r Assented to 28 April 1958]

Transcription

1 113 THE CO-OPERATIVE HOUSING SOCIETIES ACTS, 1958 to 1967 Co-operative Housing Societies Act of 1958, 7 Eliz. 2 No. 14 Amended by Co-operative Housing Societies Act Amendment Act of 1961, 10 Eliz. 2 No.1 Co-operative Housing Societies Acts Amendment Act of 1962, No. 6 Co-operative Housing Societies Acts Amendment Act of 1964, No. 22 Co-operative Housing Societies Acts Amendment Act of 1967, No.6 An Act to Regulate the Formation, Registration and Management of Co-operative Housing Societies and to Authorise the Execution by the Treasurer of Certain Guarantees relating to such Societies, and for other purposes r Assented to 28 April 1958] PART I-PRELIMINARY 1. (l) Short title. This Act may be cited as "The Co-operative Housing Socictic:s Act of 1958." (2) Commencement of Act. This Act shall come into opcration on a date to he fixed by the Governor in Council by Proclamation published in the Gazette, which date is hereinafter in this Act referred to as the commencement of this Act. (3) Construction. Nothing in this Act shall be read and construed so as to limit the operation and effect of "The State Housing Acts, 1945 to 1957," "The Workers' Homes Acts, 1919 to 1957," "The Building Societies Acts, 1886 to 1956," "The Co-opcrative Societies Acts, 1946 to 1951," "The Primary Producers' Co-operative Associations Acts, 1923 to 1934," "The Commonwealth and State Housing Agreement Acts, 1945 to 1955," "The Commonwealth and State Housing Agreement Act of 1956," "The State Advances Corporation Buildings Improvement Act of 1932," "The State Housing Relief Acts, 1930 to 1934," and 'The Discharged Soldiers' Settlement Acts, 1917 to 1957," except that the provisions of sections twenty-two and twenty-three of "The Primary Producers' Co-operative Associations Acts, 1923 to 1934," shall not apply to or in respect of a society formed and registered under this Act. Commenced 19 June 1958; Proclamation; Gazette 21 June 1958, p Collectivc title conferred by Act of No.6. s. 1 (3). Acts referred to: State Housing Acts, 1945 to 1966, title HOUSING, Vol. 7, p Workers' Homes Acts, 1919 to 1957 (repealed). Building Societies Acts, 18RIi to I9liR, p. 17, ante. Co-operative Societies Acts, 1946 to 1962 (repealed). Primary Producers' Co-operative Associations Acts, 1923 to 1965, title PRIMARY PRODUCE, Vol. 13, p Commonwealth and State Housing Agreement Acts, 1945 to 1955, title HOUSING, Vol. 7, p. 497.

2 114 SOCIETIES Vol. 16 Commonwealth and State HOllsing Agreement Act of 1956, title HOUSING, Vol. 7, p Stale Advances Corporation Buildings Improvement Aet of 1932, title BANKING, Vol. I, p State Housing Relief Acts, 1930 to not reprinted. Discharged Soldiers' Settlement Acts, 1917 to 1957, repealed. 2. Parts and Schedule of Act. This Act is divided into Parts and a Schedule as follows:- PART I-PRELIMINARY; PART II-On,TECTS AND POWERS OF SOCIETIES; PART III-FORMATION AND REGISTRATION OF SOCIETIES; PART IV-MEMBERS, SHARES AND FUNDS; PART V-DUTIES, MANAGEMENT AND RULES; PART VI-ADMINISTRATION; PART VII-GUARANTEES AND PRIVILEGES; PART VIlA-LOANS FROM MANAGEMENT FUND; PART VIII-EVIDENCE, OFFENCES AND REGULATIONS; SCHEDULE-SOCIETIES BROUGHT UNDER THIS ACT. As amended (as from 1 July 1967) by Act of 1967, No.6, s (1) Certain Societies brought under this Act. Each society registered under "The Co-operative Societies Acts, 1946 to 1951," mentioned in the Schedule to this Act shall be deemed to have been formed and registered under this Act as from the date of incorporation mentioned in respect thereof in the said Schedule and every such society shall within three months from the commencement of this Act make and apply to have registered such amendments, if any, of its rules as are in the opinion of the registrar necessary to bring the rules into comformity with the provisions of this Act applicable to societies formed and registered hereunder. (2) Savings. Subject to subsection four of this section, all persons, instruments and circumstances appointed, executed or created under any other Act by the societies mentioned in the Schedule aforesaid, before the commencement of this Act, shall under and subject to this Act continue to have the same status, operation and effect as they respectively would have had if this Act had not come into operation. (J) In particular and without limiting the generality of the preceding subsecticn any reference to "The Co-operative Societies Acts, 1946 to 1951," in any deed, agreement, mortgage, security, certificate or rule executed, given or isslled or subsisting or continuing in relation to the societies mentioned in the Schedule aforesaid shall be read and construed as a reference to this Act. ( 4) New certificate of incorporation to i~~ul'". Each of the societies mentioned in the Schedule aforesaid shall deliver to the registrar for cancellation the subsisting certificate of incorporation and he shall thereupon issue in lieu thereof a certificate of incorporation under and in accordance with the provisions of this Act. J\ct referred to: Co-operative Societies Acts, 1946 to 1962 (repealed).

