Building Societies Act Amendment Act 1976 (Qld)

207 Qizurtsfitn^ ANNO VICESIMO QUINTO ELIZABETHAE SECUNDAE REGINAE No. 28 of 3976 An Act to amend the Building Societies Act 1886-1975 in certain particulars [ASSENTED TO 22ND APRIL, 19761 BE IT ENACTED by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Assembly of Queensland in Parliament assembled, and by the authority of the same, as follows:- 1. Short title and citation . (I) This Act may be cited as the Building Societies Act Amendment Act 1976. (2) The Building Societies Act 1886-1975 is in this Act referred to as the Principal Act. (3) The Principal Act as amended by this Act may be cited as the Building Societies Act 1886-1976. 2. Commencement of Act. (1) The following provisions of this Act shall be taken, to the extent indicated in this subsection, to have .commenced on I January 1976 and to have retrospective effect accordingly:- section 17; paragraph (a) of section 19: section 35 to the extent that it inserts section 361) (I ) into the Principal Act.

208 Building Societies Act Amendment Act 1976, No. 28 (2) Section 20 shall be taken to have commenced on 8 April 1976 and to have retrospective effect accordingly. (3) Save as is prescribed by subsections (1) and (2) this Act shall commence on the date it is assented to for and on behalf of the Crown. 3. Amendment of s. 2. Section 2 of the Principal Act is amended by- (a) in the definition " Board " omitting all words commencing with the words " and in relation " to the end of the definition; (b) omitting the definitions " Director " and " Officer " and substituting the following definitions:- Director "-Includes . any'persoi occupying the position of director of a . Registered Society by whatever name called, or acting in t^ oapacity in- the business or operations of the Registered Sbeietp pursuantt o itsules, this Act or a resolution duly passed -#ry the•,•Society's,;8oard and any person in accordance v tlf'whose directions •c.r.jristructions a director, or that other person .whilst so'- acting; is, accustomed to act; " Employee "Includes any person in the paid employment other than as a director of a Registered Society (whether by way, of=salary, allowance, fee, stipend, wage, commission or other payment of a like nature) and any other person or body of persgns who cre which? provjdes the: Society with secretariaf or administrative services and any 'person in the ..paid employment,Qf that other person or body; Officer "-Includes a director or an employee by whatever name called. or other person who acts or gives directions in regard to the 'business, operations or affairs of a Registered Society;"; ^c) omitting the dafinitirni '4`-Certificated Accountant " and substituting the following definitions Inspector "-A person who holds the appointment of inspector for the purposes of this Act; " Certificated Accountant "-A person who- (a) is a member of the Institute of Chartered Accountants in Australia or the Australian Society of Accountants; (b) holds- (i) the certificate of an associate in accountancy of the University of Queensland; (ii) the certificate in accountancy of a recognised technical college in Australia; or (iii) the associate diploma in accountancy (or its equivalent) of a recognised Institute of Technology or College of Advanced Education; or (c) is a registered company auditor in any State or Territory of the Commonwealth;"; (d) in the definition " Registrar " omitting the word " under " and substituting the words " for the purposes of "; (e) inserting after the definition " Registrar " the following definition:- Reggiissttrraarr of Building Societies "-The Registrar of Commercial Acts, Brisbane appointed under the Administration of Commercial Laws Act 1962-1971;".

Building Societies Act Amendment Act 1976, No. 28 209 4. Amendment of s. 3. Section 3 of the Principal Act is amended by- (a) omitting subsection (1) and substituting the following subsection:- " (1) Subject to this Act, any 100 or more persons who have attained the age of 18 years, who are by the rules of the proposed Society qualified to be members of the Society when registered may form a Society."; (b) in subsection (2), (i) omitting from paragraph (a) the words " twenty-five or more persons " and substituting the words " 100 or more persons who are qualified pursuant to subsection (1) "; (ii) omitting from paragraph (c) the words " twenty-five of the persons " and substituting the words " 100 of the persons who are qualified pursuant to subsection (1) ". 5. Amendment of s. 3A. Section 3A of the Principal Act is amended by- (a) in subsection (1) inserting after the word "Act" the words " or within such further period as the Registrar may allow "; (b) in subsection (2) inserting in paragraph (d) after the word " director " the words " and full particulars of all other directorships, if any, held by each director ". 6. Amendment of s. 3B. Section 3B of the Principal Act is amended by- (a) in subsection (1), omitting paragraph (c) and substituting the following paragraph:- " (c) is satisfied that from the date of its registration the Building Society will have available to it not less than S2 000 000 (whether by way of share capital or by way of loan or deposit) and that such amount- (i) will include members' share capital of not less than $1000 000; and (ii) will include funds that aggregate not less than S500 000 which funds are expressly prohibited by the agreement or agreements relating to the subscription of the capital or, as the case may be, the loan or deposit and by the rules from being withdrawn or repaid within the period of ten years after the date of their receipt by the Society; and (iii) will to the extent of not less than S500 000 be lodged by a corporation or corporations within the class prescribed;"; (b) in subsection (3), (i) omitting the words "One or both" appearing at the beginning of the subsection and substituting the word "Any "; (ii) omitting paragraphs (a) and (b) and substituting the following paragraphs:- (a)) the amount firstly specified be reduced below $1 000 000; (b) the amount secondly specified be reduced below 5500 000; (c) the amount thirdly specified be reduced below S250 000; (d) the amount fourthly specified be reduced below 5250 000.".

210 Building Societies Act Amendment Act 1976, No. 28 7. Amendment of s. 4B. Section 4s of the Principal Act is amended by inserting after subsection (3) the following subsection:- (3A) Where an administrator has been appointed to conduct the affairs of a Registered Society under section 37AD, the Registrar may, on the application of the administrator, if he considers it 'expedient to do so in the interests of persons who are or may become members of or who have invested or may invest in or who have deposited or may deposit money with the Society. .with the approval of the Minister, change its name to a name by which the Society could be registered without contravention of section 4 (1)." 8. Repeal of and new s, 22B. The Principal Act is amended by repealing section 22B and substituting the following section:- "22B. Board of directors. (1) The business and operations of a Registered Society shall be controlled by a board of directors subject to and in accordance with this Act and the rules of the Society. (2) Every director of. a Registered Society acting in the business or operations of the Society in accordance with this Act and the rules of the Society or a resolution duly passed by the board of'the Society shall be the agent of the Society for all purposes that are within the objects of the Society. (3) The acts of a director shall be valid notwithstanding any defect that may afterwards be discovered in his appointment as director or his qualification for appointment.". 9. Repeal of and new s. 22C . The Principal Act is amended by repealing section 22c and substituting the following section:- "22C. Constitution of board and election of directors . (l) The number of directors of a Registered Society shall be not less than five. (2) The first directors of a Registered Society shall be elected at the meeting duly constituted for the formation of the Society. (3) Subject to subsection (2) and to section 37AD, the directors shall be elected at a general meeting of the Society or where a casual vacancy in the office of director is to be filled, at a meeting of the directors in either case in accordance with the rules of the Society. (4) The rules of a Registered Society may provide for the election or appointment- (a) of not more than two directors as employees where the number of directors is seven or more; (b) of not more than one director as an employee in any other case.". 10. Transitional provision concerning present directors of Societies. Where at the commencement of this Act the number of directors of a particular Registered Society or the number of such directors who are employees is not in accordance with the Principal Act as amended by this Act it shall he deemed, until the annual general meeting of that Society next following the commencement of this Act, that such number is lawful in either case.

Building Societies Act Amendment Act 1976, No. 28 21 1 11. Amendment of s. 22E. Section 22E of the Principal Act is amended by- (a) in subsection (1), inserting after the words " Registered Society where secondly occurring the words " and by this Act ". (b) in subsection (2), inserting after the words " Registered Society the words " and by this Act 12. Repeal of and new s. 22F. The Principal Act is amended by repealing section 22F and substituting the following section:- "22F. Removal from office , etc. (1) The office of director shall be vacated in such circumstances, if any, as are prescribed by the rules of the Registered Society, and in any of the following circumstances:- (a) if he is made bankrupt or takes advantage of the laws in force for the time being relating to bankruptcy; (b) if he is a patient within the meaning of the MentalHealth Act1974; (c) if he is convicted of any offence under this Act for which the prescribed pecuniary penalty exceeds S500; (d) if he is convicted in Queensland of an indictable offence or elsewhere than in Queensland in respect of an act or omission that if done or made by him in Queensland would have constituted an indictable offence; (e) if he is convicted summarily of an offence for which he is sentenced. to imprisonment (other than in default of payment of a fine); (f) if he is absent without prior leave granted by the Board from three consecutive meetings of the Board of which due notice has been given to him; (g) if he does not within two months after any charges become due by him to the Society on account of his membership. pay the charges; (h) if he ceases to be a member of the Society; (i) if by notice in writing to the Board he resigns his office; (j) if he is removed from office by resolution of a general meeting of the Society; (k) if he or his associate has a direct or indirect pecuniary interest in any agreement with the Society otherwise than- (i) as a member of, and in common with the other members of a body corporate consisting of more than 20 persons; (ii) as a partner in a body of persons that provides the Society with secretarial or administrative services; or (iii) as a person who provides the Society with secretarial or administrative services; (1) if he or his associate receives an advance or makes any purchase from the Society otherwise than in accordance with a special resolution;

212 Building S ocieties Act Amendment Act 1976, No. 28 ,(m):-if he or-his associate is a party to any of the following dealings with the Society other than a dealing made in good faith in the ordinary course of business of the Society and on such conditions and terms as are usual and proper in similar dealings between the Society and its members:- (i) a loan made to the Society whether by deposit or otherwise; (ii) a loan made to the Society in-` which the -pecuniary interest of the director or his associate consists of his having guaranteed or joined in guaranteeing the repayment of the loan or any part of the loan: (iii) any other dealing (other than a dealing to which paragraph (1) applies) between the Society and a director or his associate, which under its objects the society may have with its members; (iv) such other dealings as are prescribed; (n) if he is, or becomes, an employee, other than pursuant to section 22c (4), or he is, or becomes, employed by a director. (2) For the purposes of paragraph (k) of subsection (1), pecuniary interest shall not include- (a).an interest in any advance made or approved by the Registered Society in the ordinary course of business of the Society; (b) an interest in any purchase from the Registered Society if made in accordance with a special resolution; (c) an interest in any dealing referred to in paragraph (m) if made in good faith, in the ordinary course of business of the Registered Society, and on such conditions and terms as are usual and proper in similar dealings between the Registered Society and its members. (3). A vacancy in the office of director:shall be filled as soon as practicable at a meeting of the directors in accordance with the rules of the Registered Society. (4) For the purposes of this section " associate " includes- (a) a director's' spouse and any 'person with whom he cohabits in a continuing connubial relationship: (h) a director's partner in any business undertaking and the partner's partner in any business undertaking: (c) a director's employer and a director's employee:. (d) a partner of a person referred to in paragraph (a) or (c) in any business undertaking and the partner's partner in any business undertaking. (5) Where a person is, at the same time, a director of a Society and a director of another body corporate the Registrar may, subject to this section, determine that, in his opinion, the activities and operations in which the other body corporate is engaged are or are likely to he such that that person should not be a director of the Society while he is a director of' the other body corporate.

