Starr-Bowkett Societies Act 1975 (SA)

(Reprint No. 1)

SOUTH AUSTRALIA
BUILDING SOCIETIES ACT, 1975

This Act is reprinted pursuant to the Acts Republication Act, 1967, and incorporates all amendments in force as at 1 July 1991.

It should be noted that the Act was not revised (for obsolete references, etc.) by the Commissioner of Statute Revision prior to the publication of this reprint.

SUMMARY OF PROVISIONS

PART I

PRELIMINARY

Section

1. Short title

PART I1

ADMINISTRATION

DIVISION I-THE COMMISSION

6. Administration by the Commission
7. Inspection of documems
8. Annual report

DIVISION II-THE

BUILDING SOCIETIES ADVISORY COMMITTEE

9. The Advisory Committee

DlVlSlON III-POWER OF INSPECTION

9a.	Extension of powers of inspection to societies

PART I11

SOCIETIES

DIVISION I-OBJECTS OF SOCIETIES

10. Objects

DIVISION II-FORMATION AND REGISTRATION

11. Formation of a society
12. Registration and incorporation

DIVISION 111-RULES

13. Content of rules
14. Effect of rules
1 5 Cooies of rules

16.

A~ieration

of rules

17. Power of commission to modify rules

DlVlSlON IV-NAME AND OFFICE

18. Name
19. Office and.service
20. Publication of name

DIVISION V-AMALGAMATION

22.

~ppliEation

for amalgamation

23. Amalgamation by direction of the Minister

23a.	Amaleamation resultine in the formation of a new societv

PART IV

ASSOCIATIONS

24. Associations
25. Registration of an association

PART V

MONETARY POLICIES OF SOCIETIES

DIVISION I-LOANS

26. b a n s
27. Rates of interest
28. b a n s not to be made in respect of vacant land

Building Societies Act. 1975

iii

Limitation upon amount of loan

Loan to cover premiums on certain

olicies of insurance

Advances to members on security oAhares
Minimum age at which a member may obtain a loan from the society
Restricted loans
Valuers
Prohibition of balloting for loans
Provision of credit services to members

DIVISION 11-LIQUIDITY AND RESERVES

Liquidity
Reserve account

DIVISION Ill-POWER

T O RESTRICT RAISING OF FUNDS BY A SOCIETY

Power to prohibit raising of funds

DIVISION IV-PROPERTY AND INVESTMENTS

Acsuisition of orooertv
DIVISION V-GUARANTEES
Guarantees

PART VI

MEMBERSHIP AND SHARE CAPITAL OF SOCIETIES

DIVISION I-MEMBERSHIP

Members
Minors
Corporate member of a society

DIVISION 11-SHARE CAPITAL AND FUNDS

PART VII

MANAGEMENT

DIVISION I-DIRECTORS AND OFFICERS

Board of directors
Age limit for directors
Aowintmeht of directors
l);~clo,ure of interest by directors

Cer:ain dealings are prohibited

Directors' remunerauon

DIVISION 11-MEETINGS

OF MEMBERS O F A SOCIETY

DIVISION Ill-RECORDS,

ACCOUNTS AND AUDIT

Registers and accounts
l ~ p e c t i o n
Financial year
Accounts and audit

DIVISION IV-RETURNS

Returns

DIVISION V-MANAGEMENT

CONTRACTS

Management contracts

iv	Building Societies Act, 1975

PART VIll
OFFICIAL MANAGEMENT AND WINDING UP
65.         Application of this Part to an association
66. Receivers and Managers and Official Management
67. Winding up
68.         Liquidator
69.         Remuneration of Liquidator
70.         Cancellation
PART U(
EVIDENCE AND OFFENCES
DIVISION I-EVIDENCE
71.         Evidentiary provision
DIVISION 11-OFFENCES
Use of words '%building society"
Allotment of shares
Too few members, etc.
Certain acts prohibited in relation to loans
Commission
Default by society
Default by society extended to directors and officers
Proceedinez
PART X
CONTROL OF ADVERTISING
81.         Restrictions on initial advertisement.
82.         Power to control advertising of a society
PART XI
MISCELLANEOUS
89.         Regulatibns

BUILDING SOCIETIES ACT, 1975

being

Building Societies Act, 1975, No. 45 of 1975 [Assented to 10 April 19751'

as amended by

Statute Law Revision Act (No. 2), 1975. No. 118 of 1975 [Assented to 4 December 19751

Building Societies Act Amendment Act. 1976. No. 3 of 1976 [Assented to 19 February 197612

Building Societies Act Amendment Act. 1981. No. 41 of 1981 [Assented to 19 March 198113

Building Societies Act Amendment Act (No. 2). 1981, No. 103 of 1981 [Assented to 23 December 198114

Companies (Consequential Amendments) Act. 1982, No. 29 of 1982 [Assented to 25 March 1982j5

Building Societies Act Amendment Act. 1982, No. 71 of 1982 [Assented to 1 July 19821

Building Societies Act Amendment Act. 1984. No. 104 of 1984 [Assented to 20 December 19843

Building Societies Act Amendment Act, 1985. No. 64 of 1985 [Assented to 6 June 1985)

Note: ~ s t e k k s

indicate repeal or deletion of text. Forfurrher explanation see Appendir.

An Act to provide for the registration, administration and control of building societies; to repeal the Building Societies Act, 1881-1968; and for other purposes.

BE IT ENACTED by the Governor of the State of South Australia, with the advice and consent of the Parliament thereof, as follows:

PART I

PRELIMINARY

Short title

1. This Act may be cited as the Building Societies Act, 1975.

Commencement

2. This Act shall come into operation on a day to be fixed by proclamation.

Arrangement of Act

This Act is arranged as follows:- PART 11-ADMINISTRATION

DIVISION I-THE	COMMISSION
DIVISION 11-THE	BUILDING SOCIETIES ADVISORY COMMITTEE

DIVISION 111-POWER

O F INSPECTION

'Came

into operation 7 January 1982: Gaz. 7 January i982, p. 5.

$came into operation 1 July 1982, being the day on which the Companies (Application of Laws) Act, 1982, came into
operation: Gaz. 1 July 1982, p. 2: s. 2(1).

PART

2 Building Societies Act, 1975
PART 111-SOCIETIES

DIVISION I-OBJECTS

OF SOCIETIES

DIVISION 11-FORMATION AND REGISTRATION
DIVISION 111-RULES
DIVISION IV-NAME AND OFFICE
DIVISION V-AMALGAMATION
PART IV-ASSOCIATIONS

PART V-MONETARY

POLICIES OF SOCIETIES

DIVISION I-LOANS
DIVISION 11-LIQUIDITY AND RESERVES

DIVISION 111-POWER

TO RESTRICT RAISING OF FUNDS BY A

SOCIETY
DIVISION IV-PROPERTY AND INVESTMENTS
DIVISION V-GUARANTEES

PART VI-MEMBERSHIP

AND SHARE CAPITAL OF SOCIETIES

DIVISION I-MEMBERSHIP
DIVISION 11-SHARE CAPITAL AND FUNDS
PART VII-MANAGEMENT
DIVISION I-DIRECTORS AND OFFICERS

DIVISION 11-MEETINGS

OF MEMBERS O F A SOCIETY

DIVISION 111-RECORDS, ACCOUNTS AND AUDIT
DIVISION IV-RETURNS

DIVISION V-MANAGEMENT

CONTRACTS

PART VIII-OFFICIAL

MANAGEMENT AND WINDING UP

PART IX-EVIDENCE AND OFFENCES
DIVISION I-EVIDENCE
DIVISION 11-OFFENCES

PART X-CONTROL

OF ADVERTISING

PART XI-MISCELLANEOUS

Repeal and saving provisions

4. (1) The following Acts and portions of Acts are repealed:-

The Building Societies Act, 1881;

the Building Societies Act Amendment Act, 1935;

so much.of the second schedule to the Statute Law Revision Act, 1935, as relates to

the Building Societies Act, 1881;

so much of the second schedule to the Statute Law Revision Act, 1936, as relates to

the Building Societies Act, 1881;
the Building Societies Act Amendment Act, 1938;
Part I11 of the Statutes Amendment (Friendly Societies and Building Societies) Act,
1966:

the ~ u i l d i n ~

Societies Act Amendment Act, 1968.

(2) A society that was, immediately before the commencement of this Act, registered under the repealed Act shall, subject to this Act, continue in existence and the society and its rules shall, upon the commencement of this Act, be deemed to have been registered under this Act.

(3) A guarantee given under section 27a of the repealed Act shall continue in force.

(4) A nomination made by a member of a society under section 40a of the repealed Act shall, unless revoked by the member, continue in force and have the same effect as if that section had continued in force.

