Friendly Societies and Credit Unions Act 1982

Reprint as at 1 April 2019

Coat of Arms of New Zealand

Friendly Societies and Credit Unions Act 1982

Public Act
 
1982 No 118
Date of assent
 
1 December 1982
Commencement
 
see section 1(2)
Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Ministry of Business, Innovation, and Employment.

Contents

Title
1Short Title and commencement
2Interpretation
2ATransitional, savings, and related provisions
3Registrar of Friendly Societies and Credit Unions
4Deputy Registrar of Friendly Societies and Credit Unions
5Registry Office and registers
6Appointment of officers and employees
7Functions of Registrar
8Powers of inspection of records by Registrar
9Registrar may publish statements, etc
10Annual report [Repealed]
11Societies which may be registered
12Applications for registration of societies
13Certain societies not disentitled to registration because of division of funds
14Branches to be registered concurrently with society
15Actuary to certify rates of contributions before registration
16Revising Barrister may examine rules [Repealed]
17Acknowledgment of registration
18Refusal to register
19Establishment of new branches
20Secession or expulsion of branches
21Seceded or expelled branch may apply for registration
22Acknowledgment of registration deemed to be acknowledgment of rules
23Amendment of rules
24Actuary may examine amendments
25Registration of amendment of rules
26Amendment of rules by Registrar
27Society or branch to supply copy of rules
28Appointment of trustees
29Property to vest in trustees
30Registrar may authorise transfer of property to existing trustees
31Delegation of duties by trustee
32Notice to Registrar-General of Land of names of trustees
33Dealing with land under Land Transfer Act
34Officers required to give security
35Duty of officers to account
36Priority on death, bankruptcy, etc, of officer
37Members generally to have 1 vote only
38Members’ subscriptions not generally recoverable
39Membership of minors
40Register of members
41Inspection of books and accounts of society [Repealed]
42Maximum gross sum for contracts of insurance
43Member may nominate person to receive money on death
44Payment on death of nominator
45Evidence of death
46Restriction on payments on account of death of minors
47Power to make loans against surrender value of policies
48Money payable by friendly societies to their members protected
49Duties of trustees in relation to investments
50Trustees of society may make investments for branch, etc
51Borrowing powers, overdrafts
52Investment powers
53Society providing medical or surgical requisites may issue debentures and invest in certain shares
54Subscriptions to hospitals or other institutions
55Donations for charitable or other purposes
56Participation in government of other society or branch or contribution to its funds
57Powers of society or branch with respect to land
58Public Trust or trustee company may hold securities and invest funds for societies
58ARegistered friendly society that is licensed insurer may offer friendly society securities
58BMeaning of distribution
58CDistribution must be authorised
58DDistribution must not be authorised unless registered friendly society solvent
58ESolvency test
59Financial year
60Accounting records must be kept
61Non-application of section 63 if alternative financial reporting duties under financial markets legislation
62Meaning of specified not-for-profit entity
63Financial statements must be prepared
64Registered society or branch may opt out
64AObligation to appoint auditors
64BRegistrar may appoint auditor
64COffences relating to accounting records and financial reporting
64DAudit must be carried out in accordance with auditing and assurance standards
64EAuditor must report to society or branch
65Reappointment and removal of auditors
66Notice of resolution relating to appointment and removal of auditors
67Proceedings subsequent to notice of intention to move resolution
68Auditors’ report [Repealed]
69Auditors’ rights to attend and be heard at meetings
70Annual return
71Annual return by society under dissolution, etc
72Annual return to be supplied to members
73Financial statements must be available
74Actuarial valuation and report
75Obligation on branches to supply particulars for annual return or actuarial valuation and report
76Appropriation and transfer of surplus funds
77Registrar may advise society on financial position
78Settlement of disputes generally
79Reference of dispute to Registrar
80Statement of case, etc, in settlement of dispute
81Reference of disputes to court otherwise than under rules
82Special resolutions
83Amalgamation of societies and transfer of engagements
84Society may apply to be registered as company
85Objections to amalgamations and transfers of engagements
86Registrar may approve amalgamations, transfers, and conversions
87Branches amalgamating, transferring engagements, or converting to company
88Conversion of society into branch
89Registrar may appoint inspectors or call special meeting
90Registrar may apply to put society into liquidation
90ATransitional provisions applying to liquidation of societies [Repealed]
91Registrar may forbid new business or the accepting of new members of society
92Registrar may cancel or suspend registration
93Dissolution of societies and branches
94Instrument of dissolution
95Dissolution by award
