FRIENDLY SOCIETIES 1

THE FRIENDLY SOCIETIES ACT

ARRANGEMENT OF SECTIONS

1. Short title.
2. Interpretation.
3. Societies to which this Act applies.
4. Appointment of Registrar and assistants.
5. Societies shaU be registered.
6. Conditions of registration.
7. Application for registration.
8. Registration.
9. Societies to be bodies corporate.

10. Power of registered societies to make rules.
11. Amendment of rules.
12. Registration of dividing societies.
13. Registration of insurance societies and of societies assuring

14. Registration of societies with branches.
15. Establishment of new branches.
16. Application of certain provisions of this Act to branches.
17. Requisites for registration of branches as societies.
18. Name of society or expelled branch.
19. Contributions from one society to another.
20. Registered o f f i ~ ~
21. Publication of name.
22. Return of members and investments.
23. Audit.
24. Annual and other returns
25. Quinquennial valuation.
26. Copy of last balance sheet.
27. Exemption from income tax and stamp duty.
28. Priority on death, bankruptcy, etc., of 05:cr.
29. Membership of minors.

annuities.

-
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2 FRIENDLY SOCIETlES

30. Subscriptions to hospital, etc.
31. Right to supply of copies of the rules.
32. Right to supply of annual return.
33. Inspection of books
34. Limitation of benefits.
35. Service in armed and police forces.
36. Investment of funds.
31. Loans to assured members.
38. Loans out of separate loan fund.
39. Power of member to dispose of sums payable on his death by

40. Proceedings on death of nominator.
41. Payments on absence of valid nomination.
42. Validity of payments.
43. Certificate of death.
44. Amount payable on death of children of certain ages.
45. Person to whom payment may be made on death of children.
46. Settlement of disputes.
47. Amalgamation and transfer of engagements.
48. Conversion of society into company or co-operative society.
49. Saving for right of creditors.
50. Conversion of a society into a branch.
51. Meaning of special resolution.
52. Registration of special resolutions.
53. Power of Registrar to inspect books. etc.
54. Inspection of societies’ premises.
55. Inquiry and inspection.
56. Removal of officer.
57. Responsibility of officer and declaration of liability.
5 8 . Dissolution.
59. Cancellation of registration due to lack of membtrship.
60. Effect of cancellation of registration.
61. Appointment of liquidator.
62. Powers of a liquidator.
63. Power of Registrar to control liquidation.
64. Suspension of registration.

nomination.

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FRIENDLY SOCIETIES 5

Acla
lOf%

29 Of M.7,
%Of scb. ‘97‘

THE FRIENDLY SOCIETIES ACT

[fsr November, 1968.1

1. This Act may be cited as the Friendly Societies Act. ~ b o n t i t l r

2 .41) In this Act, unless the context otherwise requires- tFz*
“amendment of rule” includes a new rule and a

“bank” means-
resolution rescinding a ruIe,

(a) the Workers Savings and Loan Bank; and
(b) any company licensed under the Bank-

ing Act, to carry out banking business;
%onus” means a share of the profits of a registered

society or a branch thereof derived from business
done by that society or branch with its members
and divided among those membefs in proportion
to the volume of business done by them with that
society or branch;

“branch” means any number of the members of a
society under the control of a central body
having a separate fund administered by them-
selves or by a committee of officers appointed by
themselves and bound to contribute. to a fund
under the control of a central body;

“child” includes an adopted son or adopted daughter
and a step-son or step-daughter;

“committee” means the governing body of a registered
society or a branch thereof to whom the manage-
ment of the affairs of such society or branch is
entrusted;
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6 FRIENDLY SOClETIES

“dividend” means a share of the profits of a registered
society or a branch thereof divided among its
members in proportion to the share capital held
by them;

“functions” includes duties and powers;
“land” includes any interest in land;
“meeting” includes (where the rules of a registered

society or a branch thereof so allow) a meeting of
delegates appointed by members;

‘hember” includes a person joining in the application
for the registration of a society and a person
admitted to membership in accordance with the
rules of a registered society or a branch thereof;

“officer” includes the chairman, secretary, treasurer,
member of committee or other person empowered
by regulations made under this Act or by the rules
of a registered society or a branch thereof to give
directions in regard to the business of such society
or branch;

“persons claiming through a member” includes the
nominees of the member where nomination is
allowed;

“registered society” means a society registered under
this Act;

“Registrar” means the Registrar of societies to which
this Act applies, appointed under section 4, and
includes any person carrying out such functions
of the Registrar as may be assigned to such person;

“rules” means the registered rules made by a society
under this Act;

“subscription” includes any contribution or dues paid
in accordance with the rules of a registered society
or a branch thereof.

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FRIENDLY SOClETlES 7

(2) Where in this Act the expression “this Act” is
used, it shall be deemed to include references to regulations
made under this Act.

3.41) This Act shall apply to the following societies- Societies
to which

(a) societies (in this Act called friendly societies) for
the purpose of providing by voluntary subscrip-
tions of the members thereof with or without the
aid of donations for-

(i) the relief or maintenance of the members,
their husbands, wives, children, fathers,
mothers, brothers, sisters, uncles, aunts,
nephews or nieces, or wards being orphans,
during sickness or other infirmity, whether
bodily or mental, in old age (which means
any age after sixty) or in widowhood, or for
the relief or maintenance of the orphan
children of members during minority; or

(ii) insuring money to be paid on the birth of a
member’s child, or on the death of a mem-
ber, or for the funeral expenses of the
husband, wife, child, ward, father, mother,
brother, sister, uncle, aunt, nephew or niece
of a member, or on the death of the widow
of a deceased member or on the death of
such other relation of the member’s family
as is wholly or in part dependent upon the
earnings of the member for the ordinary
necessaries of life :

Provided that as respects sub-paragraphs (i) and
(ii) a person shall be deemed to be a father, mother,
brother, sister, uncle, aunt, nephew or niece of the
member, notwithstanding that he or she is not a
legitimate relative of such member; or

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8 FRIENDLY SOClETlES

(iii) the relief or maintenance of the members
when on travel in search of employment,
or when in distressed circumstances, or in
case of shipwreck or loss or damage of or
to boats or nets; or

(iv) the endowment of members or nominees
of members at any age; or

(v) the insurance against fire of any amount
not exceeding fifty dollars of the tools or
implements of the trade or calling of the
members; or

(vi) the insurance against fire, of any amount
not exceeding one hundred dollars of the
household furniture, goods and effects of
the members; or

(vii) insuring money to be paid in the event of
the marriage of members;

(b) societies for any benevolent or charitable purpose
(in this Act called benevolent societies);

(c) societies (in this Act called specially authorized
societies), other than societies carrying on the
business of banking, for any purpose which the
Minister may authorize as a purpose to which
the provisions of this Act, or such of those provi-
sions as are specified in the authority, ought to
be extended, and where any provisions of this Act
are so specified, those provisions ody shall be
so extended:

Provided that this Act shall not apply to a society
which is not registered by virtue of subseciion (1) of
section 6.

(2) For the purposes of sub-paragraph (E) of para-
graph (U) of subsection (l), the expression “funeral expenses”
shall be deemed to include all incidental and ancillary

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FRIENDLY SOCIETIES 9

expenses which a member may incur in connection with
the death, and is not restricted to the payment for the
funeral.

4 . 4 1 ) The Minister may in his discretion designate Appoint-
a public officer as the Registrar and such other public Registrar ment of

and
assistants.
2911967

(2) Where there are no public officers designated S. 2.

officers as he may think fit to assist the Registrar.

under subsection (I) the Social Development Commission
shall, subject to the approval of the Minister, appoint an
officer of the Commission to be the Registrar and such
other officers as may be necessary to assist the Registrar.

5.41) Every society to which this Act applies shall be Societies

Provided that it shall be deemed to be a sufficient com-
pliance with the provisions of this subsection if, before any
subscriptions or fees are collected from any member, the
Registrar by writing under his hand permits any person
named in such writing (hereafter in this section referred to
as a “permitted person”) to take the necessary steps for the
formation of a society, and if such society is in fact registered
within twelve months after the giving of such permission.

(2) In the event of any contravention of the provi-
sions of subsection (l), every secretary, member of the
governing body, or other officer of an unregistered society
shall be liable to a fine of ten dollars for every day during
which such society remains unregistered.

(3) Every permitted person shall, while the society
in respect of which he is a permitted person is in process
of formation-

(a) cause proper books of account to be kept with
respect to all subscriptions or fees received and

shall be registered under this Act: registered.