Building Societies Act, 1975

(5) Where, in any Act, regulation, rule or instrument, reference is made to the repealed Act, or any provision of the repealed Act, that reference shall, so far as the context admits, be read as a reference to this Act, or the corresponding provision (if any) of this Act.
Interpretation
5. (1) In this Act, unless the contrary intention appears-
"amalgamation" of societies means-
(a) the merger of societies to form a new society;
or
(b) the merger of one or more societies ("the merging society or societies") with another, resulting in extinction of the merging society or societies as separate corporate entities but without affecting the corporate identity of the society with which they merge;
and "to amalgamate" has a corresponding meaning:
"association" means an association registered under this Act:
"board", in relation to a society, means the board of directors of that society:
"the Commission" means the Corporate Affairs Commission:
"continuing society", in relation to an amalgamation, means a society with which
another society or other societies are, under the terms of the amalgamation, to
be merged but which is not to be extinguished by the amalgamation:
"interest", in relation to a loan, includes any charges made by the society in relation to the loan, but does not include any initial charge made in relation to the establishment of the loan:
"land" includes any estate or interest in land:
"merging society", in relation to an amalgamation, means a society that is, under
the terms of the amalgamation, to merge with another society and is, upon
completion of the merger, to be extinguished as a separate corporate entity:
"mortgage" includes a lien, charge or other security over property:
"officer", in relation to a society, means a director, secretary, treasurer or manager
of the society and any other person empowered under the rules of the society
to give directions in relation to the management of the business of the society:

"the repealed Act" means the Building Societies Act, 1881-1968, repealed by this
Act:
"restricted loan" means a loan that is, in terms of section 33, a restricted loan:
"rule", in relation to a society, means a rule registered under this Act:
"share", in relation to a society, means a share in the share capital of the society:
"society" means a society registered under this Act.
(2) A society is not a company for the purposes of the Companies (Acquisition of
Shares) (South Australia) Code.

PART tt

4 Buildine Societies Act.1975
PART I1
ADMINISTRATION

DIVISION I-THE

COMMISSION

Administration by the Commission

6. (1) Subject to subsection (2), the Commission shall be responsible for the administration of this Act.

(2) The Commission shall, in relation to the administration of this Act, be subject to the control and direction of the Minister.

Inspection of documents

7. (1) For the purposes of this Act, the Commission shall keep, in such form as it

thinks fit-

(a) a register of societies registered under this Act;
and
(b) such other registers as the Commission thinks fit.
(2) A person may, on payment of the prescribed fee-
(a) inspect a register kept by the Commission under this Act;
(b) inspect any document held or registered by the Commission under this Act;
or
(c) obtain from the Commission-
(i) a certified copy of, or extract from, an entry in a register kept by the
Commission under this Act;
(ii) a certified copy of a certificate of incorporation issued under this
Act;
or
(iii) a certified copy of, or extract from, any.document held or registered
by the Commission under this Act.

Annual report

8. (1) The Commission shall, on or before the thirty-first day of December in each

year, prepare and submit to the Minister a report on the administration of this Act

during the period of twelve months ending on the preceding thirtieth day of June.

(2) The Minister shall, as soon as practicable after his receipt of a report under this section, cause copies of the report to be laid before each House of Parliament.

DIVISION 11-THE

BUILDING SOCIETIES ADVISORY COMMITTEE

The Advisory Committee

9. (1) There shall be a Committee entitled the "Building Societies Advisory

Committee".

(2) The Committee shall consist of six persons appointed by the Minister of whom-
(a) one shall be the Commissioner for Corporate Affairs or his nominee;
(b) one shall be a nominee of the Treasurer;

PART

Building Societies Act, 1975

(c) one shall be a nominee of the Minister of Housing;
and
(d) three shall be persons who are, in the opinion of the Minister, suitably
qualified to represent the interests of societies.
(3) Subject to subsection (4), the Minister may appoint a suitable person to be a deputy of a member of the Committee, and such a person may, in the absence of the member of whom he has been appointed a deputy, act as a member of the Committee.
(4 ) The Minister shall not appoint a person as the deputy of a member who was appointed under subsection (2)(b) or (c) unless that person has first been nominated by the Treasurer or the Minister of Housing respectively.
(5) A member of the Committee shall hold office at the pleasure of the Minister.
(6 ) The functions of the Committee are as follows:
(a) to make recommendations to the Minister on the more effective operation of
societies;
(b) to make recommendations to the Minister in relation to regulations and model
rules under this Act;
(c) to make recommendations to the Minister in relation to maximum rates of
interest applicable to loans made by societies;
(d) to keep legislation relevant to the operation of societies under review and,
where appropriate, to recommend amendments;
(e) to advise the Minister or the Commission upon matters referred to the
Committee for advice;
and
(f) to advise the Minister generally on the operation of societies and matters
relevant to the administration of this Act.

DIVISION 111-POWER

O F INSPECTION

Extension of powers of inspection to societies
9a. The provisions of the Companies (South Australia) Code relating to inspection
(Division I of Part 11) extend, with such modifications, exclusions or additions as may be
necessary for the purpose or as may be prescribed, to societies as if a society were a

corporation as defined in the Code.

PART

I11

6 Building Societies Act, 1975
PART I11
SOCIETIES
DIVISION I-OBJECTS OF SOCIETIES

Objects

10. (1) The objects of a society registered under this Act shall be-
(a) to raise funds by subscription, or otherwise, as authorized by this Act;
and
(b) to apply those funds subject to this Act and the rules of the society in making
loans.
(2) A society may, with the written approval of the Commission-
(a) provide advisory or other services, of a kind approved by the Commission, to
its members;
(b) conduct agency business of a kind approved by the Commission.

(3) A society may, with the written approval of the Minister, undertake any other

activity that is not specifically authorized by this Act, but is approved by the Minister as

being an appropriate activity to be undertaken by a society.

(4) The Minister shall cause notice of an approval granted under subsection (3) to be published in the Gazette.

DIVISION 11-FORMATION AND REGISTRATION

Formation of a society

11. (1) Subject to this Part, a society may be formed by any twenty or more natural persons of full age and capacity.

(2) No society shall be formed unless there has been a meeting for the purpose of

forming the society at which there are present twenty or more natural persons of full age

and capacity.

(3) At the meeting referred to in subsection (2) of this section, the following documents must be presented to the prospective members of the society:-

(a) a written statement showing the objects of the society and the reasons for believing that, when registered, it will be able to carry out its objects

successfully;

and
(b) a copy of the rules that are to be tendered for registration.

(4) If, at the formation meeting, or any subsequent or adjourned meeting, twenty or more persons of full age and capacity, after consideration of the statement and the rules, approve the rules with or without amendment, and sign an application for membership and shares, they may proceed to elect the first directors of the society in accordance with the rules as so approved.

(5) No application for shares in a proposed society, made prior to the registration of

that society, may be withdrawn, and every person who makes such an application shall,

upon the registration of the society, be liable to pay to the society-

(a) the value of the shares for which he applied;

PART 111

Building Societies Act. 1975

(b) the value of the minimum number of shares for which a member of the society is entitled to subscribe,
whichever is the greater.
(6) The expenses of, and incidental to, the formation of the society may be paid out

of the capital or income of the society.

Registration and incorporation

12. (1) A society formed in accordance with this Part may apply to the Commission in the prescribed manner to be registered under this Act.
(2) An application for registration-
(a) must be made within two months after the formation meeting at which the first directors of the society were elected;
and
(b) must be accompanied by-
(i) a statutory declaration by the chairman and the secretary of that formation meeting that the requirements of this Part as to forma- tion have been complied with;
(ii) a copy of the statement presented to the meeting, signed by the
chairman and the secretary;
(iii) two copies of the proposed rules of the society, certified by the chairman and the secretary to be the rules as approved at the meeting;
(iv) a list containing the full name, address and occupation of each
director;
(v) a list containing the full name, address and occupation of each of twenty persons of full age and capacity who attended the meeting and applied for membership and shares, and stating the number of shares for which each of those persons applied;
and
(vi) such evidence as the Commission may require that the society will,

upon registration, have available to it the funds referred to in

subsection (3) of this section.
(3) A society shall not be registered under this Act unless it has a share capital of not less than two million dollars of which not less than one million dollars is available on terms that-
(a) do not require repayment thereof before the expiration of ten years after the day on which it is received by the society;
and
(b) require any repayment thereof to be made only with the consent of the
Commission.
(4) If, upon an application for registration, the Commission is satisfied-
(a) that the society has complied with the provisions of this Part;
(b) that the proposed rules of the society are not contrary to this Act;

PART 111

8 Building Societies Act,1975
(c) that there are reasonable grounds for believing that the society, if registered, will be able to carry out its objects successfully;
and
(d) that there is no good reason why the society or the proposed rules should not
be registered,

the Commission shall register the society and its rules and shall issue a certificate in the

prescribed form that the society is incorporated under this Act.

(5) Upon the issue of a certificate of incorporation the society-
(a) shall be a body corporate with perpetual succession and a common seal;
(b) shall in its corporate name be capable of suing and being sued;
(c) shall, subject to this Act and the rules of the society, be capable of holding, acquiring, dealing with and disposing of real and personal property;
and
(d) shall have the powers, rights, duties and functions conferred, imposed or prescribed by or under this Act and the rules of the society.
DIVISION 111-RULES

Content of rules

13. The Commission shall not register any rules of a proposed society unless-
(a) they contain the prescribed provisions and otherwise conform with the requirements of the regulations;
and
(b) they contain in the opinion of the Commission adequate provisions requiring the society to insure against wrongful acts and defaults of its officers and employees and against other insurable risks assumed by a society in the conduct of its business.

Effect of rules

14. The rules of a society shall bind the society and all members thereof and all persons claiming under them.

Copies of rules

15. A society shall furnish any person with a copy of its rules upon application and

payment of the prescribed fee.

Alteration of rules

16. (1) A society may, by special resolution, alter its rules, but any such alteration shall not take effect until it has been registered in accordance with this section.

(2) A society must, within one month of the date of the meeting at which the special resolution approving an alteration was passed, apply to the Commission to have the alteration registered.

(3) The Commission shall, if it is satisfied that the proposed alteration to the rules of

the society is not contrary to this Act, and that there is no good reason why it should not

be registered, register the alteration.