3 CO-OP. HOUSING SOCIETIES ACTS, 1958 TO 1967 ss Interpretation. In this Act unless the context oth.erwise indi~ates or requires, the following terms shall have the meanmgs respectively assigned to them, that is to say:- "Approved dwelling-house" means a dwelling-house the conversion of which into fiats or tenements has been approved by the Local Authority in whose Area it is situated and approved for such conversion by the registrar; "Approved standard" means a standard of construction and equipment approved by the registrar; "Board" means thc board of directors of a society; "Co-operative housing society" means a society of persons- (a) Which is formed for all or any of the objects referred to in section six of this Act; (b) Which has under its rules a share capital either divided into shares all of one class and ranking equally, or divided into two classes of shares designated as ordinary shares and borrowers' shares with the shares in each class ranking equally with the shares of the same class and each class of shares having such rights as are specified in the rules of the society; and (c) Which under its rules is to terminatc on a specified date or when a specified object is attained or a specified event occurs, but does not include any society in which the order of advanccs to members is determined solely or partly by the drawing of lots; "Dwelling-house" means a structure for human habitation by a single family unit; "First pay" means the day fixed by the board of a society for the first regular payment of the SUbscriptions and charges which a member is required by the rules to pay in respect of his membership and on and from which day the payment of such subscriptions and charges by all members shall become due and payable; "General meeting" means a meeting of which due notice has been given in accordance with the rules of the society, which may be attended by all members of the society and at which, subject to any restrictions imposed by this Act and the rules of the society, all members shall have a right of voting; "Land" means any land held- (a) In fee-simple or other estate of freehold under a deed of grant or certificate of title under and subject to the provisions of "The Real Property Acts, 1861 to 1956"; (b) Under lease in perpetuity, or under lease or in course of purchase where the lessee or purchaser has a right to acquire the fee-simple, under and subject to the provisions of "The Land Acts, 1910 to 1957," "The State Housing Acts, 1945 to 1957," or "The Workers' Homes Acts, 1919 to 1957"; or

4 116 SOC1ETIFS Vol. 16 (c) Under Miners' Homestead Lease or Miners' Homestead Perpdual Lease under and subject to "The Miners' Homestead Leases Acts, J 913 to 1957," or as a residence area under and subject to ""The Mining Acts, 1898 to 1955"; "Officer", in relation to a society includes director, secretary or other person empowered under the rules to act or give directions in regard to the business or aftairs of a society; "Minister" means the Treasurer and Minister for Housing or other Minister of the Crown for the time being administering this Act; "Part" means Part of this Act; "Prescribed" means prescribed by this Act or by the regulations made under this Act or (where the case so requires) by the rules of a society; "Registrar" means the Registrar of Co-operative Housing Societies appointed under this Aet, and includes any person for the time being discharging the duties of the office of registrar; "Rules" means the rules of a society for the time being in force; "Security" means a mortgage (legal or equitable), encumbrance, charge, lien, bond, debenture, debenture stock, floating charge, bill of sale, lien on wool, mortgage of livestock, lien on crops, or other written instrument duly issued or granted as or by way of security by or to a society; "Society" means a co-operative housing society formed and registered, or deemed to be formed and registered, under this Act; "Special resolution" means a resolution which is passed by a majority of not less than three-fourths of such members of a society for the time being entitled under the rules to vote as have voted in person at a general meeting of which not less than twenty-one days' notice, specifying the intention to propose the resolution as a spccial resolution, has been duly given according to the rules. Acts referred to: Real Property Acts, 1861 to title REAL PROPERTY. Vol. 14, p LanJ Acts, 1910 to 1957; see now LanJ Act 1% title LAND Vol. 9, p. lb.. State Housil1'; Act, to 19G6. title HOl...1SING, Vol. 7, p Workers Homes Acts, 1919 to repealcj. Miners' Homestead Leases Acts to 1965, title M:NING, Vu:. 12, p Mining Acts, 189R to 1967; see now Mining Act 1968, 1968 Annual VOlume:. p. 3%. PART II-OBJECTS AND POWERS OF SOCIETIES 5. (1) Co-operative housing societies to be formed and registered.mder this Act. A co-operative housing society shall not carryon business unless it is formed and registered, or deemed to be formed and registered, under this Act. (2) Non-application of certain other Acts. Any society formed and registered, or deemed to be formed and registered, under this Act shall not be required to be registered or incorporated under "The Companies

