Friendly Societies Act, 1956 (Act No. 25 of 1956)

Chapter V : Enquiries and Investigations, Applications to Court, Cancellation or Suspension of Registration and Dissolution of Societies

33. Applications to court

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(1)The Authority may, in regard to any registered society, apply to the court for an order in terms of paragraph (c), (d) or (e) of subsection (3), and a registered society may, in regard to itself, apply to the court for an order in terms of paragraph (b), (d) or (e) of that subsection, if the Authority or the society is of the opinion that it is desirable, because the society is not in a sound financial condition or for any other reason, that such an order be made in regard to the society: Provided that a society shall not make such an application except by leave of the court, and the court shall not grant such leave unless the society has given security to an amount specified by the court for the payment of the costs of the application and of any opposition thereto, and has established prima facie the desirability of the order for which it wishes to apply.

[Section 33(1) substituted by section 290, item 5 of Schedule 4, of Act No. 853 of 2017 - effective 1 April 2018 (paragraph (h) of Notice 169 of 2018)]

 

(2)Any creditor of a registered society who is unable to obtain payment of his claim after recourse to the ordinary process of law may, in regard to such society, make an application to the court for an order in terms of paragraph (b), (d) or (e) of subsection (3), and the proviso to subsection (1) shall apply mutatis mutandis in regard to such an application.

 

(3)Upon any application in terms of either of the preceding subsections, the court may —
(a)refuse the application; or
(b)order that an investigation be made in terms of section thirty-two, and may issue such directions regarding such investigation as the court may deem desirable; or
(c)order that the rules of the society relating to the appointment, powers, remuneration and removal from office of the person managing the business of the society, or relating to such other matter as the court may regard as appropriate, be altered in a manner to be specified in such order; or
(d)order that the society be placed under judicial management in terms of section thirty-four; or
(e)order that the whole or any part of the business of the society be wound up in terms of section thirty-five.

 

(4)In exercising its discretion under subsection (3), the court shall consider the equitable interests of the members of the society (or of the several classes of members if there is more than one such class) and of any other person who has rendered or who intends to render financial assistance to the society, and, subject to such consideration as aforesaid, shall make such order as it deems most advantageous to the members of the society.

 

(5)When a court has made an order in terms of paragraph (b) of subsection (3) in regard to a society, it may at any time thereafter make an order in terms of paragraph (c), (d) or (e) of the subsection or subsection (3) of section thirty-six in regard to that society, and when a court has made an order in terms of paragraph (d) of subsection (3) in regard to a society it may at any time thereafter make an order in terms of paragraph (e) of that subsection or of subsection (3) of section thirty-six, in regard to that society.

 

(6)Notwithstanding any conflicting provision contained in the rules of the society, an order of the court made in terms of paragraph (c) of subsection (3) shall take effect as from any date specified for that purpose in the order, or if no date has been so specified, as from the date of the order, and thereupon the said rules shall be deemed to have been amended in the manner specified by the court.

 

(7)Unless the court otherwise orders, the costs of the Authority in or in connection with an application in terms of this section shall be paid by the society and shall be a first charge upon the assets of such society.

 

(8)A registered society shall not be placed under judicial management or wound up or dissolved otherwise than under the provisions of this Act.