PART 111

Buildine Societies Act. 1975

Power of commission to modify rules
17. (1) Where in the opinion of the Commission the rules of a society should be
amended-
(a) in the interest of the members of the society;
(b) in the public interest;
or
(c) to achieve, in the case of a society that was registered under the repealed Act before the commencement of this Act, conformity with any requirement of this Act,
it may, by instrument in writing served personally or by post upon the society, require it, within a period specified in the instrument, to amend the rules in a manner specified in the instrument or otherwise in a manner approved by the Commission.
(2) Subject to subsection (4) of this section, if within the period specified in the instrument the society fails to amend the rules as required by the instrument, the Commission may itself, by notation upon the registered copy of the rules, amend the rules of the society.
(3) The Commission shall give a society notice in writing of any amendment effected by it under this section.
(4) A society may, by instrument in writing, appeal to the Minister against a requirement of the Commission, and where such an appeal has been instituted, the Commission shall not exercise its powers under subsection (2) of this section until the appeal has been determined by the Minister.
(5) The Minister may determine an appeal under this section in such manner as he considers just and may confirm, vary or revoke the requirement of the Commission.

DIVISION IV-NAME AND OFFICE

Name
18. (1) A society shall not be registered by a name, or change its name to a name, that is, in the opinion of the Commission, undesirable.
(2) Subject to the provisions of this section, a society may, by an alteration of its rules in the manner provided for in this Act, change its name.

(3) Upon registration of an alteration of the rules of a society pursuant to

subsection (2) of this section, the Commission may issue a new certificate of

incorporation in the new name in lieu of a previous certificate of incorporation.

(4) A change of name of a society shall be published, at the expense of the society, in

the manner prescribed.

Office and service

19. (1) Every society shall have a registered office.
(2) The first registered office of a society shall be that appearing in the rules of the society at the time of registration.
(3) Notice of any change of address of its registered office shall be transmitted to the Commission before the expiration of fourteen days from the date of the change and the Commission shall thereupon register the new address as the address of the registered office of the society.

PART

III

10 Building Societies Act.1975

(4) A document may be served on a society or an officer of the society by leaving it at the registered office of the society with some person who appears to be responsible to the society or by post enclosed in a prepaid registered letter addressed to the society at its registered office.

Publication of name

20. (1) A society shall cause its name to appear in legible characters on its seal and in legible characters on all business letters, notices, advertisements and other official publications of the society and on all bills of exchange, cheques, promissory notes, endorsements, orders for money or goods, invoices, receipts and other documents required in the business of the society.

(2) A society shall not use any name or title other than its registered name or an abbreviation of that name approved by the Commission.

(3) Every society shall paint or affix and keep painted or affixed on the outside of every office or place in which its business is carried on in a conspicuous position in letters easily legible its name and also, in the case of the registered office, the words "Registered Office".

(4) Any society that contravenes the provisions of this section shall be guilty of an

offence and liable to a penalty not exceeding one hundred dollars.

Default Penalty: Fifty dollars.

DIVISION V-AMALGAMATION

Amalgamation

21. Two or more societies may be amalgamated either upon application, or by

direction of the Minister, under this Division.

Application for amalgamation

22. (1) An application for amalgamation may be made to the Commission upon the

authority of a special resolution of each of the societies concerned in the proposed

amalgamation.

(2) An application under subsection (1)-
(a) must be made jointly by the societies concerned in the proposed
amalgamation;

(b) must set out the terms on which the amalgamation is to take effect;

(c) must contain such information as may be prescribed;
and
(d) if the amalgamation is to result in the formation of a new society-must be

accompanied by a copy of the proposed rules of the society to be formed by

the amalgamation.

(3) A society that proposes to join in an application for amalgamation with one or more other societies shall send to each of its members a statement the contents of which have been approved by the Commission concerning-

(a) the financial position of the society and any other society or societies with
which it proposes to amalgamate;
(b) any interest that the officers of the society or of any other society concerned in
the amalgamation may have in the amalgamation;

PART 111

Building Societies Act, 1975

(c) any compensation or other consideration proposed to be paid to the officers of the society and of the other society or societies concerned;
(d) the payments (if any) to be made to members of the society and of the other society or societies concerned in consideration of the amalgamation;
and
(e) such other matters as the Commission may direct.
(4) A statement under subsection (3) shall be sent so that it will in the ordinary course of post reach each member not later than the time at which he would receive notice of the meeting called to pass the special resolution authorizing the application for amalgamation.
(5) If three days before the day on which the meeting called to pass the special resolution is to be held, a society has received written notices of objection to the proposed amalgamation from ten per centum or more of its members, the motion for the special resolution shall not be placed before the meeting.
(6) The Commission may, on the application of a society, authorize the society to join in an application under this section-

(a) notwithstanding that the application is not authorized by a special resolution

of the society;
or
(b) notwithstanding that any other requirement of this section has not been
complied with.
(7) The Commission may give such notice (if any) of an application under sub- section (6) as it thinks appropriate and may, before granting or refusing the application, hear any person who has, in the opinion of the Commission, a proper interest in the matter.
Amalgamation by direction of the Minister
23. (1) Where-
(a) a society is insolvent or the financial position of a society is such that it is, in the opinion of the Minister, in danger of becoming insolvent;
and

(b) another society agrees, by special resolution, to an amalgamation with the

the Minister may direct the society referred to in paragraph (a) to amalgamate with the

society referred to in paragraph (b).

society referred to in paragraph (a),

(2) The terms on which an amalgamation is to take effect in pursuance of a direction of the Minister under this section shall be as specified in the direction.
(3) Before calling a meeting to pass a special resolution referred to in

subsection

( l)(b),

a society shall send to each of its members a statement the contents of

which have been approved by the Commission concerning-

(a) the financial position of the society and the society with which the amalgama-

tion is proposed;
(b) any interest that the officers of the society may have in the amalgamation;
(c) any compensation or other consideration proposed to be paid to the officers of
the society;
PART 111
12 Building Societies Act, 1975
(d) the payments (if any) to be made to members of the society in consideration of
the amalgamation;
and
(e) such other matters as the Commission may direct.
(4) A statement under subsection (3) shall be sent so that it will in the ordinary

course of post reach each member not later than the time at which he would receive

notice of the meeting called to pass the special resolution agreeing to the amalgamation.

(5) If three days before the day on which the meeting called to pass the special resolution is to be held, the society has received written notices of objection to the proposed amalgamation from ten per centum or more of its members, the motion for the special resolution shall not be placed before the meeting.
(6 ) The Commission may, on the application of a society, authorize the society to

agree, by special resolution, to an amalgamation under this section notwithstanding that a

requirement of this section has not been complied with.

(7) The Commission may give such notice (if any) of an application under sub- section (6) as it thinks appropriate and may, before granting or refusing the application, hear any person who has, in the opinion of the Commission, a proper interest in the matter.
(8) Where an amalgamation under this section is to result in the formation of a new

society, the first rules of the society to be formed by the amalgamation shall be as

determined by the Minister.

Amalgamation resulting in the formation of a new society
23a. (1) Where due application for the amalgamation of societies is made under this Division or the Minister directs such an amalgamation, and the amalgamation is such as to result in the formation of a new society, then, subject to subsection (2), the Commission shall-
(a) register the society formed by the amalgamation and the rules of the society and issue a certificate of incorporation in the prescribed form in respect of the society;
and
(b) cancel the registration of the societies that were parties to the amalgamation.

(2) A society shall not be registered under subsection (1) in pursuance of an application for amalgamation unless-

(a) it will, upon registration, have a share capital of not less than two million dollars of which not less than one million dollars is available on terms that-
(i) do not require repayment before the expiration of ten years from the
date of registration of the society;
and
(ii) prohibit repayment except with the consent of the Commission;
and
(b) the Commission is satisfied-
(i) that the proposed rules of the society are not contrary to this Act;

PART $11

Building Societies Act. 1975

(ii) that there are reasonable grounds for believing that the society, if
registered, will be able to carry out its objects successfully;
and
(iii) that there is no good reason why the society or the proposed rules
should not be registered.
(3) The Commission may, if satisfied that there is good reason in the public interest for doing so, grant an exemption from the requirements of subsection (2)(a).
(4) Upon issue of the certificate of incorporation, the society-
(a) shall be a body corporate with perpetual succession and a common seal;
(b) shall in its corporate name be capable of suing and being sued;
(c) shall, subject to this Act and the rules of the society, be capable of acquiring, holding, dealing with and disposing of real and personal property;
and
(d) shall have the powers, rights, duties and functions conferred, imposed or prescribed by or under this Act and the rules of the society.
(5) Upon the issue of the certificate of incorporation the property of each society

that was a party to the,amalgamation shall, by virtue of this Act, and without any

conveyance, transfer or assignment, vest in the society formed by the amalgamation.

(6) For the purposes of this section, a reference to property includes all estates and interests in'property, whether real or personal, vested or contingent.
(7) Upon production of the certificate of the Commission, and of the appropriate duplicate certificates of title (if any), the Registrar-General shall make such entries or notations upon existing certificates of title, or shall issue such new certificates of title as are necessary to evidence the vesting of any estate or interest in land under this section.
(8) Property vested in, or transferred to, a society by virtue of or in pursuance of this section shall be subject to any debt, liability or obligation affecting that property.
(9) All debts and liabilities, whether certain or contingent, of a society that is a party

to the amalgamation shall, upon registration of the society formed by the amalgamation,

become and be debts and liabilities of that society.

