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BUILDING SOCIETIES ACT (CHAPTER 24:02)

BUILDING SOCIETIES ACT

Acts 20/1965, 6/1971 (s.67), 58/1972 (ss. 5 to 17), 27/1973 (s. 101), 20/1975, 22/1976 (s. 87), 42/1976 (s. 14), 15/1981, 29/1981, 19/1982, 12/1986 (s. 11), 20/1986, 3/1988, 18/1989, 11/1994, 19/1998 (s. 13), 14/1998 (s. 29), 16/2004 (s. 20), 17/2004 (s. 120); R.G.N.s 217/1970, 698/1970.

ARRANGEMENT OF SECTIONS

PART I

PRELIMINARY Section

  1. Short title.
  2. Application of Act.
  3. Use of certain words.
  4. Appointment of Registrar.

PART II

REGISTRATION OFSOCIETIES AND MATTERS INCIDENTAL THERETO

  1. Prohibition of unregistered society.
  2. Establishment and registration of society.
  3. Matters which must be provided for in rules of society.
  4. Alteration of rules.
  5. Rules open to public.
  6. Registrar may inspect books and accounts of any person.
  7. Effect of registration.
  8. Conclusiveness of certificate of registration.
  9. Cancellation or suspension of registration.
  10. Name of society.
  11. Change of name of society.

PART III

POWERS OF SOCIETIES, DEPOSITS, SHARES, ADVANCES AND FINANCIAL PROVISIONS

  1. Powers of societies.
  2. Minors and married women may be members of society.
  3. Conditions in regard to deposits.
  4. Issue of negotiable certificates of deposit.
  5. Conditions relating to shares.
  6. Advances must be reducible or fixed-term advances.
  7. Limit as to amount of advance.
  8. Advance on property already mortgaged prohibited.
  9. Society may make further advances for certain purposes.
  10. Minister to prescribe maximum amounts of advances.
  11. Valuation of property for purposes of advance.
  12. Valuator must have no pecuniary interest in advance.
  13. Duty of director to disclose interest in advance.
  14. Society may recover certain amounts not permitted by Cap. 14:14.
  15. Non-compliance with Act does not invalidate advance.
  16. Restriction on borrowings.
  17. Society must maintain minimum holding of liquid assets.

PART IV

MANAGEMENT AND ADMINISTRATION

  1. Head office of society.
  2. Financial year of society.
  3. Periodical statements as to financial position.
  4. Annual accounts.
  5. Society must provide fidelity cover.
  6. Annual and special general meetings.
  7. Minutes of proceedings of meetings of society or directors.
  8. Inspection of minute books.
  9. Keeping of books of account.
  10. Appointment of auditors.
  11. Disqualifications for appointment as auditor.
  12. Contents of auditor’s report.
  13. Auditor’s right of access to books and to attend general meetings.
  14. Registrar may examine books of society.
  15. Investigation of society’s affairs on application of members.
  16. Investigation of society’s affairs in other cases.
  17. Production of documents and evidence on investigation.
  18. Inspector’s reports.
  19. Proceedings on inspector’s report.
  20. Expenses of investigation of society’s affairs.
  21. Savings for legal practitioners and bankers.
  22. Inspector’s report to be evidence.
  23. Directors and chief executive officer.
  24. Validity of acts of director.
  25. Disqualification for appointment as director.
  26. Amalgamation of two or more societies.
  27. Modes of winding up.
  28. Liability of members.
  29. Liability of borrowers.
  30. Judicial management of society.

PART V

GENERAL

  1. Lost or destroyed share certificates.
  2. Inspection of documents by public.
  3. Registrar to submit annual report.
  4. Appeals against decision of Registrar.
  5. Default in rendering accounts and furnishing information.
  6. Acceptance of benefits prohibited.
  7. False statements.
  8. Misleading advertisements.
  9. [Repealed]
  10. Variation of existing mortgages.

AN ACT to provide for the establishment, registration, management and control of building societies; and to provide for other matters incidental to the foregoing.

[Date of commencement: 1st July, 1965.]

PART I

PRELIMINARY

1    Short title

This Act may be cited as the Building Societies Act [Chapter 24:02].

                   2    Interpretation

In this Act—

“accredited agent” means a representative of a society with written authority from a society in regard to the acceptance of money in respect of deposits or shares or repayments of advances or loans or the receipt of applications in respect of advances or loans on behalf of that society;

“advance” includes one or more advances on the security of a mortgage or a hypothecation of one property or of two or more properties jointly;

“approved investment” means an investment approved in terms of paragraph (i) of section seventeen;

“authorized deposit” means a deposit mentioned in paragraph (h) of section seventeen;

“bank” means-a commercial bank or an accepting house;

“board of directors”, in relation to any society, means the managing body thereof by whatever name it may be called;

“chief executive officer” means the person who is responsible to the board of directors for the general management of a society;

 

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