Background Building societies started life as friendly societies which are corporate entities designed to provide benefits for their members in sickness and old age. They encouraged small savings for such purposes. Each user of services became a member of the Society and had shares. However, the shares were not transferable and not convertible into cash. Building societies in the strict sense were mutual societies whose […]
Nature of Building Society Building societies are bodies corporate with their own regulatory regime equivalent to those for companies. They are most similar to friendly societies and industrial and provident societies. Building societies may be formed with the object of permitted activities under the Act. It must include the objective of raising funds for making housing loans. A building society is formed in accordance with […]
Powers A Building Society must act within its functions. Actions outside the functions are presumptively valid in the same manner as with a company. There was a similar protection for outsiders dealing with the Building Society to that applying with companies. Acts lawfully and effectively done in favour of persons dealing with the Society in good faith are valid notwithstanding the absence of a power […]
Enhanced Central Bank Powers The Building Society Act transferred regulatory powers and the register of Building societies to the Central Banks. These powers were then transferred to the financial regulator and then back to the Central Bank under the 2010 act. The Central Bank is obliged to administer societies with a view to the protection of the funds of shareholders and depositors and the maintenance […]
Amalgamations & Transfers There are provisions for amalgamations and transfer of engagements of a Building Society. Amalgamation is by formation of a Building Society as successor. The amalgamating Societies must agree on the rules, objects of the successor Society and make joint application to the Central Bank for confirmation. If the Central Bank confirms the amalgamation, it is to take effect on the specified date. […]
Formation The principal legislation for industrial and provident societies is the Industrial and Provident Societies Act 1893. The entities are corporate bodies with a separate legal identity. They have a separate legal liability from their members, which is accordingly limited. Industrial and provident societies are registered by the registrar of friendly societies. The society can be registered for the carrying out of any business or […]
Meetings The rules of a registered Industrial and Provident Society provide for the manner of holding a General Meeting. Unlike companies legislation, there is no specific requirement for meetings to be held at a particular interval. However, reporting and accounting to members implies an obligation to hold a meeting. This should be annual in accordance with the accounting sequence. Rules will generally provide for the […]
Meetings The rules of registered societies and branches must provide for holding a general meeting. There is provision for the requisition of a meeting for the purpose of amending the rules. The chief registrar may, with certain consents and subject to certain requisition by members can read a special meeting. The requisite number of members is generally one fifth, but varies with the size of […]
Overview Corporations are legal bodies or artificial persons. They are legal persons established by law. Many bodies are not corporations and do not have a separate corporate identity. Firms of partners and many associations do not have a separate legal existence. Prior to the Companies Act, there were limited means to establish a corporation. Statute or Royal Charter established their separate existence. Corporations may be […]
Industrial and Provident Societies The principal legislation for industrial and provident societies is the Industrial and Provident Societies Act 1893. The entities are body corporates with separate legal identities. They have a separate legal liability from their members, which is accordingly limited. Industrial and provident societies are registered by the Registrar of Friendly Societies. Certain returns and documents must be lodged with the registrar. These […]
Overview Friendly societies are a species of corporate body with 19th century origin. They are part of a group of voluntary benefit and saving societies which include building societies, trade unions, cooperative societies, and some industrial and provident societies. The governing legislation is still the Friendly Societies Act 1896 which allows six classes of societies, one of which is a Friendly Society. Most friendly societies […]