Friendly Societies Act, 1956 (Act No. 25 of 1956)Chapter II : Registration and Incorporation8. Allocation of assets and liabilities between friendly society and other associated business |
| (1) | Within twelve months after the registration under this Act of a friendly society the business whereof is or has been carried on by any undertaking as part of or in conjunction with any other business in which the undertaking is or has been engaged, the person having control of the business of that undertaking shall submit to the Authority proposals as to the apportionment of the assets, rights, liabilities and obligations of that undertaking between the society and such other business. |
| (2) | If the proposals mentioned in subsection (1) are not received within the period specified in that subsection the Authority shall prepare proposals for the apportionment of the assets, rights, liabilities and obligations of that undertaking between the society and such business in such a manner as he may with due regard to all the circumstances consider equitable. |
| (3) | The Authority may for the purpose of making any proposals under subsection (2), require any person having control of the undertaking in question, to lodge with him within such period as he may specify, any information relating to the business or any part of the business which is or has been carried on by that undertaking, including the business of such friendly society, together with such reports by a valuator or (at the discretion of the Authority) by the auditor of that undertaking, as the Authority may direct. |
| (4) | As soon as practicable after having received any proposals under subsection (1) or after having prepared any proposals as provided in subsection (2), the Authority shall transmit a copy thereof to the principal officer of the society and publish at the expense of the society in the Gazette and in at least one English and one Afrikaans newspaper circulating in the district in which the head office of the undertaking is situate, a notice — |
| (a) | indicating that such apportionment is contemplated; |
| (b) | stating the place or places where copies of the proposals in question will be available for inspection by interested persons for a period of thirty days from a date specified in the notice; and |
| (c) | calling upon interested persons to submit to the Authority whatever representations they may deem necessary within the said period of thirty days. |
| (5) | Upon the expiration of the period mentioned in paragraph (c) of subsection (4), the Authority shall proceed to consider any written representations lodged with him in pursuance of the relevant notice and any oral representations which any person who lodged such written representations or the person having control of the business of the undertaking may desire to submit to him, and shall thereafter approve of the proposals in question as drafted or with such modifications as he may deem necessary. |
| (6) | A decision made by the Authority under subsection (5) shall be binding upon all persons affected thereby. |