c) he is ineligible for appointment as
auditor of the society for the current year of account, or
(d) he has ceased to act as auditor of
the society by reason of incapacity :
Provided that, where notice is given of an intended resolution to
appoint some person or persons in place of a retiring auditor and the
resolution cannot be proceeded with at the meeting because of the death or
incapacity of that person or persons, or because he or they are ineligible for
appointment as auditor or auditors of the society for the current year of
account (as the case may be), the retiring auditor shall not be automatically
re-appointed by virtue of this subsection.
(2) For the
purposes of the last preceding subsection, a person is ineligible for
appointment as auditor of a society for the current year of account if, but
only if –
(a) his appointment in relation to the
society is prohibited by section 8 of this Act, or
(b) (in the case of a society which is
not an exempt society in respect of that year of account) he is not a qualified
auditor at the time when the question of his appointment falls to be
considered.
PROVISIONS AS TO RESOLUTIONS
RELATING TO APPOINTMENT AND REMOVAL OF AUDITORS
6.-(1) Subject to subsection (5) of this
section, a resolution at a general meeting of a society –
(a) appointing another person as
auditor in place of a retiring qualified auditor, or
(b) providing expressly that a retiring
qualified auditor shall not be re-appointed,
shall not be effective unless notice of the intention to move it
has been given to the society not less than twenty-eight days before the
meeting at which it is moved.
(2) Where notice
of the intention to move any such resolution has been given under subsection
(1) of this section to a society which is required by its rules to give notice
to its members of the meeting at which the resolution is to be moved, the
society shall if it is practicable to do so give them notice of the resolution
at the same time and in the same manner as it gives notice of the meeting.
(3) Where notice
of the intention to move any such resolution has been given to any society
under subsection (1) of this section, and that society does not give notice of
the resolution under the last preceding subsection, it shall give notice of the
resolution to its members not less than fourteen days before the meeting at
which the resolution is to be moved, either by advertisement in a newspaper
having an appropriate circulation or in any other way allowed by the rules of
the society.
(4) Where –
(a) for any of the reasons mentioned in
the proviso to subsection (1) of the last preceding section an intended
resolution to appoint some person or persons in place of a retiring qualified
auditor cannot be proceeded with at the meeting, and
(b) by the rules of the society an
auditor can only be appointed by a resolution passed at a general meeting after
notice of the intended resolution has been given to the society before the
meeting,
a resolution passed at that meeting re-appointing the retiring
auditor or appointing an auditor in place of the retiring auditor shall be
effective notwithstanding that no notice of that resolution has been given to
the society under its rules.
(5) On receipt by
a society of notice given under subsection (1) of this section of an intended
resolution, it shall forthwith send a copy of the notice to the retiring
auditor.
(6) On receipt of
a copy of such a notice, the retiring auditor may at any time before the date
of the general meeting make representations in writing to the society (not
exceeding a reasonable length) with respect to the intended resolution, and,
without prejudice to the preceding provision, the retiring auditor may –
(a) notify the society that he intends
to make such representations, and
(b) request that notice of his
intention, or of any such representations made by him and received by the
society before notice of the intended resolution is given to its members, shall
be given to members of the society.
(7) Subject to the
next following subsection, a society which receives representations or a
notification of intended representations under the last preceding subsection
before the date when notice of the intended resolution is required by
subsection (2) or subsection (3) of this section (as the case may be) to be
given to its members shall –
(a) in any notice of the resolution
given to its members, state that it has received those representations or that
notification (as the may be),
(b) in any such notice, state that any
member may receive on demand made before the date of the general meeting a copy
of any representations which have been or may be received by the society before
that date, and
(c) send a copy of any representations
received by the society before the date of the meeting to any member on demand
made before that date ;
but without prejudice either to the preceding provisions of this
subsection or to his right to be heard orally, the retiring auditor may also
require that any representations made by him before the date of the general
meeting shall be read out at the meeting.
(8) Copies of any
such representations need not be sent out, and the representations need not be
read out at the meeting, if, on the application either of the society or of any
other person, the High Court is satisfied that the rights conferred by this
section are being abused to secure needless publicity for defamatory matter ;
and the Court may order the costs of the society on an application under this
section to be paid, in whole or in part, by the auditor, notwithstanding that
he is not a party to the application.
(9) In the
application of subsection (8) of this section to a Scottish society, for the
reference to the High Court there shall be substituted a reference to the Court
of Session and for the reference to costs there shall be substituted a
reference to expenses.
(10) Any provision in this
section which requires notice to be given to the members of a society or
confers any right upon a member (as the case may be) shall be construed in the
case of a meeting of delegates appointed by members as requiring the notice to
be given to the delegates so appointed or conferring the right upon a delegate
(as the case may be).
QUALIFIED AUDITORS
7.-(1) Subject to the next following
subsection, no person shall be a qualified auditor for the purposes of this Act
unless he is either a member of one or more of the following bodies –
(a) the Institute of Chartered
Accountants in England and Wales ;
(b) the Institute of Chartered
Accountants of Scotland ;
(c) the Association of Certified and
Corporate Accountants ;
(d) the Institute of Chartered
Accountants in Ireland ;
(e) any other body of accountants
established in the United
Kingdom and for the time being recognised for the purposes of section 161 (1)(a) of the Companies Act, 1948
by the Board of Trade ;
or a person who is for the time being authorised
by the Board of Trade under section 161(1)(b)
of that Act as being a person with similar qualifications obtained outside the United Kingdom.
