Friendly Societies Act 1974

The Registry of Friendly Societies

The Registry Office

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Terms of office, qualifications and status of Chief and assistant registrars

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Registration areas and functions of assistant registrars in those areas

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Finality of awards for dissolution or distribution of funds.

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Report of the Chief Registrar and publication of information relating to friendly societies

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Registration of societies and branches

Societies which may be registered

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• (1) Subject to subsections (2) and (3) below and also to section 9 below, the following societies may remain registered under this Act, that is to say,—

• (a) societies (in this Act called “friendly societies”) for the purpose of providing by voluntary subscriptions of the members, with or without the aid of donations, for any purpose falling within Schedule 2 to the 1992 Act;

• (b) societies (in this Act called “cattle insurance societies”) for the purpose of insurance to any amount against loss of cattle, sheep, lambs, swine, horses, and other animals by death from disease or otherwise;

• (c) societies (in this Act called “benevolent societies”) for any benevolent or charitable purpose;

• (d) societies (in this Act called “working men’s clubs”) for purposes of social intercourse, mutual helpfulness, mental and moral improvement and rational recreation;

• (e) societies (in this Act called “old people’s home societies”) for the purpose of providing homes for the members and others at any age after fifty;

• (f) societies (in this Act called “specially authorised societies”) for any purpose which the Treasury may authorise as a purpose to which the provisions of this Act, or such of them as are specified in the authority, ought to be extended but no society may become registered under this Act after the commencement of section 93 of the 1992 Act.

• (2) A society may not be registered under this Act unless—

• (a) the rules of the society contain provisions in respect of the several matters mentioned in Part I of Schedule 2 to this Act and, in the case of a friendly society or cattle insurance society, also contain provisions in respect of the several matters mentioned in Part II of that Schedule; and

• (b) the place which under the society’s rules is to be the society’s registered office is situated in the United Kingdom, the Channel Islands or the Isle of Man; and

• (c) the society consists of at least seven persons.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) Where any provisions of this Act are specified in an authority given under paragraph (f) of subsection (1) above, those provisions only shall extend to a society which has been registered as a specially authorised society by virtue of that authority.

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Registration of societies

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Special provisions as to dividing societies and societies assuring annuities

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• (1) A society which is neither a benevolent society nor a working men’s club shall not be disentitled to registration by reason of any rule for, or practice of, dividing any part of the funds thereof, if the rules of the society contain distinct provision for meeting all claims upon the society existing at the time of the division before any such division takes place.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Societies registered in one registration area carrying on business in another

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Additional requirements for registration of societies with branches

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• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (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, . . ..

Establishment of new branches

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• (1) There shall be sent to the FCA, under the hand of the secretary of a registered society,—

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

• (b) notice of the place where the registered office of the branch, to which all communications and notices may be addressed, is to be situated;

• (c) if the branch is to have trustees or officers authorised to sue and be sued on its behalf, other than the trustees or officers authorised to sue and be sued on behalf of the society, a list of the names of those trustees or officers; and

• (d) two copies of the rules of the branch.

• (2) A society shall not be entitled to any of the privileges of this Act as a registered society with respect to a branch until the branch has been registered . . ..

Registration of branches as societies

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• (1) A body which has been registered as a branch of a society shall not be registered as a society after the commencement of section 93 of the 1992 Act.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Name of seceding or expelled branch

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A body which, having been a branch of a society, has wholly seceded or been expelled from that society, shall not thereafter use the name of that society or any name implying that it is a branch thereof, or the number by which it was designated as such a branch.

Acknowledgment of registration

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• (1) On being satisfied that a society or branch has complied with the provisions of this Act as to registration, the registrar shall issue to that society or branch an acknowledgment of registration which, in the case of a society, shall specify the designation thereof according to the classification in section 7 above.

• (2) An acknowledgment under subsection (1) above shall be conclusive evidence that the society or branch therein mentioned is duly registered under this Act, unless it is proved that the registration of the society or, in the case of a branch, the society of which it is a branch, has been suspended or cancelled.

Appeals from refusal to register

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• (1) If the FCA refuses to register a branch, the branch may appeal to the High Court or, in the case of a branch whose registered office is to be situated in Scotland, the Court of Session.

• (2) If a refusal to register a . . . branch is overruled on appeal, the FCA shall give an acknowledgment of registration under section 15A above to the . . . branch.

Provisions as to rules

Acknowledgment of registration of rules

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Registration of amendments of rules of society or branch

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• (1) Subject to subsection (2) below, any amendment of the rules of a society or branch as for the time being registered under this Act shall not be valid until the amendment has been so registered, and for this purpose copies of the amendment, signed by three members and the secretary of the society or of the branch, as the case may be, shall be sent to the FCA.

• (2) Subsection (1) above shall not apply to a change in the situation of the registered office of a society or branch, but—

• (a) notice of any change in the situation of the registered office of a society or branch shall be sent to the FCA and, in the case of a change in the situation of the registered office of a branch, shall be sent to the FCA through an officer appointed in that behalf by the society of which the branch forms part; and

• (b) where notice of such a change is sent to the FCA under paragraph (a) above, the FCA shall register it as an amendment of the rules of the society or branch concerned.

Acknowledgment of registration of amendments of rules

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On being satisfied that any amendment of the registered rules of a society or branch is not contrary to the provisions of this Act, the FCA shall issue to the society or branch, in respect of that amendment, an acknowledgment of registration which shall be conclusive evidence that the amendment is duly registered.

Appeals from refusal to register amendment of rule

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• (1) If the FCA refuses to register an amendment of a rule of a registered society or branch, the society or branch may appeal to the High Court or, in the case of a society or branch whose registered office is situated in Scotland, the Court of Session.

• (2) If a refusal to register an amendment of a rule is over-ruled on appeal, the FCA shall give an acknowledgment of registration under section 19 above to the society or branch.

Duty to supply copies of rules

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Every registered society or branch shall deliver to any person on demand, on payment of a reasonable fee, a copy of the rules of the society or branch.

