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Friendly Societies Act, 1956 (Act No. 25 of 1956)

Chapter VI : Special Provisions Applicable to Affiliated Friendly Societies

41. Secessions and expulsions of affiliated societies

 

(1) A proposed secession or expulsion of an affiliated society from a central society shall be of no force or effect unless —
(a) the scheme for the proposed secession or expulsion, including full details of the financial arrangements which it is proposed to make between the central society and the affiliated society, has been submitted to the Authority;
(b) the Authority has been furnished with such additional particulars or with such certificate or special report by a valuator, as he may deem necessary for the purposes of this subsection;
(c) the Authority is satisfied that such secession or expulsion would not render the said central society or the said affiliated society unable to meet the requirements of this Act or to remain in a sound financial condition or, in the case of a central society or an affiliated society which is not in such a condition, to attain such a condition within a reasonable period of time;
(d) the Authority has been furnished with such evidence as he may require that the provisions of the said scheme and the provisions, in so far as they are applicable, of the rules of the central society and of the affiliated society have been carried out; and
(e) the Authority has forwarded a certificate to the principal officer of the central society and the principal officer of the affiliated society concerned, to the effect that all the requirements of this subsection have been satisfied.

 

(2) When an affiliated society has seceded or been expelled from a central society, the Authority may allow such affiliated society a reasonable period, not exceeding three months from the date of such secession or expulsion, in which to effect such change of name or such amendments to its rules as may be necessitated by such secession or expulsion, and during such period the affiliated society shall not be deemed, solely by reason of its failure so to change its name or to amend its rules, to have contravened any provision of this Act.

 

(3) The provisions of subsection (2) shall mutatis mutandis apply to the central society in so far as it is affected by the secession or expulsion of the affiliated society.

 

(4) The provisions of subsection (3) of section six shall mutatis mutandis apply in connection with any change of name necessitated by the secession or expulsion of an affiliated society.