| (1) | A registered society may, in the manner directed by its rules, alter or rescind any rule or make any additional rule, but no such alteration, rescission or addition shall be valid — |
| (a) | if it purports to affect any right of a creditor of the society, other than as a member or shareholder thereof; or |
| (b) | unless it has been approved by the Authority and registered as provided in subsection (4). |
| (2) | Within one month from the date of the passing of a resolution for the alteration on rescission of any rule or for the adoption of any additional rule, a copy of such resolution shall be transmitted by the principal officer to the Authority, together with a certificate signed by the person managing the business of the society to the effect that such resolution has been adopted in accordance with the provisions of the rules of the society. |
| (3) | If any such alteration, rescission or addition affects the financial condition of the society, the principal officer shall also transmit to the Authority a certificate by a valuator as to its financial soundness or, if no valuator has been employed, such information regarding its financial soundness as the society may possess. |
| (4) | If the Authority finds that any such alteration, rescission or addition is not inconsistent with this Act, and is satisfied that — |
| (a) | it is based on financially sound principles; |
| (b) | the methods of transacting the business of the society as laid down therein or brought about thereby are not undesirable; and |
| (c) | it will not, having regard to all the circumstances, bring about undue inequity between different members or groups of members, |
he shall register the alteration, rescission or addition and return a copy of the resolution to the principal officer with the date of registration endorsed thereon, and such alteration, rescission or addition, as the case may be, shall take effect as from the date determined by the society concerned or, if no date has been so determined, as from the said date of registration.
| (5) | A registered society may at any time consolidate its rules, and in such event the principal officer shall forward to the Authority a copy of such consolidated rules and if the Authority is satisfied that the consolidated rules are not substantially different from the existing rules of the society, he shall register such consolidated rules and return a copy thereof to the principal officer with the date of registration endorsed thereon, and such consolidated rules shall thereupon take effect from the date of registration thereof. |