5 CO-OP. HOUSING SOCIETIES ACTS, 1958 TO 1967 ss Acts, 1931 to 1955," "The Co-operative Societies Acts, 1946 to 1951," or "The Building Societies Acts, 1886 to 1956," and, except as is expressly provided in this Act, none of the provisions of those Acts, or any of them, shall apply to societies formed and registered, or deemed to be formed and registered, under this Act. Acts referred to: Companies Acts, 1931 to 1955; see now Companies Acts, 1961 to 1964, title COMPANIES, Vol. 2, p. 31. Co-operative Societies Acts, 1946 to 1962 (repealed). Building Societies Acts, 1886 to 1968, p. 17, ante. Formation and registration-see ss. 8, Objects of a society. (1) A co-operative housing society may be formed and registered under this Act for all or any of the following objects:- (a) To enable a member who is the holder of shares entitling him to borrow from the society- (i) To acquire land and to erect a dwelling-house thereon; or (ii) To erect a dwelling-house on land whereof he is the owner; or 5 (iii) To acquire land upon which is situated a dwelling-house which has been erected within the period of twelve months preceding the date of acquirement and which has not been occupied; or (iv) To convert an approved dwelling-house into fiats or tenements of an approved standard; (b) For all or any of those purposes to make advances to its members upon the security of land, including improvements thereon; and (c) To do all such other things as in the opinion of the registrar are calculated to promote the economic interests of the members of the society in relation to the objects specified in paragraph (a) of this subsection. (2) In this section- (a) "Acquire" includes the completion of a purchase under an existing contract of sale but does not include the payment of money in order to discharge an existing mortgage or similar security; (b) "Erect" includes complete the erection of a dwelling-house whereof the foundations, footings, framework or any other portion had already been constructed or commenced, and the adding of one or more rooms or other permanent improvements to a dwelling-house in respect of which an advance had previously been made by the society in question; and (c) In the case of land held from the Crown for a lesser estate than freehold, "owner" includes the person so holding that land.

6 118 SOCIETIES Vol. 16 6A. Society with object of assisting pnrchases of dwelling-honses. A co~operative housing society may be formed and registered under this Act for all or any of the following objects:- (a) To enable a member who is the holder of shares entitling him to borrow from the society to acquire a dwelling-house (and its appurtenant land) which has been erected within the period of thirty years next preceding the date on which an application in writing for the advance is received by the society; (b) For that purpose to make advances to its members upon the security of land, including improvements thereon; and (c) To do all such other things as in the opinion of the registrar are calculated to promote the economic interest of the members of the society in relation to the object specified in paragraph (a) of this section. A society formed and registered under this section, shall have as its only objects, the objects specified in this section. In this section "acquire" includes the completion of a purchase under an existing contract of sale and also includes the payment of money in order to discharge an existing mortgage or similar security. Inserted by Act of 1964, No. 22, s Power of society to raise money on loan. A society may, subject to this Act and its rules, raise money on loan for the objects of the society. PART III-FORMATION AND REGISTRATION OF SOCIETIES 8. (1) Liability. A society shall be formed with limited liability. (2) Formation of a society. A society may be formed by any twelve or more persons who are not under the age of twenty-one years and who are eligible under this Act and the rules as later approved and registered to be members of the society. (3) A society shall not be registered unless there has been a meeting at which there have been present twelve or more such persons and of which notice of the date, time and place for the meeting and of the purpose of the meeting has been given by advertisement published in a newspaper circulating in the locality in which it is proposed to form the society at least two weeks before the meeting. ( 4) At the meeting there shall be presented- (a) A written statement showing the objects of the society, the ways and means by which the society is to be financed, and the reasons for believing that, when registered, the society will be able to carry out its objects successfully; and (b) The rules which it is proposed to tender for registration. (5) [Repealed.] (6) If, at the meeting, after consideration of the statement and rules, twelve or more such persons as aforesaid approve the rules with or without amendment and sign an application for membership, they shall proceed to elect the first directors of the society in accordance with the rules so approved:

7 CO-OP. HOUSING SOCIETIES ACTS, 1958 TO 1967 SS.6A Provided that if the proposed rules provide for both ordinary shares and borrowers' shares, not more than seven of the aforesaid persons who sign applications for membership shall do so as applicants for ordinary shares. As amended by Act of 1961, 10 Eliz. 2 No.1, s. 2. As to societies existing prior to this Act, see s. 3. Notwithstanding the provisions of this section, persons aged 18 and over may be members, s. 13. As to liability of members, see ss. 14, Registration of a society. (1) Within two months after the election of directors an application shall be made in the prescribed man?er. to the registrar for the registration of the society and such apphcatlon shall be accompanied by- (a) A statutory declaration or statutory declarations by ~he persons who acted as chairman and secretary of the meetmg as to the compliance with the requirements of section eight of this Act; (b) A copy of the statement presented to the meeting for the formation of the society, signed by the persons who acted as the chairman and secretary of the meeting; (c) Four copies of the proposed rules signed by not less than twelve applicants for membership each of whom is not under the age of twenty-one years and each of whose signatures shall be attested by a witness; (d) A list containing the full name and the occupation and address of each person elected a director; (e) A list containing the full name and the occupation and address of each applicant for membership and the number and class of shares applied for by each such applicant; and (f) Such other particulars as are prescribed. (2) The statutory declaration or statutory declarations mentioned in subsection one of this section may be accepted by the registrar as sufficient evidence of compliance with the requirements of section eight of this Act. (3) Where before the expiration of the period of two months referred to in subsection one of this section a request in writing for the extension of that period is lodged with the registrar and the registrar is satisfied that circumstances beyond the control of the society have precluded and will preclude the making of the application for registration within the said period of two months, the registrar may if he thinks fit, by writing, extend the period for the making of the application by such further period (not exceeding one month) as he thinks proper, and in any such case the making of the application within such further period shall be deemed and taken to be in compliance with the provisions of this Act. ( 4) If the registrar is satisfied that the society has complied with the provisions of this Act, that the proposed rules of the society are in conformity with this Act and are suitable and sufficient for the purposes of the society, and do not impose any unreasonable or inequitable condition affecting the rights of members or any inequitable provision relating to the settlement of disputes, and that there are reasonable grounds for believing that the society will be able to carry out its