Amalgamation by merger

23b. (1) Where due application for the amalgamation of societies is made under this Division, or the Minister directs such an amalgamation, and the amalgamation is such as to result in the merger of one or more societies with another society but not in the formation of a new society, the Commission shall-
(a) issue a certificate of amalgamation to the continuing society;
and
(b) cancel the registration of the merging society or merging societies.
(2) Upon issue of a certificate of amalgamation the property of each merging society

shall, by virtue of this Act, without any conveyance, transfer or assignment, vest in the

continuing society.

(3) For the purposes of this section, a reference to property includes all estates and interests in property, whether real or personal, vested or contingent.

PART

I11

14 Building SocietiesAct, 1975

(4) Upon production of the certificate of amalgamation, and of the appropriate duplicate certificates of title (if any), the Registrar-General shall make such entries or notations upon existing certificates of title, or shall issue such new certificates of title as are necessary to evidence the vesting of an estate or interest in land under this section.

(5 ) Property vested in, or transferred to, a society by virtue of or in pursuance of this section shall be subject to any debt, liability or obligation affecting that property.

(6 ) All debts and liabilities, whether certain or contingent, of a merging society shall,

upon the issue of the certificate of amalgamation, become and be debts and liabilities of

the continuing society.

(7) An amalgamation under this section does not affect the corporate identity of the continuing society.

PART XV

Building Societies Act, 1975

PART IV

ASSOCIATIONS

Associations
24. (1) An association of societies may be formed by three or more societies in
accordance with the provisions of this Part.
(2) The objects of such an association shall be such of the following as may be authorized by the rules of the association:-
(a) to promote the interests of and co-operation among societies;
(b) to encourage saving and investment, to promote home ownership and to assist in raising housing standards;
(c) to render services to and act on behalf bf its members in such ways as may be

specified in or authorized by the rules of the association and approved by

the Commission;

(d) to advocate and promote such practices and reforms as may be conducive to any of the objects of the association;
(e) to co-operate with other bodies with similar objects;
(f) to promote the formation of societies;

(g)	to do all such other things as may be incidental or conducive to the attainment of all or any of the foregoing objects.

(3) An association shall have power to raise moneys in accordance with the rules of
the association and to apply those moneys in furtherance of the objects of the association.
Registration of an association

25. (1)

An application for the registration of an association-

(a) must be made in the prescribed form and must be under the common seals of

all the societies that are to be the first members of the association upon its

formation;

and
(b) must.be accompanied by the rules of the proposed association.

(2) If the Commission is satisfied-

(a) that the rules as submitted are not contrary to the provisions of this Act;
(b) that there are reasonable grounds for believing that the association if registered will be able to carry out its objects successfully;
and
(c) that there is no good reason why the association and its rules should not be
registered,
the Commission shall register the association and its rules and shall issue a certificate in
the prescribed form that the association is incorporated under this Act.
(3) Upon the issue of a certificate of incorporation the association-
(a) shall be a body corporate with perpetual succession and a common seal;
(b) shall in its corporate name be capable of suing and being sued;

PART

16 Building Societies Act,1975
(c) shall, subject to this Act and the rules of the association, be capable of holding, acquiring, dealing with and disposing of real and personal property;
and
(d) shall have the powers, rights, duties and functions conferred, imposed or prescribed by or under this Act and the rules of the association.

(4) The members of an association shall be the societies by which the association is

formed, and any other societies that are admitted to membership of the association in

accordance with the rules of the association.

(5) An association may, in accordance with procedures prescribed by its rules, alter its rules, but no such alteration shall come into effect until it has been registered by the Commission.

(6) If the Commission is satisfied-
(a) that a proposed alteration to the rules of an association is not contrary to the provisions of this Act;
and
(b) that there is no good reason why the alteration should not be registered,

it shall, upon the application of the association register the alteration.

(7) Subject to subsection (8) of this section, after the expiration of twelve months from the commencement of this Act no society shall be a member of a body whose members include three or more building societies and whose objects include any of the objects of an association under this Act, unless that body is registered as an association under this Act.

(8) Subsection (7) of this section shall not prevent a building society from becoming a member of a body approved by regulation.

PART V

Building Societies Act, 1975

PART V

MONETARY POLICIES OF SOCIETIES

DIVISION I-LOANS

Loans
26. (1) Subject to this Part, a society may advance moneys on the security of a first mortgage over land.
(2) A society may advance money on the security of a mortgage over land which is subject to a prior mortgage provided that-
(a) the prior mortgage is in favour of the society;
(b) the total amount secured by the mortgage and all prior mortgages does not exceed the limits prescribed by this Part.
(3) Nothing in this section shall be construed as precluding a society from accepting collateral security for the repayment of a loan.
Rates of interest
27. (1) The Minister may, by notice published in the Gazette-
(a) fix a maximum rate of interest generally applicable to loans made by societies; (b) fix a maximum rate of interest in relation to any class of loans made by
societies;
and
(c) vary or revoke a rate of interest fixed under this subsection.
(2) Subject to this Act, a society shall not charge interest upon a loan at a rate exceeding a maximum fixed under subsection (1) that is applicable to the loan.
(3) This section does not apply in respect of-
(a) a restricted loan;
or
(b) a loan that was lawfully made before the commencement of this Act.

Loans not to be made in respect of vacant land

28. A society shall not lend money on the security of a mortgage over vacant land unless it has been furnished with satisfactory evidence that the borrower proposes to erect a dwellinghouse upon the land at a later date.

Limitation upon amount of loan
29. (1) Subject to subsection (2) of this section, a society shall not lend money on the security of a mortgage over land where the amount of the loan exceeds seventy-five per cent of the value of the land as determined in the valuation that the society is required to obtain in respect of the land under this Part.
(2) A society may make a loan exceeding the amount authorized by subsection (1) of this section if-

(a) the society has obtained an indemnity or guarantee in respect of the loan

granted by-

PART V

18 Building Societies Act. 1975
(i) the Housing Loans Insurance Corporation constituted under the
Housing Loans Insurance Act, 1965, of the Commonwealth;
(ii) an insurance company carrying on business in conformity with the
Insurance Act, 1932, of the Commonwealth;
(b) it has taken a charge upon, or an assignment of, a life insurance policy issued by a company registered under the Life Insurance Act, 194.5, of the Commonwealth, the surrender value of which, at the time of the charge or assignment, will secure the repayment to the society of an amount equivalent to the amount by which the loan exceeds the maximum stipulated by subsection (1) of this section;
(c) it has obtained such additional security as may be prescribed.

(3) If any loan is made in contravention of this section, or in contravention of any terms or conditions prescribed, the directors of the board of the society who authorized the loan shall be jointly and severally liable for any loss suffered by the society as a result of making the loan.

Loan to cover premiums on certain policies of insurance

30. Where a loan made by a society is partially secured by a policy of insurance (including a policy of life insurance) the society may lend to the borrower sufficient money to pay any premium due under that policy of insurance.

Advances to members on security of shares

31. A society may lend to a member of the society an amount not exceeding the paid-up value of his shares in the society, on the security of those shares.

Minimum age at which a member may obtain a loan from the society

32. No member of a society under the age of eighteen years shall be entitled to obtain a loan from the society.

Restricted loans

33. (1) In this Act, a "restricted loan" means a loan made by a society on the security of a mortgage over land, being a loan of one of the following descriptions:-

(a) a loan of a sum exceeding seventy thousand dollars or, where some other sum is prescribed, exceeding the prescribed sum;
(b) a loan to a person who, after the loan is made, is indebted to the society in a sum exceeding seventy thousand dollars or, where some other sum is prescribed, exceeding the prescribed sum;
(c) a loan made for a purpose other than-
(i) the acquisition, construction or improvement of a place of residence;
or
(ii) the acquisition of land for residential purposes.

(2) For the purposes of this section, where a person becomes indebted to a society in

any manner the society shall be deemed to have granted a loan to him of the amount of

his indebtedness.

PART V

Building Societies Act, 1975

(3) A society shall not advance moneys under this section at a rate of interest exceeding the maximum fixed by virtue of subsection (4) of this section.

(4) The Minister may, on the recommendation of the Commission, by notice published in the Gazette, fix

a maximum rate of interest for the purposes of this section.

(5) A society shall observe the following principles in relation to the making of restricted loans:-
(a) at the end of each financial year of the society it shall review the loans that are then outstanding, and shall ascertain-
(i) the total amount of the principal that has not been repaid to the
society together with any arrears of interest in respect of the loans;
and
(ii) the proportion of that amount that relates to restricted loans;
(b) if the proportion ascertained in accordance with paragraph (a) of this subsection does not exceed ten per centum or such greater percentage as may be prescribed, the society may make restricted loans in the next financial year but the total amount so advanced shall not exceed ten per centum or such greater percentage as may be prescribed of the total amount advanced by the society during that financial year;
(c) if the proportion ascertained under paragraph (a) of this subsection exceeds ten per centum or such greater percentage as may be prescribed but does not exceed twenty-five per centum the society may make restricted loans in the next financial year but the total amount so advanced by loans shall not exceed two and one-half per centum of the total amount advanced by the society during that financial year;
and
(d) if the proportion ascertained under paragraph (a) of this subsection exceeds

twenty-five per centum, the society shall not make any restricted loan in the

next financial year.

(6) The Commission may, if it considers that there is proper cause to do so, permit a society to grant a restricted loan or restricted loans of a specified class in contravention of this section.
Valuers

34. (1) A society shall not make a loan upon the security of a mortgage over land

unless a valuation has been obtained of the land that the mortgage is to cover and a

valuation of any buildings erected, or to be erected, thereupon.

