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Co-operative and Community Benefit Societies Act (Northern Ireland) 1969

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[F17BPower of committee to bind societyN.I.

(1)In favour of a person dealing with a registered society in good faith, the power of the committee to bind the society, or authorise others to do so, shall be deemed to be free of any limitation under the society's registered rules.

(2)For this purpose—

(a)a person “deals with” a society if he is a party to any transaction or other act to which the society is a party;

(b)a person shall not be regarded as acting in bad faith by reason only of his knowing that an act is beyond the powers of the committee under the society's registered rules; and

(c)a person shall be presumed to have acted in good faith unless the contrary is proved.

(3)The references in section 7A and this section to limitations on the powers of the committee under the society's registered rules include limitations deriving—

(a)from a resolution of the society in general meeting or a meeting of any class of members; or

(b)from any agreement between the members of the society or of any class of members.

(4)Subsection (1) shall not affect any right of a member of the society to bring proceedings to restrain the doing of an act which is beyond the powers of the committee; but no such proceedings shall lie in respect of an act to be done in fulfilment of a legal obligation arising from a previous act of the society.

(5)Subsection (1) shall not affect any liability incurred by a member of the committee, or any other person, by reason of the committee's exceeding its powers.

(6)Section 7D shall have effect notwithstanding this section.]

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