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10 FRIENDLY SOCIETIES

all sums of money expended by such person, and
the matters in respect of which the receipts and
expenditure take place; and

(b) immediately before the registration of the said
society or at the end of the period of twelve
months described in subsection (1) whichever shall
sooner occur, send to the Registrar a true return
signed by him of the receipts and expenditure,
funds and effects collected, received and expended
by him while such society was in process of
formation.

(4) The Registrar shall, on being satisfied that any
member or other person has subscribed to the funds col-
lected or received by a permitted person, or has any interest
therein, permit such member or other person to inspect
without payment of any fee the said return at the office of
the Registrar during the usual or customary hours of busi-
ness.

(5) The Registrar may at any time either before or
after the registration of a society order the books, accounts,
vouchers, documents, securities and funds of such society
during the period in respect of which it was unregistered
or in course of formation to be inspected or audited by some
fit and proper person appointed by him, and it shall be the
duty of the permitted person and of every secretary, treas-
urer and member of the governing body or other officer of
the society to make available to the person so appointed all
the books, accounts, vouchers, documents, securities and
funds of the society for the purposes of inspection or audit;
and the Registrar may order the person so appointed to be
paid out of the funds of the said society a fee not exceeding
such sum as may be prescribed.

Conditions
of regisua-
tion.

6 . 4 1 ) A society shall not be registered under th is Act
unless it consists of twenty-one persons at least.

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FRIENDLY SOClETiES 11

(2) A society shall not be registered under this Act
under a name identicaI with that under which any other
existing society is registered or so nearly resembling such
name as to be likely to mislead the members or the public
as to its identity.

7.-(1) For the purposes of registration, an application Application
for rsgialrs-
tiou. shall be made to the Registrar.

(2) The application shall be signed by at least sevm
members and the secretary of the society and shall be
accompanied by-

(a) three copies of the proposed rules of the society;
(6) a list of the names and addresses of the secretary,

treasurer and every member of the governing
body; and

(c) the prescribed registration fee.

8.41) When an application for registration is made, Registration
the Registrar shall satisfy himself that the society has
complied with this Act, and that its proposed rules are
in conformity with this Act, and for these purposes the
Registrar may make such enquiries and obtain such inform-
ation as he thinks fit.

(2) The Registrar upon being satisfied of the fore-
going matters shall-

(a) register the society and its rules and publish a
notice of such registration in the Gazette; and

(6) issue to the society to which the application
relates a certificate of registration in the pre-
scribed form.

(3) A certificate of registration signed by the
Registrar shall be conclusive evidence that the society
therein mentioned is duly registered unless it is proved that
the registration of the society has been cancelled.

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12 FRIENDLY SOCIETIES

Socicties ta
be bodies
carporate.

Power of
registed
societics to
make rulcs.

Amendment
of rulcs.

(4) If the Registrar refuses to register a society, an
appeal shall lie within one month from the date of such
refusal to a tribunal appointed by regulations under this
Act.

9. The registration of a society shall render it a body
corporate by the name under which it is registered, with
perpetual succession and with power to hold and dispose
of land and other property of whatever kind, to enter into
contracts, to institute and defend suits and other legal
proceedings, and to do all things necessary for the Pur-
poses of its constitution.

10.-(1) Every registered society may, subject to the
approval of the Registrar, make rules for all such things
as are necessary or desirable for the purpose for which such
society is established.

(2) Rules made under this section shall bind the
society and every member thereof, and every person claim-
ing through such member to the same extent as if every
such member had subscribed his name and affixed his seal
thereto and there were contained in such rules a covenant
on the part of such member, his heirs, executors, adminis-
trators and assigns to be bound thereby.

11.41) Any registered society may, subject to this Act,
amend its rules, including the rule which declares the name
of the society.

(2) No amendment of the rules of a registered
society shall be valid until that amendment has been
registered under this Act, for which purpose three copies
of the amendment shall be forwarded to the Registrar.

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FRIENDLY SOCIETIES 13

(3) If the Registrar is satisfied that any amendment
of the rules is not contrary to this Act, he may register the
amendment :

Provided that the Registrar may for reasons to be given
to the society, refuse to register an amendment.

(4) If the Registrar refuses to register any amend-
ment of the rules of a registered society, an appeal shall lie
within one month from the date of such refusal to the
tribunal appointed by regulations made under this Act.

(5 ) An amendment which changes the name of a
registered society shall not affect any right or obligation
of the society or any of its members or past members, and
any legal proceedings pending may be continued by or
against the society under its new name.

(6) When the Registrar registers an amendment of
the rules of a registered society, he shall issue to the
society a copy of the amendment certified by him, which
shall be conclusive evidence of the fact that the amendment
has been duly registered.

12. A society (other than a benevolent society) shall not Regiatraiion
of dividing be disentitled to registration by reason of any rule or SOCiCtied.

practice of dividing any part of the funds thereof if the
rules of the society contain distinct provision for meeting
before division of any part of such funds takes place, all
claims existing against the society immediately before such
division.

13. A society providing for the endowment of a member Registration
of insurance or the nominee of a member at any age, or assuring a JOcieties

certain annuity, shall not be registered unless the tables g:i,,",c,
of contributions for such respective benefits or assurance, wsur!?g
certified by an actuary approved by the Registrar, are
sent to the Registrar with the application for registration.

annuities.

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14 FRIENDLY SOCIETIES

14.-(1) Where a society has branches, the application

(a) a list of all the branches, and notice of the place
where the registered office of each branch will be
situated;

(b) if the rules of all the branches (in this Act called
branch rules) are or are intended to be identical,
a statement to that effect and four copies of those
rules; and

(c) if the branch rules are not or are not intended to
be identical, a statement to that effect and four
copies of the rules of each branch.

(2) A society having a fund under the control of a
central body to which every branch is bound to contribute
may be registered as a single society.

15. There shall be sent under the hand of the secretary
of a registered society to the Registrar-

(a) notice of the establishment of every new branch
of the society;

(b) notice of the place where the registered office of
the branch will be situated; and

(c) a statement whether or not the rules of the branch
are identical with those of the other branches of
the society, and if not so, four copies of the rules
of that branch.

for registration shall be accompanied by-

16. The provisions of this Act as to-
(U) the amendment of rules and the &ect of such

amendment;
(6) the registration of the amendment of rules and

evidence of such registration;
(c) appeal against refusal to register any amendment

of rules,
l l l c inclusion of lhis pasc is authorized by LN. 480/19731

Registration
of societies
with
branch=.

Establish-
ment of new
branches.

A plication

provisions
of this
Act to
branches.

O P M t a i n

FRIWDLY SOCIETIES 15

shall apply to branches and branch rules as they apply
to a registered society and its rules.

1741) A body identified, by means of information Rsquirita
supplied to the Registrar pursuant to section 14 or section ~ ~ ~ , , u a -
15, as a branch of a registered society, shall not be regis-
tered as a society efcept on production to the Registrar of
a certificate under the hand of the chief secretary or other
principal officer of the society of which it was a branch,
that the body has wholly seceded or has been expelled
from the society.

(2) An appeal shall lie from the refusal of the chief
secretary or other principal officer of the society, or his
omission, after three months from the receipt of a request
in writing made on behalf of the body to grant a certificate,
to the tribunal appointed by regulations made under this
Act.

18. A body which, having been a branch of a registered of
aoue or society has wholly seceded or been expelled from that

society, shall not thereafter use the name of that society braoch.
or any name implying that it is a branch thereof, or the
number by which it was designated as such a branch.

19. A registered society or a branch thereof may con- Conuibu-
tribute to the funds, and take part by delegates or other-
wise in the government of any other registered society or
branch of a registered society, as provided in the rules of
that first named society or branch without becoming a
branch under this Act of that other society or branch.

20. Every registered society and every branch thereof ~cei~ttred
shall have an office registered in the prescribed manner, OUiCC.
to which all notices and communications may be sent, and
shall send to the Registrar notice of every change of such
registered office.
-

l ’ I l~e inclusion of this page ia authorid by LN. 480/1973]

16 FRIENDLY SOCIETlE5

Publication
of name.

21.-(1) Every registered society shall paint or affu and
keep painted or affixed its registered name in letters easily
legible, in a conspicuous position on the outside of every
office or place in which the business of the society is carried
on.

(2) Every branch of a registered society shall paint
or a& and keep painted or affixed, in a conspicuous
position on the outside of every office or place in which the
business of that branch is carried on, the name and number,
in letters easily legible, by which that branch was
designated as a branch of such society.