Building Societies Act Amendment Act 1976, No. 28 2I (6) The Registrar shall not make a determination under subsection (5) in relation to a director unless the Registrar- (a) has, by notice in writing duly given to the director informed him that he proposes to consider whether the determination should be made with respect to the body or bodies corporate specified in the notice; and (b) has given the director an opportunity to be heard why the determination should not be made. (7) (a) The Registrar shall duly give notice in writing of a determination under subsection (5) to the director to whom it relates. (b) The director may within 14 days after the giving of the notice make representations to the advisory committee with respect to the determination and the committee shall report thereon to the Minister. (8) Where a director makes representations under subsection (7), the Minister may- (a) uphold the determination of the Registrar: (b) revoke the determination of the Registrar; (c) where the determination relates to more than one body corporate, uphold or revoke the determination in relation to the body or bodies corporate specified by the Minister and revoke or uphold it in relation to the other or others. (9) A director given a notice under subsection (7) vacates his office as such a director- (a) if he does not make' representations against the determination to which the notice relates, at the expiration of the period within which he might have made representations; or (b) if he makes representations and the Minister- (i) upholds the determination; or (ii) upholds the determination in relation to one or more bodies corporate and revokes the determination in relation to another body or other bodies corporate, at the expiration of the period of seven days that next succeeds the due giving to the director of notice of the determination having been upheld, unless before the expiration of that period.he ceases to be a director of the body or bodies corporate to which the determination relates and, where he has made representations, in respect of which the determination was upheld. (10) A notice to a director pursuant to subsection (6), (7) or (9) shall be given by post addressed to the last address of the director as disclosed in returns furnished to the Registrar pursuant to this Act.". 13. New s. 22FA. The Principal Act is amended by inserting after section 22F the following section:- " 22FA. Director not to vote on certain matters . A director of a Registered Society shall not vote on any question in which he or his associate has any direct or indirect pecuniary interest otherwise

214 Building Societies Act Amendment Act 1976, No. 28 than as a member in common with other members of the Society and if he does vote in contravention of this section his vote shall not be counted. This section does not apply in respect of a dealing specified in paragraph (1) or (m) of section 22F (1), which the director or his associate may make without the director's office being thereby vacated. For the purposes of this section " associate " includes those persons specified in section 22F (4).". 14. Amendment of s. 22H. Section 22H of the Principal Act is amended by- (a) in subsection (1), omitting paragraph (c) and substituting the following paragraph:- " (c) of any offence under section 22L or 22M of this Act or section 81 of the Co-operative and Other Societies Act 1967-1974 or section 122, 124, 374F or 375 of the Companies Act 1961-197 5 or section 32 of the Co-operativeHousing Societies Act1958-1974, or in respect of a conviction without the State, under, any provision that corresponds to any section specified in this paragraph,"; (b) in subsections (2) and (3) omitting the words " Crown Law Officer " and substituting in each case the word " Registrar "; (c) adding at the end of the section the following subsections:- " (4) Unless cause to the contrary is shown, the Court may, on an application by the Registrar and on being satisfied as to the matters referred to in subsection (5), make an order prohibiting a person specified in the order from acting as a director of. or being concerned in the management of, ^a Registered Society during such period not exceeding five years after the making of the order as is specified in the order. (5) The matters as to which the Court is to be satisfied before making an order under subsection (4) are- (a) that the person to whom the application for an order relates was given notice of the application; (b) that, within the period of seven years before notice of the application was given to the person referred to in paragraph (a), whether that period commenced before or after the commencement of the Building Societies Act Amendment Act 1976, that person was a director of, or was concerned in the management of, a Registered Society or body corporate to which this section applies; and (c) that in the case of a Registered Society or body corporate referred to in paragraph (b), the manner in which its affairs had been managed was wholly or partly responsible for its being wound up, ceasing to carry on business, being under official management, being unable to satisfy a levy of execution (other than by reason of a direction under section 26c'), being subject to the

Building Societies Act Amendment Act 1976, No. 28 2 15 appointment of an administrator or of a receiver or manager or entering into a compromise or scheme of arrangement with its. creditors. (6) A person shall not contravene or fail to comply with an order under this section that is applicable to him. Penalty: SI 000 or imprisonment for six months, or both. (7) Subsection (6) does not affect the powers of the Court in relation to the punishment of contempts of the Court. (8) In this section, " Registered Society or body corporate to which this section applies " means a Registered Society or corporation- (a) that has been wound up, or is in the course of being wound up, because of inability to pay all its debts in full without assistance from the Contingency Fund: (b) that has suspended or ceased to carry on business because it was unable to pay all its debts in full as at the date of suspension or cessation, as the case may be; (c) that has been, or is, under official management; (d) in respect of which a levy of execution was not satisfied (other than by reason of a direction under section 26c): (e) in respect of which an administrator has been appointed pursuant to this Act because it was unable to pay all its debts in full without the assistance of the Contingency Fund; (f) in respect of the property of which a receiver or manager has been appointed whether by the Court or pursuant to the powers contained in an instrument; or (g) that has entered into a compromise or scheme of arrangement with its creditors.". 15. Amendment of s. 22M. Section 22.%1 of the Principal Act is amended by inserting at the end of paragraph (a) the following paragraph:- The provisions of this paragraph shall not extend or apply to an advance made to a member, who is not an officer, for the purpose of enabling that member to purchase from an officer a dwelling house that has been owned and occupied by the officer for not less than two years immediately preceding the date of granting of approval to such advance.". 16. Amendment of s. 23. Section 23 of the Principal Act is amended by- (a) in subsection (1), omitting paragraph (b) and substituting the following paragraph:- (b) for making advances to its members and, if the Board so resolves- (i) to its employees; (ii) to any person who is not a member; or (iii) to bodies corporate, upon the security of freehold or leasehold estate by way of mortgage;" ; (b) in subsection (3), in paragraph (a), inserting after the expression 28 (2) " the expression " , 28 (4) or 28B (3) ".

216 Building Societies Act Amendment Act 1976, No. 28 17. Amendment of s. 23A. Section 23A of the Principal Act is amended by inserting after subsection (23) the following subsection:- " (2c) Where the rules of a Registered Society or the provisions of a mortgage given to a Society by a borrower provide that the Society may charge an additional fee in the event of the early discharge of the borrower's mortgage debt then, notwithstanding such rules or provisions, it is lawful for the Society to charge and recover from the borrower such additional fee subject to the following conditions:- (a) the additional fee does not exceed 0.5 per centum of the portion of the mortgage debt discharged before it falls due under the mortgage; and (b) the mortgage debt is discharged within three years of the date of the approval on behalf of the Society of the advance to the borrower, and not otherwise.". 18. New ss. 23AA; 23AB and 23AC. The Principal Act is amended by inserting after section 23A the following sections:- " 23AA. Meaning of " special loan ". (1) In this Act, " special loan " means a loan approved by a Registered Society on the security of freehold or leasehold estate by way of mortgage, being a loan that is- v (a) a loan of any amount to a body corporate other than a Registered Society; (b) a loan to a person other than a body corporate of an amount that exceeds the prescribed sum; (c) a loan to a person other than a body corporate of an amount that exceeds the prescribed sum and that is secured by mortgage over vacant land; (d) a loan of any amount to a person other than a body corporate, being a person who, after the loan is approved, is indebted to the Society in respect of the loan and any other moneys, whether immediately repayable or not, in an aggregate amount of not less than the prescribed sum. (2) Where a member transfers or conveys to another person his interest in' any property that is the subject of a mortgage to the Society the transfer or conveyance shall, for the purposes of this Act relating to special loans be treated as a loan approved by the Society to that other person of an amount equal to the amount of the mortgage debt remaining unpaid immediately after the transfer or conveyance together with any arrears of interest then outstanding. (3) A loan made jointly to two or more persons shall, for the purposes of this Act, be taken to be a special loan if a loan of the like amount approved under the like conditions to any one of those persons would be a special loan. 23AB. Ordinary limitation on special loans. (I) Subject to this Act, a Registered Society shall so conduct its business as to ensure that special loans are not approved by it except as authorized by this section.

Building Societies Act Amendment Act 1976, No. 28 217 (2) At the end of each financial 'year a Registered Society shall review the loans approved by it that are outstanding at the end of that year, and shall ascertain- (a) the total amount of those loans which at that time has not been repaid to the Society, together with any arrears of interest in respect of those loans; and (b) the proportion of that amount not repaid which is in respect of special loans and any arrears of interest thereon. (3) If the proportion ascertained at the end of a financial year in accordance with paragraph (b) of subsection (2) (in this section referred to, in relation to that year, as " the ascertained proportion " for that year) does not exceed ten per centum, the Society may approve special loans in the next following financial year, but so that the total amount of special loans approved by it in that following financial year does not exceed ten per centum of the total amount of all loans approved by the Society during that following financial year. (4) If the ascertained, proportion for a financial year exceeds ten per centum but does not exceed 25 per centum the Registered Society may approve special loans in the next following financial year, but so that the total amount of special loans approved by it in that following financial year does not exceed two and one-half per centum of the total amount of all loans approved by the Society in that following financial year. (5) If the ascertained proportion for a financial year exceeds 25 per centum the Registered Society shall not approve any special loans in the next following financial year. (6) A Registered Society registered after the commencement of the Building Societies Act Amendment Act 1976 shall not approve any special loans in its first financial year. (7) The restrictions imposed by this section shall come into force in relation to a Registered Society registered prior to the commencement of the Building Societies Act Amendment Act 1976 so as to restrict special loans approved by it after the end of its financial year that is current at such commencement. (8) If loans are approved by a Registered Society in contravention of this section, the Society and every officer who is in default shall be guilty of an offence against this Act. Penalty: 51 000. (9) For the purposes of this section " financial year ", notwithstanding anything to the contrary contained in the rules of a Society and subject to subsection (10) means the period of 12 months ending on 30 June in any year. (10) Where the Registrar has given approval pursuant to section 33a (3) (c) " financial year " for the purposes of this section means the period of 12 months ending on the date so approved.". 23AC. Permission to make special loan to purchaser of mortgaged property . (1) The provisions of this section shall have effect where a Registered Society, in the exercise of its powers as 0

218 Building Societies Act Amendment Act 1976, No. 28 mortgagee, proposes to sell land, or an estate or interest in land, mortgaged to the Society, or land, estate or interest in respect of which the equity of redemption has been foreclosed, and to approve of a loan that will constitute a special loan to the purchaser of that land, estate or interest upon the security of that land, estate or interest. (2) If, on an application to the Registrar, the Society shows to his satisfaction- (a) that the person who is or was, immediately before foreclosure, entitled to redeem the mortgage is a body corporate, or a person who is, or was immediately before foreclosure, indebted to the Society (taking into account the loan secured by the mortgage and all other debts to the Society of any description, whether immediately repayable or not) in an amount exceeding that'prescribed pursuant to section 23AA (1) (b); and (b) that the amount of the principal sum secured by the mortgage, which at the time of the application has not been repaid to the Society, together with arrears of interest in respect of the loan secured by the mortgage, exceeds the amount of the loan that the Society proposes to approve to the purchaser of the land, estate or interest, the Registrar may at his discretion, in writing permit the Society to approve the special loan to which the application relates.". 19. Amendment of s. 28 . Section 28 of the Principal Act is amended- by- (a) inserting after subsection (2) the following subsection:- " (2A) It is lawful for a Registered Society that purchases mortgage debts from another Society pursuant to subsection (2) to charge and recover from that other Society a fee fixed by the purchasing Society to cover the actual cost of processing the purchase and assignment of those debts, such fee not to exceed 0.75 per centum of the amount of the mortgage debts shown in the document that is registered to assign the mortgage debts and in addition to charge and recover from that other Society, fees and charges- (a) paid or payable by the purchasing Society in respect of the preparation by a solicitor or conveyancer of documents properly evidencing or securing the transfer and assignment of the mortgage debts; (b) assessed and paid or assessed and payable (whichever is the lesser) by the purchasing Society in respect of stamp duty or registration fees payable under any Act in respect of the transfer and assignment of the mortgage debts, but it shall not be lawful for a Registered Society, directly or indirectly, to seek, accept, demand or receive any commission, fee, bonus or reward for or in connexion with any payment as specified in paragraph (a) or (b) from the person to whom such a payment has been made or is payable.";