(2) A valuation for the purposes of this section shall be made by-

(a) a person who is licensed under the Land Valuers Licensing Act, 1969, as

amended;

(b) where the society proposes to obtain an indemnity or a guarantee in respect of

the loan, a person who is approved by the giver of the indemnity or
guarantee;
(c) any other person approved by the Commission.
(3) The Commission may impose such conditions or limitations as it thinks fit upon any approval given by him for the purposes of this section.

PART V

20 Building Societies Act, 1975

Prohibition of balloting for loans

35. (1) A society shall not cause or permit applicants for loans to ballot for

precedence, or in any way make the granting of a loan dependent upon any chance or lot.

(2) This section shall not apply to, or in relation to, a Starr-Bowkett society that was immediately before the commencement of this Act registered under the repealed Act.

Provision of credit services to members

35a. (1) A society may, with the written approval of the Commission, enter into agreements with a member (being a person of, or over, the age of eighteen years) under which the society undertakes, on terms and conditions approved by the Commission-

(a) to advance money to the member;
(b) to make payments to another person-
(i) on behalf of the member;
(ii) in respect of goods or services acquired by, or with the authority of,
the member;
(iii) in respect of money paid to the member or to a third person on
behalf of the member.

(2) A society shall keep a record of all advances, payments and moneys owing to it by a member pursuant to an agreement referred to in subsection (1) and where the society has made more than one such agreement with a member it shall keep a record of the gross amount owing by the member pursuant to all of those agreements.

(3) Unless otherwise agreed by a member and a society, the member's obligation under an agreement referred to in subsection (1) to make payments to the society need not be secured.

(4) The Commission may attach such conditions to its approval under subsection (1) as it thinks fit and may, at any time, vary or revoke its approval or a condition attached to it.

(5) In this section-
"money" includes cheques and other bills of exchange.

DIVISION 11-LIQUIDITY AND RESERVES

Liquidity

36. (1) A society shall not grant a loan unless at the time of granting the loan it holds by way of liquid funds a sum equal to not less than ten per centum, or, where some other proportion is prescribed, that proportion of the total of-

(a) the total paid-up share capital of the society;
(b) the total amount held by the society by way of deposit;
and
(c) the total amount of the principal that the society is liable to repay upon any

loan made to the society except a loan secured by mortgage over the

business premises of the society.

PART V

Building Societies Act. 1975

(2) Subject to subsection (3) of this section-
"liquid funds" means the sum of the following-
(a) cash at bank (but not including any amount represented by any cheque
or bill of exchange drawn or endorsed in favour of the society but not
yet presented for payment) and cash in hand;
(b) deposits in any prescribed bank;

(c)	the monetary value of any securities issued or guaranteed by-

(i) the Treasurer or the Government of the State;
(ii) the Treasurer or the Government of the Commonwealth;
(iii) an instrumentality of the Crown in right of the State or the
Commonwealth;
or
(iv) the South Australian Gas Company;
(d) the monetary value of bills of exchange that have been accepted or
endorsed by a prescribed bank;

(f)	the monetary value of any loan made by the society to an authorized

dealer in the short term money market;
and
(g) the monetary value of any other prescribed securities or prescribed
assets,
less the amount of any borrowings made by the society by way of bank
overdraft:
"monetary value" in relation to any security, stock or investment means the face value or -market value of that security, stock or investment, whichever is the lesser.

(3) In determining the amount of the liquid funds held at any time by a society-

(a) any moneys received by the society from the Government of the State or the Commonwealth shall not be taken into account;

and

(b) the monetary value of any security that is not to mature within a period of five years shall not be taken into account.
(4) The Commission may, if it considers that there is proper cause to do so, permit the society to grant a loan in contravention of the provisions of this section.
(5) This section does not apply to a Starr-Bowkett society.
Reserve account
37. (1) A society shall, at the end of its financial year, transfer to a reserve account two percent, or such other percentage as may be directed by the Commission, of the surplus arising in that financial year from the business of the society.
22 Building SocietiesAct, 1975
(2) In calculating the amount of any surplus for the purposes of this section-
(a) any interest that is paid or credited to members of the society shall not be regarded as part of the surplus;
but
(b) any amount that is, or is to be, paid or credited to members by way of bonus or rebate shall be regarded as part of the surplus.

(3) If the amount held in the reserve account is equal to seven and one-half percent, or where some other proportion has been prescribed, that other proportion, of the total paid-up share capital of the society, no further transfer of money to the reserve account shall be required by this section.

(4) Moneys appropriated to a reserve account pursuant to this section-
(a) shall not be distributed amongst members of the society except upon the winding up of the society;
and
(b) may be applied to any purpose to which the capital of the society may be
applied.
(5) This section shall not apply to a Starr-Bowkett society.

DIVISION 111-POWER

TO RESTRICT RAISING OF FUNDS BY A SOCIETY

Power to prohibit raising of funds

38. (1) If, with respect to any society, the Commission considers it expedient to do

so in the public interest, it may, by notice in writing served on a society, prohibit the

raising of funds by the society.

(2) Subject to the provisions of this section, while a prohibition imposed under subsection (1) of this section remains in force, the society shall not-

(a) accept the deposit of, or otherwise borrow, any money;
or
(b) accept any payment representing the whole or any part of the amount due by

way of subscription for a share in the society, other than a payment that fell

due before the imposition of the prohibition.

(3) This section shall not make it unlawful for a society, with the consent in writing of the Commission, to borrow money from a banking or finance company, or from an officer of the society.

(4) If a society contravenes the provisions of subsection (2) of this section it shall be

guilty of an offence and liable to a penalty not exceeding five hundred dollars.

Default Penalty: Two hundred dollars.

(5) A society may, by instrument in writing, appeal to the Minister against a prohibition imposed under this section.

(6) The Minister may determine an appeal under this section in such manner as he

considers just and may confirm, vary or revoke the prohibition imposed by the

Commission.

Building Societies Act. 1975

DIVISION IV-PROPERTY AND INVESTMENTS

Acquisition of property
39. (1) A society may purchase or acquire any real or personal property necessary

for carrying out the objects of the society and may sell, lease, mortgage, charge, or

otherwise deal with, or dispose of, any such real or personal property.

(2) A society may, with the consent of the Minister given on the recommendation of the Commission, purchase land for resale or subdivision.
Investments
40. (1) Subject to this Act, and the rules of the society, a society may invest funds in the following manner:-

(a) in any security in which trust moneys may, by Act of the Parliament of this

State, be invested;
(b) in bills of exchange that have been accepted or endorsed by a prescribed bank;
(c) in acquiring shares in a company or other body corporate or in making loans (whether secured or unsecured) to a company or other body corporate;
(d) in acquiring an interest in a mortgage;
and
(e) in any other prescribed securities or prescribed assets.
(2) A society shall not invest funds in any security that matures upon a certain date unless that date is less than fifteen years from the date of the investment.
(3) A society shall not invest funds under subsection (l)(c) unless-
(a) the Commission has approved the proposed investment in writing;
and
(b) the total funds of the society invested in shares in, or in loans to, companies or
other bodies corporate under subsection (l)(c) would not, in consequence of the investment, exceed six per centum or such other percentage as may be prescribed, of the total of-
(i) the total paid up share capital of the society;
(ii) the total amount held by the society by way of deposit;

and

(iii) the total amount of the principal that the society is liable to repay on loans made to the society (except loans secured by mortgage over the business premises of the society).
(4) This section shall not affect or render unlawful any investment made by a society prior to the commencement of this Act.
(5) A society shall not advance moneys to, or deposit moneys with, any other society except with the approval of the Commission.
Raising of funds
41. (1) A society may, subject to this Act, and the rules of the society, raise funds-
(a) by accepting deposits;
(b) by borrowing money;

PART V

24 Building Societies Act, 1975
(c) in any other manner authorized by regulation.

(2) A society shall not raise funds under this section if, in consequence of so doing, the total amount of-

(a) the funds raised and held by the society;
and
(b) the accumulated interest payable but not yet paid or credited to depositors or
others,

would exceed two-thirds of the total amount due to the society by way of the outstanding

principal of loans made by the society.

(3) Subject to the rules of a society, it may give such security in respect of a loan to a society as it thinks fit and, without limiting the generality of the foregoing, that security may consist of a legal or equitable mortgage over the undertaking of the society or over all or any portion of the property or rights (both present and future) of the society.

(4) A society shall not pledge any property as security for a loan if the value of the property pledged exceeds by more than 25 per centum the amount borrowed by the society (but this subsection does not apply to a security granted by a society over land or premises used or intended for use by the society as business premises).

(5) The society shall not borrow moneys otherwise than in Australian currency or

undertake to repay moneys borrowed otherwise than in Australian currency.

Disposal of certain property

42. Any property to which a society may become absolutely entitled by foreclosure,

surrender, or extinguishment of a right of redemption, shall as soon as practicable be sold

and converted into money.

DIVISION V-GUARANTEES

Guarantees

43. (1) The Treasurer may on the recommendation of the Commission execute a guarantee in favour of any person or body of persons for the repayment of any advance made, or to be made, by that person or body of persons to any society.

(2) Before'executing any such guarantee the Treasurer may require the society to comply with any conditions which the Treasurer thinks necessary for the purpose of

preventing loss and securing the efficient management of the society.

(3) The guarantee may cover the interest and other charges charged or to be charged in respect of the loan.

(4) Any sums that may become due and payable by the Treasurer under any

guarantee given by him pursuant to this section may be paid out of the General Revenue

of the State without any further appropriation.

Building Societies Act, 1975

PART VI

MEMBERSHIP AND SHARE CAPITAL O F SOCIETIES

DIVISION I-MEMBERSHIP

Members
44. (1) The members of a society formed under this Act shall be the persons who

signed an application for membership on the formation of the society, and any other

persons who are admitted to membership in accordance with the rules of the society.