Rules of certain registered societies to bind members at law

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• (1) The rules of—

• (a) a registered cattle insurance society or branch, and

• (b) such specially authorised societies or branches thereof as the Treasury may allow to take the benefit of this section,

shall bind the society or branch and the members thereof, and all persons claiming through them, to the same extent as if each member had subscribed his name and affixed his seal hereto, and as if there were contained in the rules a covenant on the part of himself and his executors or administrators to conform to the rules subject to the provisions of this Act.

• (2) All sums of money payable by a member to a society or branch falling within subsection (1) above shall be deemed to be a debt due from the member to the society or branch and shall be recoverable as such in the county court for the district in which the member resides.

• (2A) In the application of subsection (2) to England and Wales, for the words “for the district in which the member resides” there shall be substituted “if the member resides in England and Wales”.

• (3) In the application of this section to Scotland, in subsection (1) the words “and affixed his seal” shall be omitted, and in subsection (2) for the words “in the county court for the district” there shall be substituted the words “ before the sheriff of the sheriffdom ”.

Special provisions which may be included in rules

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• (1) The rules of a registered society or branch may provide for the reinsurance, to such extent as may from time to time be approved by a qualified actuary, of risks of any class against which persons are, or are to be, insured by that society or branch.

• (2) The rules of a registered society which is a specially authorised society complying with the provisions of subsection (3) below may provide that it may receive deposits and borrow money at interest from its members or from other persons, and upon the registration of such a rule the same shall be valid.

• (3) A specially authorised society complies with the provisions of this subsection if it has for its object the creation of funds to be lent out to the members of the society or for their benefit, and has in its rules provisions—

• (a) that no part of its funds shall be divided by way of profit, bonus, dividend or otherwise among its members; and

• (b) that all money lent to members shall be applied to such purpose as the society or its committee may approve.

Trustees and Officers

Trustees of registered societies and branches

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• (1) Every registered society and branch shall have one or more trustees.

• (2) The trustees may be appointed—

• (a) by a resolution of the society or branch in general meeting; or

• (b) in such other manner as the rules of the society or branch may provide.

• (3) If a trustee is appointed under subsection (2)(a) above, the society or branch shall send to the FCA a copy of the resolution appointing him, signed by the trustee so appointed and by the secretary of the society or branch.

• (4) If a trustee is appointed under subsection (2)(b) above, the society or branch shall send to the FCA—

• (a) notice of his appointment signed by the secretary of the society or branch; and

• (b) an acceptance of office signed by the trustee so appointed.

• (5) In the case of the appointment of a trustee of a branch, any document referred to in subsection (3) or (4) above shall be sent to the FCA through an officer appointed in that behalf by the society of which the branch forms part.

• (6) The same person may not be a secretary or treasurer of a registered society or branch and also a trustee of that society or branch.

Minors not to hold office

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A minor shall not be a member of the committee, or a trustee, manager or treasurer, of a registered society or branch.

Proof of appointment of officers and trustees

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If any such list as is referred to in section 12(1)(c) above is signed—

• (a) by every trustee and other officer named in the list; and

• (b) by the secretary of the branch,

then on the registration of the branch the list shall be evidence that the persons so named have been duly appointed.

Certain officers to give security

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Duty of officers of registered societies and branches to account

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Accounts, audit and auditors

Books of account, etc.

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• (1) Every registered society and branch shall—

• (a) cause to be kept proper books of account with respect to its transactions and its assets and liabilities, and

• (b) establish and maintain a satisfactory system of control of its books of account, its cash holdings and all its receipts and remittances.

• (2) For the purposes of subsection (1)(a) above, proper books of account shall not be taken to be kept with respect to the matters mentioned in that paragraph unless there are kept such books as are necessary to give a true and fair view of the state of the affairs of the society or branch and to explain its transactions.

• (3) Any book of account to be kept by a registered society or branch may be kept either by making entries in bound books or by recording the matters in question in any other manner.

• (4) Where any such book of account is not kept by making entries in a bound book but by some other means, the society or branch shall take adequate precautions for guarding against falsification and for facilitating its discovery.

General provisions as to accounts and balance sheets

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• (1) Every revenue account of a registered society or branch shall give a true and fair view—

• (a) if it deals with the affairs of the society or branch as a whole, of the income and expenditure of the society or branch as a whole for the period to which the account relates; and

• (b) if it deals with a particular business conducted by the society or branch, of the income and expenditure of the society or branch in respect of that business for the period to which the account relates.

• (2) Every registered society or branch shall, in respect of each year of account, cause to be prepared either—

• (a) a revenue account which deals with the affairs of the society or branch as a whole for that year; or

• (b) two or more revenue accounts for that year which deal separately with the particular businesses conducted by the society or branch.

• (3) In a case falling within subsection (2)(b) above, without prejudice to the application of subsection (1)(b) above to each revenue account dealing with a particular business conducted by a society or branch, the revenue accounts in question, when considered together, shall give a true and fair view of the income and expenditure of the society or branch as a whole for the year of account to which they relate.

• (4) Subject to subsection (5) below, every balance sheet of a registered society or branch shall give a true and fair view, as at the date of the balance sheet, of the state of the affairs of the society or branch.

• (5) Subsection (4) above does not apply in the case of—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) a specially authorised society or branch which, by virtue of a direction in the authority for registering that society or branch, is required to carry out a valuation under section 41 below,

but every balance sheet of a society or branch falling within . . . paragraph (b) above shall give a true and fair view, as at the date of the balance sheet, of the assets and current liabilities of the society or branch and the resulting balances of its funds.

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (7) Without prejudice to the provisions of subsection (6) above, a registered society or branch falling within paragraph (a) or paragraph (b) of subsection (5) above shall not publish any balance sheet which does not include a statement containing the same particulars as the statement required to be included in the annual return of that society or branch by section 43(5) below.

• (8) If in relation to any revenue account, revenue accounts or balance sheet of a registered society or branch, a member of the committee thereof fails to take all reasonable steps to secure compliance—

• (a) with subsection (1), subsection (4) or, as the case may require, subsection (5) above, or

• (b) in a case falling within subsection (2)(b) above, with subsection (3) above,

he shall be liable on summary conviction to a fine not exceeding level 5 on the standard scaleunless he proves that he had reasonable grounds to believe, and did believe, that a competent and reliable person was charged with the duty of seeing that the relevant provision was complied with and was in a position to discharge that duty.