96Notice to Registrar of proceedings to oppose dissolution
97Property to be transferred before final dissolution
98Credit unions to be incorporated under this Part
99Exemptions from incorporation under this Part
100Persons eligible to incorporate credit union
100AApplication for incorporation of credit union
100BIncorporation of credit union
101Objects of credit union
102Qualifications for admission to membership of credit union
103Name of credit union
104Registration and rules of credit union [Repealed]
105Effect of rules on members of credit union
106Membership of credit union, voting rights
106AMembers not liable for obligations of credit union
106BAmendment of credit union’s rules
106CCredit union to supply copy of rules
107Credit union to have shares
107ACredit union may offer credit union securities
107BCapacity and powers of credit union
107CValidity of actions
107DDealings between credit union and other persons
107ENo constructive notice
107FHigh Court may restrain credit union from acting contrary to Act or credit union’s rules
108General prohibition on taking deposits [Repealed]
109Power of credit union to borrow money [Repealed]
109APower of credit union to appoint supervisor for debt securities [Repealed]
110Credit union may make loans to members and enterprises related to members, etc
111Minister may fix maximum amount of loans to members [Repealed]
112Credit union property to vest in trustees [Repealed]
113Credit union may hold land [Repealed]
114Officers of credit union to give security [Repealed]
115Duty of officers of credit union to account [Repealed]
116Priority on death, bankruptcy, etc, of officer [Repealed]
117Investment of surplus funds [Repealed]
117AMeaning of distribution
117BDistribution must be authorised
117CDistribution must not be authorised unless credit union solvent
117DSolvency test
118Disputes in relation to credit unions
119Credit union to maintain general reserves [Repealed]
120Financial year of credit union
121Accounting records must be kept
122Financial reporting
123Obligation to appoint auditors
124General matters relating to auditors
125General matters relating to auditors, the auditors’ report, and auditors’ rights of access [Repealed]
126Registrar may advise credit union on financial position
127Annual return
128Annual return by credit union under dissolution
129Annual return to be supplied to members
130Register of members of credit union
131Inspection of books and accounts of credit union [Repealed]
132Financial statements must be available
133Credit union to be insured against fraud or other dishonesty
133AMethod of contracting
133BAttorneys
134Guarantee funds [Repealed]
135Amalgamation of credit unions and transfer of engagements of 1 credit union to another credit union
135AMembers of credit union to be given information about proposed amalgamation or transfer of engagements
135BSecured creditors and public notice
135CRegistration of special resolutions for amalgamation or transfer of engagements
135DOther registers
135EPowers of court in relation to proposed amalgamation or transfer of engagements
136Registrar may approve amalgamations or transfers of engagements of credit unions
137Registrar may appoint inspectors or call special meeting
137AMembers may resolve to put credit union into liquidation
138High Court may put credit union into liquidation
138ATransitional provisions applying to liquidation of credit unions [Repealed]
139Registrar may suspend business of credit union
140Removal from register
140ANotice of intention to remove from register
140BObjection to removal from register
140CObjections under section 140B(1)(a), (b), or (c)
140DObjections under section 140B(1)(d) or (e)
140ERegistrar must send information to person who requests removal
140FHigh Court may order that credit union not be removed
140GLiability of officers, members, and others to continue
140HRestoration of credit union to register
140IRegistrar may restore credit union to register
140JNotice of proposed restoration
140KHigh Court may order restoration of credit union
140LRegistrar or High Court may require provisions of this Act to be complied with
140MOther High Court orders
141Liability of members on winding up
142Nomination of shares in credit union
143Associations of credit unions may be incorporated under this Part
144Membership of association
145Application for incorporation of association
146Incorporation of association
147Changes of name
147AMeetings may be held using audio, audio and visual, or electronic communication
147BPostal, electronic, and proxy voting
148Exemptions from Customs duty
149Recovery of costs, etc, awarded by Registrar
150Certain persons prohibited from managing societies or credit unions
151Appeals
152Regulations
153Offences and penalties
154Recovery of fines, etc, imposed on society or branch
155Status of trustees and officers for purposes of Crimes Act 1961
156Liability of officers and of members of committee on commission of offence
157Institution of legal proceedings by or against society or branch
158Proof of documents
159Fines imposed under rules recoverable as a debt
160Savings and transitional provisions
161Amendments, repeals, and revocations
Reprint notes

An Act to consolidate and amend the law relating to friendly and certain other societies, to make better provision for the formation and administration of credit unions, and to provide for matters related thereto