(2) Where a society is formed by the amalgamation of two or more societies, the members of the society formed by the amalgamation shall be the members of the amalgamating societies and any other persons who are admitted to membership in accordance with the rules of the society formed by the amalgamation.
(3) No rights of membership shall be exercised by any person until he has made such payments in respect of membership, or acquired such shares or interests, as is provided in the rules.
Minors
45. (1) Subject to any contrary provision in the rules of a society, a person under the age of eighteen years may be a member of a society.
(2) A minor shall not-
(a) be entitled to exercise any vote at any meeting of the society;
or
(b) be entitled to borrow moneys from the society.
Corporate member of a society
46. (1) Subject to this section, where a body corporate is a member of a society it may appoint a person to represent it at any meeting of members of the society.
(2) Any person appointed under subsection (1) of this section-
(a) shall be entitled to receive notice of all meetings in the same manner as other members of the society, and shall be entitled to exercise the same rights of voting (either in person or by proxy) as a natural person who is a member of the society;

and

(b) shall be eligible to be elected to the board of directors of the society.
(3) A society that is a member of an association may appoint such number of its members as may be prescribed in the rules of the association to represent it (either in person or by proxy) at any meeting of the association.
DIVISION 11-SHARE CAPITAL AND FUNDS
Share capital
47. (1) A society may from time to time raise funds by the issue of shares.
(2) The shares shall be of one denomination only, and shall be issued either as shares fully paid up, or as shares to be paid for by periodical or other subscription.
(3) The rules of a society shall not provide for the holder of shares to be repaid his share capital at any specified date or time.

PART VI

26 Building Societies Act, 1975

(4) The rules of a society shall not provide for share capital to be repaid in priority to funds of the society consisting of deposits made with the society.

(5) The rules of a society may provide for the cancellation of shares, or the withdrawal of share capital, but no such rules shall be registered unless the Commission approves of the provisions governing the cancellation of shares, or the withdrawal of share capital.

(6) The share capital of a society, other than a society that was, before the commencement of this Act, registered under the repealed Act, must at no time be less than two million dollars.

(7) The liability of a member of a society in respect of a share on which no loan has been made shall be limited to the amount (if any) in arrears in respect of that share.

(8) The liability of a member of a society in respect of a share on which a loan has been made shall be limited to the amount payable under any mortgage or other security by which that loan is secured together with the amount (if any) in arrears in respect of the share.

(9) Any balance unpaid upon a share shall be paid by periodic subscription, or in such other manner, as may be specified by the rules.

(10) No member of a society shall, unless exempted by the Commission from the provisions of this section, hold more than one-fifth of the total share capital of the society.

(11) A share may be held by two or more persons jointly.
(12) A share may not be sold or transferred without the approval of the board.
(13) A share shall not be sold, or offered for sale, on any stock exchange.

(14) Any document that constitutes a receipt for the payment of a share, or subscription for a share, shall contain a clear acknowledgment that it constitutes such a receipt.

Case where shares are held jointly

48. (1) Subject to the rules of a society, where shares in a society are held jointly, any notice or other document may be given or sent by the society to the joint holders by being given or sent to the primary joint holder.

(2) For the purpose-

(a) of determining who is qualified to vote on a resolution of a meeting of a

society;
(b) of determining (where relevant) the number of votes any person may give at a meeting of a society;
and
(c) of determining the number or proportion of any members required to give
effect to any provision of this Act or the rules of a society,

the shares shall be treated as being held by the primary joint holder alone.

(3) For the purpose of this section, the primary joint holder of shares in a society is the member whose name appears first in the register of members of the society.

(4) The joint holders of any shares in a society shall be entitled to choose the order in which they are named in the register of shares but failing any such choice, the society may enter their names in such order as it thinks fit.

Building Societies Act, 1975

Charge and set off
49. (1) A society shall, in respect of any debt due from the member or past member of the society, have a charge upon the shares of any member of the society, and on the credit balance of any member, or any past member, and upon any dividend, interest, bonus or rebate payable to a member or past member of the society and may set off any such sum payable to a member or past member against the debt.
(2) The charge created by this section may be enforced by the appropriation by the society of the share capital or other moneys subject to the charge.
(3) Any share in respect of which the whole of the capital has been so appropriated

shall be cancelled by the society.

Charitable contributions

50. (1) A society may, subject to this section and the rules of the society, make contributions out of its funds-
(a) for charitable purposes;
(b) for the purpose of establishing or maintaining a charitable foundation.
(2) Unless the Commission otherwise determines a contribution shall not be made under subsection (1) unless-
(a) the society achieved a surplus in each of the three financial years last preceding the making of the contribution;
and
(b) the aggregate of that contribution and any previous contributions made in the same financial year does not exceed-
(i) five per centum of the average annual surplus achieved in the three
financial years last preceding the making of that contribution;
(ii) such other proportion of that average annual surplus as may be
prescribed.
(3) A contribution shall not be made under subsection (1) for the purpose of
establishing a charitable foundation unless the Minister has first given his approval in

writing.

(4) For the purposes of this section, the extent (if at all) to which a society has achieved a surplus shall be determined in accordance with the provisions of section 37.
(5) In this section-

"charitable foundation" means a foundation or trust that exists, or is to be

established, only for charitable purposes.
28 Building SocietiesAct, 1975
PART VII
MANAGEMENT
DIVISION I-DIRECTORS AND OFFICERS

Board of directors	/
51. (1) The business of a society shall be managed and controlled by a board of directors, and for that purpose the board shall, subject to this section, have and may exercise the powers of the society.	i
(2) The powers of the board shall be subject to any restrictions imposed upon it by this Act, by the rules of the society, or by a resolution of a general meeting of the society. (3) The acts of a director shall be valid notwithstanding any defect that may
afterwards be discovered in his appointment or qualification.	/
(4) A director of a society shall at all times act honestly and diligently in the discharge of the duties of his office.	i
(5) A meeting of the board of directors of a society shall be held as often as may be necessary for properly conducting the business of the society and not more than three months after the last preceding meeting of the board.
(6 ) A quorum at a meeting of the directors of a society shall be as prescribed by the rules of the society but shall not in any case be less than half the number of the directors.
(7) A director shall not be removed from, or be required to vacate, his office by reason of any resolution, request or notice of the directors, or any of them, notwithstanding anything in the rules of the society.
(8) A director may, if authorized to do so by the rules of the society, appoint a deputy to act in his place and a deputy, while so acting, shall be deemed to be a director of the society.
Age limit for directors
52. (1) No person of or above the age of seventy-two years may be appointed as a director of a society.
(2) The office of a director of a society shall become vacant at the annual general meeting next following the day on which he attains the age of seventy-two years.

(3) Any act done by a person as director shall be valid notwithstanding that it is subsequently discovered that his office has become vacant by virtue of subsection (2) of

this section.	i
(4) Notwithstanding the foregoing provisions of this section, a person of or above the age of seventy-two years may be appointed or re-appointed as a director of a society to hold office until the next annual general meeting of the society.	i
(5) This section does not affect any provision of the rules of a society providing that a director is to be disqualified from holding office upon attaining an age of less than seventy-two years.
(
Appointment of directors	i,
53. (1) Subject to subsection (2) of this section, a society (other than a Starr-Bowkett society) shall not have less than five directors.
(2) The obligation imposed by subsection (1) of this section does not apply to a society that was, before the commencement of this Act, registered under the repealed Act until the expiration of two years from the commencement of this Act.

Building Societies Act, 1975

(3) No person shall be eligible to be appointed a director if that person was convicted, and the office of a director shall become vacant if he is convicted-
(a) upon indictment of any offence in connection with the promotion, formation or management of a body corporate;
(b) of any offence involving fraud or dishonesty;
(c) of any offence under section 124 or section 303 of the Companies Act,
1962-1973;
(d) of any prescribed offence.
(4) No person shall be eligible to be appointed a director, and the office of a director shall become vacant, if he is a bankrupt or insolvent debtor, is bound by a composition in favour of his creditors, or applies to take the benefit of any law for the relief of bankrupt or insolvent debtors.
(5) A majority of the directors of a society must reside permanently in the State of South Australia.
(6 ) An employee of a society shall not be eligible to be appointed a director unless

he is a member of that society, or in the case of an association, he is a member of a

society that is a member of that association.

(7) A society shall not have a number of directors who are employees of the society in excess of-one-half of the total number of directors of the society.
Disclosure of interest by directors
54. (1) Subject to the provisions of this section, a director of a society who is in any way (whether directly or indirectly) interested in a contract, or proposed contract with the society, shall declare the nature of his interest to the board in accordance with this section.
(2) In the case of a proposed contract, the declaration required by this section shall be made at the meeting of directors at which the question of entering into the contract is first considered, or if the director was not at the date of that meeting interested in the proposed contract, at the next meeting of the directors held after he becomes interested

in the proposed contract.

(3) Where a director becomes interested in a contract with the society after it is

made, the declaration required by this section shall be made at the first meeting of the

directors held after he becomes interested in the contract.

(4) For the purposes of this section, a general notice in writing given to the board by a director to the effect that he is a member of a specified company or firm, and is to be regarded as interested in any contract which may, after the date of the notice, be made with that company or firm, is a sufficient declaration.
(5) A director who fails to comply with the provisions of subsection (1) of this section shall be guilty of an offence and liable to a penalty not exceeding five hundred dollars.
(6) Nothing in this section prejudices any rule of law affecting the validity of contracts between a body corporate and a director of the body corporate or affecting the obligations of a director to account for any profits arising from any such contract.