8 120 SOCIETIES Vol. 16 objects successfully, the registrar may register the society and its rules and issue a certificate in the prescribed form to the effect that the society is incorporated under this Act. (5) If the registrar is not satisfied that the society has complied with the provisions of this Act, or is of opinion that the rules of the society are not in conformity with this Act or are unsuitable or insufficient for the purposes of the society, or impose any unreasonable or inequitable condition, affecting the rights of members, or any inequitable provision relating to the settlement of disputes, or has reasonable grounds for believing that the society wiii be unable to carry out its objects successfully, he shall refuse to register the society. If the registrar refuses to register the society, the applicants for registration shall have a right of appeal to the Minister who may uphold the decision of the registrar or may direct the registrar to register the society and its rules and issue a certificate in the prescribed form to the effect that the society is incorporated under this Act. The determination by the Minister shall be final and shall not be reviewed, quashed or called in question in any proceeding whatsoever. (6) The expenses of and incidental to the formation of the society may be paid either out of capital or out of income. As to Registrar's power to require evidence on application for registration, see s. 50. lt is an offence to take money in consideration of allotment before registration. s Certificate of incorporation conclusive evidence. A certificate of incorporation under this Act shall be conclusive evidence that all the requirements of this Act in respect of registration and matters precedent or incidental thereto have been complied with. From the date of incorporation mentioned in the certificate of incorporation the society shall be a body corporate by the name under which it is registered, with perpetual succession and a common seal, and shall be capable in law of suing and being sued in its corporate name and of acquiring, holding, leasing and disposing of property, real and personal, movable and immovable and of doing and suffering all such other things as are necessary for the purposes of its constitution. Receipt of certificate in evidence-see s Names of societies. ( 1) A society may not be registered by a name identical with that by which a society is already registered or so nearly resembling that name, or the name by which any body or association of persons is registered under any other Act or law of this State, as in the opinion of the registrar is calculated to deceive or is likely to mislead the public as to the identity of the society or the nature of its business: Provided that a society having the same registered office as a society or societies already registered may with the consent in writing of the board or boards of the society or societies already registered adopt the same or a similar name distinguished by a serial number. (2) A society shall not be registered by a name which includes any of the following words, namely:-"royal", "King", "Queen", "Crown", "Imperial", "Empire", "Commonwealth", "State", or "Municipal", or any word in the opinion of the registrar signifying Royal or Government support or patronage, or any word or matter in the opinion of the

9 CO-OP. HOUSING SOCIETIES ACTS, 1958 TO 1967 ss registrar used in such a manner as would imply, or be likely to imply, that the society is or would be wholly or partly authorised or supported by or connected with any of Her Majesty's dominions, unless consent has been given to the use of such name by the Governor in Councilor by Royal Charter. (3) The name of a society shall include the words "co-operative housing society" as part of the name and the word "limited" as the last word of the name. ( 4) If a society through inadvertence or otherwise is registered by a name identical with that by which a society is already registered, or so nearly resembling that name or the name by which any body or association of persons is registered under any other Act or law of this State as in the opinion of the registrar to be calculated to deceive, or to be likely to mislead the public as to the identity of the society or the nature of its business, or which is prohibited by subsection two of this section the society shall, if the registrar so directs, change its name. (5) A society may change its name by special resolution, provided that the new name does not contravene any provision of subsection two of this section and is not identical with that of any society previously registered and still subsisting, or so nearly resembling that name or the name by which any body or association of persons is registered under any other Act or law of this State as in the opinion of the registrar to be calculated to deeeive, or to be likely to mislead the public as to the identity of the society or the nature of its business, unless the subsisting society or body or association of persons is in course of being wound up and consents in writing to the registration or unless the proviso to subsection one of this section applies in the case. (6) Notice in writing of any change of name, together with the certificate of incorporation, shall be sent to the registrar within such time after the passing of the special resolution as is prescribed. (7) The registrar shall register the change of name and shall cancel the former certificate and issue a new certificate of incorporation in the prescribed form. (8) The change of name shall be advertised as prescribed. (9) The change of name shall not affect the identity of the society or any right or obligation of the society or of any member or other person, or render defective any legal proceedings by or against the society. (10) Any legal proceedings that might have been continued or commenced by or against the society by its former name may be continued or commenced by or against it by its new name. (11) Any reference in any share certificate, security, agreement, contract, deed or other document, instrument, or writing whatsoever to the society by its former name shall, on and from the date on which the new certificate of incorporation is issued, be read as a reference to the society by its new name. For offences in relation to names, see ss. 66, 69. See Companies Acts, 1961 to 1964, s. 22 (I), title COMPANIES, Vol. 2, p. 63, and Building Societies Acts, 1886 to 1958, s. 4, p. 21, ante.