Building Societies Act Amendment Act 1976, _` o. 28 219 (h) adding at the end of the section the following subsection:- (4) Notwithstanding anything to the contrary contained in the rules of a Permanent Society registered under this Act, a Permanent Society is empowered to invest in the Contingency Fand any portion of its funds which it is required so to do pursuant to section 36D and such further portion of its funds as it sees fit that is not immediately required for its purposes.". 20. New ss. 28B and 28C . The Principal Act is amended by inserting after section 28A the following sections:- 28B. Assignment and purchase of mortgages. (I) A Registered Society may, notwithstanding anything to the contrary in its rules, transfer or assign its mortgage debts to the Housing Loans Insurance Corporation established under t' Le Housing Loans Insurance Act 1965-1973 of the Commonwealth or any Act amending that Act or in substitution therefor or to a corporation approved as a mortgage insurer under section 23c or to any other person approved by the Minister. (2) The Housing Loans Insurance Corporation or a corporation approved as a mortgage insurer under section 23c shall have in relation to a debt transferred or assigned to it pursuant to subsection (1) all the authorities and powers had by the Registered Society as mortgagee or exercisable by its directors under its rules in relation to that debt save that the corporations are not authorized to reduce the term of repayment of the debt without the consent of the mortgagor. (3) A Registered Society may also, notwithstanding anything to the contrary in its rules, invest any portion of its funds, not immediately required for its purposes, in the purchase of mortgage debts from the Housing Loans Insurance Corporation or approved mortgage insurer that are debts that were assigned or transferred to the corporation or approved mortgage insurer by a Registered Society, where it has been demonstrated that the obligations of the mortgagor under the mortgage have been satisfactorily met for a period of not less than six months prior to the date of the purchase. (4) The provisions of section 28 (3) shall apply, mutatis mutandis. to a purchase pursuant to subsection (3), and for the purpose of that application- (a) paragraph (b) of that section shall he deemed to be amended by omitting the words " of the Society " and substituting the words ", conditions or provisions "; (b) paragraph (e) of that section shall be deemed to be amended by omitting the words " original Society " and substituting the words " Society that transferred or assigned the mortgage debt to the Housing Loans Insurance Corporation or approved mortgage insurer ". 28C. Validation of mortgage debts . Where a mortgage debt purchased pursuant to section 28 (2) or acquired pursuant to section 28B, 38A or 38c is one that may be void or voidable by reason- - (a) of the acts or omissions of the mortgagor or, if the mortgagor is a body corporate, of the directors, officers or employees of the body corporate or the officers of the Registered Society that was the original mortgagee shown in the instrument of mortgage;

220 Building Societies Act Amendment Act 1976, No. 28 (b) that any Society that is mortgagee in relation to the mortgage debt subsequently to the original mortgagee shown in the instrument of mortgage has made an advance to the mortgagor for a purpose other than a purpose specified in section 23, then notwithstanding those acts or omissions or that advance, on registration of the document assigning the mortgage debt secured by the instrument of mortgage, the person purchasing pursuant to section 28 (2) or acquiring pursuant to section 28B, 38A or 38c the mortgage debt shall be deemed to have purchased or acquired a mortgage debt that is neither void nor voidable.". 21. Amendment of s. 29. Section 29 of the Principal Act is amended by, in subsection (1), omitting the words " or employee of the Society " and substituting the words ", employee or agent of the Society or by any other person to whom the Society has given a franchise or who on behalf of the Society, conducts all or any of its affairs 22. Amendment of s. 32. Section 32 of the Principal Act is amended by omitting the words " two hundred dollars " wherever occurring and substituting the words " the prescribed amount " in each case. 23. Amendment of s. 33B. Section 33B of the Principal Act is amended by, in subsection (4) omitting the words " the end of the financial year in question or ". 24. New s. 33D. The Principal Act is amended by inserting after section 33c the following section- " 33D. Reserve account not to be applied unless property realised . Where in the accounting records and statements or in any balance sheet of a Registered Society any amount is or has been applied or transferred to an assets ' revaluation reserve account (by whatever name called) as the result of a revaluation of the assets of the Society or by reason of the adoption and use of any accounting principle that has the effect of creating such a reserve account, it shall not be lawful for a Society to apply or transfer any amount from that account for any purpose unless the amount has been actually realised through the sale or disposal of those assets ". 25. Amendment of s. 34. Section 34 of the Principal Act is amended by- (a) in the note appearing in and at the beginning of the section omitting the words " to be kept " and substituting the words " and controls "; (b) adding at the end of subsection (1) the following symbol and paragraphs:- 11 ; (d) establish and maintain a system of control and inspection of its accounting records and a system for supervising its cash holdings and all receipts and remittances; (e) establish and maintain a system to control and ensure the safe custody of all documents of title and securities belonging to the Society, and of the deeds relating to property mortgaged to the Society".

Building Societies Act Amendment Act 1976, No. 28 221 26. Amendment of s. 34A. Section 34A of the Principal Act is amended by--- (a) in subsection (5), (i) in paragraph (a), omitting the words " ensure that all known bad debts are written off and that adequate provision is made for doubtful debts " and substituting the words " cause all known bad debts to be written off and adequate provision to be made for doubtful debts ": (ii) in paragraph (b), omitting the words " and, if so, to ensure that those assets are written down to an amount which they might be expected so to realise " and substituting the following words:- and, if so, to cause- (i) those assets to be written down to an amount that they might be expected so to realise; or (ii) adequate provision to be made for the difference between the amount of the value as so shown and the amount that they might be expected so to realise ": (iii) in paragraph (c), omitting the words " ensure that the accounts contain " and substituting the words " cause to be included in the accounts "; (b) in subsection (10), (i) in paragraph (1) omitting the expression " (1) " appearing at the beginning of the paragraph and substituting the expression " (a) "; (ii) in paragraph (a) as numbered by this section, (A) in provision (a) omitting the expression " (a) " appearing at the beginning of the provision and substituting the expression " (i) "; (B) in provision (b) omitting the expression " (b) " appearing at the beginning of the provision and substituting the expression " (ii) "; (iii) in paragraph (2) omitting the expression " (2) " appearing at the beginning of the paragraph and substituting the expression " (b) "; (iv) in paragraph (b) as numbered by this section, (A) in provision (a) omitting the expression " (a) " appearing at the beginning of the provision and substituting the expression " (i) "; (B) in provision (b) omitting the expression " (b) " appearing at the beginning of the provision and substituting the expression " (ii) "; (c) in subsection (11), omitting the expressions (1) ", " (2) " and (3) " and substituting the expressions " (a) (b) " and " (c) respectively ; (d) adding at the end of the section the following subsection:- " (12) (a) There shall be attached to any accounts to be laid before a Registered Society at its annual general meeting a report made in accordance with a resolution of the directors and signed by not less than two directors with respect to the profit and loss of the Society for the financial year and the state of the Society's affairs as at the end of the financial year stating- (i) the names of the directors in office at the date of the report; (ii) the net amount of the profit or loss of the Society for the financial year after provision for income tax: (iii) the amounts and particulars of any material transfers to or from reserves or provisions during the financial year;

222 Building Societies Act Amendment Act 1976, No. 28 (iv) whether the directors (before the profit and loss account and balance-sheet were made out) took reasonable steps to ascertain what action had been taken in relation to the writing off of bad debts and the making of provisions for doubtful debts, and to cause all known bad debts to be written off and adequate provision to be made for doubtful debts; (v) whether at the date of the report the directors are aware of any circumstances that would render the amount written off for bad debts or the amount of the provision for doubtful debts inadequate to any substantial extent (and, if so, giving particulars of the circumstances) ; (vi) whether the directors (before the profit and loss account and balance-sheet were made out) took reasonable steps to ascertain whether any current assets (other than current assets to which paragraph (iv) applies) were unlikely to realise in the ordinary course of business their value as shown in the accounting records of the Society and, if so, to cause- (A) those assets to be written down to an amount that they might be expected so to realise; or (B) adequate provision to be made for the difference between the amount of the value as so shown and the amount they might be expected so to realise; (vii) whether at the date of the report the directors are aware of any circumstances that would render the values attributed to current assets and non current assets in the accounts misleading (and, if so, giving particulars of the circumstances); (viii) whether there exists at the date of the report- (A)any charge on the assets of the Society that has arisen since the end of the financial year and secures the liabilities of any other person (and if so, giving particulars of any such charge and, so far as practicable, of the amount secured); and (B) any contingent liability that has arisen since the end of the financial year (and, if so, stating the general nature thereof and, so far as practicable, the maximum amount, or an estimate of the maximum amount, for which, the Society could become liable in respect thereof); (ix) whether any contingent or other liability has become enforceable, within the period of 12 months after the end of the financial year which, in the opinion of the directors, will or may substantially affect the ability of the Society to meet its obligations when they fall due (and, if so, giving particulars of any such liability); (x) whether at the date of the report the directors are aware of any circumstance not otherwise dealt with in the report or accounts that would render any amount stated in the accounts misleading (and, if so, giving particulars of the circumstances);

Building Societies Act Amendment Act 1976, No. 28 (xi) whether the results of the Society's operations during the financial year were, in the opinion of the directors, substantially affected by any item, transaction or event of a material and unusual nature (and, if so, giving particulars of that item, transaction or event and the amount or the effect thereof, if known or reasonably ascertainable); and (xii) whether there has arisen in the interval between the end of the financial year and the date of the report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors, to affect substantially the results of the Society's operations for the next succeeding financial year (and, if so, giving particulars of the item, transaction or event). (b) In this subsection the expression " any item, transaction or event of a material and unusual nature " includes but is not limited to- (i) any change in accounting principles adopted since the last report; (ii) any material item appearing in the accounts for the first time or riot usually included in the accounts; and (iii) any absence from the accounts of any material item usually included in the accounts. (c) The directors shall state in the report whether since the end of the previous financial year a director has received or become entitled to receive a benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by directors shown in the accounts in accordance with subsection (7) or the fixed salary of a full-time employee) by reason of a contract or agreement made by the Society or a person who provides the Society with secretarial or administrative services, with the director or with a firm of which he is a member, or with a body corporate in which he has a substantial financial interest, and, if so, the general nature of that benefit.". 27. Amendment of s. 34AC. Section 34AC of the Principal Act is amended by, in subsection (1), inserting after the words " regulation 21 the words " , arid the annual returns as are required by regulation 21A 28. Amendment of s. 34B. Section 34n of the Principal Act is amended by- (a) in subsection (1), adding at the end of paragraph (b) the following symbol and paragraph:- '4 (c) the Registered Society has maintained a satisfactory system of control over its transactions and records, and, in particular, whether the requirements of paragraphs (d) and (e) of section 34 (1) have been complied with "; (b) in subsection (6), inserting aftt,r the words " such report " the words " together with a copy of the accounts examined by him ". 29. Amendment of s. 34BA . Section 34BA of the Principal Act is amended by- (a) in subsection ( 1), inserting after the word " report " the words or reports ";