PART V1I

30 Building Societies Act, 1975

Certain dealings are prohibited

55. (1) A director or an officer of a society (whether on his own account or in

partnership with any other person or body of persons) shall not, without the approval of

the directors-

(a) sell any land to, or act as agent in respect of the sale of any land to, a member

of the society who proposes to pay for the land (in whole or in part) out of a

loan made by the society;

(b) undertake the erection of any building for a member of the society who proposes to pay for the building (in whole or in part) out of a loan made by the society;
(c) accept as payment (in whole or in part) of any moneys due to him from a

member of the society the whole or part of any loan made by the society to

that member;

(d) borrow moneys from the society.

(2) For the purposes of this section, anything done by a proprietary company in which a director or other officer of the society is a shareholder shall be deemed to have been done by the director or officer.

(3) Any person who contravenes or fails to comply with the provisions of this section

shall be guilty of an offence and liable to a penalty not exceeding five hundred dollars.

Directors' remuneration

56. A director (other than an employee) of any society shall not be paid any

remuneration for his services as a director other than such fees as may be approved at a

general meeting of the society.

Meetings of societies

57. (1) The annual general meeting of a society shall be held within four months

after the close of the society's financial year, or within such further time as may be

allowed by the Commission.

(2) Any other meetings of a society shall be held, or may be called, as prescribed by the rules of a society.

(3) At any meeting of a society, no business shall be transacted unless a quorum of members, as prescribed by the rules of the society, is present at the time the meeting is considering that business.

(4) Notice of a meeting shall be @ven by advertisement in two newspapers circulating generally throughout the State and by exhibiting copies of the notice in a conspicuous place at the head office and every branch office of the society.

(5) The notice must be advertised in newspapers under subsection (4) of this section not more than five weeks and not less than three weeks before the date of the meeting and the notice posted at offices of the society must be exhibited over a period of at least three weeks immediately preceding the date of the meeting.

(6 ) A notice advertised or exhibited under this section must set out the general nature of the business to be transacted at the meeting.

(7) The auditors of a society shall be entitled to attend every meeting of the society.

PART VII

Building Societies Act, 1975

Voting
58. (1) Except as is otherwise provided in this Act, or by the rules of a society, every question arising for decision at a meeting of a society shall be determined by a majority of those persons entitled to vote who are present at the meeting either personally or by proxy, and unless a poll is demanded by at least five persons who are so present, the question shall be determined by a show of hands.
(2) Every member who is present personally or by proxy shall, subject to this section, have one vote, and, notwithstanding anything to the contrary in the rules of the society, no member shall be entitled to more than one vote, on any question arising for decision at a meeting of the society.
(3) The rules of a society may provide that no member is entitled to vote unless he holds a prescribed minimum of paid-up capital in the society.
(4) No person shall be entitled to act as proxy for more than ten members.
(5) At any meeting of the members of a society, the chairman shall, in the event of

an equality of votes, be entitled to exercise a casting vote in addition to any other vote to

which he may be entitled.

(6) The voting rights of a member who is mdebted to a society by virtue of having

borrowed moneys from the society, and is in default in repayment of those moneys, may

be restricted by the rules.

(7) The Commission shall not register any rule under which the right of a member who has borrowed money from the society is limited or excluded unless it approves of the limitation or exclusion.
Special resolutions
59. (1) For the purposes of this Act, a special resolution is a resolution passed by a

majority of not less than two-thirds of those persons who, being present either personally

or by proxy are entitled to vote, register their vote in favour of the resolution.

(2) Unless a poll is demanded, a declaration by the chairman of the meeting that a

resolution has been carried by a specified majority shall be conclusive evidence of the

fact.

(3) A society shall, within two months of a meeting, at which a special resolution has been passed, submit the resolution to the Commission for registration.
(4) A special resolution shall not have any effect unless registered.

DIVISION 111-RECORDS, ACCOUNTS AND AUDIT

Registers and accounts
60. (1) A society shall keep such registers and accounts as may be prescribed.
(2) The registers shall include the following:-
(a) registers of the directors, members and shares;
(b) a register of any loans raised, securities given, and deposits received, by the
society;
(c) a register of any loans made, or guaranteed, by the society, and of any securities taken by the society in respect of any such loan.
(3) The registers shall, except as provided by this section, be kept at the registered

office of the society, and be kept in such manner, and contain such particulars, as may be

prescribed.

PART VII

32 Building Societies Act.1975

(4) With the consent in writing of the Commission, the registers referred to in this section may be kept in any office of the society other than its registered office.

(5) A person who is authorized to do so by the Commission shall be entitled to inspect any register or account that the society is required to keep under this section.

(6) Subject to subsection (7) of this section, no notice of any trust, express, implied

or constructive, shall be entered in any register or account kept by a society or be

received by the society or the Commission.

(7) Where the rules of a society so provide, an entry in a register or account kept by the society in respect of any shares in the society or moneys deposited with the society may, in the circumstances and in the manner authorized by the rules, be made so as to indicate that the shares or moneys are held by or vested in a person on trust.

(8) Whether or not an entry is made in pursuance of subsection (7) of this section, a

society shall be regarded as being unaffected by notice of any trust.

Inspection

61. (1) A society shall keep at its registered office, and at each branch office, open for inspection by any member of the public without fee-

(a) a copy of this Act and the regulations;
(b) a copy of the rules of the society;
(c) a copy of the last balance-sheet and profit and loss account of the society, together with a copy of the report of the auditor thereon;
and
(d) the prescribed register of directors or a copy thereof.

(2) The society shall, at the request of a member of the society, furnish that member

of the society with any information to which that member is entitled in accordance with

the regulations.

Financial year

62. (1) The financial year of a society shall end on such day in each calendar year as is provided by the rules of the society.

(2) The first financial year of a society may extend from the date of its registration to a day not later than eighteen months from the date of registration.

(3) Any alteration of the rules of a society altering its financial year may provide for

the financial year to extend for a period not exceeding eighteen months from the date of

registration of the alteration.

Accounts and audit

63. (1) The accounts of a society shall be audited annually or more frequently as may be prescribed by the rules of a society.

(2) The auditor of a society must be a member of a firm of registered company

auditors.

(3) It is the duty of the auditor of a society to form an opinion as to each of the following matters:-

(a) whether he has obtained all the information and explanations that to the best

of his knowledge and belief are necessary for the purposes of the audit;

PART VII

Building Societies Act, 1975

(b) whether proper books and accounts are being kept by the society and proper returns adequate for the purposes of the audit have been received from branches that have not actually been visited by the auditor;
(c) whether the society's balance-sheet and profit and loss account are in accordance with the books, accounts and returns of the society;
(d) whether the accounts give the information required by or under this Act in the manner so required, and give a true and fair view-
(i) of the state of the society's affairs as at the end of the financial year;
and
(ii) of the surplus or deficit arising from business conducted during the
financial. year;
(e) whether the register of members and other records that the society is required to keep have been properly kept;
and

Cf)	whether the rules relating to the administration of the funds of the society have been observed,

and he shall state in his report to the members particulars of any deficiency, failure or
shortcoming in respect of any matter referred to in this subsection.
(4) The auditor of a society shall have a right of access at all times to the books, accounts, vouchers, securities and documents of the society and shall be entitled to require from the directors and other officers of the society such information and explanations as he thinks necessary for the performance of his duty.

(5) If the auditor, in the course of performing an audit of the society is satisfied
that-
(a) there has been a breach of, or non-observance of, any provision of this Act;
and
(b) that the circumstances are such that in his opinion the matter has not been, or will not be, adequately dealt with by bringing the matter to the notice of the directors of the society, he shall forthwith report the breach or non-observance in writing to the Commission.

(6) This section does not apply to a Starr-Bowkett society if-

(a) its rules provide for its accounts to be audited annually or more frequently;
and
(b) its accounts are duly audited in accordance with its rules.

DIVISION IV-RETURNS

Returns
64. (1) A society shall, within one month after any change in the membership of the board of directors, inform the Commission in writing of the change.
(2) A society shall, within four months after the close of each financial year, or within such further time as the Commission may allow, transmit to the Commission the following returns:-
(a) a list of directors for the financial year then current;
34 Building Societies Act, 1975
( b ) a statement in the prescribed form of the assets and liabilities of the society at

the end of its financial year and of the accounts of the society for that

financial year;

(c) a copy of the report by the auditor in respect of the accounts;
( d ) a return in the prescribed form in respect of every property that has been sold by the society in the exercise of its powers as mortgagee, and every mortgage that has been transferred by the society to any other mortgagee, during the financial year last ended;
and
(e) a return containing such other particulars as may be prescribed.

(3) The Commission may by instrument in writing require a society to furnish such

further returns relevant to its financial position, or to the directors or members of the

society, as the Commission may require.

(4) The returns required pursuant to subsection (3) of this section shall contain the information stipulated in the instrument and shall be furnished as frequently as is required by the instrument.

(5) A society shall, when transmitting to the Commission the returns referred to in

subsection (2) of this section, include a statement showing the amount of any loans made

by the society during the financial year-

(a) to any officer of the society;
( b ) to any person who, after the making of the loan, became an officer of the
society;
(c) to a company or other body corporate in which an officer of the society is
interested;
or
(d ) to a company or other body corporate in which an officer of the society held any interest at the time when the loan was made.
DIVISION V-MANAGEMENT CONTRACTS

Management contracts

64a. (1) A.society shall not enter into a management contract without first obtaining the written approval of the Commission.

