The Gazette 1975

maintains in the Central Bank a déposit of a minimum

sum of £20,000.00 and further must continue to make

deposits twice yearly with the Central Bank of such

sums representing 5 per cent of the value of the Society's

Shares and Deposits until a maximum of £500,000.00

is achieved (S.20).

(d) A Society incorporated after the date of the publi-

cation of the Bill, 5th December 1975, or a Society

which on that date has assets of less than one million

pounds may not advertise or otherwise solicit subscrip-

tions for shares and deposits until it has obtained the

written permission of the Registrar (S.19).

(e) The liquidity and other ratios will now be con-

trolled by the Minister for Finance after consultation

with the Minister for Local Government and the Cen-

tral Bank and they must maintain a minimum standard

as between its assets and its liabilities. This provision

brings Building Societies into line with similar pro-

visions in the Central Bank Act, 1971 (S.37).

(f) The Rules of all Societies must make provision

for the items specified in Section 10 of the Bill. The

Registrar of Building Societies if satisfied will register

the Society and issue a Certificate of Incorporation but

the registration of the Rules and the issue of the Certi-

ficate of Incorporation do not authorise the Society to

commence business unless and until the other provisions

of the Bill are implemented to the satisfaction of the

Registrar.

General provisions

The Bill contains provisions for bringing the Building

Societies into line with certain provisions of the Central

Bank Act, 1971, and these provisions are mainly for the

protection of Depositors with Building Societies. There

are further provisions for loans by one Society to another

for a union of Societies and for transfer of and under-

taking to fulfil engagements as between Societies, sub-

ject of course to compliance with the procedures laid

down by the Act and to the approval of the Registrar.

Control of Societies by Registrar

(a) The Registrar on an application in the case of a

Society having more than one thousand members by

not less than one hundred of those members, and in

any other case by not less than one-tenth of the total

number of members of the Society, may appoint one or

more Inspectors to investigate the affairs of the Society

and to report thereon, in such manner as he shall

direct.

(b) The Registrar has power vested in him to carry

out an investigation of a Society, where he is of opinion

that the affairs of the Society call for consideration by

a meeting of the members of a Society.

provisions of Section 30 of the B'.ll, and in Sub-section

(13) it is provided as follows :

Nothing in this Section shall require disclosure to

the Registrar or to an Inspector appointed by him

(a) By a Solicitor of any privileged communication

made to him in that capacity, or

(b) By bankers of any information as to the affairs

of any of their customers other than the

Society the affairs of which are being investi-

gated.

In pursuance of Section 30 of the Bill it is the duty of

all Officers, Members and Agents of a Society the affairs

of which are beings investigated tó produce to the

Inspector all books, accounts, deeds, records or other

documents of or relating to the Society which are in

their power, possession or procurement and otherwise to

give to him all assistance in connection with the investi-

gation as they are reasonably able to give. The

Inspector may examine on Oath, the Officers, Members

and Agents of the Sociéty, in relation to its business and

for this purpose may administer an Oath. If an Agent

or Solicitor refuses to comply with this Section his

refusal can be referred to the High Court and he may

be held to be in contempt of Court for so refusing.

Under Sub-section 14 of Section 30 it is provided

that any reference in the Section to Officers or Agents of

a Society shall include past as well as present Officers

and Agents and, for the purposes of this Section

"Agents" shall include the Bankers, Solicitors and

Auditors of the Society.

The Registrar has power to suspend the raising of

funds by a Society if he is of the opinion that the

Society has become, or is likely to become unable to

meet its obligations to its Creditors. If he considers it

expedient in the interests of its members, or of the

ordinary and proper regulation of Building Society

business he may direct a Society in writing to be sus-

pended for such period not exceeding two months as

therein provided (Section 31).

The Registrar also has in similar circumstances, the

right to suspend advertising for funds, and he has also

power to inspect and obtain documents, deeds and

records in like circumstances.

Societies have a right of appeal to the High Court

against any Direction given by the Registrar and such

High Court proceedings may be heard in Chambers

(see Sections 32, 33 and 34 of the Bill).

As already stated the Minister for Finance has con-

trol over the ratios between Assets and Liabilities and

the specified ratio may be expressed as a percentage of

assets or liabilities concerned.

The Minister can exercise these powers hereinafter

specified as to investment after consultation with the

Minister for Local Government and the Central Bank.

This power brings the Society into conformity with

the control provided for in Section 23, Central Bank

Act, 1971.

The next Section of the Bill—Section 38—provides

for the investment of surplus funds and it is a very

important Section from the point of view of Building

Societies. Heretofore Building Societies were only

allowed or permitted to invest surplus funds in auth-

orised Trustee securities (see Section 25 of the 1874 Act,

Sections 16 and 17 of the 1894 Act).

The Minister for Finance, after consultation as afore-

said, enables a Society to keep its funds not immediately

required for lending purposes :

(a) On a current account;

(b) On deposit with the Central Bank;

(d) In the Post Office Savings Bank, a Trustee Savings

Bank cert'fied under the Trustee Savings Banks

Acts 1863 to 1965;

(e) Agricultural Credit Corporation Limited, and

finally

(f) Industrial Credit Company Limited.

Societies are also given the same privileges as licensed

Banks to invest in Central Bank Reserve Bonds.

The Minister has been given power to prescribe the

limits as to investment in securities or in a specified

class of security and also in respect of cash in or on

current or deposit account.

[to be concluded]

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