224 Building Societies 7Act Amendment Act 1976, No. 28 (b^ in subsection (2), omitting the word "The" appearing at the tiegirining of the subsection and substituting the word " Every "; (c) in subsection. (3), inserting after the word " report " the words or reports ". 30. Amendment of s. 34C. Section•34c of the Principal Act is amended by- (a) omitting subsection'(1) and substituting the following subsection:- (1) The Registrar; an inspector or, if authorised in that behalf in writing by the Registrar, any person.may- (a) inspect and take copies of or extracts from any books, accounts , records, minutes, registers or documents of a Registered Society;: • (b) examine. the affairs. of a Registered Society whether or not it. is in the, c4aurse.,of being wound up; and (c) in the case of a Registered Society that is being wound up,,.examine. any books, accounts, records, minutes, registers or documents kept by the liquidator in respect of the Society."; (b) in subsection (2), (i) in paragraph (a), (A) omitting the words `-`or records" and substituting the words 44 records, minutes, registers^or documents "; (B) inserting after the word " Registrar " the words ", an inspector "; (ii) in paragraph (b), inserting after the word " Registrar " the words ", an inspector "; (c) in. subsection (3), omitting the first paragraph and substituting .the following paragraph:- "Any bank in which the. funds of a Registered Society are deposited or invested shall when so required in writing by the Registrar, furnish to the Registrar a statement of the amount of such deposit or investment and any other particulars required by the Registrar to be so furnished and no bank shall incur any liability' whether in respect of any breach of trust or otherwise, by reason only of the furnishing of any statement or particulars pursuant to this subsection.", 31. New s. 34D. The Principal Act is amended by inserting after section 34c the following section:- " 34D. Power to require attendance , etc. (1) With the approval of the Minister the Registrar or an inspector may, for the purpose of an inspection or examination under this Act- (a) administer an oath; (b) by notice in writing require any person- (i) to attend before him at the time and place specified in the notice and to then and there answer any questions put to him by the Registrar or inspector, as the case may be, in relation to the inspection or examination; (ii) to produce at the time and place specified in the notice all or any of the books, accounts, records, minutes, registers or documents of a Registered Society;

Building Societies Act Amendment Act 1976, No. 28 (c) require any director or other officer of a Registered Society to furnish to the Registrar or inspector, as the case may be, any information relating to the affairs of the Society or the matter of an inspection or examination into the affairs of the Society and to produce to the Registrar or inspector all or any of the books, accounts, records, minutes, registers or documents of the Society. A notice referred to in paragraph (b) of this subsection may be served- (i) on a Registered Society or an officer of the Society other than a director, by leaving it at the registered office of the Society with some person apparently in the service of the Society or by post addressed to the Society at its registered office; (ii) on a director of the Society, by post addressed to the last address of the director as disclosed in returns furnished to the Registrar pursuant to this Act; (iii) on any other person by post addressed to his place of abode or business last known to the person by whom the same is sent. (2) Any person, who- (a) is required by the Registrar or an inspector pursuant to paragraph (b) of subsection (1) refuses or fails, without lawful excuse, to attend at the time and place specified in the notice served on him pursuant to subsection (1) or, having so attended, fails then and there to answer any question put to him by the Registrar or inspector, as the case may be, in relation to the inspection or examination or to produce any books, accounts, records, minutes, registers or documents as required by the notice; or (b) being a director or other officer of a Registered Society refuses or fails, without lawful excuse, to furnish any information required of him pursuant to paragraph (c) of subsection (1) or to produce any books, accounts, records, minutes, registers or documents required to be produced pursuant to that paragraph, shall be guilty of an offence. Penalty: Sl 000 or imprisonment for six months, or both. (3) Where a person, having objected to answering a question put to him by the Registrar or inspector is compelled to answer by reason of subsection (2) his answer, if it tends to incriminate him of any offence, shall not be admissible in evidence in any proceedings brought against him in respect of that offence.". 32. Amendment of s. 35. Section 35 of the Principal Act is amended by- (a) in the first paragraph, omitting the words " appoint a certificated accountant to examine into and report upon the accounts, securities, insurances, and general financial condition of the Society " and substituting the words " cause a special audit to be made of the affairs of the Society ";

226 Building Societies Act Amendment Act 1976, No. 28 (b) omitting the second "paragraph and substituting the following paragraphs:- " The Registrar may, on his own authority, cause a special audit to be made of the affairs of a Registered Society if, in connexion with any document, -information, particulars or report required to be lodged with or furnished to the Registrar under the provisions of this Act- (a) he is not satisfied with any document, information, particulars or report lodged with or furnished to him under this Act; or (b) the Society fails within the time specified in the provision in question of this Act or direction of the Registrar, to lodge with or furnish to the Registrar any document, information, particulars or report required by this Act to be so lodged or furnished. Where the Registrar causes a special audit to be made, he may, by instrument in writing- (a) appoint a certificated accountant to undertake the audit; and (b) revoke any such appointment. The Registrar shall, in any instrument appointing a certificated accountant, specify- (a) full particulars. of terms and conditions to which the appointment is subject; and (b) the matters of which the special audit is to be made.". 33. Amendment of s. 35B. Section 35B of the Principal Act is amended by- (a) in subsection (1), (i) omitting the words "" may for the purpose of carrying out his duties and functions under " and substituting the words " or an inspector may for the purposes of "; (ii) inserting after the words " Minister, any " the word " other (iii) omitting the words " minutes, registers, books and documents and substituting the words " books, accounts, records, minutes, registers or documents "; (b) in subsection (2), (i) inserting after the words " The Registrar," the words " an inspector "; (ii) omitting the words " minutes, registers, books and documents and substituting the words " books, accounts, records, minutes, registers or documents ". 34. New ss. 35C and 35D . The Principal Act is amended by inserting after section 35B the following sections:- " 35C. Declaration to be made before inspection. (1) No person shall make an inspection pursuant to section 34c or 35H unless he has made a declaration in the prescribed form. (2) A person- (a) who makes an inspection pursuant to section 34c or 3513 before he has made the declaration referred to in subsection (1); or

Building Societies Act Amendment Act 1976, No. 28 227 (b) who save for the purposes of this Act or in the course of any criminal proceedings, after making such a declaration divulges or communicates to any other person or makes a record of, any information that he had acquired by reason of such an inspection, shall be guilty of an offence. Penalty: $200. 35D. Auditing procedures and standards . Every auditor and certificated accountant appoint; d or engaged under the provisions of this Act shall, in the conduct of his audit or examination for the purposes of this Act, apply auditing procedures and standards that are in accordance with the principles laid down in the latest edition of the Members' Handbook published by- (a) the Australian Society of Accountants: or (b) the Institute of Chartered Accountants in Australia. as the case may be, as amended or added to from time to time.". 35. Repeal of and new ss. 36 , 36A-36V. The Principal Act is amended by repealing section 36 and substituting the following sections and heading:-- "36. Disputes . (1) Subject to this section, every dispute between a member of a Registered Society, in his capacity as a member, and the Society shall be determined in the manner prescribed by the rules of the Society. (2) For the purpose of this section " Society " shall include the Board and any officer, and " member " shall include- (a) any person aggrieved who has not for more than three months ceased to be a member; (b) any person claiming through or under a member, or through or under a person referred to in paragraph (a). (3) Any party to a dispute referred to in this section may refer the dispute to the Registrar, if it has not been referred to arbitration in accordance with the rules of the Society or, in the case of such a dispute that has been so referred to arbitration, if one month has elapsed without an award being made. (4) (a) Where the dispute is referred to the Registrar, the Registrar or any person deputed by him may hear and determine the dispute, and may order the expenses of the hearing and such costs of the parties as he specifies to be paid out of the funds of the Society or by such party to the dispute as he thinks fit. (b) Where the Registrar decides not to hear or depute the hearing of the dispute, he shall, within one month of receipt of the reference, notify the parties in writing of his decision. (c) If the Registrar decides not to hear or depute the hearing of the dispute, the dispute shall be determined in the manner (other than by reference to the Registrar under this section) prescribed by the rules of the Society but where the only manner prescribed by those rules for the determination of the dispute is by reference to the Registrar the dispute shall be determined by arbitration in accordance with the Arbitration Act1973 in which case subsections (7), (8), (9), (10) and (l1) of this section shall not apply.

228 Building Societies Act Amendment Act 1976, No. 28 (5) Where the dispute is so referred and the Registrar decides to hear or depute the hearing of the dispute, the Registrar or person deputed by him may. administer an oath, and may by notice in writing served in the manner provided by section 341D' (1), require the attendance of any party or witness, and the production of any books, accounts, records, minutes, registers or documents relating to the matter in question. (6) The Registrar, or person deputed by him to hear a dispute may, at any stage of the hearing of the dispute, and shall, if so directed by the Court, state a case for the opinion of the Court on any question of law arising on the hearing by him of the dispute. (7) Any determination or order made on a reference to the Registrar whether under this section or the rules of a Society, shall be binding and conclusive on all parties without appeal, and shall not be removable into any court or be restrainable by injunction. (8) The determination or order may on application by any person interested, be enforced by the District Court of the district within which the office of the Society is situated. (9) The District Court may give such relief and make such orders, including an order as to costs, and give such directions in relation to the matter as may be necessary. (10) Any order made or direction given by the District Court under this section may be enforced by any process or procedure that would be applicable if the order had been made upon the hearing of an action in the District Court, or by such process or procedure as the District Court may direct. (II) Power to make rules under the DistrictCourts Act1967-1972 extends to making rules for the practice and procedure in arbitrations under this section. (12) Nothing in this section shall extend to any dispute as to the construction or affect of this Act, or of any mortgage or other security or of any contract contained in any document other than the rules of the Society. (13) Any person who fails, without lawful excuse, to comply with a requirement of the Registrar, or person deputed by him, pursuant to subsection (5) shall be guilty of an offence against this Act. Penalty: S500. CONTINGENCY FUND AND COMMITTEE 36A. Contingency Fund . (1) There shall be established and kept in the Treasury a fund to be called the Permanent Building Societies Contingency Fund, which in this Act is referred to as the Contingency Fund. (2) The purpose of the Contingency Fund is to provide protection, to the extent prescribed, to all persons who-- (a) subscribe, contribute or lend money to or deposit money with Permanent Societies;

Building Societies Act Amendment Act 1976, No. 28 229 (b) purchase or otherwise acquire shares in Permanent Societies; or (c) give credit to Permanent Societies in the ordinary course of business of the Societies. 36B. Moneys constituting the Contingency Fund. (1) The Contingency Fund shall consist of- (a) contributions by way of compulsory levy on Permanent Societies registered under this Act; (b) loans from Permanent Societies registered under this Act made either voluntarily or by proportionate precepted loan; (c) moneys borrowed by the Contingency Fund Committee from time to time from any bank, finance company or insurer authorized to carry on business in Queensland under the Insurance Acts 1973 of the Commonwealth or under the Insurance Act1960-1976 or from any other source approved by the Treasurer of Queensland in writing; (d) interest accrued from time to time from the investment of moneys comprising the Contingency Fund; (e) all other moneys lawfully paid into the Contingency Fund. (2) The terms and conditions of borrowing of moneys referred to in paragraph (c) of subsection (1) shall be the best available terms established by negotiation by the Contingency Fund Committee at the time of borrowing. 36C. Payment out of Contingency Fund. There shall be paid out of the Contingency Fund- (a) all moneys in payment of all claims (including costs incurred in relation thereto) established against the Fund and settled by the Contingency Fund Committee in accordance with this Act; (b) all moneys paid in accordance with this Act in repayment of voluntary and precepted loans and borrowings made for the purposes of the Fund and in payment in accordance with this Act of interest thereon; (c) all moneys paid in accordance with this Act in payment of expenses incurred in relation to- (i) claims made against the Fund; (ii) functioning of the Contingency Fund Committee; (iii) the Fund; (d) all moneys paid in accordance with this Act in payment of expenses incurred or sustained in relation to any indemnification under section 36M (2) of this Act. 36D. Contributions and loans . (I) All Permanent Societies registered under this Act shall- (a) pay to the Contingency Fund by way of compulsory contribution the amount prescribed by subsection (2); (b) pay to the Contingency Fund amounts by way of compulsory contribution as the Contingency Fund Committee from time to time determines; and

230 Building Societies Act Amendment Act 1976, No. 28 (c) make to the Contingency Fund precepted loans as the Contingency Fund Committee determines. (2) Save where permitted by direction of the Contingency Fund Committee issued pursuant to this subsection, on or before the fourteenth day of each calendar month each Permanent Society is required to pay to the Contingency Fund an amount calculated at a rate of 0.25 per centum per annum (or such other rate as is fixed by Order in Council) on the daily balances of the fund of the Society that in the calendar month immediately preceding the calendar month in which falls the date on which payment is required to be made is represented by the aggregate of- (a) payments, subscriptions and contributions made, or deemed to have been made, by its members in respect of shares issued by the Society; and (b) deposits and loans (excluding such loans as are prescribed) permitted under section 26 and received by the Society. Upon representations made by a Society to the Contingency Fund Committee, the Committee, if it considers the case justifies it, may direct in writing that the Society shall pay on or before the fourteenth day of each calendar month an amount estimated by the Committee in lieu of the amount prescribed by the preceding paragraph as the amount to be paid by the Society to the Contingency Fund and may at any time, of its own motion, revoke a direction so given. Payment by the Society to the Contingency Fund on or before the fourteenth day of each calendar month of the amount estimated in respect of that Society pursuant to the preceding paragraph shall, for as long as the Committee's direction subsists, be taken to be sufficienty compliance with the provisions of such first paragraph until an adjustment is required to be made as prescribed by this subsection. At a time selected by the Contingency Fund Committee in respect of each Society in relation to which a direction of the Committee subsists an adjustment shall be made as respects the estimated amount paid by a Society in accordance with the direction as follows- (a) if the estimated amount so paid over the period concerned is less than the amount that would have been payable by the Society pursuant to this subsection over that period had the Committee's direction not been given the Committee, by its precept directed to the Society. shall require the Society to pay to the Contingency Fund within the time specified therein the difference between those amounts; (b) if the estimated amount so paid over the period concerned exceeds the amount that would have been payable by the Society pursuant to this subsection over that period had the Committee's direction not been given the Committee shall repay to the Society the difference between those amounts as soon as practicable. Subsections (7), (11) and (12) shall apply in respect of payments required to be made under a precept issued pursuant to this subsection as they apply to contributions to be paid by Societies under this section.

