Friendly Societies Act, 1956 (Act No. 25 of 1956)Chapter IV : Documents to be Deposited with Authority24. Statement of liabilities |
| (1) | Every registered society shall periodically prepare a statement of all its liabilities at the close of a financial year, and shall deposit such statement with the Authority within six months from the close of that year. |
| (2) | Such statement shall be prepared — |
| (a) | in the case of a society to which the provisions of section twenty-three apply, on the occasions when a valuation by a valuator is made in terms of that section; and |
| (b) | in the case of any other society annually. |
| (3) | The statement of liabilities shall include— |
| (a) | the liabilities and contingent liabilities under contracts between the society and its members, including claims under such contracts which have been intimated but not paid; |
| (b) | a record of any pledge, hypothecation or other encumbrance of the assets of the society; |
| (c) | the amount of the share capital which has been paid-up; |
| (d) | the amount of any liability for taxes for the year concerned, and in the absence of a completed assessment the estimated amount of such taxes; and |
| (e) | any other liabilities of the society. |
| (4) | Notwithstanding anything contained in subsections (1) and (3), a liability or contingent liability which is covered by reinsurance shall not be shown as a liability on the statement if the reinsurance has been effected with — |
| (a) | an insurer authorized to carry on insurance business under the Insurance Act; or |
| (b) | a registered society, including (with the consent of the Authority ) a provisionally registered society. |
| (5) | All liabilities and contingent liabilities undertaken and entered into by way of reinsurance shall be included in the statement. |
| (6) |
| (a) | If any of the liabilities or contingent liabilities to be included in the statement in accordance with the preceding subsections are of indeterminate amount, and have not been valued by a valuator in terms of section twenty-three, the society concerned shall request the Authority to determine the basis upon which they shall be valued, and any determination so made by the Authority shall be binding upon that society. |
| (b) | The Authority may recover from the society concerned all expenses necessarily incurred in making a determination under paragraph (a). |
| (7) | So far as may be practicable, the liabilities shall be separately stated in respect of each kind of business for which a separate account is required by the rules of the society. |