(2) Subject to
subsection (3) of this section, for the purposes of any provision (except
subsections (6) and (7) of section 4) of this Act a person who is not a
qualified auditor under subsection (1) of this section shall nevertheless be a qualified
auditor in relation to any particular society if –
(a) he is at the passing of this Act an
approved auditor appointed by the Treasury under section 30 of the Act of 1896
or under section 38 of the Act of 1965,
and
(b) he audited the accounts and balance
sheet of that society for the year of account immediately preceding the year of
account in which this Act is passed and for every year of account (if any)
since the first-mentioned year until the current year of account.
(3) The Chief
Registrar may at any time direct that a person who is a qualified auditor in
relation to a particular society or particular societies by virtue of the last
preceding subsection shall cease to be so qualified from the date of that
direction.
RESTRICTIONS ON APPOINTMENT OF AUDITORS
8.-(1) None of the following persons shall be
appointed as auditor of a society –
(a) an officer or servant of the
society ;
(b) a person who is a partner of or in
the employment of, or who employs, an officer or servant of the society ; or
(c) a body corporate.
(2) A person shall
also not be appointed as auditor of an industrial and provident society if
–
(a) his appointment as auditor of any
other industrial and provident society –
(i) which
is a subsidiary of that society, or
(ii) of which that
society is a subsidiary, or
(iii) which is a
subsidiary of the society of which that society is a subsidiary,
is prohibited by virtue of the last preceding subsection ; or
[(b) he is –
(i) an
officer or servant (otherwise than as auditor) of a company which is a
subsidiary of that society ; or
(ii) a person who
is a partner of or in the employment of a person who is an officer or servant
(otherwise than as auditor) of such a company.]
(3) Nothing in
this section shall prevent the appointment as auditor of a society of a
Scottish firm if none of the partners of the firm is ineligible for appointment
as auditor of the society by virtue of any of the provisions of this section.
(4) Any
appointment made by a society in contravention of any of those provisions shall
not be an effective appointment for the purposes of this Act.
(5) In this
section “company” has the same meaning as in section 15 of this Act
and references to an officer or servant shall be construed as not including an
auditor.
AUDITORS’ REPORT AND RIGHT OF ACCESS TO BOOKS AND TO ATTEND
AND BE HEARD AT MEETINGS
9.-(1) The auditors of a society shall make a
report to the society on the accounts examined by them, and on the revenue
account or accounts and the balance sheet of the society 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 the appropriate
registration 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 3 of this Act of the
income and expenditure of the society 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, a true and fair view in accordance with that section
of the income and expenditure of the society 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 assets and current
liabilities of the society and the resulting balances of its funds or of the
state of the affairs of the society (as the case may require) as at the end of
that year of account.
(3) Without prejudice
to the provisions of the last preceding subsection, 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 society, 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 has kept proper
books of account in accordance with the requirements of section 1(1)(a) of this Act ;
(b) whether the society has maintained
a satisfactory system of control over its transactions in accordance with the
requirements of section 1(1)(b) of
this Act ; 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 ;
and if the auditors are of opinion that the society has failed to
comply with section 1(1)(a) or (b) of this Act, 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, the auditors shall state
that fact in their report.
(5) Every auditor
of a society –
(a) shall have a right of access at all
times to the books, deeds and accounts of the society, and to all other
documents relating to its affairs, and
(b) shall be entitled to require from
the officers of the society such information and explanations as he thinks
necessary for the performance of the duties of the auditors.
(6) 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.
(7) The auditors
of a society shall be entitled –
(a) to attend any general meeting of
the society, and to receive all notices of and other communications relating to
any general meeting which any member of the society 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.
(8) The preceding
provisions of this section shall not have effect so as to impose any duties or
confer any rights upon auditors appointed in respect of any year of account of
a society beginning before 1st
January, 1969.
REMUNERATION OF QUALIFIED AUDITORS
10.-(1) Regulations made by the Chief Registrar
with the consent of the Treasury may prescribe the maximum rates of
remuneration to be paid by societies for the audit of their accounts and
balance sheets by qualified auditors.
(2) No auditor
shall ask for, receive or be entitled to receive remuneration in excess of the
rate prescribed in respect of his services by regulations made under this
section.
AMENDMENTS RELATING TO ANNUAL RETURNS OF SOCIETIES
11.-(1) The annual return which a society is
required to send to the registrar by section 27(1) of the Act of 1896 or to the
appropriate registrar by section 39(1) of the Act of 1965
(as the case may be) shall be a return relating to the affairs of the society,
and accordingly –
(a) for the words from “of the
receipts” in section 27(1) of the Act of 1896 to the end of the
subsection, and
(b) for the words from “of the
income” to “audited” in section 39(1) of the Act of 1965,
there shall be substituted the words “relating to its affairs
for the period required by this section to be included in the return” ;
and in section 27(2)(b) of the Act of
1896 for the words “out to” there shall be substituted the words
“up for the period beginning with the date of registration of the society
or branch under this Act or with the first day of January of the year preceding
the year in which the return is required to be sent, whichever is the later,
and ending with”.