Building Societies Act Amendment Act 1976, No. 28 23 11 (3) From time to time, as the Contingency Fund Committee determines to be necessary, the Committee- (a) may fix an amount that is required by the Contingency Fund by way of compulsory contribution from all Permanent Societies in addition to the amount paid or payable under paragraph (a) of subsection (1): (b) shall reduce that amount to a percentage of the total amount of those funds of Permanent Societies that is represented by the aggregate of- (i) payments, subscriptions and contributions made, or deemed to have been made, by its members in respect of shares issued by the Societies: and (ii) deposits and loans (excluding such loans as are prescribed) permitted under section 26 and received by the Societies, at a date selected by the Committee; and (c) by its precept directed to each Permanent Society require each Permanent Society to pay to the Contingency Fund within the time specified therein that percentage, specified in the precept, of the fund of the Society that is represented by the aggregate of- (i) payments, subscriptions and contributions made, or deemed to have been made, by its members in respect of shares issued by the Society; and (ii) deposits and loans (excluding such loans as are prescribed) permitted under section 26 and received by the Society, at the date specified in the precept. (4) The amount required to be paid under paragraphs (a) and (b) of subsection (1) by each Permanent Society to the Contingency Fund- (a) in respect of the period 1 January 1976 to 30 June 1976, shall not in the aggregate exceed the amount calculated at the rate of one per centum per annum on the daily balances of the fund of the Society that in that period is represented by the aggregate of- (i) payments, subscriptions and contributions made, or deemed to have been made, by its members in respect of shares issued by the Society; and (ii) deposits and loans (excluding such loans as are prescribed) permitted under section 26 and received by the Societies, (b) in respect of the period of 12 months ending on 30 June 1977 and every period of 12 months thereafter ending on 30 June shall not in the aggregate exceed the amount calculated at the rate of one per centum per annum on the daily balances of the fund of the Society that in that period of 12 months is represented by the aggregate of- (i) payments, subscriptions and contributions made, or deemed to have been made, by its members in respect of shares issued by the Society; and

232 Building Societies Act Amendment Act 1976, No. 28 (ii) deposits and loans (excluding such loans as are prescribed) permitted under section 26 and received by the Society. (5) From time to time, as the Contingency Fund Committee determines to be necessary, the Committee- (a) shall fix an amount that is required by the Contingency Fund by way of precepted loan from all Permanent Societies; (b) shall reduce that amount to a percentage of the total amount of those funds of Permanent Societies that is represented by the aggregate of- (i) payments, subscriptions and contributions made, or deemed to have been made, by its members in respect of shares issued by the Societies; and (ii) deposits and loans (excluding such loans as are prescribed) permitted under section 26 and received by the Societies, at a date selected by the Committee; and (c) by its precept directed to each Permanent Society require each Permanent Society to pay to the Contingency Fund by way of loan within the time specified therein that percentage, specified in the precept, of the fund of the Society that is represented by the aggregate of- (i) payments, subscriptions and contributions made, or deemed to have been made, by its members in respect of shares issued by the Society; and (ii) deposits and loans (excluding such loans as are prescribed) permitted under section 26 and received by the Society, at the date specified in the precept. (6) In relation to each precept directed to a Permanent Society pursuant to subsection (5) the Contingency Fund Committee shall determine the rate of interest to be paid in respect of the loan and may determine the other terms and conditions on which the loan shall be repaid and such interest shall be paid. For the purpose of determining the rate of interest to be paid to each Permanent Society in respect of precepted loans the Committee shall fix- a rate of interest which shall be the standard rate and shall not exceed the maximum rate of interest fixed at the material time under section 24 (2) but in relation to each Permanent Society that is at the material time paying interest on deposits held by it at a rate less than the maximum rate of interest fixed under section 24 (2) the Committee may vary the standard rate downwards so that any such variation made in relation to a particular Permanent Society shall not exceed the difference between the maximum rate of interest fixed at the material time under section 24 (2) and the rate of interest paid by that Society at that time on deposits held by it. (7) The Contingency Fund Committee may, in a special case, allow an extension of time, not exceeding three months, within which the contributions or loans referred to in subsection (1) or any part thereof may be paid.

Building Societies Act Amendment Act 1976, No. 28 2-3 3 (8) Where a liquidator or an administrator has been appointed pursuant to this Act to wind up a Permanent Society or, as the case may be, conduct its affairs that Society shall not be required to pay any contribution or precepted loan to the Contingency Fund during or in respect of the term of appointment of the liquidator or administrator. (9) Payment of contributions and loans (both voluntary and precepted) under this Act shall be made by a Permanent Society to the Registrar in the manner specified by the Contingency Fund Committee by its precept directed to the Society or, if not so specified, by notification in writing to the Society. (10) For the purposes of this section, every Permanent Society registered under this Act shall- (a) file with the Registrar within one month after the last day of March, June, September and December in each year for use by the Contingency Fund Committee a statement of funds and dividends and interest paid or payable to its members and depositors (including details of relevant supporting information) in respect of the quarter ending on those respective days, as is prescribed from time to time by the Contingency Fund Committee, and that statement and those details shall be verified by the declaration of a director or the secretary of the Society; and (b) maintain such records as will readily permit verification of the correctness of the particulars contained in the statement and details referred to in paragraph (a). (11) If a Permanent Society does not, within the time or the extended time, if any, specified or allowed, pay the whole of any contribution or precepted loan or, as the case may be, any part of such contribution or loan levied on and required to be paid by the Society pursuant to this Act- (a) the Society and every director of the Society shall be guilty of an offence against this Act; and (b) the amount of any such payment (including costs) shall be recoverable by the Registrar from the Society in the same manner as a debt due to the Crown may be recovered in any court of competent jurisdiction and such amount or amounts so recovered shall be paid into and applied for the purposes of the Contingency Fund. (12) No action at law or in equity shall lie against a Permanent Society or director for or on account of any matter or thing whatsoever done by it or him for the purpose of complying with the provisions relating to the payment of contributions or precepted loans required under this Act.. 36E. Contingency Fund Committee . (1) There shall be constituted from time to time as prescribed by this Act a committee called the Permanent Building Societies Contingency Fund Committee. The committee is in this Act referred to as the Contingency Fund Committee.

234 Building Societies Act Amendment Act 1976, No, 28 (2) The function of the Contingency Fund Committee is to administer the Contingency Fund established and kept pursuant to this Act. (3) The Contingency Fund Committee shall consist of six members of whom- (a) one shall be the Registrar, who shall be its chairman: (b) two shall be persons nominated by the Minister: (c) two shall be persons selected by the Minister from a panel of four names at the least furnished to him by the Association of Permanent Building Societies of Queensland Limited; and (d) one shall be a person selected by the Minister from a panel of names consisting of all the names of persons contained in all the panels of names furnished by Permanent Societies that are not affiliated with the Association aforesaid; (4) For the purpose of enabling the composite panel referred to in paragraph (d) of subsection (3) to be compiled, each of the Permanent Societies of the class referred to in that paragraph shall furnish to the Minister a panel of two names at the least. If within 7 days after the Minister has requested in writing that a panel referred to in paragraph (c) of subsection (3) be furnished to him the panel is not furnished or a panel is furnished that is deficient in any respect the Minister may appoint a member or, as the case requires, two members of the Contingency Fund Committee without reference to the Association referred to in that paragraph or to the panel furnished. If within 7 days after the Minister has requested in writing that a panel referred to in paragraph (d) of subsection (3) be furnished to him by a Permanent Society referred to in that paragraph the panel is not furnished by that Society or a panel is furnished that is deficient in any respect the Minister may appoint a member of the Contingency Fund Committee from the composite panel compiled from the panels that have been furnished to him by such Permanent Societies or, if no panels have been so furnished, as he thinks fit without reference to the Societies in default or any of them. (5) Every member of the Contingency Fund Committee other than the Registrar shall be appointed by the Minister by notification published in the Gazette. No person shall be appointed as a member of the Contingency Fund Committee if he has attained the age of 70 years. 36F. Allowances . (1) Subject to subsection (2), each member and deputy member shall be paid from the Contingency Fund such allowances as are from time to time prescribed. (2) An allowance shall not be paid from the Contingency Fund to a member or deputy member who is an officer of the Public Service of Queensland for attendance at any meeting of the Contingency Fund Committee held during ordinary office working hours of that officer.

Building Societies Act Amendment Ac! 1976, No. 23 235 36G. Holders of office not affected by restrictive employment provisions . A provision of any enactment requiring the holder of an office to devote the whole of his time to the duties of his office or prohibiting him from engaging in employment outside the duties of his office shall not operate to hinder his holding that office and also an appointment as chairman, member or deputy member or, subject to section 36r (2), his acceptance and retention of any allowances payable under this Act. 36H. Term of office. (1) Subject to this Act, the term of appointment of a member of the Contingency Fund Committee, other than the chairman, shall be two years. (2) A member shall, if he is otherwise qualified, be eligible for reappointment as a member. 361. Vacation of office. (1) The office of a member, other than the chairman, shall become vacant if the member- (a) dies; (b) resigns his office by writing signed by him furnished to the Minister; (c) is absent without prior leave granted by the Minister from three consecutive meetings of the Contingency Fund Committee of which due notice has been given to him; (d) ceases to be qualified to be a member; (e) is removed from office as a member by the Minister; (f) attains the age of 70 years; or (g) is one who holds his office by reason of his being an officer of the Public Service of Queensland, and he ceases to be such an officer. (2) The Minister may at any time remove a member other than the chairman, from office as member if- (a) he becomes incapable, in the opinion of the Minister, of discharging the duties of his office; (b) he is, in the opinion of the Minister, incompetent or unfit to hold office. (3) In the. case of the illness or absence of a member other than the chairman, or in the case of a vacancy in the office of a member other than the chairman, the Minister may in writing appoint a person, who is not a member, to act as deputy for such member during such illness or absence, or until such vacancy is filled, as the case may be, and such deputy may exercise the powers and perform the duties of such member accordingly. 36J. Disqualification from office . Aperson who- (a) is made bankrupt or takes advantage of the laws in force for the time being relating to bankruptcy; (b) has been convicted in Queensland of an indictable offence or elsewhere than in Queensland of an offence that if committed by him in Queensland would have