Obligation to appoint auditors

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• (1) Subject to the following provisions of this section and section 32A(1) below, every registered society and branch shall, in each year of account, appoint a qualified auditor or qualified auditors to audit its accounts and balance sheet for that year.

• (2) Subsection (1) above shall not apply to a society or branch . . . if—

• (a) the receipts and payments of that society or branch in respect of the preceding year of account did not, in the aggregate, exceed £5,000; and

• (b) the number of its members at the end of that year did not exceed 500; and

• (c) the value of its assets at the end of that year did not, in the aggregate, exceed £5,000.

• (3) Without prejudice to subsection (2) above, subsection (1) above shall not apply to a registered branch if—

• (a) the conditions specified in paragraphs (a) and (b) of subsection (2) above are satisfied in respect of that branch; and

• (b) at the end of the preceding year of account at least 75% of its assets had been transferred to the society of which it is a branch or to another registered branch of that society for the purpose of being invested, in accordance with section 46(2) below, by that society or other branch, and the value of its assets not so transferred did not, in the aggregate, exceed £5,000; and

• (c) the society or branch to which the assets were transferred is one to which subsection (1) above applies in the year of account in question.

• (4) A registered society or branch to which, by virtue of subsection (2) or subsection (3) above, subsection (1) above does not apply in respect of any year of account is in this Act referred to as an exempt society or, as the case may be, an exempt branch, in respect of that year of account.

• (5) Regulations made by the Treasury, may—

• (a) substitute for any sum or number for the time being specified in subsection (2) above, or for any sum or percentage for the time being specified in subsection (3) above, such sum, number or percentage as may be specified in the regulations; and

• (b) prescribe what receipts and payments of a society shall be taken into account for the purposes of those subsections;

and any such regulations may make different provision in relation to different cases or different circumstances.

Audit of exempt societies and branches

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• (1) Subject to any direction given by the appropriate authority under subsection (2) below, every registered society or branch which is an exempt society or an exempt branch in respect of the current year of account shall in that year appoint at its option either—

• (a) a qualified auditor or qualified auditors, or

• (b) two or more persons who are not qualified auditors,

to audit its accounts and balance sheet for that year.

• (2) The appropriate authority may give a direction in the case of any particular society or branch which is an exempt society or branch in respect of the current year of account requiring it to appoint a qualified auditor to audit its accounts and balance sheet for that year.

• (3) The appropriate authority may give a direction in the case of any particular society or branch which was an exempt society or branch in respect of any year of account before that in which the direction is given and did not appoint a qualified auditor or qualified auditors to audit its accounts and balance sheet for that year—

• (a) requiring it to appoint a qualified auditor to audit those accounts and that balance sheet, and

• (b) in a case where that society or branch has sent to the appropriate authority its annual return for that year before the date of the direction, requiring it, after its accounts and balance sheet have been audited by a qualified auditor, to send to the appropriate authority within three months from receipt of the direction a further annual return complying with the requirements of this Act (other than the requirement as to the time at which the annual return must be sent).

• (4) A failure by a registered society or branch to comply with any direction given by the appropriate authority under this section shall be an offence under this Act.

Reappointment and removal of auditors

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• (1) A qualified auditor appointed to audit the accounts and balance sheet of a registered society or branch for the preceding year of account shall be reappointed as auditor of the society for the current year of account unless—

• (a) a resolution has been passed at a general meeting of the society or branch appointing somebody instead of him or providing expressly that he shall not be reappointed; or or disapplying section 31 above in relation to the current year of account

• (b) he has given to the society or branch notice in writing of his unwillingness to be reappointed; or

• (c) he is ineligible for appointment as auditor of the society or branch for the current year of account; or

• (d) he has ceased to act as auditor of the society or branch by reason of death or incapacity.

• (2) Where notice is given of an intended resolution to appoint at a general meeting some person or persons in place of a retiring auditor and the resolution cannot be proceeded with at the meeting because of the death or incapacity of that person or persons, or because he or they are ineligible for appointment as auditor or auditors of the society or branch for the current year of account (as the case may be), the retiring auditor shall not be automatically reappointed by virtue of subsection (1) above.

• (3) For the purposes of this section, a person is ineligible for appointment as auditor of a registered society or branch for the current year of account if, but only if,—

• (a) his appointment in relation to the society or branch is prohibited by section 37 below, or

• (b) (in the case of a society or branch which is not an exempt society or branch in respect of that year of account) he is not a qualified auditor at the time when the question of his appointment falls to be considered.

Notice of resolutions relating to appointment and removal of auditors

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• (1) A resolution at a general meeting of a registered society or branch—

• (a) appointing another person as auditor in place of a retiring qualified auditor, or

• (b) providing expressly that a retiring qualified auditor shall not be reappointed,

shall not be effective unless notice of the intention to move the resolution has been given to the society or branch not less than twenty-eight days before the meeting at which it is moved.

• (2) Where notice of the intention to move any such resolution has been given under subsection (1) above to a society or branch which is required by its rules to give notice to its members of the meeting at which the resolution is to be moved, the society or branch shall, if it is practical to do so, give them notice of the resolution at the same time and in the same manner as it gives notice of the meeting.

• (3) Where notice of the intention to move any such resolution has been given to a registered society or branch under subsection (1) above, and that society or branch does not give notice of the resolution under subsection (2) above, it shall give notice of the resolution to its members not less than fourteen days before the meeting at which the resolution is to be moved either by advertisement in a newspaper having an appropriate circulation or in any other way allowed by the rules of the society or branch.

• (4) Where—

• (a) for any of the reasons mentioned in section 33(2) above, an intended resolution to appoint some person or persons in place of a retiring qualified auditor cannot be proceeded with at the meeting, and

• (b) by the rules of the registered society or branch an auditor can only be appointed by a resolution passed at a general meeting after notice of the intended resolution has been given to the society or branch before the meeting;

a resolution passed at that meeting reappointing the retiring auditor or appointing an auditor in place of the retiring auditor shall be effective notwithstanding that no notice of that resolution has been given to the society or branch under its rules.