Return of 22. Once in every year not later than the 31st day of
January, every registered society and every branch of a
registered society shall send to the Registrar a return
for the year ending on the 31st day of December last
preceding, showing-

(U) the number of members on its roll, including every
person who at any time during the year was a
financial member of the society or branch;

(6) the amount of money on deposit in banks:
(c) the amount of any money invested in or on the

security of the stock, shares or debentures of any
bank or of any building society established
and registered in Jamaica;

(d ) the amount of money invested in real securities;
(e) the amount of money invested in shares in any

co-operative undertaking with limited liability;
(f) the amount of money invested in authorized

trustee securities: and
(g) the amount of money in the treasurer’s hands, at

the close of work on the 31st day of December
aforesaid.

members
and
investments.

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FRIENDLY SOCIETIES 17

23.-(1) The Registrar shall audit or cause to be audited Audit.
by some person authorized by him in writing, the accounts
of every registered society and every branch of a registered
society once at least in every year.

(2) The audit under this section shall include an
examination of overdue debts, if any, and a valuation of
the assets and liabilities of the registered society or branch.

(3) The Registrar and every other person appointed
to audit the accounts of a registered society or branch shall
have power when necessary-

(a) to summon at the time of his audit any officer,
agent, servant or member of the society or branch
who he has reason to believe can give material
information in regard to any transactions of the
society or branch or the management of its affairs;
and

(b) to require the production of any book or docu-
ment relating to the affairs of, or any cash or
securities belonging to, the society or branch by
the officer, agent, servant or member in posses-
sion of such book, document, cash or securities.

24.-(1) Every registered society and every brmch of Annual
a registered society shall, once in every year, not later mtllrns.
than the 31st day of May, send to the Registrar a return
(in this Act called the annual return) of the receipts and
expenditure, funds and effects of the society or branch
as audited.

and other

(2) The annual return shall-
(a) show separately the expenditure in respect of the

several objects of the society or branch; and
(b) be made out to and include the 31st day of

December last preceding.

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18 FRIENDLY SOCIETIES

(3) Every registered society and every branch of a
registered society shall, together with the annual return,
send to the Registrar a copy of any special report of the
auditors.

(4) In the case of a branch, the annual_ return shall
be sent to the Registrar through an officer appointed in
that behalf by the society of which the branch forms part.

(5 ) Every registered society and every branch of a
registered society shall annually prepare and send to the
Registrar together with the annual return of such society
or branch, returns relating to sickness and death benefits
and to maternity, dental, optical and other benefits
of the society or branch in accordance with the prescribed
forms made out to and including the 31st day of December,
last preceding.

Quinquen-
tual valua-
tioa

2 5 4 1 ) Subject to the provisions of this section, the
Registrar may require every registered society and every
branch of a registered society, not oftener than once in
every five years-

(a) to cause its assets and liabilities to be valued by
a valuer to be appointed by the society or branch,
and approved by the Registrar, and to send to
the Registrar a report on the condition of the
society or branch; or

(6) to send to the Registrar a return of the benefits
assured and contributions receivable from all the
members of the society or branch, and of all its
funds and effects, debts and credits, accompanied
by such evidence in support thereof as the
Registrar may require.

(2) Every report sent to the Registrar under sub-
section (1) shall-

(U) be signed by the valuer;
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FRIENDLY SOCIETlES 19

(b) state the address and calling or profession of the
valuer; and

(c) contain an abstract to be made by the valuer of
the results of his valuation, together with a state-
ment containing such information with respect
to the benefits assured and the contributions
receivable by the society or branch, and of its
funds and effects, debts and credits as the
Registrar may require.

(3) Where a registered society or branch sends to
the Registrar a return under subsection (l), the Registrar
shall cause the assets and liabilities of the society or branch
to be valued and reported on by an actuary, and shall
send to the society or branch a copy of the report and an
abstract of the results of the valuation.

(4) This section shall not apply to-
(U) a benevolent society or branch thereof; or
(b) a specially authorized society or branch thereof,

unless it is so directed in the authority for
registering that society or branch.

(5) The Registrar may dispense with the provisions
of this section in respect of registered societies and
branches to whose purposes or to the nature of whose opera-
tions he may consider those provisions inapplicable.

26. Every registered society and every branch of a regis- cop of
tered society shall keep a copy of the last annual balance
sheet and of the last quinquennial valuation together with
any special report of the prescribed persons, always
posted up in a conspicuous place of the registered office
of the society or branch.

27.-(1) A registered society shall be exempt from in- Exernplion
from income

come tax. tax and
stamp duty.

me inclusion of this page is authorized by L.N. 31/19771

20 FRIENDLY SOCIETIES

Priority on
death,
banhptcy ,
etc., of
officcr.

(2) All instruments executed by or on behalf of a
registered society or a branch thereof or by or on behalf
of a member relating to the business of such society or
branch shall be exempt from stamp duty.

28.-(1) In the following cases, namely-
( U ) upon the death or bankruptcy of any officer of a

registered society or a branch thereof having in
his possession by virtue of his office any money
or property belonging to the society or branch;
or

(6) if any execution, attachment or other process is
issued against any such officer or against his pro-

his executors or 2dministrators, or the Trustee in Bank-
ruptcy or the Bailiff or other person executing the process
respectively, shall, notwithstanding anything contained in
any other law, upon demand in writing of the society or
branch, pay the money and deliver over the property to
the society or branch in preference to any other debt or
claim against the estate of the officer.

(2) In this section the expression “bankruptcy”
includes liquidation of a debtor’s affairs by arrangement.

perty,

Membership
ofminorS. 36il976

Sch.

29.-(1) The rules of a registered society or a branch
thereof may provide for the admission of a person under
twenty-one years of age as a member.

(2) Any such member may, if he is over sixteen
years of age, by himself, and if he is under that age, by
his parent or guardian, execute all instruments and give
all acquittances necessary to be executed or given under
the rules, but shall not be a member of the committee, or
a secretary or treasurer of the society or branch.

mhe inclusion of this page is authorized by LN. 31/19771

FRIENDLY SOCIETIES 21

30.41) A registered society, or any branch thereof may Subscription!
to hospitals, subscribe out of its funds to any hospital, infirmary,

charitable or provident institution any annual or other sum
for the purpose of securing to members of the society or
branch and their families the benefits of the hospital,
infirmary or other institution according to its rules.

(2) A registered society may apply or donate each
year from its funds a sum not exceeding ten cents in
respect of every financial member for the purpose or
towards the promotion or encouragement of education,
science or art in the Island.

31. Every registered society and every branch of a Rightto
suppiy of registered society shall deliver to every person on

demand, on payment of such sum as may be prescribed,
a copy of the rules of the society or branch.

32. Every registered society and e\.ery branch of a Rightto
supply of registered society shall, on the application of any member annual

or any person interested in the funds of such society or return.
branch, supply to him gratuitously-

(a) a copy of the Iast annual return of the society or
branch; or

(b) a balance sheet or other docunient duly audited,
containing the same particulars as to the receipts
and expenditure, funds and effects of the society
or branch as are contained in the annual return.

33. A member or person having an interest in the funds Fbc;;;
,of a registered society or a branch thereof may inspect the
books of such society or branch, as the case may be, at all

m e inclusion of this page is authorized by L.N. 31/1977]

22 FRIENDLY SOCIETIES

reasonable hours at the registered office of the society or
branch, or at any place where the books are kept, except
that the member or person shall not, unless he is an
officer of the society or branch, or is specially authorized
by a resolution of the society or branch to do so, have
the right to inspect, save as herein otherwise provided,
the loan account of any other member without the written
consent of such member.

~ i ~ , i ~ ~ ~ i ~ ~
Of benefits-

34-(1) A member, or a person claiming through a
member, of a registered society or a branch thereof shall
not be entitled to receive more than-

(a) one thousand dollars (excluding bonuses or
additions declared upon assurance) as a lump
sum payment; or in lieu thereof

(b) two hundred and eight dollars per annum as
annuity,

from one or more of such societies or branch.

(2 ) Any such society or branch may require a
member, or person claiming through a member, - to make
and sign a statutory declaration that the total amount to
which that member or person is entitled from one or more
such societies or branches does not exceed the sums afore-
said.

Service 35 .41) A person shall not, by reason of his enrolment
jnarmcd and policc or service as a member of any police, military, naval or
forces. air force, lose or forfeit any interest in a registered

society or a branch thereof which he possesses at the time
of his being so enrolled or serving, or be fined or otherwise
penalized for absence from or non-attendance at any
meeting of the society or branch, if his absence or non-

me inclusion of this page is authorized by LN. 31/1977l

FRIENDLY SOCIETIES 23

attendance is occasioned by the discharge of his police,
military, naval or air duty as certified by his commanding
officer, any rules of the society or branch to the contrary
notwithstanding.

