Co-operative Societies Act 1956 (ACT)
AUSTRALIAN CAPITAL TERRITORY.
No. 10 of 1956.
AN ORDINANCE
To amend tfoe Co-operative Trading Societies
Ordinance 1939-1954.
BE it ordained by the Administrator of the Government of the Executive Council, in pursuance of the powers conferred by the Commonwealth of Australia, with the advice of the Federal
Seat of Government (Administration) Act 1910-1955, as follows:—
1.—(1.) This Ordinance may be cited as the Co-operative short title a n d citation.
„ . . _ , . - t n^ / . * Societies Ordinance 1956.
(2.) The Co-operative Trading Societies Ordinance 1939-1954 f
is in this Ordinance referred to as the Principal Ordinance.
(3.) The Principal Ordinance, as' amended by this Ordinance,
may be cited as the Co-operative Societies Ordinance 1939-1956.
2. The title of the Principal Ordinance is amended by omitting Title,
the word " Trading ".
3. Section three of the Principal Ordinance is repealed and the parts,
following section inserted in its stead:—
" 3. This Ordinance is divided into Parts, as follows:—
Part L- —Preliminary (Sections 1-4). Part II.- —Administration (Sections 5-12).
Part III.- —Co-operative Trading Societies (Sections
824/56.—PKICE 5D. 13-14).
Part IIlA.- —Co-operative Building Societies (Sections 14A-14C).
Part IIlB.- —Co-operative Credit Societies (Sections 14D-14H).
Part IV- —Incorporation (Sections 15-48). Part V. -
-Eules, Management and Disputes (Sections 49-58).
Part VI.- -Winding Up (Sections 59-62). Part VII.- —Evidence and Offences (Sections 63-80).
Part VIII.- —Miscellaneous (Section 81).". * Notified in the Commonwealth Gazette on 4th October, 1956
t Ordinance No. 9, 1939, as amended by No. 1, 1946; No.' 14, 1950 • and No 14
1954. ' " '
Definitions. 4. Section four of the Principal Ordinance is amended—• (a) by inserting after the definition of " bond " the following definitions:—
" ' building society' means a society formed in pursuance of section fourteen A of this Ordinance;
" ' credit society' means a society formed in pur-
suance of section fourteen D of this
Ordinance; " ;
(b) by inserting after the definition of " officer " the follow-
ing definition:—
" ' registered' means registered under this Ordinance;";
(c) by inserting after the definition of " the Companies
Act " the following definition:—
" ' the Court ' means the Supreme Court of the Aus-
tralian Capital Territory; " ; and
(d) by adding at the end thereof the following definition:—
" ' trading society' means a society formed in pur-suance of section thirteen of this Ordinance.".
S. Section fourteen of the Principal Ordinance is repealed
and the following section inserted in its stead:—
Additional
powers.
" 14. A registered trading society, if so authorized by its rules, has, in addition to any other powers conferred on it by this Ordinance, power to make advances to its members' against products delivered to the society.".
6. After Part III . of the Principal Ordinance the following
Parts are inserted:—
" P A R T IIIA.—CO-OPERATIVE BUILDING SOCIETIES.
Objects, " 14A. A building society may be formed for all or any of the following objects:—
(a) to assist its members to acquire or erect homes;
(b) to assist its' members to acquire other freehold property
or leasehold property; and
(c) to make loans to its members upon the security of free- hold property or leasehold property.
Second " 1 4 B . — (1.) A registered building society shall not advance mortgages. money on the security of property which is suljject to a prior
mortgage if—(a) the prior mortgage is not in favour of the society or another registered building society; or
(b) the making of the advance would result in the amount advanced on the security of the property, including the principal, and the interest and charges, if any, due under the prior mortgage, exceeding ninety per centum of the value of the property.
" (2.) If a registered building society suffers loss by reason of the society making an advance in contravention of the last pre- ceding sub-section, the members of the Board of the society who authorized the advance are jointly and severally liable for the loss. " (3.) Where—
(a) a registered building society advances money on the security of property which is subject to a prior mortgage; and
(Z>) the Board of the society, when authorizing the advance, acted upon a report as to the value of the property made within the preceding period of three months by a person employed or instructed by the society to value the property,
the value of the property stated in the report shall, for the purposes of paragraph (b) of sub-section (1.) of this section, be deemed to be the value of the property.
"14c.— (1.) A registered building society shall not employ or valuation of
instruct a person to value a property tendered as a security to the society unless the person has been previously approved by the Registrar and that approval has not been withdrawn by the Registrar.
" (2.) The Registrar may approve of a person for the purposes of the last preceding sub-section either unconditionally or subject to such conditions as the Registrar thinks St.