• (5) Any provision in this section which requires notice to be given to the members of a society or branch shall be construed, in the case of a meeting of delegates appointed by members, as requiring the notice to be given to the delegates so appointed.

Proceedings subsequent to receipt of notice under s. 34

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• (1) On receipt by a registered society or branch of notice given under section 34(1) above, the society or branch shall forthwith send a copy of the notice to the retiring auditor.

• (2) On receipt of a copy of such a notice, the retiring auditor may at any time before the date of the general meeting make representations in writing to the society or branch (not exceeding a reasonable length) with respect to the intended resolution, and, without prejudice to the preceding provision, the retiring auditor may—

• (a) notify the society or branch that he intends to make such representations; and

• (b) request that notice of his intention, or of any such representations made by him and received by the society or branch before notice of the intended resolution is given to its members, shall be given to members of the society or branch.

• (3) Subject to subsection (4) below, a society or branch which receives representations or a notification of intended representations under subsection (2) above before the date when notice of the intended resolution is required by subsection (2) or (as the case may be) subsection (3) of section 34 above to be given to its members shall—

• (a) in any notice of the resolution given to its members, state that it has received those representations or that notification (as the case may be),

• (b) in any such notice, state that any member may receive on demand made before the date of the general meeting a copy of any representations which have been or may be received by the society or branch before that date, and

• (c) send a copy of any representations received by the society or branch before the date of the meeting to any member on demand made before that date;

but without prejudice either to the preceding provisions of this subsection or to his right to be heard orally, the retiring auditor may also require that any representations made by him before the date of the general meeting shall be read out at the meeting.

• (4) Copies of any such representations need not be sent out, and the representations need not be read out at the meeting, if, on the application either of the society or branch or of any other person, the High Court is satisfied that the rights conferred by this section are being abused to secure needless publicity for defamatory matter; and the court may order the costs of the society or branch on an application under this section to be paid, in whole or in part, by the auditor, notwithstanding that he is not a party to the application.

• (5) In the application of subsection (4) above to a society or branch whose registered office is situated in Scotland, for the reference to the High Court there shall be substituted a reference to the Court of Session and for the reference to costs there shall be substituted a reference to expenses.

• (5A) In the application of subsection (4) above to a society whose registered office is in Northern Ireland, the reference to the High Court shall be construed as a reference to the High Court in Northern Ireland.

• (6) Any provision in this section which requires notice to be given to the members of a society or branch or confers any right upon a member (as the case may be) shall be construed, in the case of a meeting of delegates appointed by members, as requiring a notice to be given to the delegates so appointed or as conferring the right upon a delegate (as the case may be).

Qualified auditors

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• (1) Subject to subsection (2) below, no person shall be a qualified auditor for the purposes of this Act unless he is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Restrictions on appointment of auditors

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• (1) None of the following persons may be appointed as auditor of a registered society or branch, that is to say,—

• (a) an officer or servant of the society or branch; or

• (b) a person who is a partner of, or in the employment of, or who employs, an officer or servant of the society or branch; or

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) Any appointment made by a registered society or branch in contravention of this section shall not be an effective appointment for the purposes of this Act.

• (4) References in subsection (1) above to an officer or servant shall be construed as not including an auditor.

Auditors' report

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• (1) The auditors of a registered society or branch shall make a report to the society or branch on the accounts examined by them and on the revenue account or accounts and the balance sheet of the society or branch for the year of account in respect of which they are appointed.

• (2) The report shall state whether the revenue account or accounts and the balance sheet for that year comply with the requirements of this Act and whether, in the opinion of the auditors—

• (a) the revenue account or accounts give a true and fair view, in accordance with section 30 above, of the income and expenditure of the society or branch as a whole for that year of account and, in the case of each such account which deals with a particular business conducted by the society or branch, a true and fair view in accordance with that section of the income and expenditure of the society or branch in respect of that business for that year; and

• (b) the balance sheet gives a true and fair view, in accordance with that section, either of the state of the affairs of the society or branch or of the assets and current liabilities of the society or branch and the resulting balances of its funds (as the case may require) as at the end of that year of account.

• (3) Without prejudice to the provisions of subsection (2) above, where the report of the auditors relates to any accounts other than the revenue account or accounts for the year of account in respect of which they are appointed, that report shall state whether those accounts give a true and fair view of any matter to which they relate.

• (4) It shall be the duty of the auditors of a registered society or branch, in preparing their report under this section, to carry out such investigations as will enable them to form an opinion as to the following matters, that is to say,—

• (a) whether the society or branch has kept proper books of account in accordance with the requirements of section 29(1)(a) above; and

• (b) whether the society or branch has maintained a satisfactory system of control over its transactions in accordance with the requirements of section 29(1)(b) above; and

• (c) whether the revenue account or accounts, the other accounts (if any) to which the report relates, and the balance sheet are in agreement with the books of account of the society or branch;

and if the auditors are of opinion that the society or branch has failed to comply with paragraph (a) or paragraph (b) of section 29(1) above, or if the revenue account or accounts, the other accounts (if any) and the balance sheet are not in agreement with the books of account of the society or branch, the auditors shall state that fact in their report.

• (5) If the auditors fail to obtain all the information and explanations which, to the best of their knowledge and belief, are necessary for the purposes of their audit, they shall state that fact in their report.

Auditors' right of access to books and to attend and be heard at meetings

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• (1) Every auditor of a registered society or branch—

• (a) shall have a right of access at all times to the books, deeds and accounts of the society or branch and to all other documents relating to its affairs; and

• (b) shall be entitled to require from the officers of the society or branch such information and explanations as he thinks necessary for the performance of the duties of the auditors.

• (2) The auditors of a registered society or branch shall be entitled—

• (a) to attend any general meeting of the society or branch, and to receive all notices of, and other communications relating to, any general meeting which any member of the society or branch is entitled to receive; and

• (b) to be heard at any meeting which they attend on any part of the business of the meeting which concerns them as auditors.

Remuneration of qualified auditors

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• (1) Regulations made by the . . . Treasury under section 97 of the Co-operative and Community Benefit Societies Act 2014 may prescribe the maximum rates of remuneration to be paid by registered societies and branches for the audit of their accounts and balance sheets by qualified auditors or for the making of a report for the purposes of section 30A(4)(a) or (5) or 39A(2)(a) or (b) above.