10 122 SOCIETIES Vol Fees for registration of a society. (1) No fee shall be chargeable for the registration of a society or of its rules where the society adopts as its rules the prescribed model rules, or for any amendment of the rules made in consequence of any alteration of those model rules. (2) A society which lodges for registration rules which are not in conformity with the context or arrangement of the model rules or applies for the registration of an amendment of rules other than in consequence of an alteration of the model rules shall pay with the application for such registration the prescribed fees. PART IV-MEMBERS, SHARES AND FUNDS 13. Members of societies. (1) The members of a society which is formed under this Act shall be the persons who sign the application for membership on the formation of the society, and any other persons who are admitted to membership in accordance with this Act and the rules of the society. (2) Unless otherwise provided by the rules, any person who is of the age of eighteen years and over shall subject to this Act be eligible to be a member of a society, but a person who is under the age of twenty-one years shall not be competent to vote at the meeting for the formation of the society or to be elected or appointed an officer of the society, or to hold ordinary shares. (3) A person under the age of twenty-one years who is a member of a society may execute all instruments and give all necessary acquittances (which instruments and acquittances shall be binding and sufficient in law for all purposes): Provided that the application for membership of a society shall not be signed by any person under the age of twenty-one years unless and until that application shall have been signed by not less than twelve persons who are not under that age. ( 4) A member of a society shall not at any time be entitled on any ground relating to his infancy or former infancy to avoid any of his obligations or liabilities as a member of the society or under any security given by him to the society. (5) A person shall not at anyone time be a member of more than one society unless before becoming a member of a society (other than the one of which he is first a member) he obtains the consent in writing of the registrar: Provided that in the case of a person lawfully a member of more than one of the societies mentioned in the Schedule to this Act before the commencement of this Act nothing in this subsection shall be deemed (a) To require any consent of the registrar to his membership of any of those societies; or (b) To render his membership of any such society unlawful: Provided further that nothing in this subsection shall apply to or in respect of any person becoming or being registered as the holder of shares in any society as executor or administrator of a deceased member. (6) No rights of membership shall be exercised by any member until he has made such payment to the society in respect of membership or acquired such share or interest as is provided in the rules of the society in that behalf.

11 CO-OP. HOUSING SOCIETIES ACTS, 1958 TO 1967 ss (7) Ceasing membership. A person shall cease to be a member of a society in any of the following circumstances, that is to say:- (a) Where his shares are transferred to another person in accordance with the rules of the society and the transferee is registered as holder in his place; (b) Where his shares are forfeited in accordance with the rules of the society; (c) Where his shares are sold by the society under a power conferred by the rules of the society and the purchaser is registered as holder in his place; (d) Where he becomes bankrupt or insolvent under any law relating to bankruptcy or insolvency and the official receiver or assignee disclaims in accordance with the provisions of such law; (e) On death: Provided that the estate of the deceased person shall remain liable and his executor or adminstrator shall be and may be registered as the holder of the shares as such executor or administrator (whether eligible to be a member of the society or not) until some eligible person is registered as the holder of the shares by transfer from the executor or administrator or until the shares are withdrawn or discharged in accordance with this Act and the rules of the society, and while any such executor or administrator is so registered he shall be deemed to be and shall have the rights and obligations of a member of the society for all purposes other than voting at meetings of the society and becoming a director thereof; (f) Where the contract of membership is rescinded by order of the Supreme Court or a judge thereof on the grounds of misrepresentation or mistake; (g) Where he ceases to be a member in accordance with the rules of the society; (h) Where the value of his shares is repaid or a refund in respect of his subscriptions is made to him in accordance with the rules of the society. (8) Where shares are held by the executor or administrator of a deceased member, the board may in its discretion by notice in writing to the executor or administrator call upon him to transfer the shares to an eligible person or to withdraw or discharge the shares within six months after receipt of the notice or within such further time as the board may in any particular case allow, and unless the shares are so transferred, withdrawn or discharged they may at the discretion of the board be forfeited and dealt with as forfeited shares in accordance with this Act and the rules of the society. As amended by Act of 1962, No.6, s. 2, and (as from 1 July 1967) by Act of 1967, No.6, s. 4. Charges payable by members-see s. 30. Application for membership-see s (1) Liability of members. Every member shall be liable to the society for the amount unpaid on the shares held by him, together with any charges and other moneys payable by him to the society as prescribed by this Act or the rules of the society.