(2) The annual
return sent by a society under either of the provisions mentioned in the
preceding subsection –
(a) shall contain the revenue account
or accounts of the society prepared in accordance with section 3(2) of this Act
in respect of the year of account to which the return relates, and a balance
sheet as at the end of that year, and
(b) 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 under section 9 of
this Act.
(3) The power of
the chief registrar under section 98(3) of the Act of 1896 or under section
72(1) of the Act of 1965 (as the
case may be) to determine the form of an annual return and the particulars to
be contained in such a return shall be without prejudice to the provisions of
the last preceding subsection.
(4) A society
which is required to send an annual return to the registrar by section 27(1) of
the Act of 1896 shall send together with that return a copy of the report of
the auditors on the accounts and balance sheet contained in the return, and
accordingly, in section 27(3) of the Act of 1896, for the words “any
special report of the auditors” there shall be substituted the words
“the report of the auditors on the accounts and balance sheet contained
in the return”.
(5) Every society
shall provide, together with –
(a) every copy of its last annual
return supplied on demand to a member or person interested in the funds of the
society, in accordance with the requirements of section 39(a) of the Act of 1896 or section 39(5) of the Act of 1965 (as the case may be), and
(b) every balance sheet or other
document so supplied in accordance with the requirements of section 39(b) of the Act of 1896,
a copy of the report of the auditors on the accounts and balance
sheet contained in the return or on that balance sheet or document so supplied,
as the case may require.
(6) The annual
return sent to the registrar under section 27 of the Act of 1896 by a society
to which section 28 of that Act applies shall include a statement specifying
either –
(a) in the case of a society on which
no exemption from the provisions of section 28 of that Act has been conferred
either under subsection (5) of that section or under section 16(3) of this Act,
the date of the last report under that section on the condition of the society
or the dates respectively of the last reports under that section on the assets
and liabilities of the society in respect of particular businesses conducted by
the society, 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 on which a
complete exemption from the provisions of that section has been conferred under
subsection (5) of that section, the reason for that exemption ; or
(c) in the case of a society on which a
partial exemption from the provisions of that section has been conferred under
section 16(3) of this Act –
(i) 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 in respect of any
business or businesses conducted by the society, and a place where a copy of
that report or copies of those reports (as the case may be) may be inspected ;
and
(ii) the reason
for that partial exemption.
(7) The preceding
provisions of this section shall not have effect in any case where the annual
return or the balance sheet or other document relating to the affairs of a
society (as the case may be) relates to a year of account beginning before 1st
January, 1969.
(8) Section 27(2)(a) and (c) of the Act of 1896 and section 39(2)(a) and (b) of the Act of
1965 shall cease to have effect.
CONSEQUENTIAL AMENDMENTS OF RULES BY SOCIETIES
12.-(1) Notwithstanding anything in the rules of
any society, the committee of a society may by resolution passed during the
appropriate period after the commencement of this Act make such amendments of
the rules of the society as may be consequential on the provisions of this Act.
(2) For the
purposes of the preceding subsection the appropriate period after the
commencement of this Act, in relation to any society, shall be whichever is the
longer of the following two periods, that is to say –
(a) the period of one year beginning
with the date of the commencement of this Act, and
(b) the period beginning with the date
of the commencement of this Act and ending with the date on which an amendment
of the rules of that society is first registered after that date under section
13 of the Act of 1896 or under section 10 of the Act of 1965.
(3) Notwithstanding
anything in section 13 of the Act of 1896 or in section 10 of the Act of 1965,14 after the end
of one year beginning with the date of the commencement of this Act the
registrar or the appropriate registrar (as the case may be) shall not be
required to register any amendment of a society’s rules unless such
consequential amendments of the rules of that society as are mentioned in
subsection (1) of this section either have been made before the application for
registration of that amendment or are to be effected by that amendment.
Industrial and provident societies : group accounts
GROUP ACCOUNTS OF INDUSTRIAL AND PROVIDENT SOCIETIES
13.-(1) Subject to the provisions of the next
following section, where at the end of a year of account of an industrial and
provident society beginning on or after 1st January, 1969 the society has
subsidiaries, it shall cause to be prepared accounts for that year (in this Act
referred to as “group accounts”) dealing as mentioned in the
following provisions of this section with the state of affairs and income and
expenditure of the society and its subsidiaries.
(2) The group
accounts of an industrial and provident society shall give a true and fair view
of the state of affairs and income and expenditure of the society and the
subsidiaries dealt with thereby as a whole, so far as concerns members of the
society.
(3) Without
prejudice to the provisions of the last preceding subsection, the group
accounts shall comprise such accounts and contain such particulars as the Chief
Registrar may prescribe by regulations made under this section.
(4) Where the year
of account of a subsidiary does not coincide with that of the industrial and
provident society of which it is a subsidiary, the group accounts shall, unless
the Chief Registrar on the application or with the consent of the committee of
the society otherwise directs, deal with the subsidiary’s state of
affairs as at the end of its year of account ending with or last before that of
the society, and with the subsidiary’s income and expenditure for that
year of account.