(2) A dispute between any such society or branch
and person by reason of that enrolment or service, shall
be decided by the Registrar.

(3) In this section “commanding officer”, in relation
to a member of the police force, means-

(a) an officer of or above the rank of Assistant
Superintendent having command of the division
or branch in which such member is posted, or

(b) such other officer as may be designated by the
Commissioner.

6

36. A registered society or a branch thereof may hvcstmcni
of funds. invest its funds or any part thereof, to any amount in

any of the following ways-
(a) by deposits in a bank;
(b) in the purchase of land;
(c) in or on the security of the stock, shares or

debentures of any bank or of any building society
established and registered in Jamaica;

(d) in any co-operative undertaking with limited
liability;

(e) in any investment in which trustees are for the
time being by law authorized to invest trust
funds.

3741) A registered society and, subject to the rules of h a n r t o
the society, a branch thereof, may advance to a member of ,,,emben
at least three years’ standing any sum not exceeding one-
half of the amount of any assurance on his life, on the

assured

me inclusion OF this page is authorized by LN. 31119771

T

U FRIENDLY SOCIET€ES

written security of himself and two satisfactory sureties
€or repayment.

(2) The amount so advanced, with all interest
thereon, may be deducted from the sum assured, without
prejudice in the meantime to the operation of the security.

eh

~oansout

loanfund
38. A registered society may, out of any separate loan

fund to be formed by contributions or deposits of its
members, make loans to members on their personal
security, with or without sureties, as may be provided by
the rules, subject to the following restrk&ims-

(a) a loan shall not at any time be made out of money
contributed for the other purposes of the society;

(b) a member shall not be capable of holding any
interest in the loan fund exceeding four hundred
dollars;

(c) a society shall not make any loan to a member
on personal security beyond the amount fixed by
the rules, or make any other loan which, together
with any money owing by a member to the
society, exceeds two-thirds of the amount stand-
ing to the credit of such member;

(& a society shall not hold at any one time on
deposit from its members any money beyond the
amount fixed by the rules, and the amount so
fixed shall not exceed two-thirds of the total sums
owing to the society by the members who
have borrowed from the loan fund;

(e) no member who is indebtttd to a society in respect
of a loan made to him by such society shall be
accepted as surety for anothex member of the said
society.

of separate

llhe iacl-a of t lus page IS authonzd by LN. 3 l / l S V

FRIENDLY SocIETlES 25

39.-(1) A member of a registered society or a branch p o m o r
thereof, not being under the age of sixteen years may, by diapasof
writing under his hand delivered at or sent to the regis- zr$z;s
tered office of the society or brand, or made in a book d-*by
kept at that office, nominate a person or persons to whom
any sum of money payable by the society or branch on
the death of that member, not exceeding two hundred
dollars, shall be paid on his decease.

(2) The sum of money payable by a registered
society or a branch thereof on the death of a member shall
include the sums of money contributed to or deposited in
the separate loan account, and any sums of money ac-
cumulated for the use of the member under the provisions
of regulations made under this Act with interest thereon.

(3) The person nominated under this section shall
not be an officer or servant of the society or branch, unless
that officer or servant is the husband, wife, father, mother,
child, brother, sister, uncle, aunt, nephew or niece of the 3611976
nominator.

(4) A nomination made under this section may be
revoked or varied by any similar document under the hand
of the nominator, delivered, sent or made as aforesaid.

(5 ) The marriage of a member of a registered
societyor a branch thereof shall operate as a revocation
of any nomination theretofore made by that member under
this section.

(6) A nomination or a variation or revocation of a
nomination by writing or mark under the hand of a
member of a branch and delivered at or sent to the regis-
tered office of that branch, or made in a book kept at that
office, shall be effectual, notwithstanding that the money
to which the nomination relates or some part thereof, is
not payable by that branch, but is payable by the society
or some other branch.

m b o r to

nomination

Sch.

me incluson nf t ius page is authorizsd by LN. 3111977l

a6 FRIENDLY SOClETlES

Pm=*rna

nominator.
40.-(1) On receiving satisfactory proof of the death of

a nominator, the registered society or branch shall pay
to the nominee the amount due to the deceased member,
not exceeding the said sum of two hundred dollars.

(2) The receipt of a nominee over sixteen years of
age for any amount so paid shall be valid.

(3) Where the nominee is unwilling or refuses to be
responsible for the funeral expenses of a deceased nomin-
ator, or has not applied for the moneys payable by the
society or branch on the death of such nominator within
twelve hours after knowledge of the death of such nomin-
ator has come to the secretary of the society or branch of
which the said deceased nominator was a member, the
secretary shall have power in his discretion to make
arrangement for the funeral of the deceased nominator
and to defray his funeral expenses out of moneys payable
by the society or branch in respect of the death of the said
nominator.

on dcath of

Payments 41 .41) If any member of a registered society or of a
ofvalid branch of a registered society entitled from the funds

thereof to a sum not exceeding two hundred dollars dies
intestate and without having made a valid nomination in
respect thereof then subsisting, the committee of such
society or branch may defray thereout the funeral expenses
of the deceased member, and may, without letters of
administration, distribute the balance among such persons
as appear to the society or branch, upon such evidence as
it may deem satisfactory, to be entitled by law to receive
that sum.

(2) If any such deceased member is illegitimate and
unmarried, the committee may distribute such balance
among the persons who, in the opinion of the society or
branch would have been entitled thereto if that member

in absence

nomination.

[Thc inclusion of this page is authorized by L.N. 31/19771

FRlENDLY Soc lETlES 21

had been legitimate, and if there are no such persons the
society or branch shall deal with the money in such manner
as the Minister may direct.

(3) If within the period of three months after the
death of such member the committee fail or are unwilling
or neglect to exercise the power of distribution vested in
them under the provisions of this section, the moneys
payable on the death of the said member shall be paid to
the Administrator-Genera1 to be dealt with by him accord-
ing to law.

42.-(1) A payment made by a registered society or VaKdityof gaymenis. branch under the foregoing provisions of this Act with
respect to payments on death generally, to the person who
at the time appears to the society or a branch thereof to
be entitled thereon, shall be valid and effectual against
any demand made upon the smiety or branch by any
other person, but the next of kin or lawful representative
of the deceased member shall have remedy for reco1:ery
of the money so paid as aforesaid, against the person who
has received that money.

(2) Where a registered society or a branch thereof
has paid money to a nominee in ignorance of a marriage
subsequent to the nomination, the receipt of the nominee
shall be a valid discharge to the society or branch.

(3) Where an infant or other person under dis-
ability is entitled to receive from a registered society or
a branch thereof moneys payable on the death of a mem-
ber, such moneys shall be paid by the society or branch
to the Administrator-General to the credit of such infant
or other person under disability, and the receipt of the
Administrator-General shall be a good discharge.

(4) The Administrator-General may retain out of
the said moneys for fees of office, three per centurn thereof

I’Ihe inclusion of this page is authorized by LN. 480/19731

28 FRIENDLY SOCIETIES

and shall pay or apply the remainder to or for the care,
maintenance, education or benefit of such infant or such
person under disability as he may think fit.

Certificate
of death. 43.-(1) Subject to the provisions of subsections (2) and

(3), a registered society or a branch of a registered
society shall not pay any sum of money upon the death of
a member or other person whose death is required by law
to be registered except upon the production of either a
certified copy of the entry of death under the hand of the
Registrar-General or a certificate of the kind described
in section 28 of the Registration (Births and Deaths) Act.

(2) Where the death of such member or other
person takes place in a public institution, a certificate of
that death under the hand of the superintendent or other
person authorized in that behalf by the superintendent,
shall be accepted as proof of death.

(3) This section shall not apply to deaths at sea,
nor to any death certified by a Coroner to be the subject
of a pending inquest.

h u n t
payable on
death of
children of
certain ages.

44. A registered society or a branch thereof shall not

(U) on the death of a child under five years of age,
any sum of money which, when added to any
amount payable on the death of that child by
any other registered society or branch of a
registered society, exceeds sixty dollars; or

give an assurance to pay or p y -

(b ) on the death of a child of five years of age and
over but under ten years of age, any sum of
money which, when added to any amount pay-
able on the death of that child by any other
registered society or branch of a registered
society, exceeds seventy dollars.

