Acts Online
GT Shield

Mutual Banks Act, 1993 (Act No. 124 of 1993)

Chapter IX : General Provisions

82. Appointment of inspector by Registrar on application of members

 

(1) The Registrar may on application by not fewer than one hundred members of a mutual bank, or where the membership of the mutual bank is fewer than one thousand, by one-tenth of all the members, or on application by the judicial manager of the mutual bank, appoint an inspector to enquire into and report on the affairs of the mutual bank in general or upon such part of its affairs as the Registrar may direct.

 

(2) An application under this section shall be supported by such evidence as the Registrar may direct for the purpose of showing that the applicants have good reason for requiring the investigation to be made, and that the application is not actuated by malicious motives.

 

(3) Such notice of the application shall be given to the mutual bank as the Registrar may direct.

 

(4) The applicants shall give security for the costs of the proposed investigation before the inspector is appointed.

 

(5) All expenses of and incidental to the investigation shall be recovered by the Registrar from the applicants or from the mutual bank or from the members or officers or former members or officers of the mutual bank, in such proportions as the Registrar may direct.

 

(6) An inspector appointed under this section may require the production of all or any of the books, accounts, securities and documents of the mutual bank, and may examine on oath or affirmation any person who is or formerly was an officer, auditor, member or agent in relation to its business and may administer an oath or accept an affirmation accordingly.

 

(7) The court may, whenever application is made to it for the winding-up of a mutual bank or for the placing of a mutual bank under judicial management direct the Registrar to exercise the powers conferred upon him by this section.

 

(8) An inspector appointed under this section shall report to the Registrar and the Registrar shall transmit copies of the report to the applicants (if any) and to the mutual bank.