• (2) No auditor or reporting accountant of a registered society or branch shall ask for, receive, or be entitled to receive, remuneration in excess of the rate prescribed in respect of his services by regulations made by virtue of this section.

• (3) For the purposes of regulations made by virtue of this section, section 97 of the Co-operative and Community Benefit Societies Act 2014 shall be taken to extend to Northern Ireland.

• (4) In this section, “ reporting accountant ” means a person appointed to make a report for the purposes of section 30A(4)(a) or (5) or 39A(2)(a) or (b) above

Valuations and annual returns

Valuations

41

• (1) Subject to the following provisions of this section, every registered society and branch, once at least in every five years, shall—

• (a) cause its assets and liabilities to be valued by a qualified actuary appointed by the society or branch; and

• (b) send to the FCA and, if the registered society or branch is a PRA-authorised person, the PRA a report on the condition of the society or branch;

and every valuation report shall be made in such form and shall contain such particulars as the appropriate authority may direct.

• (2) For the purpose of any such valuation as is referred to in subsection (1) above, the Treasury—

• (a) may appoint valuers (in this Act referred to as “public valuers”) who shall be qualified actuaries; and

• (b) may determine the rates of remuneration to be paid by societies and branches for the services of those public valuers.

• (3) When a valuation is made under subsection (1) above, the report sent ... under paragraph (b) of that subsection—

• (a) shall be signed by the actuary who made the valuation and shall state his address; and

• (b) shall contain an abstract to be made by the actuary of the results of his valuation, together with a statement 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 appropriate authority may require.

• (4) Subsection (1) above shall not apply—

• (a) to a benevolent society, working men’s club, old people’s home society, cattle insurance society or to a branch of any such society or club; or

• (b) to a specially authorised society or branch unless it is so directed in the authority for registering that society or branch.

• (5) The appropriate authority may dispense with the provisions of subsection (1) above in respect of societies or branches to whose purposes, or to the nature of whose operations, it may deem those provisions inapplicable.

• (6) The appropriate authority may dispense with the provisions of subsection (1) above in respect of any particular business conducted by a registered society or branch if, in its opinion, those provisions are inapplicable to that business because of the nature of the business or the manner in which it is conducted, and in relation to any such society or branch on which a partial exemption is conferred under this subsection, subsection (1) above shall have effect (subject to any regulations made or direction given under section 42 below) as if—

• (a) it required that society or branch once at least in every five years to cause its assets and liabilities in respect of any business other than the business to which the partial exemption relates to be valued under this section; and

• (b) the report required to be sent ... under subsection (1) above were a report on the assets and liabilities so valued.

Regulations and directions of Chief Registrar relating to valuations

42

• (1) The Treasury may by regulations provide that in relation to any registered society or branch of a class specified in the regulations, section 41 above shall have effect as if for the period of five years specified in subsection (1) of that section there were substituted a period of three years.

• (2) The Treasury may by regulations provide that in relation to any registered society or branch of a class specified in the regulations, section 41 above shall have effect as if it required the society or branch—

• (a) to cause its assets and liabilities in respect of any business of a class so specified to be valued under that section and to send to the FCA and, if the registered society or branch is a PRA-authorised person, the PRA a report of those assets and liabilities at least once in every three years; and

• (b) to cause its assets and liabilities in respect of any other business (other than business to which a partial exemption under subsection (6) of section 41 above relates) to be so valued and to send to the FCA and, if the registered society or branch is a PRA-authorised person, the PRA a report on those assets and liabilities at least once in every five years.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) Without prejudice to the preceding provisions of this section, if in the opinion of the appropriate authority it is expedient in the interests of the members of any particular registered society or branch to do so, the appropriate authority may direct that, in relation to that society or branch, section 41 above shall have effect—

• (a) as if for the period of five years specified in subsection (1) of that section there were specified a period of three years; or

• (b) as if it required that society or branch—

• (i) to cause its assets and liabilities in respect of any particular business specified in the direction to be valued under that section and to send to the FCA and, if the registered society or branch is a PRA-authorised person, the PRA a report on those assets and liabilities at least once in every three years; and

• (ii) to cause its assets and liabilities in respect of any other business (other than business to which a partial exemption under subsection (6) of that section relates) to be so valued and to send to the FCA and, if the registered society or branch is a PRA-authorised person, the PRA a report on those assets and liabilities at least once in every five years.

• (5) The appropriate authority may at any time revoke a direction given by itunder subsection (4) above.

• (6) Any power to make regulations under this section may be exercised so as to make different provision in relation to different cases or different circumstances to which the power is applicable.

Annual return

43

• (1) Every registered society and branch shall once in every year, not later than 31st July, send to the FCA a return (in this Act called an “annual return”) relating to its affairs for the year of account preceding that in which the return is required to be sent.

• (2) In the case of a branch, the annual return shall be sent to the FCA through an officer appointed in that behalf by the society of which the branch forms part.

• (3) Every annual return of a registered society or branch—

• (a) shall be made up for the year of account to which the return relates; and

• (b) shall contain the revenue account or accounts of the society or branch prepared in accordance with section 30(2) above in respect of the year of account to which the return relates and a balance sheet as at the end of that year; and

• (c) shall not contain any accounts other than the revenue account or accounts for that year unless those other accounts have been examined by the auditors of the society or branch under section 38 above or been the subject of a report under section 39A(2)(a) above.

• (4) Together with every annual return, a registered society or branch shall send

• (a) where the year of account is one at the end of which there is in force in relation to the year a disapplication under section 32A(1) above, copies of the reports, if any, which the society or branch is required, because of the disapplication, to obtain under section 39A above; and

• (b) where it is not,

a copy of the report of the auditors on the accounts and balance sheet contained in the return.