[Thc inclusion of this page is authorized by L.N. 480119731

FRIENDLY SOCIETIES 29

45.--(1) A registered society or a branch thereof shall P m n t o whom pay-
not pay any sum on the death of a child under ten years mentmay
of age except to the parent or guardian of the child, or deathof
to the personal representative of the parent or guardian, children.
and upon the production by the parent or guardian or his
personal representative of a certified copy of the entry
of death under the hand of the Registrar-General.

(2) A registered society or a branch thereof shall
before paying any sum on the death of a child, obtain in-
formation as to what, if any, sum of money has been paid
on the death of that child by any other registered society
or branch of a registered society.

be made on

*.-(I) If any dispute touching the business of a settlement
of disputca. registered society or a branch thereof arises-

(a) among members, past members, or persons
claiming through members, past members or
deceased memben; or

(b) between a member, past member or person claim-
ing through a member, past member or deceased
member, and the society or branch, its com-
mittee or any officer of the society or branch; or

(c) between the society or its committee and any
officer of the society or branch; or

(d) between the society and any other registered
society or branch of another registered society; or

(e) between the branch and any other branch of a
registered society; or

(f, between the branch and any registered society
(including the society of which it is a branch),

such dispute shall be referred to the Registrar. A claim
by a registered society or branch for any debt or demand
allegedly due to it from a member, past member or the
nominee, heir or legal representative of a deceased

IThe inclusion of this page is authorized by L.N. 480/1973]

30 FRIENDLY SOCIETIES

member, shall unless admitted by him be deemed to be
a dispute touching the business of the society or branch
within the meaning of this subsection.

(2) The Registrar shall, on receipt of a reference
under subsection (I), refer it for disposal to an arbitrator
or two or more arbitrators.

(3) Any party aggrieved by the award of the
arbitrator or arbitrators may appeal therefrom to the Reg-
istrar within such period and in such manner as may be
prescribed.

Amalgma-

trmd~10f
47 .41 ) Any two or more registered societies may, by

special resolution of both or all such societies, become
amalgamated together as one society, with or without any
dissolution or division of the funds of those societies or
either of them.

(2) A registered society may, by special resolution
transfer its engagements to any other registered society
which may undertake to fulfil the engagements of that
society.

(3) A special resolution by a registered society for
an amalgamation or transfer of engagements under this
Act shall not be valid without-

(a) the assent thereto of three-fourths in value of the
members given either at the meetings at which
the resolution is, according to the provisions of
this Act, passed and confirmed or at one of them,
or, if the members were not present thereat, in
writing: and

(b) the written consent of every person receiving
or entitled to any relief, annuity or other benefit
from the funds of the society, unless the claim
of that person is first duly specified, or adequate
provision is made for satisfying that claim.

tion and

engagt-
ments.

me inclusion of this page is authorized by L.N. 480119131

FRIENDLY SOCIETIES 31

(4) On the application of the committee of a regis-
tered society desiring to amalgamate or transfer its
engagements, and upon notice of that application being
published in the Gazette, the Registrar, after hearing the
committee and other persons whom he considers entitled
to be heard upon the application, may order that any
of the assents, consents and conditions required by this
Act be dispensed with, and may confirm the amalgama-
tion or transfer.

( 5 ) A registered society or a branch thereof, con-

(a) a registered society having members above 21
years of age; or

(b) any number of branches of a registered society
having members above 21 years of age,

may, by resolution registered in the manner required for
the registration of an amendment of rules, become amal-
gamated together as one society or a branch or provide for
distributing among several branches the members of a
registered society or a branch thereof consisting wholly
of members under 21 years of age, and the other provi-
sions of this section shall not apply to that amalgamation.

(6) The value of members shall be ascertained by
giving one vote to every member and an additional vote
for every five years that he has been a member, so, how-
ever, that not more than five votes in all shall be given
to one member.

(7) If any member of a registered society or a
branch thereof which has amalgamated or transferred
its engagements, or if any person claiming any relief,
annuity, or other benefit from the funds thereof is dis-
satisfied with the provision made for satisfying his claim,
that member or person may apply to the Registrar for

sisting wholly of members under 21 years of age and-

m e inclusion of this page is authorized by L.N. 480/1973]

32 FRIENDLY SOCIETIES

relief and the Registrar shall have the same powers in the
matter as in regard to the settlement of disputes under
this Act.

Conversion
of society
into cam-

48-(1) A registered society may by special resolution
determine to convert itself into a company under any
statute for the time being in force relating to the incor-
poration of companies (in this Act referred to as the
Companies Act) or into a co-operative society under the
Co-operative Societies Act , or to amalgamate with or
transfer its engagements to any such company or CO-
operative society.

rociity.

(2) If a special resolution for converting a regis-
tered society into a company contains the particulars
required by the Companies Act to be contained in the
memorandum of association of a company, and a copy
thereof has been registered with the Registrar, a copy
of that resolution under the hand of the Registrar shall
have the same effect as a memorandum of association duly
signed and attested under the said Act.

(3) If a registered society is registered as, or
amalgamates with, or transfers all its engagements to,
a company or a co-operative society, the registration of
the society under this Act shall thereupon become void
and shall be cancelled by the Registrar; but the registra-
tion of a registered society as a company or a co-operative
society shall not affect any right or claim subsisting
against that society or any penalty incurred by that
society; and for the purpose of enforcing any such right,
claim or penalty, the society may be sued and proceeded
against in the same manner as if it had not become regis-
tered as a company or a co-operative society, as the case
may be; and every such right or claim, or the liability to
any such penalty shall have priority, as against the p r o p

[The inclusion of this page is aulhorizd by L.N. 480119131

FRIENDLY SOCIETIES 33

erty of the company or co-operative society, over all other
rights or claims against or liabilities of the company or
co-operative society.

49. An amalgamation or transfer of engagements Savingfor
under this Act shall not prejudice any right of a creditor aed,ton.
against any registered society or branch of a registered
society which is party thereto,

by a majority of the members or delegates present and intos
entitled to vote at any general meeting of which notice branch.
specifying the intention to propose any such resolution
has been duly given according to the rules, determine to
become a branch of any other registered society and also,
if thought fit, of any branch of such other society.

(2) A copy of the rules of the society marked to
show the amendments, if any, made at the meeting, and
two copies of the resolution and of such amendment of
rules, if any, as aforesaid, each signed by the chairman
of the meeting and by the secretary of the society so
determining to become a branch of another society, and
countersigned by the secretary of that other society, shall
be sent to the Registrar.

(3) If the Registrar finds that the rules, with or
without any such amendment as aforesaid, comply with the
provisions of this Act, he shall cancel the registration of
the first named society and register it as a branch of that
other society, and also, if so specified in the resolution
referred to in subsection (l), of any branch of that other
society without further request or notice, and shall register
such amendment of rules without further application or
evidence, and until such registration, the resolution shall
not take effect.

(4) Every cancellation of registration under this
section shall be advertised in the Gazette.

right of

50.-(1) A registered society may, by resolution passed Conversion
of a society

me inclusion of th is page is authorized by L.N. 480/1973]

34 FRIENDLY SOCIETIES

Meaningof

resolution.

51. For the purposes of this Act a specid resolution

(a) passed by a majority of not less than three-
fourths of such members of a registered society
entitled under the rules to vote as may be present
in person or by proxy (where the rules allow
proxies) at any general meeting of which notice
specifying the intention to propose that resolu-
tion has been duly given according to the rules;
and

(b) confirmed by a majority of such members, entitled
under the rules to vote, as may be present in per-
son or by proxy (where the rules allow proxies)
at a subsequent general meeting of which notice
has been duly given, held not less than fourteen
days nor more than one month from the day of
the meeting at which such resolution was first
passed.

At any meeting mentioned in this section, a declaration
by the chairman that the resolution has been carried shall
be conclusive evidence of the fact.

special means a resolution which is-

Registration 52. A copy of every special resolution for any of the
resolutions, purposes mentioned in this Act, signed by the chairman

of the meeting and countersigned by the secretary, shall
be sent to the Registrar’s office and registered by him, and
until that copy is so registered, the special resolution shall
not take effect.

of special

Power of

to,nspect
books,ctc~

53. The Registrar or any person authorized in writing
by him shall, at all times have access to all the books,
accounts, papers and securities of a registered society or
any branch thereof and shall be entitled to inspect the
cash in hand; and every officer of the society or branch

Registrar

me inclusion of this page is authorized by L.N. 480119731

FRIENDLY SOCIETIES 35

shall furnish such information in regard to the trans-
actions and working of the society or branch as the person
making such inspection may require.