12 124 SOCfETIES Vol. 16 (2) Liability of members in relation to certain insurance payments. Where a member to whom an advance has been made has with the sanction of the society taken out with some insurance or assurance company or society approved for this purpose by the registrar (in this section called "the approved insurer") a policy of insurance to provide for the payment to the society by the approved insurer, in the event of the death of the member, of a sum of money for or towards the discharge of the member's mortgage debt to the society, then the society shall be empowered to receive from the member the premiums payable by him in respect of that policy and to pay them to the approved insurer and, if the member defaults in payment of any such premium, to make payment thereof to the approved insurer on the member's behalf and to recover the amount thereof from the member, and any amount so paid by the society on behalf of a member shall be a debt due from the member to the society and the provisions of this Act shall apply in relation thereto accordingly. A society may make, either by itself or in conjunction with any other society or societies, any contract or arrangement relating to the exercise of its powers under this section and may carry such contract or arrangement into effect. Liability of members on winding up-sec s Capital. (1) The capital of a society shall vary in amount according to the nominal value of shares from time to time subscribed. (2) The capital shall be divided into shares of a fixed amount or amounts which shall be specified in the rules. Where the shares are all of one class, they shall rank equally. Where shares are classified as ordinary shares and borrowers' shares, the shares of each class shall rank equally with the shares of the same class and each class of shares shall have such rights as are specified in the rules of the society. (3) In every society the rules shall provide that an advance may be made to a member only on condition that such member subscribes for shares of a nominal value equivalent to the amount of the advance. (4) Any balance unpaid in respect of shares at the time of allotment shall be paid by periodic subscriptions as provided in the rules. (5) No member shall hold more than such number or proportion of the shares in a society as is prescribed by the rules. (6) A member shall subscribe for such minimum number of shares as is prescribed by the rules. (7) A share may be held by two or more persons jointly, and, in such case, notices for the purposes of the society may be given to the joint holder whose name appears first on the register of shares in respect of the share. (8) A share may not be sold or transferred without the consent of the board. (9) Where the shares of a proposed society are classified as ordinary shares and borrowers' shares, not more than seven members shall be holders of ordinary shares at anyone and the same time and the aggregate number of the ordinary shares held by all holders thereof at anyone and the same time shall not exceed fourteen, unless the registrar permits in writing a greater number of ordinary shareholders than seven or the holding of a greater aggregate number of ordinary shares than fourteen;

13 CO-OP. HOUSING SOCIETIES ACTS, 1958 TO 1967 S but the registrar shall not permit at anyone time a number of ordinary shareholders exceeding ten or a greater aggregate number of ordinary shares than twenty. 16. Cancellation of shares. A society may cancel any share purchased by or forfeited to the society in accordance with the rules of the society. 17. Charge on shares, etc. A society shall have a charge upon the share or interest in the capital of a member or past member in respect of any debt due from the member or past member to the society, and may set off any sum credited or payable to a member or past member in or towards payment of the debt. 18. Payment of sum due on unadvanced shares of deceased member. Notwithstanding anything in the rules, where a member of a society to whom an advance has not been made dies and upon the withdrawal of his shares there is payable by the society a sum not exceeding four hundred dollars, then the society may- (a) After the expiration of two months from the death of the said member if probate or letters of administration have not been produced to the secretary and notice in writing of intention to apply therefor has not been received by the secretary; or (b) After the expiration of three months from the death of the said member if such notice of intention to apply has been received by the secretary within the period of two months from the death but probate or letters of administration have not been produced to the secretary, pay the said sum to the person or persons appearing to the board to be entitled thereto according to law as on the intestacy of the deceased member, and any such payment shall be valid and effectual with respect to any demand against the society or the board by any other persons as the said member's next of kin, legatees or personal representatives, but such next of kin, legatees or personal representatives shall nevertheless have the right to recover the whole or any portion of any such sum so paid from the person or persons who have received the same from the society. Decimal currency reference substituted pursuant to section 7 of Decimal Currency Act of PART V-DUTIES, MANAGEMENT AND RULES OF SOCIETIES 19. (1) Registered office. Every society shall have a registered office, the address of which shall be notified to the registrar when application is made for the registration of the society. Any change in the address of the registered office shall be notified in the prescribed manner to the registrar within fourteen days after such change has occurred. (2) Publication of name of society. Every society shall- (a) Paint or affix, and keep painted or affixed, its registered name on the outside of every office or place in which the business of the society is carried on, in a conspicuous position in letters easily legible; (b) Have its registered name engraven in legible characters on its seal; and

14 126 SOCIETIES Vol. 16 (c) Have its registered name mentioned in legible characters in all notices, advertisements, and other official publications of the society, and in all bills of exchange, promissory notes, endorsements, cheques, and orders for money or goods, purporting to be signed by or on behalf of such society and in all bills of parcels, invoices, receipts and other documents used in the business of the society. (3) Service of documeuts on society. Any document may be served on a society by leaving it at the registered office of the society with some person apparently in the service or employment of the society or by sending it by prepaid registered post or certified mail addressed to the society at its registered office. The use of other than the registered name is an offence, s Registers and accounts. (1) A society shall keep such registers and accounts as are prescribed. (2) The registers shall include the following, that is to say: (a) A register of the directors, members and shares; (b) A register of any loans raised and securities given by the society; and (c) A register of any advances made and securities taken by the society. (3) The registers shall be kept in such manner and shall contain such particulars as are prescribed. (4) No notice of any trust, express, implied or constructive, shall be entered in any register or be received by the society. As to Registrar's power to inspect or authorize inspection of books, registers and documents, see s. 51. The register is prima facie evidence, s. 63. For offences relating to the keeping of registers, see s. 66. False entries--see s Inspection of registers, etc. A society shall have at its office and open at all reasonable hours to inspection by any member or creditor without fee- (a) A copy of this Act and the regulations; (b) A copy of the rules of the society; (c) A copy of the last audited balance-sheet and final accounts, together with the report of the auditor; (d) The prescribed register of directors, members and shares; and (e) The prescribed register of loans raised and securities given by the society. Effect of non-compliance-see s Returns. ( 1) A society shall, within fourteen days after any change in the membership of the board, lodge with, or send by prepaid registered post or certified mail to, the registrar information of the change. (2) A society shall in each year, within three months after the close of its financial year or within such further time as the registrar may authorise, lodge with, or send by prepaid registered post or certified mail to, the registrar the following returns, that is to say:- (a) A list of the directors for the year then current;