236 Building Societies Act Amendment Act 1976, No. 28 constituted an indictable offence, unless the Minister is satisfied that the circumstances of the offence do not warrant disqualification from office and certifies accordingly; (c) is a patient within the meaning of the Mental HealthAct1974, shall not be qualified to be or continue as a member. 36K. Proceedings of Contingency Fund Committee . (1) The chairman may give such directions as he thinks necessary in respect 'of the arrangement of business of the Contingency Fund Committee. (2) The chairman shall, subject to this section, convene such meetings of the Contingency Fund Committee as he thinks necessary for the efficient performance of the functions of the Committee, which meetings shall be held at such times and places as the chairman determines. (3) The Contingency Fund Committee shall exercise or perform a power, authority, function or duty by a majority of votes of members present at a meeting and voting on the business in question. (4) The chairman shall preside at all meetings of the Contingency Fund Committee and subject to this Act and rules made by the Committee from time to time, he may give directions regarding the procedure to'be followed at or in connexion with a meeting. (5) The chairman and three other members shall be a quorum for the purposes of any meeting of the Contingency Fund Committee. (6) A member present at a meeting who abstains from voting shall be taken to have voted for the negative. (7) The chairman shall have a deliberative vote and, in the event of an equality of votes, a second or casting vote. (8) The Contingency Fund Committee shall as soon as practicable after 30 June in each year make a report to the Minister of- (a) its proceedings and the principal matters dealt with by it; (b) the administration of the Contingency Fund and the Permanent Building Society industry generally, during the year immediately preceding that date. 36L. Secrecy. (1) Subject to this section, a member and a deputy member of the Contingency Fund Committee or a person on whom authority is conferred by the Committee to perform a function or duty on its behalf shall not at any time- (a) make a record of or divulge to any person information acquired by him in the course of his performance of his duties as a member or deputy member or his exercise of such authority, save to the extent necessary to such performance or exercise;

Building Societies Act Amendment Act 1976, No. 28 237 (b) make use of any information acquired by him in the course of his performance of his duties as a member or deputy member or his exercise of such authority for any purpose other than the proper performance of such duties or the proper exercise of such authority. Penalty: SI 000 or imprisonment for six months or both. (2) Nothing in subsection (1) precludes a person, in the performance of his duties as member or deputy member of the Contingency Fund Committee or the proper exercise of authority referred to in that subsection from- (a) producing a document or communicating any information gained by or conveyed to him- (i) to the Minister or the Treasurer of Queensland or any person acting on behalf of and with the authority of the Minister or the Treasurer; (ii) to the Committee, the chairman, any member or deputy member or an inspector; (iii) with the approval of the Minister, the Treasurer of Queensland or the Registrar first had and obtained, to any person appointed or engaged under the provisions of this Act for the purposes of that person's discharging his duties under that appointment or engagement; (b) producing a document to a court in the course of criminal proceedings or proceedings under this Act or from divulging to the Court in the course of such proceedings any matter or thing coming under his notice. 36M. Protection for acts and omissions under Act. (1) The chairman, a member or deputy member of the Contingency Fund Committee or a person acting under the direction or authority of the Committee shall not be liable for an act or omission that is done or made under this Act or purports to be done or made under this Act bona fide and for the purposes of this Act. (2) The chairman, every member or deputy member and every person-acting under the direction or authority of the Contingency Fund Committee shall be indemnified out of the Contingency Fund for all expenses incurred or sustained by him as the result of an act or omission referred to in subsection (1). (3) In any proceedings brought with respect to an act or omission referred to in subsection (1) the burden of proof concerning bona fides shall lie upon him whose case depends on the absence of bona fides. 36N. Powers of Committee. (1) The Contingency Fund Committee shall have and may exercise and perform the powers, authorities, duties and functions conferred or imposed upon it by or under this Act.

238 Building Societies Act Amendment Act 1976, No. 28 (2) For the purposes of exercising and performing its powers, authorities , duties and functions , the Contingency Fund Committee may, subject to this Act , from time to time make and amend by way of recission , alteration or addition , rules for- (a) prescribing with respect to payments by Permanent Societies to the Contingency Fur. { by way of compulsory contribution or precepted loan; (b) prescribing the form, content and details of any statement required to be furnished under this Act for use by the Committee; (c) providing for the investment of moneys in the Contingency Fund that are surplus to the commitments of the Fund as known to the Committee as at the date of investment of the Fund moneys; (d) prescribing the form, content and details of information to be lodged in support of notices of claims on the Contingency Fund and the time for lodgment of that information with the Committee; (e) prescribing the method of admitting and settling claims lodged against the Contingency Fund; (f) prescribing the procedures to be followed at meetings of the Committee or in the conduct of its affairs; (g) providing for such other matters as are considered necessary or expedient for the efficient performance of the functions of the Committee. (3) The Contingency Fund Committee may, as and when it considers it necessary so to do, and shall, as required by this Act, advise the Minister on any matter relating to the administration of the Permanent Building Society industry and the Contingency Fund. 360. Claims against the Contingency Fund. ( 1) Subject to the provisions of this section , the Contingency Fund Committee may receive and settle any claim against the Contingency Fund made by a liquidator or an administrator appointed nursuant to this Act. (2) No person other than a liquidator or an administrator referred to in subsection ( 1) shall be entitled to make a claim against the Contingency Fund or to recover any amount by any action in relation to the Fund. (3) A liquidator or an administrator referred to in subsection (1) shall not be entitled to recover from the Contingency Fund an amount in excess of any deficiency remaining after all assets of the Permanent Society have been disposed of or realised and applied in settlement of all claims admitted or admissible to proof against the Society. (4) Notwithstanding the provisions of subsection (3), a liquidator or an administrator may be paid from the Contingency Fund the amount of the estimated deficiency that will remain after all claims against the funds of the Society have been met by him out of such funds and if the amount so paid to him exceeds the amount he is entitled to recover under subsection ( 3) such excess amount shall be repaid by him to the Fund.

Building Societies Act Amendment Act 1976, No. 28 239 (5) The Governor in Council may from 'time to time by notification in the Gazette limit-- (a) the amount that a liquidator or an administrator shall be entitled to recover from the Contingency Fund under subsection (3); (b) the amount that a liquidator or an administrator may apply in respect of moneys payable to him from the Contingency Fund in settlement of claims by members or other persons against the Society relating to payments, subscriptions and contributions made, or deemed to have been made by members in respect of shares issued by the Society to them and deposits and loans made under section 26; (c) the aggregate amount that may be applied in a particular period or generally in settlement of all claims that have been made but not settled or which may be made pursuant to this section. (6) Where, in any case pursuant to subsection (5), the Governor in Council has limited an amount or an aggregate amount pursuant to that subsection, there shall not be paid out of the Contingency Fund, and no claimant shall be entitled to recover from the Fund, any amount in excess of the amount so limited. (7) No amount shall be paid or be payable out of the Contingency Fund as interest on the amount of any claim made against the Fund. (8) In the settlement of any claim the Contingency Fund Committee may, in its discretion, make payment in respect of a claim to such extent as, in the Committee's opinion, will permit all actual and contingent payments out of the Contingency Fund pursuant to section 36c to be met proportionately, having regard to the moneys available in the Fund. (9) Where claims against the Contingency Fund are not met in full those claims, if, in the opinion of the Contingency Fund Committee, they have been made at or substantially at the same time, shall rank amongst themselves for payment from the Fund pari passu but, to the extent that they have not been met, shall rank in priority over all contingent payments to be paid out of the Fund pursuant to section 36c. 36P. Application of Fund moneys. (1) Where any moneys are paid out of the Contingency Fund to a liquidator or an administrator of a Permanent Society which may lawfully be applied by him in settlement of claims by members or depositors of the Society admitted or admissible to proof against the Society then, notwithstanding anything to the contrary in the rules of the Society, such moneys shall be applied by him so as to permit as nearly as possible all such claims to be met proportionately having regard to the amount pf moneys received by him from the Fund which may be so applied. (2) Where Registered Societies have invested moneys in the Contingency Fund pursuant to section 28 (4) the Contingency Fund Committee may repay to the investing Societies the whole or

240 Building Societies Act Amendment Act 1976, Noo 28 part of such moneys. and interest thereon, having regard to the commitments of the Fund as known to the Committee as at the date of payment, but in either case such repayment shall be made as follows:- , (a) firstly to Societies that have voluntarily so invested, if such repayment is desired by the Society; (b) secondly to Societies that have invested by way of precepted loan; and (c) in a manner that permits all such investments to be repaid proportionately having regard to the moneys available in the Fund. 36Q. Admission of claims against the Contingency Fund. (1) All claims against the Fund, which shall be filed with the Registrar in the manner determined by the Contingency Fund Committee from time to time, shall be in the prescribed form and shall have attached a statement of affairs of the Society showing, in the prescribed form- (a) the assets of the Society, and the total amount realised or expected to be realised from the assets; (b) the liabilities current and contingent and whether existing or capable of arising at a future time, of the Society; (c) the actual to date and estimated expenses incurred and likely to be incurred by the liquidator or administrator of the Society, as the case may be, made up to the latest practical date before the filing of the claim. (2) The Contingency Fund Committee may, in its discretion, require such further particulars including such evidence of proof of any claim or any part thereof as it considers satisfactory and deems necessary, to be furnished to the Registrar in the manner and within the time specified by it and notified in writing. (3) In any case where- (a) a liquidator or an administrator- (i) fails to file a statement of affairs as prescribed; (ii) fails, within the time specified, to furnish such further particulars in respect of the claim as is required; (b) the Contingency Fund Committee is not satisfied as to the accuracy of any claims or any aspect thereof, the Contingency Fund Committee may require the Registrar to furnish to it a report on any of the matters referred to in subsections (1) and (2) and for that purpose the Registrar may, on his own authority undertake or cause to be undertaken- (c) an examination of the affairs of the Society permitted under this Act as he sees fit; (d) a special audit pursuant to the provisions of section 35; (e) an actuarial investigation pursuant to the provisions of section 35A.

Building Societies Act Amendment Act 1976, No. 28 2Yi 36R. Subrogation . On payment out of the Contingency Fund of moneys in settlement in whole or in part of any claim against the Fund, the Contingency Fund Committee shall be subrogated, to the extent of such payment, to all rights and remedies of the claimant or any other person, and all moneys recovered by the Committee as a consequence shall be paid into the Fund. 365. Right of claimant not enhanced by Act. No provision of this Act relating to the Contingency Fund or the functions, duties, powers and authorities of the Contingency Fund Committee as respects the Fund shall affect the operation in law of any act or omission that, apart from this Act, would affect the right of a person to claim against the Fund. 36T. Accounts and audit . The Registrar shall keep and maintain accounts of all moneys received by him in relation to the Contingency Fund and those accounts shall be kept and maintained in such a manner as to disclose the true position in regard thereto and to enable the accounts to be conveniently and properly audited by the Auditor-General who is hereby authorized and required to audit such accounts at least once in each year. 36u. Investment of Contingency Fund. (I) The Contingency Fund Committee may from time to time invest moneys held in the Contingency Fund that are surplus to the commitments of the Fund, as known to the Committee as at the date of investment, in the following manner:- (a) any of the Government securities of the Commonwealth of of any of the States o f the Commonwealth; (b) on any interest bearing term deposit in any bank; (c) on deposit in any savings bank; (d) on the security of a certificate of deposit issued by any bank; (e) with any dealer in the short term money market, approved by the Reserve Bank of Australia as an authorized dealer, who has established lines of credit with that bank as a lender of last resort; (f) on loan to the Treasurer of Queensland at such rate as may be negotiated by the Committee but not less than the prescribed minimum rate (if any); (g) in any other investment or class of investment approved by the Treasurer of Queensland in writing, and may also from time to time vary any such investment. (2) An investment made pursuant to subsection (1) shall be for a period not in excess of three months or such other period as may be authorized by the Treasurer of Queensland in writing. (3) The amounts of interest accruing at any time and from time to time in respect of moneys invested by the Contingency Fund Committee pursuant to this section shall be paid to the credit of the Contingency Fund.