(5) An industrial
and provident society which has caused group accounts to be prepared in
accordance with subsection (1) of this section shall submit those accounts for
audit to the auditors appointed to audit the accounts and balance sheet of the
society for that year of account : and those auditors shall make a report to
the society on the group accounts, stating whether those accounts have been
properly prepared in accordance with the requirements of this Act and the
regulations (if any) made under this Act and whether in their opinion they give
a true and fair view of the state of affairs and income and expenditure of the
society and its subsidiaries in accordance with subsection (2) of this section.
(6) An industrial
and provident society shall send its group accounts and a copy of the report of
the auditors under the last preceding subsection to the appropriate registrar
together with its annual return for the year of account to which those group
accounts relate.
(7) The latest
group accounts of an industrial and provident society shall be supplied free of
charge, together with the latest annual return of the society, to every member
or person interested in the funds of the society who applies under section
39(5) of the Act of 1965 for a
copy of the latest annual return; and any such group accounts shall be taken to
be a document kept by the appropriate registrar under that Act for the purposes
of section 71(1) of that Act.
EXEMPTION FROM REQUIREMENTS IN RESPECT OF GROUP ACCOUNTS
14.-(1) Section 13 of this Act shall not require
group accounts to be prepared by an industrial and provident society where that
society is at the end of its year of account the wholly owned subsidiary of
another body corporate incorporated in Great Britain.
(2) The group
accounts of an industrial and provident society prepared under that section
need not deal with a subsidiary of the society if in the opinion of the
committee of the society, approved by the Chief Registrar –
(a) it is impracticable, or would be of
no real value to the members of the society, in view of the insignificant
amounts involved, or would involve expense or delay out of proportion to the
value to members of the society; or
(b) the result would be misleading, or
harmful to the business of the society or any of its subsidiaries; or
(c) the business of the society and
that of the subsidiary are so different that they cannot reasonably be treated
as a single undertaking.
(3) If in respect
of each subsidiary of an industrial and provident society the committee of the
society is of any such opinion as is mentioned in the last preceding subsection
and that opinion is approved by the Chief Registrar, then that industrial and
provident society shall not be required to cause group accounts to be prepared
under section 13 of this Act.
(4) For the
purposes of this section an industrial and provident society shall be deemed to
be the wholly owned subsidiary of another body corporate if it has no members
except that other body corporate and the wholly owned subsidiaries of that body
and its or their nominees.
MEANING OF “SUBSIDIARY”
15.-(1) For the purposes of this Act, a company
shall, subject to the provisions of subsection (4) of this section, be deemed
to be a subsidiary of an industrial and provident society if, but only if, that
society either –
(a) is a member of the company and
controls the composition of its board of directors; or
(b) holds more than half in nominal
value of the company’s equity share capital.
(2) For the
purposes of paragraph (a) of the
preceding subsection, the composition of a company’s board of directors
shall be deemed to be controlled by an industrial and provident society if, but
only if, that society by the exercise of some power exercisable by it without
the consent or concurrence of any other person can appoint or remove the holders
of all or a majority of the directorships.
(3) A society
shall be deemed for the purposes of subsection (2) of this section to have
power to appoint to a directorship if either –
(a) a person cannot be appointed
thereto without the exercise in his favour by that
society of such a power as is mentioned in that subsection; or
(b) a person’s appointment
thereto follows necessarily from his appointment as a member of the committee
of that society; or
(c) the directorship is held by that
society itself.
(4) In determining
whether a company is a subsidiary of an industrial and provident society
–
(a) any shares held or power
exercisable by that society in a fiduciary capacity shall be treated as not
held or exercisable by it;
(b) (subject to the two following paragraphs),
any shares held or power exercisable by any person as a nominee for that
society (except where that society is concerned only in a fiduciary capacity)
shall be treated as held or exercisable by that society;
(c) any shares held or power exercisable
by any person by virtue of the provisions of any debentures of the company or
of a trust deed for securing any issue of such debentures shall be disregarded;
and
(d) any shares held or power
exercisable by, or by a nominee for, that society (not being held or
exercisable as mentioned in the last preceding paragraph) shall be treated as
not held or exercisable by that society if the ordinary business of that
society includes the lending of money and the shares are held or power is
exercisable as mentioned above by way of security only for the purposes of a
transaction entered into in the ordinary course of that business.
(5) For the
purposes of this Act, an industrial and provident society shall be deemed to be
a subsidiary of another such society if, but only if, that other society either
–
(a) is a member of the first mentioned
society and controls the composition of its committee; or
(b) can exercise a majority of the
votes to which members of the first-mentioned society are entitled under its
rules.
(6) For the
purposes of paragraph (a) of the
last preceding subsection, the composition of a society’s committee shall
be deemed to be controlled by another society if, but only if, either –
(a) that other society by the exercise
of some power exercisable by it without the consent or concurrence of any other
person can appoint and remove the members or a majority of the members of that
committee; or
(b) that other society is itself a
member of that committee and by the exercise of such a power as is mentioned in
the preceding paragraph can either appoint and remove the remaining members of
that committee or appoint and remove such number of members of that committee
as, together with itself, would constitute a majority of the members of that
committee.