" (3.) A person approved by the Registrar under this section
who fails to comply with the conditions, if any, subject to which
| upon conviction, by a fine not exceeding Twenty pounds. the approval was granted is guilty of an offence and is punishable, | " PART IIIB.—-CO-OPERATIVE CREDIT SOCIETIES. |
" 14D. A credit society may be formed for all or any of the objects.
following objects:—
(a) to assist its members to purchase materials for the
erection of homes;
(b) to assist its members to pay the cost of painting, adding
to or repairing their homes;
(c) to assist its members to purchase furniture for their
homes;
(d) to assist its members to pay the cost of removing house-
hold furniture and effects from or to their homes;
(e) to assist its members to commence, acquire or carry on a
business or trade;
4:
(/) to assist its members to purchase or lease a home or a
place of business or trade;
(g) to assist its members to acquire tools, implements, machinery, materials or stock-in-trade for a business or trade; and
(h) to assist its members to discharge financial liabilities.
| Additional | " 14E. A registered credit society, if so authorized by its rules, has, in addition to any other powers conferred on it by this Ordinance, power— |
(a) to make, arrange or guarantee a loan or loans to a member for any purpose included in the objects of the society; and
(&) to supervise the expenditure of a loan made, arranged
or guaranteed by the society.
| Application* | '• 1 4 P . A registered credit society shall not make a loan to a member of the society, or guarantee the repayment by a member of a loan, unless— |
(a) the member makes application in accordance with the
rules of the society; and
(6) the member furnishes to the Board of the society a
statutory declaration stating—
(i) whether or not he is a member of another
credit society;
(ii) where he is a member of another credit society —whether or not he owes money to that other society;
(iii) where he owes money to that other credit
society—particulars of the amount owingand of the conditions of repayment of that
amount; and (iv) that he is aware that the making or guarantee- ing, ag the case may be, of the loan by the society is subject to this Ordinance and the rules of the society.
| Loan limit. | " l i e . A registered credit society shall not make a loan to a member of the society, or guarantee the repayment by a member of a loan, if the sum of that loan and the total amount owing by the member under any other loan or loans— |
(a) which has or have been made to him by the society; or (6) the repayment by him of which has been guaranteed
by the society,
exceeds Three hundred pounds.
| f"p!nd!toe °f | " ^ H ' | W n e r e a registered credit society under takes to supervise |
| loans. | the expendi ture by a member of the society of a loan made, or to be made, to him by another person, the society is, unless the society |
and the lender agree otherwise, bound only to take reasonable care to ensure that the loan is used for the purpose for which it was, or is to be, made.".
7. The Principal Ordinance is amended by inserting after
section sixteen the following section:—
" 16A. A society has power to do all things necessary for the Powers of
purpose of carrying out its objects and, for that purpose, a society "ciewes.
may, if so authorized by its rules—
(a) raise money on loan;
(b) receive money on deposit; and(c) acquire shares in another society.
S. Section eighteen of the Principal Ordinance is amended by Amalgamation,
omitting from sub-section (1.) the words " societies registered under this Ordinance " and inserting in their stead the words " registered trading societies, registered building societies or registered credit societies.".
| omitting from sub-section (4.) the words " Companies (Registration powe"- | 9. Section thirty-five of the Principal Ordinance is amended by Borrowing |
of Securities) Act, 1918, in its application to the Territory," and
inserting, in their stead the words " Companies Act ".
10. Section thirty-seven of the Principal Ordinance is amended investments,
by omitting sub-sections (1.) and (2.) and inserting in their stead
the following sub-section :—
" (1.) A society may invest its funds—
(a) in any securities authorized by law for the investment
of trust funds;
(b) by deposit with a bank, including a savings bank, carry-
ing on business in Australia;
(c) by deposit with a society which is authorized by its
rules to receive deposits; or
(d) in any prescribed security.".
| by omitting sub-section (1.) and inserting in its stead the following <snsas<anents- | 11. Section thirty-eight of the Principal Ordinance is amended Transfer of |
sub-section:—
" (1.) "Where a registered trading society, a registered building society or a registered credit society undertakes to fulfil the engagements of another registered trading society, registered build- ing society or registered credit society, as the case may be, that last-mentioned society may, by special resolution, transfer its engagements to that first-mentioned society.''.
12. Section thirty-eight A of the Principal Ordinance is amended Registration by omitting from paragraph (b) of sub-section (5.) the words " the foompall" Table marked A in the Second Schedule " and inserting in their
stead the words " Table A in Schedule Two ".
13. After section forty of the Principal Ordinance the follow- ing section is inserted:—
Service of " 4 0 A . A document, including* a summons, notice, order or .other documents on
Society. legal process, may be served on a society— (a) by leaving it at the registered office of the society with some person apparently in the service of the society • or
(5) by sending it by post enclosed in a prepaid registered
letter addressed to the society at its registered office.".
Returns.