15 CO-OP. HOUSING SOCIETIES ACTS, 1958 TO 1967 ss (b) Statements certified by the auditor of the profit and loss and reserve accounts and balance-sheet of the society for and at the close of that financial year; (c) A signed copy of the report or reports of the auditor of the society for that financial year; and (d) Such other returns as are prescribed. (3) Any reference any where in this Act to the "final accounts" of a society shall refer to the statements specified in paragraph (b) of subsection two of this section last certified by the auditor. ( 4) A society shall, when so required by notice in writing by the registrar, furnish to the registrar within the time specified in that behalf in the notice a full list in the prescribed form of all of its members as at the end of the financial year then last past or such other particulars as are specified in the notice with respect to the membership of the society. Effect of non-compliance-see s Raising loans. ( 1) With the approval of the registrar a society may raise money on loan in such manner as it thinks fit, and in particular, without limiting the generality of the foregoing, by legal or equitable mortgage charged upon the undertaking of the society or upon all or any part of the property and rights (both present and future) of the society, including its unpaid capital, subscriptions, payments in respect of advances and other moneys. (2) A society shall not be authorised to receive money on deposit. (3) [Repealed.] (4) Except as may be provided in any agreement made in relation to a guarantee executed by the Treasurer of Queensland under this Act, no person lending money to a society shall be bound to see to the application thereof or be in any way affected or prejudiced by the fact that such society in borrowing such money has contravened the provisions of this or any other section of this Act or the rules of the society. (5) As to loans by banks, friendly societies, etc. Where the Treasurer of Queensland pursuant to Part VII of this Act executes a guarantee in favour of any bank, friendly society or approved body guaranteeing the repayment of any loan to be made by such bank, friendly society or approved body to any society registered under this Act, then notwithstanding anything to the contrary in any Act or in any memorandum or articles of association or rules, such bank, friendly society or approved body shall be deemed to be empowered to make such loan out of any funds held by it which it is authorised to invest and in respect of which investment on loan as aforesaid is not specifically prohibited by the terms of any trust governing such funds. As amended by Act of 1962, No.6, s. 3. As to guarantee by Treasurer pursuant to subsection (5), see s. 58. For the effect of raising money except in compliance with this Act, see s (1) Interpretation. In this section the expression "security" does not include a mortgage so far as it includes land, whether subject to "The Real Property Acts, 1861 to 1956," or not, or so far as it includes any tenure or interest in land under and subject to the laws in force relating to the occupation or leasing of Crown lands or to mines or mining.

16 128 SOCIETIES Vol. 16 (2) Registration of securities given by societies. Any security given by a society for any money raised on loan by it under the powers conferred by this Act may within thirty days after its execution be registered by filing in the office of the registrar a true copy thereof verified by statutory declaration. (3) The registrar shall cause to be entered in a register to be kept by him for the purpose short particulars (including the names of the parties and the consideration) of every copy security so filed with him with a memorandum of the date, hour and time at which each of them is so filed, and that date, hour and time shall in the case of each security be the date, hour and time of registration. (4) The registrar may at any time, upon evidence being given to his satisfaction that the debt for which any registered security was given has been paid or satisfied, or that a discharge of security as to the whole or any part of the subject property has been executed, cause a memorandum to that effect to be entered in the register. (5) The register so kept and every copy security filed as aforesaid shall be open to inspection at the office of the registrar by any person on payment of the prescribed fee. ( 6) As to priority of registered and unregistered securities, etc. A security shall not, unless registered in accordance with this section, be of any validity as against any subsequent security duly registered in accordance with this section before the registration of such firstmentioned security except in the case of fraud; and, except in the case of fraud, the priority of all securities duly registered in accordance with this section shall be determined by the order of registration and not of date, and shall not be affected by notice, actual or constructive, of any unregistered security or of any contract therefor, and the knowledge that any such security or contract is in existence shall not of itself be imputed as fraud; and every second or subsequent security shall, if duly registered in accordance with this section, become, upon such registration and upon satisfaction of all prior securities registered in accordance with this section, a first security. (7) As to registration of securities already given. Where before the commencement of this Act any such security as aforesaid has been given by a society and has not been wholly satisfied, and a true copy of the security has been filed in accordance with subsection two of this section within thirty days after the commencement of this Act, the sccurity shall, except in the case of fraud, be deemed to have been registered as at the date of execution thereof, and the particulars and memorandum thereof shall be entered in the register accordingly, and the provisions of subsections four, five, six and eight of this section shall apply with respect to such security accordingly. ( 8) Power to judge of Supreme Court to extend period for registration, etc. A judge of the Supreme Court, on being satisfied that the omission to register a security within the time required by this section or the omission or misstatement of any particular with respect to any such security or in any memorandum of satisfaction was accidental or due to inadvertence or to some other sufficient cause or is not of a nature to prejudice the position of creditors or members of the society or that on any other grounds it is just and equitable to grant relief, mayan the application of the society or any person interested and on such terms and