(7) A society
shall be deemed for the purposes of subsection (6) of this section to have
power to appoint a person to membership of the committee of another society if
either –
(a) he cannot be appointed without the
exercise in his favour by the first mentioned society
of such a power as is mentioned in paragraph (a) of that subsection; or
(b) his appointment follows necessarily
from his appointment as a member of the committee of the first-mentioned
society.
(8) Subsection (4)
of this section shall apply with the necessary modifications in determining
whether an industrial and provident society is a subsidiary of another such
society as it applies in determining whether a company is a subsidiary of such
a society.
(9) In this
section “company” includes any body
corporate other than an industrial and provident society, and “equity
share capital” means, in relation to a company, its issued share capital
excluding any part thereof which, neither as respects dividends nor as respects
capital, carries any right to participate beyond a specified amount in a
distribution.
Societies registered under the Act of 1896 : valuations and rules
AMENDMENTS WITH RESPECT TO VALUATIONS OF SOCIETIES REGISTERED UNDER
THE ACT OF 1896
16.-(1) Every valuation under section 28 of the Act
of 1896 (quinquennial valuations) shall be made by an actuary having such
qualifications as the Chief Registrar may prescribe by regulations made under
this section, and accordingly no person shall be appointed a public valuer
under section 30 of that Act unless he is an actuary qualified in accordance
with regulations so made.
(2) Subsections
(1)(b) and (3) of section 28 of the
Act of 1896 shall cease to have effect.
(3) The Chief
Registrar may dispense with the provisions of section 28 of the Act of 1896 in
respect of any particular business conducted by a society registered under that
Act if in his 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 on which a partial exemption is conferred
under this subsection section 28(1) of that Act shall have effect (subject to
any regulations made or direction given under this section) as if –
(a) it required that society 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 that section, and
(b) the report required to be sent to
the registrar under that section were a report on the assets and liabilities so
valued.
(4) Regulations
made by the Chief Registrar may provide –
(a) that in relation to any society
registered under the Act of 1896 of a class specified in the regulations
section 28 of that Act shall have effect as if for the period of five years
specified in that section as the maximum interval between valuations under that
section there were substituted a period of three years;
(b) that in relation to any society so
registered of a class specified in the regulations that section shall have
effect as if it required that society –
(i) 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 registrar a report
of 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 (3) of this section relates) to be
so valued and to send to the registrar a report on those assets and liabilities
at least once in every five years ; and
(c) that every society of a class
specified in the regulations which is first registered under that Act after the
commencement of this Act shall cause its assets and liabilities to be valued
for the first time under that section as at a date so specified.
(5) Without
prejudice to the provisions of the last preceding subsection, if in the opinion
of the Chief Registrar it is expedient in the interests of the members of any particular
society registered under the Act of 1896 to do so, he may direct that in
relation to that society section 28 of that Act shall have effect –
(a) as if for the period of five years
specified in that section as the maximum interval between valuations under that
section there were substituted a period of three years ; or
(b) as if it required that society
–
(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
registrar 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 (3) of this section relates) to be
so valued and to send to the registrar a report on those assets and liabilities
at least once in every five years.
(6) The Chief
Registrar may at any time revoke a direction given by him under subsection (5)
of this section.
AMENDMENTS WITH RESPECT TO THE RULES OF SOCIETIES REGISTERED UNDER
THE ACT OF 1896
17.-(1) It is hereby declared for the avoidance
of doubt that nothing in paragraph 2 of Schedule 1 to the Act of 1896 or
in section 8(2)(a) of the Industrial Assurance Act,
1923 requires the rules of a society to contain tables in
accordance with which obligations to provide benefits to members have been
undertaken or policies of assurance have been issued by the society, if the
rules of the society provide that no further obligations may be undertaken or
(as the case may be) no further policies may be issued in accordance with those
tables.
(2) The tables
which the rules of a society are required to contain by virtue of paragraph 2
of Schedule 1 to the Act of 1896 or by section 8 of the Industrial Assurance Act,
1923 and any tables contained in the rules of a branch shall, in
the case of a society or branch to which this subsection applies which proposes
to carry on long-term business within the meaning of the Insurance Companies Act,
1958, be tables which, in so far as they relate to that business,
have been certified by an actuary who is qualified in accordance with
regulations under the last preceding section to make a valuation under section 28
of the Act of 1896.
(3) The last
preceding subsection applies to every society and branch which is first
registered under the Act of 1896 after the commencement of this Act other than
–
(a) a society formed by the
amalgamation of two or more societies so registered before the commencement of
this Act, and
(b) a branch of a society so registered
before the commencement of this Act.
(4) The rules of a
society registered under the Act of 1896 may provide for the reinsurance, to
such extent as may from time to time be approved by an actuary who is qualified
as mentioned in subsection (2) of this section, of risks of any class against
which persons are, or are to be, insured by that society.