54. The Registrar may enter and inspect, or may h s p t i o n
of societies' authorize any person in writing to enter and inspect the prcmren.

registered oflice or place of meeting of any registered
society or any branch thereof at any reasonable time by
day or night, and may examine the condition and affairs
of such society or branch and make such enquiries as are
necessary to ascertain its condition and ability to provide
for the payment of the benefits payable under its rules,
and whether or not it has complied with the provisions
of this Act.

55.-(1) The Registrar may of his own motion, and Jnquiryand
inspection. shall, upon an application in terms of subsection (2) in

writing-

(U) of a majority of the committee; or
(b) of five hundred members in the case of a

registered society or branch thereof having more
than ten thousand members; or

(c) of one hundred members in the case of a
registered society or branch thereof having more
than one thousand but not more than ten
thousand members; or

(d) of one-fifth of the number of members of a
registered society or branch thereof in any other
case,

hold an inquiry or direct any person authorized by
him in writing in that behalf to hold an inquiry into the
constitution, working and financial condition of the
registered society or branch as the case may be.

me inclusion of 1%~ page is authorized by L.N. 480/1973]

36 FRIENDLY SOCIETIES

(2) An application under subsection (1) shall-
(a) state that the funds of the society or branch are

insufficient to meet the existing claims thereon,
or that the rates of contribution fixed in the
rules of the society or branch are insufficient to
cover the benefits assured;

(b) state forthwith the grounds on which the in-
sufficiency is alleged; and

(c) request an inquiry into the affairs of the society
with a view to the cancellation of the registra-
tion of the society.

(3) The officers and members of a society or
branch in respect of which an inquiry is being held under
subsection (1) shall furnish such information in regard to
the affairs of the society or branch and produce the cash
in hand and such books, accounts, papers and securities
of the society or branch as the Registrar or the person
authorized by him may require.

(4) The Registrar shall, on the application of a
creditor of a registered society or branch of a registered
society, inspect or direct some person authorized by him
in this behalf to inspect the books of the society or branch
if the applicant-

(U) proves that an ascertained sum of money is then
due to him and that he has demanded payment
thereof, and has not received satisfaction within
a reasonable time; and

(b) deposits with the Registrar such sum as security
for the cost of the proposed inspection as the
Registrar may require.

(5 ) The Registrar shall communicate the results of
any such inspection to the creditor and to the society
or branch into whose affairs i n q u i j has been made.

me inclusion of this page i s authorized by L.N. 480119731

FRIENDLY SOCIETIES 37

(6) Where an inquiry is held under subsection (1)
or any inspection is made under subsection (4), the
Registrar may direct that the costs, or such part of the
costs as he may think right, be repaid by the registered
society or branch, any members demanding an inquiry,
the officers or former officers of the society or branch or
any creditor, on whose application the inquj r was made.

(7) Any sum awarded by way of costs against any
society or branch or person under this section, may be
recovered, on application to the Resident Magistrate
having jurisdiction in the place where the registered
office of the society or branch is situated, in like manner
as money payable under a judgment of the Resident
Magistrate.

56.41) If at any time it appears to the satisfaction Removal
of the Registrar after due inquiry into the facts, the of ofictr.
officer or other person being afforded a full opportunity
of being heard, that an officer of a registered society or
a branch thereof or a person holding office in a registered
society or a branch thereof, whether elected or otherwise,
has been guilty of negligence, irregularity or misconduct,
such officer or person may be removed from office by order
of the Registrar, and the Registrar shall notify the society
or branch concerned and direct that it proceed to the
appointment or election of a substitute in the place of
such officer or person removed as aforesaid. If tha
society or branch fails to appoint or elect an officer to fill
the vacant office within two months of the date of such
direction, the Registrar may thereupon appoint a new
officer to fill such vacant office.

(2) Where any cfficer or other person who is
removed by order of the Registrar has the custody of any
books, ledgers, vouchers, registers, bills, documents,
moneys or other property belonging to the society or

(The inclusion of thin page ia authorized by L.N. 480/19731

38 FRIENDLY SOCIETIES

branch from which he is so removed he shall forthwith
deliver up to the Registrar or to any person authorized
by him, such books, ledgers, vouchers, registers, bills,
documents, moneys or other property.

(3) Any officer or other person who is removed by
order of the Registrar may within thirty days from the
day on which such order was made, appeal to a tribunal
appointed by regulations under this Act.

(4) Any officer or other person removed from office
by order of the Registrar under the provisions of this
section shall unless reinstated pursuant to an appeal
under subsection (3) cease to hold office in the said society
or branch from the date of such order for the remainder
of his then current term of office, and shall be disqualified
for being elected and for being an oficer of any registered
society or branch for such period, not exceeding five years,
as the Registrar shall determine, next after the end of
his aforesaid current term of office.

Rcspom-

otficcrs and

57.41) If at any time it appears that-
ibility of

declaration
of liability.

(a) the funds or the property of any registered society
or branch of a registered society have been wrong-
fully withheld, misapplied or applied for un-
authorized purposes; or

(b) the business of the society or branch has been
carried on with intent to defraud the society or
branch or any member thereof or any other per-
son; or

(c) the conduct of its proceedings or affairs has been
carried on corruptly or perversely,

the Resident Magistrate having jurisdiction in the place
where the registered ofice of the society or branch is
situated may, on the application of the Registrar or any

[The inclusion of this page is authorized by L.N. 480119731

FRIENDLY SOCIETIES 39

person authorized by the Registrar in writing, if the
Resident Magistrate thinks proper so to do, declare that
any of the officers, whether past or present, of the society
or branch, who were knowingly parties to the wrongful
withholding, misapplication or unauthorized use of the
said funds or property of the society or branch or to the
carrying on of the business of the society or branch in
manner aforesaid, shall be personally liable to such extent
for the debts or other liabilities of the society or branch
as the Resident Magistrate may direct :

Provided that any person who has not held office in the
society or branch within a period of six years previous to
the time at which any contravention of the provisions of
this section as respects such society or branch is discovered,
shall not be called upon to account under this subsection.

(2) The Resident Magistrate may, on the applica-
tion of the Registrar or any person authorized by him in
writing, in the case of any person in respect of whom a
declaration has been made by the Resident Magistrate
under this section, order such person to repay or restore
the money or property or any part thereof respectively with
interest at such rate as the Resident Magistrate thinks
just, or to contribute such sum to the funds of the society
or branch by way of compensation in respect of the with-
holding, misapplication or unauthorized use as the
Resident Magistrate thinks just. Where an order for the
payment of any money is made as aforesaid under this
section, the order shall be deemed to be a judgment debt
due to the society or branch entitled to receive the same
from the person against whom the said order has been
made, and such order for the payment of money or restora-
tion of property may be enforced in the same manner as
a judgment or order of the Resident Magistrate in civil
cases may be enforced.

[The inclusion of this page is authorized by L.N. 48O/l9731

40 FRIENDLY SOCIETIES

(3) Where the Resident Magistrate makes any such
declaration he may, notwithstanding the provisions of
subsection (2), and that such person is then dead, add such
further directions as he thinks proper for the purpose of
giving effect to that declaration, and in particular, for
making the liability of any such person under the declara-
tion a charge in priority to all other claims, legal or
equitable under any law, or any benefits, moneys, credits,
debt or obligation due or to accrue from the society or
branch to the said person or on any share, insurance,
mortgage, charge or interest in, on, or upon any of the
funds or assets of the said society or branch held by or
vested in the said person or any society or person on his
behalf, or any person claiming as assignee from or through
the society or person, and may from time to time make
such further order as may be necessary for the purpose of
enforcing any charge imposed under this subsection. For
the purpose of this subsection the expression “assignee”
includes any person to whom or in whose favour the
benefits, credits, debt, obligation, mortgage or charge was
created, issued or transferred or the interest created, but
does not include an assignee for valuable consideration
other than consideration by way of mortgage, given in
good faith and without notice of any of the matters on the
ground of which the declaration was made.

(4) The Resident Magistrate may, in the case of any
person in respect of whom a declaration has been made
under subsection (l), order that the person shall not, with-
out the leave of the Resident Magistrate, be an officer of
or in any way, whether directly or indirectly, be con-
cerned or take part in the management of any registered
society or branch of a registered society for such period
not exceeding ten years, from the date of the declaration
as may be specified in the order.

[The inclusion of lhil page is authorized by L.N. 480119731

FRIENDLY SOClETlES 41

(5) The provisions of this section shall have effect
notwithstanding that the person concerned may be crirn-
inally liable in respect of the matters on the ground of
which the declaration is to be made.