• (5) Every annual return sent to the FCA by a registered society or branch to which section 41(1) above applies shall include a statement specifying either—

• (a) in the case of a society or branch on which no exemption from the provisions of subsection (1) of section 41 above has been conferred, either under subsection (5) or subsection (6) of that section, the date of the last report under that section on the condition of the society or branch or the dates respectively of the last reports under that section on the assets and liabilities of the society or branch in respect of particular businesses conducted by it, and a place where a copy of that report or copies of those reports (as the case may be) may be inspected; or

• (b) in the case of a society or branch on which a complete exemption from the provisions of section 41 above has been conferred under subsection (5) of that section, the reason for that exemption; or

• (c) in the case of a society or branch on which a partial exemption from the provisions of section 41 above has been conferred under subsection (6) of that section, the reason for that partial exemption and the date of the last report, or the dates respectively of the last reports, under that section on the assets and liabilities of the society or branch in respect of any business or businesses conducted by it, and a place where a copy of that report or copies of those reports (as the case may be) may be inspected.

• (6) Without prejudice to subsection (3) above, every annual or other return required for the purposes of this Act shall be made in such form and shall contain such particulars as the FCA may direct.

• (7) If the registered society or branch is a PRA-authorised person, it shall send to the PRA a copy of the annual return sent to the FCA under subsection (1).

Copies of annual return to be supplied on demand

44

• (1) On the application of a member or person interested in its funds a registered society or branch shall supply to him gratuitously either—

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

• (b) a balance sheet or other document duly audited containing the same particulars relating to the affairs of the society or branch as are contained in the annual return.

• (2) Together with every copy of an annual return supplied in accordance with paragraph (a) of subsection (1) above and together with every balance sheet or other document supplied in accordance with paragraph (b) of that subsection, a registered society or branch shall provide a copy of the report of the auditors on the accounts and balance sheet contained in the return or on the balance sheet or document supplied, as the case may require.

• (3) Where the last annual return of a registered society or branch relates to a year of account at the end of which there is in force in relation to the year a disapplication under section 32A(1) above, this section shall have effect with the following modifications—

• (a) in subsection (1)(b), the words “duly audited” shall be omitted, and

• (b) in subsection (2), for the words from “the report” to the end there shall be substituted “ any report which the society or branch is required, because of the disapplication, to obtain under section 39A(2)(a) above. ”

Copies of balance sheet and valuation to be displayed

45

Every registered society and branch shall keep always hung up in a conspicuous place at the registered office of the society or branch—

• (a) a copy of the last annual balance sheet . . .; and

• (b) a copy of the last report under section 41 above on the condition of the society or branch or, where a report or reports are required under that section in respect of a particular business or particular businesses conducted by the society or branch, a copy of the last report under that section in respect of that business or in respect of each of those businesses, as the case may require.

Investment, funds and property

Investment of funds

46

• (1) Subject to subsection (2) below, the trustees of a registered society or branch may, with the consent of the committee or of a majority of the members present and entitled to vote in general meeting, invest the funds of the society or branch or any part thereof, to any amount in any of the following ways, that is to say,—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) in the purchase of land, or in the erection or alteration of offices or other buildings thereon; or

• (d) upon any other security expressly directed by the rules of the society or branch, other than personal security, except as is in this Act authorised with respect to loans; or

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

• (2) The rules of a society with branches and of any branch thereof may provide for the investment of funds of the society or of that branch by the trustees of any branch, or by the trustees of the society, and the consent required for any such investment shall be the consent of the committee, or of such a majority of the members as is mentioned in subsection (1) above, of the society or branch by whom the funds are invested.

• (2A) Subsections (2) to (12) of section 14 of the 1992 Act shall apply in respect of the powers of investment of the trustees of a registered friendly society as they apply to the powers of investment of an incorporated friendly society; and the consent required for any such investment as is available to the trustees of a registered friendly society by virtue of this subsection shall be the same as that required under subsection (1) above.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Power to set up funds for purchase of Government securities on behalf of members

47

• (1) A registered society or branch may in accordance with its rules set up and administer a fund for the purchase, on behalf of members contributing thereto, of Defence Bonds or National Savings Certificates or such other securities of Her Majesty’s Government in the United Kingdom as the Treasury may prescribe.

• (2) A registered society or branch may, in amending its rules for the purpose of this section, make provision for enabling persons to become members of the society for the purpose only of contributing to the said fund and without being entitled to any rights as members other than rights as contributors to the said fund.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Loans to assured members

48

• (1) A registered society and, subject to the rules of the society of which it is a branch, a registered branch may advance to a member of at least one full year’s standing any sum not exceeding one-half of the amount of an assurance on his life, on the written security of himself and two satisfactory sureties or, in Scotland, cautioners for 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.

Loans out of separate loan fund

49

A registered society may, out of any separate loan fund to be formed by contributions or deposits from its members, make loans to members on their personal security, with or without sureties or, in Scotland, cautioners, as may be provided by the rules, subject to the following restrictions, that is to say,—

• (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 £800;

• (c) the society shall not make any loan to a member on personal security beyond the amount fixed by the rules, or make any loan which, together with any money owing by a member to the society, exceeds £200; and

• (d) the 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.

Loans of surplus funds to registered society or branch of different description

50

• (1) Subject to the provisions of this section and of section 51 below, a registered society or branch (other than a benevolent society or branch thereof) may, if its rules so provide, make advances by way of loan to a registered society or registered branch of a society which is not of the same description and may take such part in the government and control of the society or branch to which any such advance is made or agreed to be made as may be provided by the rules of that society or branch.

• (2) An advance shall not be made by a society or branch by virtue of this section unless the rule of its assets showed a surplus over the amount of its liabilities according to the last valuation under section 41 above or, in the case of a society or branch of which the assets and liabilities are not valued under that section, according to its last annual return under section 43 above; and—

• (a) no advance shall be so made to an amount greater, with any amounts outstanding in respect of previous advances so made, than the amount for the time being unapplied of that surplus;

• (b) for any purpose other than the purposes of paragraph (a) above, in determining the amount so unapplied there shall be deducted any amounts outstanding in respect of advances so made after the date to which the valuation or return relates.

• (2A) Subsection (2) above does not apply to advances made by a registered friendly society or a branch of such a society.

• (3) An advance under this section may be interest free.

• (4) Nothing in this section shall be taken to prejudice the power of a registered society or branch under section 52(2) below to contribute to the funds and take part in the management of another registered society or branch of the same description.