242 Building Societies Act Amendment Act 1976, No. 28 36v. Contingency Fund Committee may enter into contracts of insurance or indemnity . (1) The Contingency Fund Committee may, in its discretion, enter into a contract with a person carrying on fidelity insurance business either within or without the State whereby the Committee will be insured or indemnified to the extent and in the manner provided by the contract against liability in respect of claims against the Contingency Fund under this Act. (2) Such a contract may be entered into in relation to Permanent Societies generally, or in relation to particular Permanent Societies named therein, or in relation to Permanent Societies generally with the exclusion of particular Permanent Societies named therein. (3) An action does not lie against the Contingency Fund Committee or against the chairman, a member or deputy member of the Committee or any person acting under the direction or authority of the Committee for damage alleged to have been suffered by a Permanent Society or by any other person by reason of the publication in good faith of a statement that a contract entered into under this section does or does not apply with respect to that Society. (4) A claimant against the Contingency Fund or any other person does not have a right of action against a person with whom a contract of insurance or indemnity is made under this section in respect of such a contract, or a right or claim with respect to any moneys paid by'the insurer in accordance with such a contract ". 36. Amendment of s. 37A. Section 37A of the Principal Act is amended by inserting at the end of the section the following subsections:- "(7) Where after a Society has been dissolved or terminated pursuant to this Act, whether before or after the commencement of the Building Societies Act Amendment Act 1976, it is proved to the satisfaction of the Registrar- (a) that the Society if still existing would be legally or equitably bound to carry out, complete or give effect to some dealing, transaction or matter; and (b) that in order to carry out, complete or give effect thereto some purely administrative act, not discretionary, should have been done by or on behalf of the Society, or should be done by or on behalf of the Society if still existing, the Registrar may as representing the Society or its liquidator or administrator appointed under this Act do or cause to be done any such act. (8) The Registrar may execute or sign any relevant instrument or document adding a memorandum stating that he has done so in pursuance of this subsection, and such execution or signature shall have the same force, validity and effect as if the Society if existing had duly executed such instrument or document. (9) Nothing in this section shall in any way derogate from or otherwise affect the provisions of section 56 or 56A of the Public Curator Act 1915-1974.

Building Societies Act Amendment Act 1976, No. 28 243 (10) Where, in respect of a Society referred to in subsection (7), there remains any outstanding property, real or personal. inciuding things in action and whether within or without the State that was vested in the Society or to which it was entitled, or over which it had a disposing power at the time it was dissolved, or terminated but which was not got in, realised upon or otherwise disposed of or dealt with by the Society or its liquidator or administrator, such property except called and uncalled capital shall, for the purposes of the following subsections and notwithstanding any enactment or rule of law to the contrary, by the operation of this section be and become vested in the Registrar for all the estate and interest therein legal or equitable of the Society or its liquidator or administrator, at the date the Society was dissolved or terminated, together with all claims, rights and remedies that the Society or its liquidator or administrator then had in respect thereof. (11) Where any claim, right or remedy of the liquidator or administrator may under this Act be made, exercised or availed of only with the approval or concurrence of the Court or some other person the Registrar may for the purposes of this section make, exercise or avail himself of that claim, right or remedy without such approval or concurrence. (12) Upon proof to the satisfaction of the Registrar that there is vested in him by operation of subsections (10) and (11) any estate or interest in property, whether solely or together with any other person, of a beneficial nature and not merely held in trust, the Registrar may get in, sell or otherwise dispose of or deal with such estate or interest or any part thereof as he sees fit. (13) The Registrar may sell or otherwise dispose of or deal with such property either solely or in concurrence with any other person in such manner for such consideration by public auction, public tender or private contract upon such terms and conditions as he thinks fit with power to rescind any contract and resell or otherwise dispose of or deal with such property as he thinks expedient, and may make, execute, sign and give such contracts, instruments and documents as he thinks necessary. (14) The Registrar shall be remunerated by such commission, whether by way of percentage or otherwise, as is prescribed in respect of the exercise of the powers conferred upon him by subsection (12). (15) The moneys received by the Registrar in the exercise of any of the powers conferred on him by this section shall be applied in defraying all costs, expenses, commission and fees incidental thereto and thereafter to any payment authorized by this section and the surplus, if any, shall be paid to the Contingency Fund. (16) Property vested in the Registrar by operation of this section shall be liable and subject to all charges, claims and liabilities imposed thereon or affecting such property by reason of any statutory provision as to rates, taxes, charges or any other matter or thing to which such property would have been liable or subject had such property continued in the possession, ownership

244 Buildipg Societies Act Amendment Act 1976, No. 28 or.occupation.of the Society but there shall not be imposed on the Registrar or the Crown any duty, obligarion or liability whatever to . do or suffer any act or thing t`eq"Ired by any such statutory .provision to be done or suffered by'the owner.or occupier other than the satisfaction or payment of any such charges, claims or liabilities out of the assets of the Society so far as they are, in the opinion of the Registrar, properly available for and applicable to such payment. (17) The Registrar shall- (a) record in a register of property of dissolved or terminated Societies a 'statement of any property coming to his hand or under his control or to his knowledge vested in him by operation of,this section and of his dealings therewith; (b) keep accounts of all ' moneys arising therefrom and of how. they have been disposed of; and (c) keep all 'accounts; vouchers, receipts and papers relating to such property and moneys. (18) The Auditor-General shall have all the powers in respect of such accounts as are conferred uponhint by, any' Act relating to audit of public accounts.". 37. Amendment, of s. 37AD. Section 37AD of the Principal Act is amended by- (a).:in, subsection (5) (i) omitting the word "or "J occurring between paragraph (a) and paragraph (b); (ii) inserting at tEe end of.paragraph. (i^) the 'following,'symbol and paragraphs:- . (c) appoint another person in the-vlace ' of the administrator; or (d) appoint a liquidator under tl^ provisions of section 37AA (4) (b) in subsection (10), inserting after -tlhe words " by the Society the words " or by any other person "; (c) in subsection ^tl), insert'ing affer'the word'" Society " the words " or by any other person ". 38. New s. 37AE. The Principal Act is amended by inserting after section 37AD the following section- " 37AE. Stay of proceedings . (1) Where pursuant to section 37AD an administrator is appointed to conduct the affairs of a Registered Society, no action or proceedings in any court shall, except with the leave of the Court and, if the Court grants leave, in accordance with such terms and conditions as the Court may impose, be commenced or proceeded with against the Society until the appointment of the administrator is revoked. (2) A person intending to apply for the leave of the Court under subsection (1) shall give to the Registrar not less than ten days' notice of his intention so to apply.

Building Societies Act Amendment Act 1976, No. 28 245 (3) On the hearing of an application under subsection (1) the Registrar may be represented at the hearing of and may oppose the granting of the application.". 39. New s. 37AF. The Principal Act is amended by inserting after section 37AE the following section:- " 37AF. Additional powers of Registrar when appointing directors . (1) This section applies notwithstanding any other provision of this Act or the rules of the Registered Society in respect of which the Registrar seeks to exercise the powers and authorities conferred on him by this section. (2) Where the Registrar appoints directors of a Society pursuant to section 37AD (5) he may, with the approval of the Minister first had and obtained, by instrument in writing- (a) specify a time for which this section is to apply in respect of the Society; (b) specify the terms and conditions on which the directors so appointed or any of them shall hold office: (c) specify rules to be the rules of the Society or, as the Registrar specifies, part of the rules of the Society. (3) For the time specified by the Registrar pursuant to subsection (2) or for that time as extended or reduced by him- (a) this section shall apply in respect of the Society of which he has appointed directors; (b) the Registrar may remove and appoint the directors of the Society from time to time, (c) the terms and conditions specified pursuant to that subsection or those terms and conditions as amended by him shall be the terms and conditions on which the directors of the Society or any one or more of them, as specified by the Registrar, shall hold office; (d) the rules specified pursuant to that subsection or those rules as amended by him shall be the rules or, as specified by the Registrar, part of the rules of the Society. (4) The Registrar may at any time, with the approval of the Minister first had and obtained, by instrument in writing- (a) extend the time for which this section is to apply in respect of a Society; (b) amend, by revoking, altering or adding to, the terms and conditions on which the directors of a Society to which this section applies shall hold office or the rules of such a Society whether specified by him or made by the Society. (5) A rule specified by the Registrar as a rule of a Society- (a) shall not be amended or revoked save as is prescribed by subsection (4); (b) if it is inconsistent with any other rule of the Society, shall prevail and the other rule shall to the extent of the inconsistency be invalid; (c) shall have and be given the same evidentiary value as is by this Act accorded copies of the rules of the Society".

246 Building Societies Act Amendment Act 1976, No. 28 40. New ss. 38C and 38D. The Principal Act is amended by inserting after section 3813 the following sections:- " 38C. Transfer of engagements or property by direction of Registrar . (1) Subject to this section, and notwithstanding anything to the contrary contained in the rules of a Registered Society or this Act, the Registrar may, with the approval of the Minister, direct a Registered Society- (a) to transfer its engagements or its property or any specified part of its engagements or property to another Registered Society approved by the Registrar; and (b) within the period specified by the Registrar when giving the direction, or within such further period as the Registrar may allow, to enter into an agreement, approved by the Registrar, to give effect to the transfer of engagements or property or specified part thereof, as the case may be. (2) Any agreement. entered into pursuant to subsection (1) shall be subject to such terms, conditions and restrictions (if any) as the Registrar imposes when giving the direction or approval specified in subsection (1). (3) The Registrar shall not give a direction under subsection (1) unless he gives such a certificate as would be provided for by sections 37AA (2) and 37AA (3) if section 37AA were amended- (a) by omitting from subsection (2) the words " In the case of a winding up upon the certificate of the Registrar, a Registered Society may be wound up if the Registrar certifies -" and substituting the words " The Registrar may not direct a transfer of engagements or property or any specified part of engagements or property under section 38c (1) unless he certifies- "; (b) by omitting from subsection (2) (i) the words " the Society to be wound up" and substituting the words "the Society to transfer its engagements, or its property or any specified part of its engagements or property ". (4) Where a Society fails to comply with a direction given under subsection (1), the Registrar may with the consent of the Minister notify the Society that he has elected to treat the certificate given under subsection (3) in relation to the Society as- (a) a certificate given under section 37AD (2); or (b) a certificate given under section 37AA (2). (5) Where the Registrar notifies a Society as provided by subsection (4), this Act applies to and in respect of the Society as if the certificate that, pursuant to paragraph (a) or (b) of subsection (4), was specified in the notice had been given by the Registrar. (6) The Registrar may, before a Society has, pursuant to a direction under subsection (1), agreed pursuant to paragraph (b) of that subsection to transfer its engagements or property or specified part thereof, revoke the direction. (7) A Society may, with the consent of the Registrar and by resolution of the Board, accept a transfer of engagements or property or specified part thereof directed under this section.