(5) The notice of
a general meeting which a collecting society is required to give to its members
by section 19 of the Industrial Assurance Act, 1923 may, instead of
containing a copy of every amendment of a rule intended to be proposed at the
meeting, contain in respect of any such amendment an explanation of its purpose
together with a notification that a copy of the amendment may be obtained by
any member on application to the society, and accordingly, in subsection (3) of
that section, for the words from “contain” to the end of the
subsection, there shall be substituted the words “in respect of each
amendment contain either –
(a) a copy of that amendment, or
(b) (in the case of an amendment
proposed to the rules of a collecting society) an explanation of its purpose,
together with a notification that a copy of the amendment may be obtained by
any member on application to the society.”.
Miscellaneous and supplementary
OFFENCES
18. Any
contravention by a society of any provision of this Act and any failure by a
society to comply with any provision of this Act or any direction given by the
registrar under section 4 of this Act shall be an offence under the appropriate
registration Act.
REGULATIONS
19.-(1) Any power to make regulations under this
Act may be exercised so as to make different provision in relation to different
cases or different circumstances to which the power is applicable.
(2) Any power to
make regulations under this Act shall be exercisable by statutory instrument,
and any statutory instrument containing any regulations made under section 4 or
section 10 of this Act shall be subject to annulment in pursuance of a
resolution of either House of Parliament.
(3) The Statutory Instruments
Act, 1946 shall apply to all powers of making statutory
instruments under this Act as if the Chief Registrar were a Minister of the
Crown.
MINOR AND CONSEQUENTIAL AMENDMENTS, REPEALS AND TRANSITIONAL
PROVISIONS
20.-(1) Except as provided by Schedule 3 to
this Act –
(a) the enactments specified in
Schedule 1 to this Act shall have effect subject to the amendments set out
in that Schedule, being minor amendments and amendments consequential on the
preceding provisions of this Act; and
(b) the enactments specified in
Schedule 2 to this Act are hereby repealed to the extent specified in the
third column of that Schedule.
(2) Schedule 3
to this Act shall have effect for the purpose of the transition to the
provisions of this Act from the law in force before the commencement of those
provisions.
INTERPRETATION
21.-(1) In this Act, except so far as the
context otherwise requires, the following expressions have the following
meanings respectively, that is to say –
“Act of 1896” means the Friendly Societies Act,
1896;
“Act of 1965” means the Industrial and Provident
Societies Act, 1965;
“annual return”, in relation to a society registered
under the Act of 1896, means the annual return which that society is required
to send to the registrar by section 27(1) of that Act, and in relation to a
society registered under the Act of 1965,16 means the annual return which that
society is required to send to the appropriate registrar by section 39(1) of
that Act; 17
“collecting society” has the same meaning as in the Industrial Assurance Act,
1923;
“exempt society” has the meaning assigned to it by
section 4(4) of this Act;
“group accounts” has the meaning assigned to it by
section 13 of this Act;
“industrial and provident society” means a society
registered under the Act of 1965;
“registered branch” means a branch registered under the
Act of 1896 of a society registered under that Act;
“Scottish society” means any body
which is either a society registered under the Act of 1896 or a society
registered under the Act of 196517 (as the case may be) in Scotland;
“society” means any body
which is either a society registered under the Act of 1896 or a society
registered under the Act of 1965;17
“subsidiary” has the meaning assigned to it by section
15 of this Act;
“year of account” –
(a) in relation to a
society registered under the Act of 1896, means with respect to the year in
which it is so registered the period beginning with the date of registration
and ending with 31st December of that year and in any other case a period of twelve
months ending with 31st December; and
(b) in relation to a
society registered under the Act of 1965,17 means any period required by section
39 of that Act to be included in an annual return of that society.
(2) In this Act
“the appropriate registration Act” –
(a) in relation to a society registered
under the Act of 1896 or to a member of the committee of any such society,
means the Act of 1896, and
(b) in relation to a society registered
under the Act of 1965 or to a member of the committee of any such society,
means the Act of 1965;
and any reference to an offence under the appropriate registration
Act is a reference to an offence falling within section 89 of the Act of 1896
or to an offence under section 61 of the Act of 1965 (as the case may require).
(3) In this Act,
“the current year of account”, in relation to the appointment of an
auditor or auditors, means the year of account in which the question of that
appointment arises, and “the preceding year of account” means the
year of account immediately preceding the current year of account.
(4) In this Act,
except so far as the context otherwise requires –
(a) references to a society registered
and to the registration of a society under the Act of 1896 include respectively
references to a registered branch and to the registration under that Act of a
branch of a society so registered; and
(b) references to a society registered
under the Act of 196518
include references to a society deemed to be so registered by virtue of section
4 of that Act.
CHANNEL
ISLANDS AND ISLE OF MAN.
22.-(1) Her Majesty may by Order in Council
provide –
(a) that all or any of the provisions
of this Act shall extend to any of the Channel Islands,
or
(b) that all or any of the provisions
of this Act, in so far as those provisions relate to societies registered under
the Act of 1896, shall extend to the Isle of Man,
with in either case such exceptions,
adaptations and modifications (if any) as may be specified in the Order.
(2) Any Order in
Council made under this section may be varied or revoked by a subsequent Order
in Council so made.
(3) Any Order in
Council revoking an Order in Council made under this section may contain such
transitional or other incidental or supplemental provisions as appear to Her
Majesty to be necessary or expedient in consequence of the revocation.