• (5) For the purposes of this section a society or branch shall be deemed to be of the same description as another society or branch if, but only if, they are both registered by virtue of the same paragraph of section 7(1) above and, where each of them is a specially authorised society or branch, they are both established for the same purpose or purposes.

Power of friendly society to invest in housing association

51

• (1) Without prejudice to section 46 above, if the rules of a registered friendly society or branch thereof expressly so direct, the trustees thereof may, with the consent of the committee or of a majority of the members present and entitled to vote in general meeting, invest the funds of the society or branch or any part thereof, in subscribing up to any amount permitted by this section for any of the share or loan capital of a housing association, other than shares or debentures not fully paid up at the time of issue.

• (2) The power to make investments conferred by this section is subject to the same restrictions as are imposed by section 50(2) above on the power to make advances conferred by that section but those restrictions shall not apply to investments made by the trustees of a registered friendly society or of a branch of such a society;

• (3) For the purposes of subsection (2) of section 50 above any amounts for the time being invested by virtue of this section shall be taken into account in the same way as amounts outstanding in respect of advances made by virtue of that section, but so that, except in the case of investments made after the date to which the valuation or return relates, the amounts invested shall be taken to be amounts equal to the value of the investments according to the valuation or return referred to in the said subsection (2).

• (4) For the purposes of this section, “housing association”has the same meaning as in the Housing Associations Act 1985 or Part II of the Housing (Northern Ireland) Order 1981..

Charitable subscriptions and contributions to other registered societies

52

• (1) A registered society or branch may subscribe out of its funds to any hospital, infirmary, charitable or provident institution, any annual or other sum which may be necessary to secure to members of the society or branch and their families the benefits of the hospital, infirmary or other institution.

• (2) In accordance with its rules, a registered society or branch may contribute to the funds and take part by delegates or otherwise in the government of any other registered society or registered branch of a society without becoming a branch under this Act of that other society or branch.

• (3) A registered society or branch shall not withdraw from contributing to the funds of any medical society, that is to say, a society for the purpose of relief in sickness by providing medical attendance and medicine, except on three months’ notice to the society and on payment of all contributions accrued or accruing due to the date of expiry of the notice.

Holding of land

53

• (1) A registered society or branch may, if its rules so provide, acquire and hold land for the purpose of carrying on any of its activities in the names of its trustees and may dispose of, or otherwise deal with, any land so held; and—

• (a) no person shall be bound to enquire as to the authority of the trustees to dispose of or deal with land;

• (b) the receipt of the trustees shall be a discharge for all sums of money arising from, or in connection with, the disposal of or other dealing with land.

• (2) A branch of a registered society need not for the purposes of this section be separately registered.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Vesting of property in trustees

54

• (1) Subject to section 55 below, all property belonging to a registered society, whether acquired before or after the society is registered, shall vest in the trustees for the time being of the society, for the use and benefit of the society and the members thereof and all persons claiming through the members according to the rules of the society.

• (2) The property of a registered branch of a society shall vest wholly or partly in the trustees for the time being of that branch, or of any other branch of which that branch forms part (or, if the rules of the society so provide, in the trustees for the time being of the society), for the use and benefit either of the members of any such branch and persons claiming through those members or of the members of the society generally and persons claiming through them according to the rules of the society.

• (3) Notwithstanding anything in subsections (1) and (2) above, the trustees of a registered society or branch shall not be liable to make good any deficiencies in the funds of the society or branch, but each trustee shall be liable only for sums of money actually received by him on account of the society or branch.

Power of the Public Trustee to hold securities of certain friendly societies and branches

55

• (1) Notwithstanding anything in section 54 above any part of the funds of a friendly society which is registered by the FCA and the registered office of which is situated in England and Wales, or of any branch of such a society, and any stocks, shares or securities held by or on behalf of such a society or branch, may be transferred to the Public Trustee if, and only if,—

• (a) the Public Trustee agrees to the transfer, and

• (b) rules of the society or branch are, or have been, made for the purpose.

• (2) The Public Trustee shall invest, in accordance with the rules, any funds so transferred to him and shall pay the interest on any stocks, shares or securities acquired by or transferred to him in pursuance of this section to the trustees of the society or branch, and shall, if and when the trustees so require, transfer the capital of the stocks, shares or securities to them, or realise the same and transfer the proceeds to them.

• (3) The Public Trustee shall be completely exonerated from any liability in relation to any stock, shares or securities held by him in pursuance of this section, and no action shall lie against the Public Trustee in respect of any such stock, shares or securities provided that he acts in accordance with the provisions of this section.

• (4) This section does not extend to Scotland or Northern Ireland.

Legal proceedings concerning property

56

In all legal proceedings whatsoever concerning any property vested in the trustees of a registered society or branch, the property may be stated to be the property of the trustees in their own names as trustees for the society or branch without further description.

Discharge of certain mortgages

57

• (1) Where, in the case of any mortgage or other assurance to a registered society or branch of any property, a receipt in full for all money secured thereby on that property is endorsed on or annexed to the mortgage or other assurance, being a receipt—

• (a) signed by the trustees of the society or branch and countersigned by the secretary thereof; and

• (b) in the form set out in Schedule 4 to this Act or in any other form specified in the rules of the society or branch or any schedule thereto,

then, for the purposes of the provisions of section 115 of the Law of Property Act 1925 (reconveyance of mortgage by endorsed receipt) which are specified in subsection (2) below, that receipt shall be deemed to be a receipt which fulfils the requirements of subsection (1) of that section.

• (2) The provisions of section 115 of the Law of Property Act 1925 which are referred to in subsection (1) above are—

• (a) subsection (1), so far as it relates to the operation of such a receipt as is mentioned in that subsection;

• (b) if, but only if, the receipt under this section states the name of the person who pays the money, subsection (2);

• (c) subsections (3), (6), (8), (10) and (11); and

• (d) where consistent with the terms of the form authorised by subsection (1)(b) above which is used for the receipt, subsection (7).

• (3) This section extends to England and Wales only.

