| (1) | Subject to the provisions of section 3, every friendly society shall apply to the Authority for registration under this Act. |
[Section 5(1) substituted by section 2 of Act No. 44 of 1988]
| (2) | An application under subsection (1) shall be accompanied by particulars of the name and address of the person charged with the management of the affairs of the society to which the application relates, and a copy of the rules of such society, together with a certificate by a valuator as to the soundness of such rules from a financial point of view or, if no valuator has been employed, such information regarding their financial soundness as the applicant may possess, and the registration fee prescribed by regulation, and, in the case of a society in existence at the commencement of this Act — |
| (a) | a statement in detail of the revenue and expenditure of the society in question for the last financial year for which accounts have been prepared, and a copy of its balance sheet as at the end of that year; and |
| (b) | a statement showing in detail the latest valuation of assets and liabilities made by a valuator, including particulars as to the principles applied in making such valuation, or, if no such valuation has been made, such particulars regarding the financial condition of the society as the applicant may possess. |
[Section 5(2) substituted by section 20 of Act No. 86 of 1984]
| (3) | Upon receipt of the documents referred to in subsections (1) and (2) the Authority shall, if the society has complied with such requirements as the Authority may have prescribed and he is satisfied that the registration of the society is desirable in the public interest, register the society provisionally and forward to the applicant a certificate of provisional registration. |
[Section 5(3) substituted by section 1 of Act No. 60 of 1963]
| (4) | If after considering any such application, in respect of a society which has been provisionally registered, the Authority is satisfied — |
| (a) | that the rules of the society are not inconsistent with this Act and are based on sound financial principles; |
| (b) | that the methods according to which business is or is proposed to be transacted by the society are not undesirable; |
| (c) | that the society is in a financially sound condition; and |
| (d) | that, having regard to all the circumstances, the rules of the society are not unduly inequitable as between different members or groups of members, |
he shall register the society as a friendly society and transmit to the applicant a certificate of registration as well as a copy of the rules of the society bearing an endorsement of the date of registration, and thereupon the society shall cease to be provisionally registered.
[Section 5(4) substituted by section 1 of Act No. 60 of 1963]
| (5) | If after considering any such application, the Authority is not satisfied as regards all the matters in respect of which he is in terms of subsection (4) required to be satisfied he shall in writing indicate to the applicant the requirements to be complied with in order that he may be so satisfied. |
| (a) | When the Authority indicates in terms of subsection (5) to the applicant any requirements to be complied with the Authority may at the same time determine a period within which such requirements shall be complied with. |
| (b) | The Authority may at any time before the expiration of any period determined under this subsection modify any requirements indicated to the applicant in terms of subsection (5) or determine a different period in substitution of the existing period (which shall not be shorter than the unexpired portion of the existing period) within which the requirements, or the requirements as modified in terms of this paragraph, shall be complied with. |
[Section 5(5)bis inserted by section 1 of Act No. 60 of 1963]
| (6) | The provisional registration of a society under subsection (3) shall be valid for a period of five years, but may, where the Authority is satisfied that the society has made all reasonable efforts to meet his requirements, as indicated in terms of this section, and the requirements prescribed in this Act, in the discretion of the Authority, and subject to such conditions and limitations as he may consider desirable, be renewed from time to time for periods not exceeding twelve months at a time and not exceeding in the aggregate — |
| (a) | in the case of a society which has complied with the requirements set out in subsection (4), except the requirements set out in paragraph (c) of that subsection, and which may in the opinion of the Authority be expected to attain a sound financial condition within a reasonable period — |
| (i) | if the principal object or one of the principal objects of the society is the insurance of sums of money payable on the death of members or other persons, or the provision of endowment insurance on the lives of members or other persons, a period ending twenty years after the commencement of this Act; or |
| (ii) | if none of the objects mentioned in subparagraph (i) constitutes a principal object of the society, a period ending twelve years after such commencement; |
| (b) | in any other case a period of five years. |
[Section 5(6) substituted by section 1 of Act No. 67 of 1965]
| (7) | [Section 5(7) deleted by section 1 of Act No. 67 of 1965] |
| (8) | Whenever a society which is provisionally registered under this section has complied with all the requirements specified in subsection (4), the Authority shall register the society and transmit to it a certificate of registration as well as a copy of its rules with the date of registration duly endorsed thereon, and thereupon the society shall cease to be provisionally registered. |
| (9) | The rules of a society shall not be regarded as based on sound financial principles if they exclude from actuarial scrutiny any part of the business of the society which in the opinion of the Authority should be subject to such scrutiny, unless the Authority is satisfied that the expense and practical difficulties likely to be involved in such scrutiny would outweigh the value of the advantages to be derived therefrom. |
| (10) | No society shall be registered or provisionally registered under this Act except as provided in this section. |
