Mutual Banks Act, 1993 (Act No. 124 of 1993)Chapter IV : Administration of Mutual Banks33. Alteration of articles |
| (1) | A mutual bank may in the manner directed by its articles alter or rescind any article or adopt any additional article, but no such alteration, rescission or addition shall be valid— |
| (a) | if it purports to affect any right of a creditor of the mutual bank who is not a member thereof; or |
| (b) | If it is directed against any particular individual; or |
| (c) | If it purports to alter the rights of members in a winding-up. |
| (2) | Within 14 days from the date of passing a resolution for the alteration or rescission of any article or the making of any additional article, two copies of such resolution shall be transmitted by the secretary of the mutual bank to the Registrar together with a certificate signed by the chairman of the board and the secretary of the mutual bank that the provisions of the articles of the mutual bank governing the alteration or rescission of or addition to any article have been complied with. |
| (3) | If the Registrar finds that such alteration, rescission or addition is in conformity with this Act, and is satisfied that it is financially sound and that the methods of transacting the business of the mutual bank as laid down therein are not undesirable, he shall register the resolution and return one of the copies to the secretary of the mutual bank with the date of registration endorsed thereon, and any such alteration, rescission or addition shall take effect as from the date of the registration. |