Friendly Societies Act, 1956 (Act No. 25 of 1956)Chapter IV : Documents to be Deposited with Authority23. Valuations by a valuator in respect of business subject to actuarial scrutiny |
| (1) | Every registered society carrying on any kind of business which in terms of its rules is subject to actuarial scrutiny shall, once at least in every five years, cause a valuation of the liabilities of the society in respect of that kind of business, in so far as such liabilities are capable of actuarial valuation, to be made by a valuator, and shall deposit with the Authority a copy of the valuation duly certified by the valuator. |
| (2) | Such valuation shall be made in respect of the position as at the expiration of a financial year, and a copy thereof shall be deposited with the Authority within twelve months from the close of that year. |
| (3) | In the case of a society which was carrying on friendly society business at the commencement of this Act and has complied with the provisions of subsection (1) of section five, the first valuation shall be made in respect of the position as at the expiration of the financial year which commenced after the date of commencement of this Act: Provided that — |
| (a) | in special circumstances the society may, with the permission of the Authority , defer such first valuation for such period, not exceeding three years, as the Authority may determine; and |
| (b) | if the society has furnished a statement in terms of paragraph (b) of subsection (2) of section five, showing the results of a valuation of the liabilities and assets of the society, the Authority may direct that the first valuation under this section shall be made in respect of the position as at a date subsequent to the expiration of the said financial year, but not more than five years after the date to which the said statement relates. |
| (4) | In the case of a society other than a society mentioned in subsection (3), the first valuation shall be made in respect of the position as at the expiration of the fifth financial year which is completed after the date of registration, or as at the expiration of such previous financial year as the society may select. |
| (5) | Notwithstanding anything contained in the preceding subsections, the Authority may, with the consent of the Minister, and after not less than one month’s notice in writing to any registered society, require that society to cause such a valuation to be made in respect of the position as at the expiration of any financial year, if the Authority is of opinion that a valuation would show that any kind of business of the society is not in a sound financial condition. |
| (6) | A valuation made by a valuator in terms of any of the preceding subsections shall include particulars, set out separately in respect of each kind of business for which a separate account is required by the rules of the society, of the amount of the liabilities and contingent liabilities of each kind of business, together with a description of the actuarial basis employed in making such valuation. |
| (7) | Whenever a registered society deposits with the Authority a copy of a valuation made by a valuator in terms of this section, it shall also deposit with the Authority a certificate by the person managing the business of the society and by the principal officer that to the best of their knowledge and belief the information furnished to the valuator for the purposes of the valuation was correct and complete in every material respect. |