SHORT TITLE, CITATION, CONSTRUCTION AND EXTENT
23.-(1) This Act may be cited as the Friendly and Industrial
and Provident Societies Act, 1968.
(2) This Act and
the Industrial
Assurance Acts, 1923 to 1958 may be cited together as the Industrial Assurance Acts,
1923 to 1968; this Act and the Friendly Societies Acts, 1896 to 1958 may be cited
together as the Friendly
Societies Acts, 1896 to 1968; and this Act and the Industrial and Provident
Societies Acts, 1965 and 1967 may be cited together as the Industrial and Provident
Societies Acts, 1965 to 1968.
(3) References in
this Act to any other enactment shall, except so far as the context otherwise
requires, be construed as references to that enactment as amended by or under
any other enactment, including this Act.
(4) This Act
–
(a) in its application to collecting
societies, shall be construed as one with the Industrial Assurance Acts,
1923 to 1958;
(b) in its application to societies
registered under the Act of 1896, not being collecting societies, shall be
construed as one with the Friendly Societies Acts, 1896 to 1958; and
(c) in its application to societies
registered under the Act of 1965, shall be
construed as one with that Act.
(5) This Act shall
not extend to Northern
Ireland.
SCHEDULES
SCHEDULE 1
MINOR AND CONSEQUENTIAL AMENDMENTS
FRIENDLY SOCIETIES ACT, 1896. (c.25)
1. In
section 29 (display of copy of last balance sheet and valuation report at
registered office) –
(a) for the words “of the last
quinquennial valuation” there shall be substituted the words “a
copy of the last report under section 28 of this Act 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”; and
(b) for the words “any special
report of the auditors” there shall be substituted the words “the
report of the auditors on the balance sheet”.
2. In
section 30(1) (appointment of auditors and valuers by the Treasury), the words
“audits and” and “auditors and” shall be omitted, and
for the words “approved auditors and” there shall be substituted
the word “public”.
3. In
section 16 (registry of societies assuring annuities), for the words from
“the actuary” to “five years” there shall be substituted
the words “an actuary who is qualified in accordance with regulations
made under section 16 of the Friendly and Industrial and Provident Societies Act, 1968
to make a valuation under section 28 of this Act”.
4. In
section 39 (obligation to supply to members a copy of the last annual return or
a balance sheet or other document containing the same particulars as that
return), for paragraph (b) there
shall be substituted the following paragraph –
“(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.”
5. In
section 100 (evidence of documents), for the words “approved auditor
or” there shall be substituted the word “public”.
6. In
Schedule 1, in paragraph 6 (rules of societies registered under the Act to
provide for annual returns), for the words from first “of” to “expenditure” there shall be
substituted the words “relating to the affairs”.
7. In
Schedule 1, for paragraph 10 (form of accounts in case of certain
societies) there shall be substituted the following paragraph –
“10. The
keeping of proper accounts in accordance with the requirements of section 1 of
the Friendly and
Industrial and Provident Societies Act, 1968, and the keeping
separate account of the expenses of management and of all contributions and
other moneys which may be applied to those expenses.”
8. In
Schedule 1, in paragraph 11 (rules of certain societies registered under
the Act to provide for valuations of assets and liabilities), for the words
from “a valuation” to the end of the paragraph, there shall be
substituted the words “such periodic valuation or valuations (if any) of
the assets and liabilities of the society as a whole, or of the assets and
liabilities of the society in respect of any particular business or businesses
conducted by the society, as may from time to time be required by law in the
case of that society”.
SUPERANNUATION AND OTHER TRUST FUNDS (VALIDATION) ACT, 1927 (c.41)
9. In
section 8 (provisions as to interpretation) the definitions of
“Actuary” and “Auditor” shall be omitted, and the
following definitions shall be inserted at the appropriate points in
alphabetical order –
“ ‘Actuary’ means a person having such
qualifications as may be prescribed by regulations made by the Chief Registrar
and laid before Parliament;
‘Auditor’ means a person who is a qualified auditor for
the purposes of the Friendly and Industrial and Provident Societies Act, 1968:”.
INDUSTRIAL AND PROVIDENT SOCIETIES ACT, 1965 (c.12)
10. In
section 39 (annual returns), in subsection (2)(c) (period to be included in
a society’s annual return) for the words from “of the
society’s last annual return” to the end of the subsection there
shall be substituted the words “with the date to which the
society’s last annual return was made up, whichever is the later, and
ending –
(i) with
the date of the last balance sheet published by the society before the
appropriate date; or
(ii) if the date
of that balance sheet is earlier than 31st August immediately preceding the
appropriate date or later than 31st January of the year in which the
appropriate date falls, with 31st December immediately preceding the
appropriate date”,
and the following subsection shall be inserted after subsection (2)
–
“(2A) For the
purposes of paragraph (c) of
subsection (2) of this section “the appropriate date”, in relation
to an annual return of a society, is 31st March of the year in which that
return is required by subsection (1) of this section to be sent to the
appropriate registrar or the date on which that return is so sent, whichever is
the earlier.”