14. Section forty-four of the Principal Ordinance is amended by omitting from sub-section (2.) the words "before the thirtieth day of September in each .year, or before such later date as the Eegistrar authorizes" and inserting in their stead the words " within three months after the end of the financial year of the society, or within such further period as the Registrar authorizes ".
Rulea - 15. Section forty-nine of the Principal Ordinance is amended
by omitting from paragraph (xii) of sub-section (1.) the word
" of " (second occurring) and inserting in its stead the word " or ".Financial year.
^6. Section fifty-seven of the Principal Ordinance is amended by inserting at the end of sub-section (1.) the words " or, where the Registrar has given his consent in writing to the financial year of the society ending on another date, being a date not earlier than the thirty-first day of May and not later than the thirtieth day of September, on that other date ".
winding up.
17.
Section fifty-nine of the Principal Ordinance is amended— (ff) by omitting sub-sections (1.) and (2.) and inserting
in their stead the following sub-sections:—
" (1.) A society may be wound up voluntarily, by the Court, subject to the supervision of the Court or upon the certificate of the Registrar.
" (2.) In the case of a winding up voluntarily, by
the Court or subject to the supervision of the Court, the society may, subject to this Part, be wound up in the same manner and in the same circumstances in which a company formed and registered under the Companies Act may be so wound up."; (b) by adding at the end of paragraph (e) of sub-section (3.) the words " o r f raud"; and
(c) by omitting sub-sections (5.) to (10.) (inclusive) and
inserting in their stead the following sub-sections:—" (5.) Upon the issue of a certificate by the Registrar under this section, the Registrar may appoint a person to be the liquidator of the society and, in the event of a vacancy in that office, may appoint a person to fill the vacancy.
" (6.) A person appointed under the last preceding- sub-section shall give such security, and is entitled to such fees, as are prescribed.
" (7.) A winding up of a society upon the certifi- cate of the Registrar shall be deemed to commence at .the time the certificate is issued and the liquidator of the society shall give notice of the commencement of the winding up in the Gazette and in a newspaper published and circulating in the Territory.".
IS . Section sixty of the Principal Ordinance is repealed and the
following sections are inserted in its' stead:—
"60.— (1.) In the case of a winding up of a society, the pro- Application of , _ „ , „ . . , , , . t . Companies Act
visions of Part X. of the Companies Act with respect to the winding in a winding up. winding up of the society.
up of a company formed and registered under that Act, including
the provisions as to dissolution contained in Division 6 of that
" (2.) In the application of the provisions of Part X. of the
Companies Act to the winding up of a society—
(a) a reference in that Part to a company shall be read as a reference to the society;
(5) a reference in that Part to a special resolution or an extraordinary resolution shall be read as a reference to a special resolution as defined by section forty- eight of this Ordinance;
(c) a reference in that Part to the Registrar-General or the Registrar shall be read as a reference to the Registrar of Co-operative Societies appointed under this Ordinance;
.(d) a reference in that Part to the articles of a company
shall be read as a reference to the Rules of the society • (e) the following paragraph shall be read in lieu of para- graphs (d) and (e) of sub-section (1.) of section two hundred of the Companies Act :-—
' (d) a contribution shall not be required from a
member in excess' of the sum of—
(i) the amount, if any, unpaid on the
shares in respect of which he is
liable as a present or past member;
(ii) the amount of the contingent liability,if any, attached to those shares;
and
(iii) the amount of any charge payable by
the member to the society in accord-
• .., . ance with the rules of the society • ' ; (/) a reference in section two hundred and eight or tw
hundred and ten of that Part to a proprietary com
pany shall be read as a reference to an association' f or union registered under this Ordinance; and
(17) in the case of a winding up on the certificate of the Registrar, the winding up shall be deemed to be a voluntary winding up and, without in any way limit-f\
ing the generality of any provision of this ParL I up as if it were a member's' voluntary winding up within the meaning of that Act.
sections two hundred and sixty-nine, two hundred '
and seventy and two hundred and seventy-one of the "^
Pilling vacancy " 6 0 A . Where— In position of
liquidator (a) a society is being wound up voluntarily; (voluntary winding up). (b) a vacancy occurs in the office of liquidator of the society; and
(c) the Registrar is of opinion that the vacancy is unlikely to be filled in the manner provided by Part X. of the Companies Act as applied by this Ordinance to the winding up,
the Registrar may appoint a person to fill the vacancy.".
Fraud or
19. Section seventy -sis of the Principal Ordinance is amended by omitting from sub-section (2.) the words " the Court" and inserting in their stead the words " the court by which he was convicted ".
Hon.
Dated this thirteenth day of September, 1956.
J. NORTHCOTT 4
Administrator.
By His Excellency's Command, NEIL O'SULLIVAN for and on behalf of the Minister of
State for the Interior.
By Authority: A. J. ABTHTTB, Commonwealth Government Printer, Canberra.
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