Building Societies Act Amendment Act 1976, No. 28 247 (8) Sections 38A and 38a do not apply to a transfer of engagements or property or specified part thereof under this section. (9) The provisions of subsections (6) to (12) inclusive of section 38 shall apply, mutatis mutandis, to a transfer of engagements or property or specified part thereof and for the purpose of that application- (a) a reference to amalgamation shall be construed as a reference to transfer of engagements or property or specified part thereof as the case may be; (b) a reference to property shall be construed as a reference to the engagements or property or specified part thereof transferred ; (c) a reference to the amalgamated society shall be construed as a reference to the Society to which the engagements or property or specified part thereof are or is transferred (d) a reference to a society that is a party to the amalgamation shall be construed as a reference to the Society transferring its engagements or property or specified part thereof as the case may be; (e) a reference to the issue of the certificate of incorporation shall be construed as a reference to the notification of the transfer of engagements or property or specified part thereof as the case may be in the Gazette. (10) All debts and liabilities, whether certain or contingent, and whether then existing or capable of arising at a future time, to or with which any Society that is a party to the transfer of engagements or property or specified part thereof is, at the date of the notification of the transfer in the Gazette, liable or charged, shall by virtue of this Act- (a) in the event of a transfer of the whole of the engagements, become and be the debts and liabilities of the Society to which the transfer has been effected; (b) in the event of the transfer of part of the engagements or the whole or part of the property- (i) remain with the Society transferring the engagements or property or specified part thereof; or (ii) become and be the debts and liabilities of the Society to which the transfer has been effected, whichever in the opinion of the Registrar at the time of the transfer is best able to meet in full all the claims of creditors against the funds of the Society. (11) A transfer of engagements or property or specified part thereof under this section takes effect upon a day notified by the Registrar in the Gazette. (12) An officer of a Society who- (a) fails to take all reasonable steps to secure compliance by the Society with a direction given under subsection (1); or

248 Building`Sbciettes Act Amendment Act 1976, No. 28 (b7 by a'wilful act or omission it the cause of a failure by the Society to comply with such a direction, shall be guilty of an offence against this Act. Penalty: SI 000. 38D. Certain representations may be made. (1) Where a direction is given ..tQ.a Society under section 38C (1), the Society may, not later than ' seven days after .the direction is given, make representations ^'to the advisory committee with respect to the direction and, where any such representations are made, the advisory committee shall report thereon to the Minister. (2) The Registrar shall exercise in relation to a Society his powers under-section 38C (6) if the Minister so directs after considering a ' report under subsection (1) of this section with respect to the Society.": 41. Amendment of s. 4t Section '42 of. the Principal Act is amended by in the second paragraph omitting the words "., or makes a return wilfully false in any respect,". 42. New ss.' 42A-42F.' ' T1 e •Principall,'Aet is' amended by inserting after section 42 the following sections:- " 42A. Falsifying. records „ etc. An officer who falsifies, destroys, mytilates or alters any books, accounts, records, minutes, registers or documents,.or makes or is privy to: the making ,of any: false or fraudulent entry :in_ any. book, account, record, minute, register or document belonging to a Registered, ciety with:intent, to defraud or deceive any person shall be guilty of.an Offence against.this Act. Penalty: 55,000'or imprisonment for, two years, or both. 42B. False and, misleading statements .,.-, (1) A person who in any return, report,. statement, certificate, account or other document required by' or for the purposes of this Act wilfully makes or authorizes the making of. a statement that is false or misleading in a material particular knowing it to be false or misleading or wilful?y omits or authorizes the omission of any matter or thing without which the 'return, report, statement, certificate, account or document is misleading in a material respect shall be guilty of an offence against this-Act. Penalty: (a) on conviction on indictment-S5 000 or imprisonment for two years, or both; (b) on summary conviction-S1 000 or imprisonment for six months, or both. (2) For the purposes of subsection (I), where a person at any meeting votes in favour of the making of a statement referred to in that subsection, he shall be deemed to have authorized the making of the statement.

Building Societies Act Amendment Act 1976, No. 28 2-9 42C. False reports. An officer who, with intent to deceive makes or furnishes, or knowingly and wilfully authorizes or permits the making or furnishing of, any false or misleading return, report, statement, certificate or representations to- (a) any director, auditor, liquidator, administrator or member of a Registered Society; (b) the Registrar or an inspector; (c) a certificated accountant carrying out a special audit under section 35 or the State Actuary carrying out an investigation under section 35A; or (d) the advisory committee or the Contingency Fund Committee, relating to the affairs of the Society of which he is an officer shall be guilty of an offence against this Act. Penalty : (a) on conviction on indictment-S5 000 or imprisonment for two years, or both; (b) on summary conviction-Sl 000 or imprisonment for six months, or both. 42D. Inducement to secure appointment , etc. A person who gives or agrees or offers to give to any officer, member or creditor of a Registered Society or to any other person any valuable consideration with a view to securing his own appointment or nomination, or to securing or preventing the appointment or nomination of some person other than himself, as a Registered Society's director, auditor, liquidator or administrator, or with a view to securing or preventing the exercise of any power. authority, duty or responsibility or the doing of an act authorized by this Act, shall be guilty of an offence against this Act. Penalty: $2 000 or imprisonment for one year, or both. 42E. Frauds by officers and others . (l) A person who, while an officer of a Registered Society- (a) has by false pretences or by means of any other fraud, induced any person to- (i) give credit to; (ii) make a loan to; (iii) deposit money with or otherwise subscribe money to; (iv) enter into any agreement or contractual arrangement relating to mortgage debts of; (v) enter into any agreement or contractual arrangement relating to a members' savings plan of, the Society; (b) with intent to defraud creditors or members of or depositors with the Society, has made or caused to be made any gift or transfer of or charge on, or has caused or connived at the levying of any execution against, property of the Society; (c) with intent to defraud creditors or members of or depositors with the Society, has concealed or removed any part of the property of the Society since or within two months before the date upon which the execution 9

250 Building Societies Act Amendment Act 1976, No. 28 of any judgment or order for payment of money obtained against the Society was returned unsatisfied in whole or in part, shall be guilty of an offence against this Act. Penalty: S5 000 or imprisonment for two years. (2) If any business of a Registered Society has been carried on with intent to defraud creditors or members of or depositors with a Registered Society or creditors or members of or depositors (if any) with any other person or for any fraudulent purpose. any person who was knowingly a party to the carrying on of the business in that manner shall be guilty of an offence against this Act. Penalty: $2 500 or imprisonment for one year. 42F. Powers of Court. (I) Where a person- (a) has been convicted of an offence under section 42E; (b) has been convicted under any other Act of an offence that involves fraudulent misappropriation or fraudulent embezzlement of any members' and depositors' funds or any other moneys, securities or the like or any other property of a Registered Society, held in trust of otherwise; or (c) was a director of, or was concerned in the management of, a Registered Society the manner in which the affairs of the Society had been managed was wholly or partly responsible for the Society's being wound up, ceasing to carry on business, being unable to satisfy a levy of execution (other than by reason of a direction pursuant to section 26c), being subject to the appointment of an administrator or of a receiver or manager or entering into a compromise or scheme of arrangement with its creditors, the Court on the application of the appropriate officer or, with the consent of the Minister, any creditor or member of or depositor with the Society may, if it thinks proper to do so, declare that the person is personally responsible without any limitation of liability for the payment- (i) to the Society of the amount required to satisfy all or any of the debts of the Society as the Court directs; and (ii) to the Contingency Fund of an amount equal to the whole or such part, as the Court thinks fit, of the amount of claims (including costs) admitted against the Fund in respect of a conviction referred to in paragraph (a) or (b) or the manner referred to in paragraph (c). (2) Where the Court makes any declaration under subsection (1), it may give such further directions and make such orders as it thinks proper for the purpose of giving effect to that declaration. (3) The provisions of this section have effect notwithstanding that the person concerned is criminally liable in respect of the matters on the ground of which the declaration is made. (4) On the hearing of an application under subsection (I) the appropriate officer may himself give evidence or call witnesses.

Building Societies Act Amendment Act 1976, No. 28 251 (5) For the purposes of this section " appropriate officer " means- (a) in the case of a Society that is being wound up, the liquidator; (b) in the case of a Society in respect of which an administrator has been appointed , the administrator; (c) in the case of a Society in respect of which a claim has been admitted against the Contingency Fund, the chairman of the Contingency Fund Committee; (d) in the case of a Society in respect of which any fraudulent misappropriation or fraudulent embezzlement has occurred , any director of the Society authorized in a particular case by the Society ' s Board; (e) in the case of a Society in respect of which a receiver or manager of all or any of the property of the Society has been appointed whether by the Court or pursuant to the powers contained in any instrument , the receiver or manager; (f) in the case of a Society in respect of which an inspector has been authorized under section 34D, that inspector; (g) in the case of a Society- (i) that has ceased to carry on business; (ii) that has been terminated or dissolved; (iii) in respect of which the execution or other process of any judgment , decree or order of a court is or has been returned unsatisfied in whole or in part, the Registrar; ( h) in the case of any other Society, the Registrar. (6) The provisions of this section shall be in addition to and not in substitution for the provisions of The Criminal Code. ". 43. Repeal of and new s. 43A. The Principal Act is amended by repealing Section 43A and substituting the following section:- " 43A. Recovery of Penalties . (1) Any person who contravenes or fails to comply with any provision of this Act commits an offence against this Act and is liable, if a specific penalty is not prescribed for that offence, to a penalty not exceeding $500. (2) Notwithstanding anything in any Act proceedings for any offence against this Act may be brought within the period of three years after the commission of the alleged offence or, with the consent of the Minister, at any later time. (3) Any offence against this Act for which a penalty or punishment upon conviction upon indictment is prescribed shall be an indictable offence. If a penalty or punishment upon summary conviction for the offence is also prescribed, it may be prosecuted either upon indictment or summarily, but not both upon indictment and summarily.

252 Building Societies Act Amendment Act 1976, Na.. 28 (4) Unless otherwise provided, all offences against this Act may be prosecuted in a summary way under the Justices Act1886-1975.". 44. Amendment of s. 43B. Section 43B of the Principal Act is amended by- (a) omitting subsection (2) and substituting the following subsection:- " (2) The Governor in Council may from time to time appoint such inspectors and other officers as he considers necessary for the effectual administration of this Act. The provisions of the Public Service Act1922-1973 shall not apply to the appointment of 4ny such inspector who is not an officer of the Public Service of Queensland."; (b) in subsection (3), inserting after the word " Registrar" the words ", inspectors and- other officers ". 45. Amendment of s. 43E. Section 43E of the Principal Act is amended by, in subsection (1), inserting after the word "notice" " the words "or, notwithstanding the provisions of section 33B (11), such lesser time as is determined by the Registrar and notified by him in writing to the Society ". 46. Amendment of s. 44. Section 44 of the Principal Act is amended by omitting the second paragraph and substituting the following paragraph:- " This section shall not apply to any document referred to in section 34B, 34BA, 34c, 35A, 35B (3) or 36D (10).". 47. Amendments relating to penalties. The Principal Act is amended as set forth in the schedule to this Act. SCHEDULE AMENDMENTS RELATING TO PENALTIES [s. 47 Provision to be Amended Section 22H (1) Section 221 . . Section 22L (3) (b) Section 23A (4) Section 26A (2) Section 26A (4) Section 26c (7) (a) Section 26c (7) (b) Section 34 (9) Omit Insert (a) four hundred dollars (b) six months (a) two hundred dollars (b) ten dollars one thousand dollars five hundred dollars five hundred dollars five hundred dollars $1 000 . . $1000 .. (a) $500 .. (b) six months $2000 one year $1 000 $50 $5000 $2 000 $2 000 $2 000 $5 000 S5000 $2000 one year

Building Societies Act Amendment Act 1976, No. 28 SCHEDULE- continued AMENDMENTS R ELATING TO PENALTIES - continued Provision to be Amended Section 34AA (1) (4) Section 34AF (2) Section 34AH (3) Section 34c (2) Section 34c (3) Section 35B (2) Section 38A (4) Section 42 . . Section 43 Section 43c Section 45 (1) (c) Omit i Insert S500 S1000 $100 $100 forty dollars forty dollars two hundred dollars five hundred dollars (a) ten dollars (b) two hundred dollars (a) forty dollars (b) three months three hundred dollars one hundred dollars S1000 S2500 $500 S500 S1000 S 1000 SI 000 SI 000 550 Si 000 $2 000 one year $1 000 $500 253