11. In
section 74 (general provisions as to interpretation), in the definition of “officer”, for the
words from “approved” to “audit” there shall be
substituted the words “auditor appointed by the society in accordance
with the requirements of the Friendly and Industrial and Provident Societies Act, 1968”.
12. In
Schedule 1, in paragraph 10 (rules of societies to provide for audit of
accounts), for the words
“approved auditors” there shall be substituted the words
“auditors appointed by the society in accordance with the requirements of
the Friendly and
Industrial and Provident Societies Act, 1968”.
SCHEDULE 2
REPEALS
|
Chapter
|
Short
Title
|
Extent
of Repeal
|
|
59 & 60
Vict. c. 25.
|
The Friendly Societies Act, 1896.
|
Section 2(2)(a).
In section 6 the words “or caused to be made
by”.
Section 26.
In section 27(2), paragraphs (a) and (c).
In section 28, sub-section (1)(b), the words “and calling or profession” in
subsection (2)(b), subsection (3),
and the words “with the approval of the Treasury” in sub-section
(5).
Section 30(2).
In section 80(1) the word “approved”.
|
|
13 & 14 Geo.
5. c. 8.
|
The Industrial Assurance Act, 1923.
|
Section 15(2).
|
|
11 & 12 Geo.
6. c. 39.
|
The Industrial Assurance and Friendly Societies Act, 1948.
|
Sections 14 and
20.
|
|
1965 c. 12.
|
The Industrial and Provi-dent Societies
Act, 1965.
|
Section 37.
Section 38.
Section 39(2)(a)
and (b).
In section 72(2) the words “or approved auditor”.
|
SCHEDULE 3
TRANSITIONAL PROVISIONS
1. Where
after the commencement of this Act by virtue of subsection (8) of section 3 of
this Act the provisions of that section do not apply in relation to any balance
sheet published by an industrial and provident society, nothing in section
20(1)(b) of this Act shall affect the
operation in relation to that balance sheet and any copy of that balance sheet
of section 37(4) of the Act of 1965.
2. Where
after the commencement of this Act neither subsection (1) nor subsection (5) of
section 4 of this Act applies to a society in respect of any year of account,
nothing in sections 11(8) and 20(1) of this Act shall affect the operation in
relation to that society in respect of that year of account of the following provisions,
in so far as they are applicable to that society, that is to say –
(a) sections 26(1) and 27(2)(c) of the Act of 1896;
(b) section 15(2) of the Industrial Assurance Act,
1923;
(c) section 14 of the Industrial Assurance and
Friendly Societies Act, 1948; and
(d) sections 37(1) and (2) and 74 of
the Act of 1965.
3. Where
after the commencement of this Act neither subsection (1) nor subsection (5) of
section 4 of this Act applies to a society in respect of any year of account,
nothing in section 20(1) of this Act shall affect the operation –
(a) of section 100 of the Act of 1896,
in the case of a society registered under that Act, or
(b) of section 72(2) of the Act of
1965, in the case of a society registered under that Act,
in relation to documents purporting to be signed by the approved
auditor to whom the accounts of that society for that year of account are
submitted for audit under section 26(1) of the Act of 1896 or under section
37(1) of the Act of 1965,26 as the case may be.
4. For
the purpose of –
(a) the application to any society, in
the circumstances mentioned in paragraph 2 of this Schedule, of any of the
provisions mentioned in that paragraph, and
(b) the operation, in the circumstances
mentioned in paragraph 3 of this Schedule, of section 100 of the Act of 1896 or
section 72(2) of the Act of 1965 in
relation to documents purporting to be signed by an approved auditor,
any person who is at the commencement of this Act an approved
auditor appointed by the Treasury under section 30 of the Act of 1896 or under
section 38 of the Act of 1965 shall
continue to be an approved auditor subject to the conditions (including the
conditions as to termination of his appointment) on which he was appointed.
5. Where
after the commencement of this Act by virtue of subsection (8) of section 9 of
this Act the provisions of that section do not have effect so as to impose any
duties or confer any rights upon the auditors appointed in respect of any year
of account of a society, then –
(a) in respect of that year of account
nothing in section 20(1)(b) of this
Act shall affect the operation of section 26(2) of the Act of 1896 and section
37(3) of the Act of 1965, in so far
as either of those provisions is applicable to the auditors of that society, in
relation to the rights and duties of those auditors; and
(b) in respect of that year of account
and the year of account immediately following that year of account nothing in
section 20(1)(a) of this Act shall
affect the operation of section 29 of the Act of 1896, in so far as it is
applicable to that society, in relation to the obligation of that society to
display the report of the auditors on its last annual balance sheet.
6. Where
after the commencement of this Act by virtue of subsection (7) of section 11 of
this Act the provisions of that section do not have effect in relation to any
annual return of a society, then –
(a) nothing in section 20(1)(a) of this Act shall affect the
operation in relation to that annual return of section 39 of the Act of 1896, in
so far as it is applicable to that return; and
(b) nothing in sections 11(8) and
20(1)(b) of this Act shall affect the
operation in relation to that annual return of section 27(2)(a) and (c) of the Act of 1896 and section 39(2)(a) and (b) of the Act of 1965, in so far as either of those provisions is
applicable to that return.