17 CO-OP. HOUSING SOCIETIES ACTS, 1958 TO 1967 ss. 24, conditions as seems to the judge just and expedient order that the time for registration be extended or (as the case may be) that the omission or misstatement be rectified. Act referred to: Real Property Acts, 1861 to 1963, title REAL PROPERTY, Vol. 14, p.633. For effect of non-compliance with this section, see s. 68. As to powers of the Registrar to require evidence or information, see s As to advances by societies. ( 1) A society shall not make any advance to any person who is not a member of the society. (2) A society shall not make any advance to a member of the society except for the purpqse of enabling such member- (a) To acquire land and erect a dwelling-house thereon; or (b ) To erect a dwelling-house on land whereof he is the owner; or (c) To acquire land upon which is situated a dwelling-house which has been erected within the period of twelve months preceding the date of acquirement and which has not been occupied; or (d) To convert an approved dwelling-house into fiats or tenements of an approved standard; or ( c) In the case of a society formed and registered under section 6A of this Act, to acquire a dwelling-house (and its appurtenant land) which has been erected within the period of thirty years next preceding the date on which an application in writing for the advance was received by the society. In paragraphs (a), (b) and (c) of this subsection the terms "acquire," "erect" and "owner" shall have the inclusive meanings assigned to them respectively by subsection two of section six of tim Act. In paragraph (e) of this subsection the term "acquire" shall have the inclusive meaning assigned to it by section 6A of this Act. (2A) A society may advance moneys to a member for the purpose of enabling such member to pay to the society any subscriptions due and payable by such member for the period commencing on and including the first pay and up to and including the date of his admission to membership of the society: Provided that nothing in this subsection shall authorize the society charging any fee by way of an administration or management fee in respect of such subscriptions. The purpose specified in this subsection shall be deemed to be included within the meaning of each purpose specified in subsection (2) of this section and to that extent each such purpose shall be amended accordingly. (3) Save an advance made for the purpose specified in paragraph (d) of subsection two of this section a society shall not make any advance to a member of the society unless and until the board is satisfied that- (a) The dwelling-house in respect of which the advance is made is intended to be used by the member as a home

18 130 SOCIETIES Vol. 16 for himself and his dependents and for no other purpose; and (b) Neither the member nor the wife or husband (if any) of the member is the owner of any dwelling-house in Queensland or elsewhere. A member may require the board to refer to the registrar any question respecting ownership of a dwelling-house arising under this subsection and the determination made by the registrar shall be final and conclusive for the purposes of this subsection and shall not be called in question in any proceedings whatsoever. ( 4) A society shall not make any advance to a member of the society who at the time the advance is made is a director or other officer of the society, unless the making of the advance has been first approved by a special resolution of the society. (5) A society shall not make any advance to a member of the society unless and until that member has been allotted and accepted shares of a nominal value at least equivalent to the amount of the advance. ( 6) A society shall not make any advance to a member of the society for a purpose specified in paragraph (a), or (b) or (c) of subsection two of this section unless the amount of the advance reduced by the paid up value of the share capital of the member does not exceed- (i) In the case of an advance of five thousand five hundred dollars or less-eighty per centum of the value of the land and the dwelling-house erccted or to be erected thereon; or (ii) In the case of an advance of more than five thousand five hundred dollars-seventy per centum of the value of the land and the dwelling-house erected or to be erected thereon. The sum of five thousand five hundred dollars and the amounts per centum mentioned in this subsection, or any of them, may be altered from time to time by the Governor in Council by Order in Council, and this subsection shall during the continuance in force of any such Order in Council apply subject thereto. (7) A society shall not make any advance to a member of the society for a purpose specified in paragraph (a), or (b) or (c) of subsection two of this section, in excess of an amount of seven thousand dollars or such other amount as is specified for the time being by the Governor in Council by Order in Council. ( 8) A society shall not make any advance to a member for the purpose specified in paragraph (d) of subsection two of this section (a) In excess of ten thousand dollars; or (b) The amount whereof reduced by the paid up value of the share capital of the member is in excess of sixty per centum of the value of the land and of the dwelling-house thereon when converted into fiats or tenements. The sum of ten thousand dollars and amount of sixty per centum mentioned in this subsection, or either of them, may be altered from time to time by the Governor in Council by Order in Council, and