Devolution of property on death, resignation or removal of trustee

58

On the death, resignation or removal of a trustee of a registered society or branch, all property vested in him as such a trustee shall, without conveyance, assignment or assignation, vest subject to the same trusts in the succeeding trustees of that society or branch, either solely or together with any surviving or continuing trustees; and until the appointment of succeeding trustees that property shall so vest in the surviving or continuing trustees only or in the executors or administrators of the last surviving or continuing trustee.

Priority on death, bankruptcy, etc., of officer

59

• (1) The provisions of this section apply in the following cases, that is to say,—

• (a) on the death or bankruptcy of any officer of a registered society or branch who has in his possession, by virtue of his office, any money or property belonging to the society or branch; and

• (b) if any execution, attachment, or other process is issued, or action or diligence raised against any such officer or against his property.

• (2) Where this section applies, then, upon demand in writing of the trustees of the society or branch, or of any two of them, or of any person authorised by the society or branch or by the committee thereof to make the demand, the executors or administrators or trustee in bankruptcyor the sheriff or other person executing the process shall pay the money and deliver over the property to the trustees of the society or branch in preference to any other debt or claim against the estate of the officer.

• (3) In subsection (1) above “bankruptcy” includes liquidation of a debtor’s affairs by arrangement.

• (4) In the application of this section to Scotland, for the reference in subsection (1) above to the bankruptcy of any officer there shall be substituted a reference to an award of sequestration being made on any officer’s estate or his executing a trust deed for his creditors or his entering into a composition contract, and in subsection (2) above the expression “trustee in bankruptcy” includes a judicial factor.

Membership and rights of members

Membership of minors

60

• (1) The rules of a registered society or branch may provide for the admission of minors as members.

• (2) A member who is a minor may, if he is over sixteen by himself, and if he is under sixteen by his parent or guardian, execute all instruments and give all receipts necessary to be executed or given under the rules.

Members' subscriptions not generally recoverable at law

61

Except as provided by section 22 above, the subscription of a person who is or has been a member of a registered society or branch shall not be recoverable at law.

Inspection of books by members

62

• (1) Subject to subsection (2) below, a member or person having an interest in the funds of a registered society or branch may inspect the books at all reasonable hours at the registered office of the society or branch or at any place where the books are kept.

• (2) Unless he is an officer of the society or branch or is specially authorised by resolution of the society or branch to do so, a member or person having an interest in the funds of a registered society or branch shall not have the right to inspect the loan account of any other member without the written consent of that member.

Accumulation of member's surplus contributions

63

The rules of a registered society or branch may provide for accumulating at interest, for the use of any member, any surplus of his contributions to the funds of the society or branch which may remain after providing for any assurance in respect of which they are paid and for the withdrawal of the accumulations.

Benefits: limitations and payment

Maximum benefits

64

Modification of s. 64 in relation to group insurance business

65

Power of member to nominate person to receive sums payable on his death

66

• (1) Subject to the following provisions of this section, a member of a registered society or of a branch thereof who is not under the age of sixteen years may, by writing under his hand delivered at or sent to the registered office of the society or branch, or made in a book 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 or any specified amount of money so payable shall be paid at his decease.

• (2) The total amount which may be nominated under this section shall not exceed £5,000but where a nomination under this section does not specify the maximum sum of money which is to be payable by virtue of the nomination, and the sum to which the nomination relates exceeds £5,000but would not exceed that amount if any such increase as is mentioned in section 64(2)(c) above were disregarded, the nomination shall not be invalidated by reason only of the excess.

• (3) The sum payable on the death of a member by a registered society or branch shall include sums of money contributed to or deposited in the separate loan fund and any sum of money accumulated for the use of the member under the provisions of this Act, together with interest thereon.

• (4) Any reference in subsections (1) to (3) above to a registered society does not include a benevolent society, a working men’s club or an old people’s home society.

• (5) a person nominated under this section must not at the date of the nomination be an officer or servant of the society or branch, unless that officer or servant is the spouse, civil partner, father, mother, child, brother, sister, nephew or niece of the nominator.

• (6) A nomination so made may be revoked or varied by any similar document under the hand of the nominator delivered, sent or made as mentioned in subsection (1) above.

• (7) The marriage of a member of the society or branch shall operate as a revocation of any nomination previously made by that member under this section.

• (7A) The formation of a civil partnership by a member of the society or branch revokes any nomination previously made by that member under this section.

• (8) A nomination, or a variation or revocation of a nomination, by writing under the hand of a member of a registered branch and delivered at or sent to the registered 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.

Payment on death of a nominator

67

• (1) Subject to subsection (2) below, on receiving satisfactory proof of the death of a nominator, the society or branch shall pay to his nominee or nominees the amount due to the deceased or, as the case may be, the amount specified in the nomination.

• (2) Subject to paragraph 12 of Schedule 10 to this Act, the total amount paid by a registered society or branch by virtue of a nomination (whether in favour of one nominee or more) shall not exceed £5,000except that, in the circumstances referred to in subsection (2) of section 66 above, the amount payable shall include the excess referred to in that subsection.

• (3) The receipt of a nominee over sixteen years of age for any amount paid in accordance with this section shall be valid.

Devolution of sums due where no nomination

68

• (1) If any member of a registered society or branch entitled from the funds thereof to a sum not exceeding £5,000dies without having made any nomination thereof then subsisting, the society or branch may, without letters of administration or probate of any will or, in Scotland, without any grant of confirmation, distribute the sum among such persons as appear to the committee, upon such evidence as they may deem satisfactory, to be entitled by law to receive that sum.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) Where at the time of his death a member of a registered friendly society or branch is entitled from the funds thereof to a sum which exceeds £5,000but would not exceed that amount if any such increase as is mentioned in section 64(2)(c) above were disregarded, subsection (1) above shall apply to the whole of that sum, notwithstanding that it exceeds £5,000, ...

Validity of payments

69

• (1) A payment made by a registered society or branch under section 68 above shall be valid and effectual against any demand made upon the trustees or the society or branch by any other person, but the next of kin or personal representatives of the deceased member shall have a remedy for recovery of the money paid under that section against the person who has received that money.

• (2) Where a society or branch 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.

Certificates of death

70

Prohibition of insuring money to be paid on death of a child under ten

71

Limitations on insurance of life of parent or grandparent

72

Supplementary provisions as to insurances referred to in s. 72

73