58.-(1) If the Registrar, after holding an inquiry or Dissolution.
making an inspection under section 55, or on receipt of
an application made by three-fourths of the members of
a registered society, is of opinion that the society ought
to be dissolved, he x a y decide to cancel the registration
of the society and shall publish in the Gazetre and at
least one daily newspaper printed and circulating in
Jamaica notice of such decision.

(2) Where the Registrar decides to cancel the
registration of a registered society-

(a) any member of that society may, within two
months from the date of first publication of the
notice mentioned in subsection (l), appeal
against such decision to the tribunal appointed
by regulations under this Act;

(6) the Registrar may make such order as he thinks
fit for the custody of the books and documents
and the protection of the assets of the society
until its registration is cancelled or, if there is
an appeal against such decision until the deter-
mination or abandonment of the appeal;

(c) the Registrar may cancel that registration at
the expiration of two months from the date of
first publication of the notice mentioned in sub-
section (11, if there is no appeal under paragraph
(a) or, if there is an appeal, on the dismissal or
abandonment thereof.

(3) No registered society shall be wound up except
in accordance with the provisions of this section.

- me inclusion of this page is authorized by L.N. 480/1973]

42 FRlENDLY SOClETIES

Cancellation
of registra-
tion due to
lack of
membership.

Effect of
cancellation
of registra-
tion.

Appoint-
ment of
liquidator.

Powers of
n liquidator.

59. The Registrar may cancel the registration of any
registered society if at any time he is satisfied that the
number of members has been reduced to less than twenty-
one and such cancellation shall take effect forthwith.

60. Where the registration of a society is cancelled
under section 58, the society shall, except for the
purpose of winding up as hereinafter provided, cease to
exist as a corporate body from the date on which the can-
cellation of registration takes effect.

61. Where the registration of a society is cancelled
under section 58, the Registrar may appoint one or
more persons to be, subject to his direction and control,
the liquidator or liquidators of the society.

62.-(1) A liquidator appointed under section 61 shall,
subject to the direction and control of the Registrar and to
any limitations imposed by the Registrar under section 63,
have power-

(a) to institute and defend suits and other legal pro-
ceedings by and on behalf of the society by his
name or office, and to appear in court as a litigant
in person on behalf of the society;

(b) to refer disputes to arbitration;
(c) to determine the contribution to be made by the

members and past members and by estates of
deceased members of the society respectively, to
the assets of the society;

(6) to investigate all claims against the society and,
subject to the provisions of this Act, to decide
questions of priority arising between claimants;

(e) to determine from time to time by what persons
and in what proportion the costs of the liquida-
tion are to be borne;

m e indusion of this page is authorized by L.N. 480119731

FRIENDLY SOCIETIES 43

( f j to take possession of the books, documents and
assets of the society;

(g) to give such directions in regard to the collection
of the assets of the society and the disposal of the
books and documents of the society as may appear
to him to be necessary for winding up the affairs
of the society;

(A) to appoint by notice published in a local daily
newspaper, a day before which creditors whose
claims are not already recorded in the books of
the society shall state their claims for admission
or be excluded from any distribution made before
such claims have been proved;

(21 to compromise any claims by or against the
society;

(13 to sell the property of the society;
(k ) to call such general meeting of the society as may

be necessary;
(0 to carry on the business of the society as far as

may be necessary for winding it up beneficially;
(rn) to arrange for the distribution of the assets of the

society in a convenient manner, when a scheme
of distribution has been approved by the
Registrar.

(2) A liquidator appointed under this section shall,
in so far as such powers are necessary for carrying out the
purpose of this section, have all the powers of a Resident
Magistrate to compel the attendance and examination of
witnesses and the production of documents.

63. A liquidator shall exercise his powers subject to ~ o w e r o f
tocontro~

(a) rescind or vary any order made by a liquidator
and make whatever new order is required;

Regirtar

liquidation.
the control and direction of the Registrar who may-

me inclusion of this pagc is autholircd by LN. 480119731

44 FRIENDLY SOCIETIES

(b) remove a liquidator from office;
(c) call for all books, documents and assets of the

society;
(d) by order in writing limit the powers of a

liquidator under section 62;
(e) require accounts to be rendered to him by the

liquidator;
(f l procure the auditing of the accounts of the

liquidator and authorize the distribution of the
assets of the society;

(g) make an order for the remuneration of the
liquidator;

(h) refer any subject of dispute between the
liquidator and any third party to arbitration, if
that party consents in writing to be bound by
the decision of the arbitrator.

Swension

tlon.

64.41) The Registrar, in any case in which he might
under section 58 or 59 cancel the registration of a regis-
tered society, may suspend the registration of such society
for any term not exceeding three months and may from
time to time suspend the registration for the like p-riod.

(2) The provisions of section 58 shall apply, sub-
ject to any necessary modifications, in relation to suspen-
sion of the registration of a society for any cause other
than for reduction of membership below twenty-one as
they apply in relation to cancellation of such registration.

(3) Where the registration of a society is suspended
the society shall, while the suspension lasts, cease to
enjoy the rights and privileges of a registered society but
without prejudice to any liability whether civil or criminal
incurred by the society, and any such liability may be
enforced after the suspension as if the suspension had not
taken place.

of registm-

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FRIENDLY SOClETlES 45

65.41) No person shall hold both the offices of presi- Limitation
of ofice dent and treasurer or secretary and treasurer of the same holders.

registered society or branch of a registered society.
(2) No person shall hold the office of treasurer in

more than one registered society.
(3) No officer of a registered society or a branch

of a registered society shall-
(a) if such society is a benevolent society, be or act

as the auditor or actuary; or
16) in any other case, be or act as the medical officer,

dentist, optician, druggist, auditor or actuary,
of such society or branch.

66. Every document purporting to be signed by the Evidenceof
documents. Registrar or any person authorized in accordance with

the provisions of this Act to perform any functions or
valuer under this Act shall, in the absence of any evidence
to the contrary, be received in evidence without proof of
the signature.

67.-(1) A registered society or a branch of a registered Bonua.
society shall, if its rules so provide, have power in
general meeting to declare once in every year a bonus,
payable in cash to its members.

(2) No bonus shall be declared except in accordance
with the rules of the society or branch and until all the
debts, actual and contingent, of the society or branch,
have been paid or provided for, and after, setting aside
a sum sufficient to meet all claims against the society or
branch.

(3) No bonus shall be payable except out of
the excess of revenue over expenditure for the year in
respect of which bonus is declarable of a society or branch,

lThc inclusion of thi8 page is authorized by L.N. 460/19731

46 FRIENDLY SOCIETIES

and no bonus shall carry interest against the society or
branch.

(4) No member of a registered society or branch of
a registered society shall be entitled to a bonus-

(a) if he has been a member of the society or
branch for a period of less than fifty-two
weeks immediately preceding the date of the last
meeting before the end of the bonus year; or

(b) if he has failed to pay, at or before the end of
the bonus year, any amount due to be paid by
him to the society or branch at or before the end
of the bonus year.

Establish-

,eJewe

68-41 ) Every registered society and every branch of
a registered society shall establish and maintain a reserve
fund.

rnent of

funds.

(2) Where a registered society or branch declares
in any year the payment of a bonus to members in respect
of the twelve months preceding such declaration of bonus,
it shall, before such declaration, set aside out of the
excess of revenue over expenditure for that period such
sum or proportion thereof as the society or branch may
deem expedient, being a sum not less than five per centurn
of such excess, and shall forthwith credit the same to the
reserve fund.

(3) Where in any year a registered society or
branch does not declare a bonus, it shall, out of the excess
of revenue over expenditure in such year, credit such
reserve fund with a sum not less than five per centurn of
such excess.

(4) The reserve fund shall, with the consent of the
Registrar, be utilized in expenditure of any extraordinary
nature which may be necessary or desirable in carrying

m e inclusion of this page is authonred by L.N. 4801 19731

FRIENDLY SOCIETIES 41

out the objects of the society, but the reserve fund shall
not be utilized in paying a bonus or making any pay-
ment whatsoever in the nature of a bonus.

(5) All moneys accruing to the reserve fund shall
from time to time be invested by the society or branch
in manner provided by section 36. An investment under
this section shall not include the lending out of rconeys
to members under the provisions of this Act.

(6) A registered society or branch may, with the
pxmission in writing of the Registrar, at the end of
every five years from the 1st November, 1968, or from the
date of registration of the society, whichever is the later,
apply any part of its reserve fund not exceeding fifty per
centurn of the amount at which such reserve fund then
stands, for any of the objects or purposes defined or
established under the rules of the society or branch, save
that no portion thereof shall be applied in paying a bonus
or in making any payment whatsoever in the nature of a
bonus.

