(1)Subject to the following provisions of this section, if, with respect to any registered friendly society, the Chief Registrar considers it expedient to do so in the interests of the members of the society or the public, he may make an order forbidding the society to accept any new members or to enter into a new contract with any member of the society.
(2)Not less than one month before making an order under subsection (1) above in relation to a society the Chief Registrar shall serve on the society a notice stating that he proposes to make such an order.
(3)A notice under subsection (2) above shall specify the considerations which have led the Chief Registrar to conclude that it would be in the interests of the members of the society or of the public to make the order.
(4)The Chief Registrar shall consider any representations with respect to a notice under subsection (2) above which may be made to him by the society within such period (not being less than one month) from the date on which the society is served with the notice as the Chief Registrar may allow and, if the society so requests, shall afford to it an opportunity of being heard by him within that period.
(5)On making an order under subsection (1) above in relation to a society, the Chief Registrar shall serve on the society notice of the making of the order, specifying the considerations which have led him to conclude that it is expedient to make the order in the interests of the members of the society or of the public; and the Chief Registrar may not make an order under subsection (1) above unless all the considerations so specified were those, or were among those, which were specified in the notice served on the society under subsection (2) above.
(6)Notice of the making of an order under subsection (1) above shall be published by the Chief Registrar in the Gazette and in such other ways as appear to him expedient for informing ithe public.
(7)If a society contravenes the provisions of an order under subsection (1) above it shall be liable on conviction on indictment or on summary conviction to a fine which, on summary conviction, shall not exceed £400; and every officer of the society who knowingly and wilfully authorises or permits the contravention shall be liable—
(a)on conviction on indictment, to a fine or to imprisonment for a term not exceeding two years, or to both, or
(b)on summary conviction, to a fine not exceeding £400.
(8)An order under subsection (1) above may be revoked by a subsequent order made by the Chief Registrar.
(9)The provisions of this section apply in relation to a registered branch of a registered friendly society as they apply in relation to such a society.
Modifications etc. (not altering text)
C1Ss. 88,89 applied with modifications by Financial Services Act 1986 (c. 60, SIF 69), ss. 140, 211(1), Sch. 11 para. 26(2)(3)