(7) (a) Where the business of a registered society
or branch of a registered society includes the issuing of
insurance policies or the providing for an endowment of
a member or the nominee of a member at any age, or the
assuring of a certain annuity, such society or branch
shall, in each year in general meeting, set aside out of
the contributions rece@ed by way of premium payments
during the preceding year as shown by the annual return
of the society or branch to the 31st day of December last
preceding-

(i) as respects the first three years immediately
following the registration of the society under
this Act, such sum as the society or branch
may consider expedient, not being less than ten
per centurn of the contributions received in the
relevant year; and

[The inclusion of this page is authorized by LN. 480/1973]

48 FRIENDLY SOCIETIES

(ii) as respects each year after those three years,
such sum as the Registrar shall determine, not
being less than twenty per centum of such contri-
butions,

to be accumulated in a special reserve fund for the pur-
poses of this subsection.

(b ) The sums set aside for the special reserve fund
under this subsection shall be deposited and kept
deposited in an account in the name of the society or
branch, as the case may be, in a bank approved by the
Registrar and shall be specifically appropriated to meet
the liabilities of the society or branch in respect of claims
and demands arising under or in connection with
insurance policies, endowments and annuities issued,
provided for or assured, as the case may be, by the
society or branch :

Provided that such special reserve fund or part thereof
may be invested by the society or branch, as the case may
be, in securities or investments authorized by this Act,
and the interest accruing due on all such securities or
investments shall be paid directly to such special reserve
fund and shall not be applied for any purpose other than
the purposes for the which sums set aside for such special
reserve fund may be specifically appropriated.

(c) Every registered society or branch transact-
ing the business described in paragraph (a) shall, when-
ever it is intended to make a distribution by way of bonus,
cause an investigation to be made into its financial condi-
tion including a valuation of its liabilities by an auditor
approved by the Registrar, and shall, before making any
such distribution, file with the Registrar a report of such
auditor approving or sanctioning such distribution as
aforesaid.

(d) This subsection shall not apply to registered
societies-

m e indurion of this page is authorized by LN. 480119731

FRIENDLY SOCIETIES 49

(i) which were friendly societies existing on the 1st
November, 1968; and

(2) which are exempted by the Registrar.

69.-(1) The Minister may make regulations generally Read.- Lion#. for the proper carrying out of the purposes and provisions
of this Act.

(2) In particular, and without prejudice to the
generality of the power conferred by subsection (I), regu-
lations made under this section may-

(a) prescribe the forms to be used and the conditions
to be complied with in applying for the registra-
tion of a society and the procedure in the matter
of such applications;

(b) provide for the withdrawal and expulsion of mem-
bers, for the payments to be made to members
who withdraw or are expelled, and for the
liabilities of past members;

(c) prescribe provisions respecting levies and the
form and particulars of a record to be kept of the
levies made by a registered society or branch of
a registered society;

(6) provide for general meetings of the members of
registered societies or branches of registered
societies, for the procedure at and the powers
to be exercised by such meetings;

(e) provide for the appointment, suspension and
removal of the members of the committee and
other officers of a registered society or branch of
a registered society, for the procedure at
meetings of the committee and for the powers
to be exercised and duties to be performed by
the committee and other officers;

[The inclusion of this page ia autho- by L.N. 480/19731

50 FRIENDLY SOCIETIES

0 provide for the payment of and other matters
affecting bonus moneys, prescribe the mode of
recording such payments and the form and parti-
culars relating thereto and provide for the pay-
ment of extra remuneration or allowances to
officers and members in respect of duties con-
nected with the payment of bonus moneys;

(g) prescribe the matters in respect of which a
registered society and a branch of a registered
society may or shall make rules, the procedure
to be followed in making, altering and rescinding
rules and the conditions to be satisfied prior to
such making, alteration or rescission;

(h ) prescribe the payments to be made, the conditions
to be complied with and the forms of the bonds,
instruments or other documents to be executed
by members applying for loans or cash credits,
the period for which loans may be made or credits
granted, the maximum amount which may be
lent and the maximum credits which may be
allowed to individual members;

(2) provide for the mode in which the value of the
interest of a deceased member shall be ascer-
tained;

(1) provide for the mode in which the value of the
interest of a member who has become of unsound
mind incapable of managing himself or his
affairs shall be ascertained, and for the nomina-
tion of any person to whom such interest may be
paid or transferred;

(k) provide for the formation and maintenance of
reserve funds, the objects to which such funds
may be appl id and the invesment of any funds
under the control of any registered society or
branch of a registered society;

m e inclusion of th is page is authorized by L.N. 480/19731

FRIENDLY SOCIETIES 51

(0 provide for the control of the funeral expenses of
members;

(m) prescribe the conditions under which profits may
be distributed to the members of a registered
society or of a branch thereof, and the maximum
rate of dividend which may be paid by registered
societies and their branches;

(n) prescribe the accounts and books to be kept by
registered societies and their branches and
require the periodical publication of balance
sheets showing the assets and liabilities of regis-
tered societies;

(01 provide for the audit of the accounts of
registered societies and their branches, for the
charges, if any, to be made for such audit, for
the levy of contributions from any registered
society or all registered societies to a fund to be
used for the audit and supervision of existing
registered societies, and provide for the admin-
istration of such a fund;

( p ) prescribe the returns to be submitted by
registered societies to the Registrar, and the
persons by whom and the form in which such
returns are to be made;

(4) prescribe the persons by whom, and the form in
which copies of entries in the books of registered
societies and their branches may be certified;

( r ) provide for the formation and maintenanoe of a
register of members and, where the liability of
members is limited by shares, of a register of
shares;

(s) provide for the inspection of documents and
registers at the Registrar’s office, and the fees
to be paid for such inspection and for the issue
of copies of such documents and registers;

me inclusion of this page is authorized by L.N. 480/1973]

52 FRIENDLY SOCIETIES

(r) prescribe the mode of appointing arbitrators and
the procedure to be followed in proceedings before
such arbitrators;

(U) provide for the appointment of a tribunal to hear
appeals under this Act, prescribe the fees to be
paid, the procedure to be observed and all other
matters connected with such appeals;

(v) prescribe the procedure for making any applica-
tion to a Resident Magistrate under this Act;

(w) prescribe anything required to be prescribed under
this Act.

Offcnccs. 70.41) Where any registered society or any officer or
member of a society to which this Act applies, or of a
branch of any such society-

(a) wilfully neglects or refuses to do any act or to
furnish any information required for the purposes
of this Act by the Registrar or any other person
duly authorized by him in writing in that behalf;
or

(b) is required by this Act to give any notice, to
deliver up, return or send any contribution card,
report, return or document, or to do or allow
to be done any other act, and fails to comply with
such requirement; or

(c) wilfully makes a false return or furnishes any
false information,

such registered society, or such officer or member, as the
case may be, shall be guilty of an offence against this Act.

(2) Every person who-
(a) wilfully or without any reasonable excuse dis-

obeys any summons or lawfully written order
issued under the provisions of this Act; or - me inclusion of this page is authorized by L.N. 480/19731

FRIENDLY SOCIETIES 53

(b) fails to furnish any information lawfully required
from him by a person authorized to do so under
the provisions of this Act; or

(c) being a parent or personal representative of a
parent claiming money on the death of a child,
produces a false certificate of the death, or one
fraudulently obtained, or in any way attempts
to defeat the provisions of this Act with respect
to payments on the death of children; or

(d) being an officer or member of a body which,
having been a branch of a registered society, has
wholly seceded or been expelled from that society,
thereafter uses the name of that society or any
name implying that the body is a branch of that
society, or uses the number by which the body
was designated as such branch; or

(e) being an officer of a registered society or of a
branch of a registered society, either in addition
to or in substitution for the remuneration
authorized by the rules of the society or branch,
receives from any other person any gift, bonus,
commission or benefit for or in connection with
any benefit paid or any loan made by the society
or branch; or

Cr, contravenes any of the provisions of this Act,
shall be guilty of an offence against this Act.

71.41) Every person who is guilty of an offence against Penalties.
this Act shall be liable upon summary conviction before a
Resident Magistrate to a fine not exceeding one hundred
dollars or in default of payment to imprisonment with or
without hard labour for a term not exceeding six months.

[The inclusion of this page is authorized by L.N. 480119731

54 FRIENDLY SOCIETIES

(2) Where a registered society is guilty of an
offence against this Act, every member of the committee
of such society shall, unless he is proved to have been
ignorant of or to have attempted to prevent the commis-
sion of that offence, be liable to the same penalty as if
he had committed the offence.

me inclusion of this page is authorized by L.N. 480119731 ' 1