(2) In this section "management contract" means an agreement or arrangement

under which-

(a) a society agrees to perform the whole or any part of its functions-
(i) in a particular manner;
(ii) in accordance with the directions of any person;
or
(iii) subject to specified restrictions or conditions;
(b) a person who is not an officer or an employee of the society agrees to perform the whole, or a substantial part, of the functions of the society.

PART VIII

Building Societies Act, 1975

PART VIII

OFFICIAL MANAGEMENT AND WINDING UP

Application of this Part to an association
65. The provisions of this Part shall apply, mutatis mutandis, to and in relation to an

association.

Receivers and Managers and Official Management

66. (1) The provisions of Part X and Part XI of the Companies (South Australia) Code and of regulations applying under those provisions shall, mutatis mutandis, and
with such modifications (if any) as may be prescribed, extend to, and in relation to, a
society.
(2) For the purposes of that extension, a reference in any of those provisions to the National Companies and Securities Commission shall be construed as a reference to the Commission.
Winding up
67. (1) A society may be wound up voluntarily or by the court or upon a certificate of the Commission.
(2) In the case of a winding up voluntarily, or by the court, the society may, subject to the provisions of this Part of this Act, be wound up in the same manner and in the same circumstances in which a company formed and registered under the Companies
(South Australia) Code may be so wound up.
(2a) In the operation of subsection (2) references in the Companies (South Australia) Code to the National Companies and Securities Commission shall be
construed as a reference to the Commission.
(3) In the case of a winding up upon a certificate of the Commission, the society may be wound up if the Commission certifies-
(a) that the number of members of the society is reduced to less than twenty or, in

the case of an association, to less than three (but this paragraph does not

apply to a society registered under the repealed Act);

(b) that the society has not commenced business within a year of registration or

has suspended business for a period of more than six months;

(c) that the registration of the society has been obtained by mistake or fraud;
(d) that the society has ceased to hold paid-up share capital of not less than two million dollars (but this paragraph does not apply to a society registered under the repealed Act);
(e) that the society has, after notice by the Commission of any breach or non-compliance with this Act or the rules of the society, failed, within the time referred to in the notice, to remedy the breach or has committed any further breach specified in the notice;
(f) that there are, and have been for a period of one month immediately before

the date of the Commission's certificate, insufficient directors of the society

to constitute a quorum as provided by the rules of the society;

or

PART VIII

36 Building SocietiesAct. 1975
(g) following an inquiry pursuant to the provisions of this Act into the affairs of a society or the working and financial condition of a society, that in the interests of members or creditors of the society, the society should be wound up.

of subsection (3) of this section unless the Minister consents to the issue of the certificate.

(4) The Commission shall not grant a certificate under paragraph (c), (e), Cf) or (g)

(5) Where the Commission grants a certificate under this section it may appoint a person to be the liquidator of the society, and the liquidator shall give such security as may be prescribed and be entitled to receive such fees as shall be fixed by the Commission upon the advice of the Auditor-General.

(6 ) The Commission shall, within ten days after appointing a liquidator of a society, give notice of that appointment by notice published in the Gazette.

(7) A winding up on the certificate of the Commission-
(a) shall be deemed to commence on the day that the certificate is given;
and
(b) shall be carried out in the prescribed manner.

(8) A Starr-Bowkett society shall be wound up when the business that it was formed

to transact has been completed.

Liquidator

68. Where a society is being wound up voluntarily and a vacancy occurs in the office of liquidator that, in the opinion of the Commission, is unlikely to be filled in the manner provided by the Companies (South Australia) Code the Commission may appoint a person to be liquidator.

Remuneration of Liquidator

69. The remuneration paid to the liquidator of a society wound up voluntarily shall

not exceed the amount fixed by the Commission upon the advice of the Auditor-General.

Cancellation

70. As soon as may be practicable after a society is dissolved, the Commission shall cancel the registration of the society.

PART l X

Building Societies Act, 1975

PART lX
EVIDENCE AND OFFENCES
DIVISION I-EVIDENCE
Evidentiary provision
71. (1) An apparently genuine document purporting to be a certificate of incor- poration of a society or an association granted by the Commission under this Act or the repealed Act shall be accepted in any legal proceedings as proof of the incorporation and registration of the society or association in the absence of proof to the contrary.
(2) An apparently genuine document purporting to be a copy of the rules of a society or an association and to be certified by the Commission as a true copy of the rules of that society or association shall be accepted in any legal proceedings, in the absence of proof to the contrary, as a true copy of those rules.
(3) An apparently genuine document purporting to be a copy of, or extract from, a record of a society, and to be certified to be a true copy of, or extract from, such a record by the secretary of the society shall be accepted in any legal proceedings to be a true copy of, or extract from, that record in the absence of proof to the contrary.
(4) An apparently genuine document purporting to bear the common seal of a society or an association shall be accepted in any legal proceedings as a document that bears the common seal, duly affixed, of that society or association.
DIVISION 11-OFFENCES
Use of words "building society"
72. (1) Subject to this section, no person or body of persons, whether incorporated or unincorporated, other than a society registered under this Act shall-
(a) trade, carry on business, or advertise for share capital, deposits or loan funds under any name or title of which the words "building society" or "building societies" form a part;
(b) trade or carry on business as a building society;
or
(c) in any manner hold out that its trade or business is that of a building society.
Penalty: One thousand dollars.

Default Penalty: Two hundred dollars.

(2) For the purposes of subsection (1) of this section, where a person, or a body of persons, administers a fund into which members of a group contribute moneys and which is applied solely or principally in loans to those members, secured by mortgage over land, for the purpose of building dwelling-houses in which the members propose to reside, that person or body of persons shall be deemed to be trading or carrying on buginess as a building society.
(3) Any society or company formed or incorporated outside South Australia that desires to trade or carry on business in South Australia may apply to the Commission for exemption from the provisions of subsection (1) of this section and that subsection shall not apply to any such society or company in respect of which the Commission has granted exemption.
(4) The Commission may grant any exemption referred to in subsection (3) of this

section for such time and upon such conditions as it thinks fit and may, upon

non-compliance with any such conditions, revoke any such exemption.

38 Building Societies Act, 1975

Allotment of shares

73. If before a society is registered any person takes any money in consideration of the allotment of any share or interest in, or grant of a loan by, the society, he shall be guilty of an offence and shall be liable to a penalty not exceeding five hundred dollars.

Too few members, etc.

74. (1) If a society continues for a period of one month to carry on business-
(a) after the number of its members is reduced below twenty;
or
(b) after it ceases to have a paid-up share capital of at least two million dollars,

the society shall be guilty of an offence and liable to a penalty not exceeding five hundred

dollars.

Default Penalty: Fifty dollars.

(2) Subsection (1) of this section shall not apply in respect of a society registered

under the repealed Act.

Certain acts prohibited in relation to loans

75. (1) If any person-
(a) seeks, claims or receives any commission, fee or reward (whether pecuniary or otherwise) from any person as a consideration or charge for procuring or obtaining, or offering or attempting to procure or obtain, for any person a loan from any society;
(b) advertises or otherwise holds himself out as being able to arrange or obtain finance for any persons through or from any society,

he shall be guilty of an offence and shall be liable to a penalty not exceeding five hundred

dollars.

(2) Any sum received in contravention of this section or section 73 of this Act may be recovered by the person who paid it from the person by whom it was received in an action for debt in any court of competent jurisdiction.

Commission

76. (1) If any officer or employee of a society accepts any commission, fee or reward (whether pecuniary or otherwise) from any person for or in connection with a transaction with the society, he shall be guilty of an offence and liable to a penalty not exceeding one thousand dollars or imprisonment for six months.

(2) Every officer or employee who is guilty of any offence under this section shall further be liable to make good to the society the value or amount of the commission, fee or reward.

Default by society

77. (1) If a society contravenes or fails to comply with-
(a) any provision of this Act that does not provide a penalty for such contraven- tion or failure to comply;

Building Societies Act, 1975

(b) any rule of the society,
it shall be guilty of an offence and liable to a penalty not exceeding five hundred dollars.
(2) If a society refuses or neglects to furnish any return or information lawfully required by the Commission or by any other person it shall be guilty of an offence and liable to a penalty not exceeding one thousand dollars.
Default by society extended to directors and officers
78. Where a society is guilty of an offence against this Act, every officer of that society shall be guilty of the same offence unless he proves that the offence was committed without his knowledge or that he used all due diligence to prevent the commission of the offence.
Proceedings
79. Proceedings for an offence against this Act shall be disposed of summarily.
Saving provision
SO. If a society contravenes or fails to comply with any provision of this Act or the

rules of the society, the rights and liabilities of the society, or any other person, under this

Act or any other Act or law, shall not be affected or prejudiced thereby.

PART X

40 Building Societies Act,1975
PART X
CONTROL OF ADVERTISING

Restrictions on initial advertisement

81. (1) A person shall not issue, or cause to be issued, any advertisement that relates

to a society proposed to be formed or registered under this Act, unless the Commission

has first consented to the advertisement.

Penalty: Five hundred dollars.

(2) Any person whose name appears as a proposed director of a society in an advertisement issued in contravention of subsection (1) of this section shall be guilty of an offence under that subsection, unless he proves that the advertisement was issued without his knowledge or that he used all due diligence to prevent the issue of the advertisement.

(3) A society first registered after the commencement of this Act shall submit the first advertisement proposed to be issued by the society after registration to the Commission for its approval.

Penalty: Five hundred dollars.

Power to control advertising of a society

82. (1) The Commission may, with the approval of the Minister, by notice served on a society give a direction-

(a) prohibiting the issue by the society of advertisements of all descriptions;
(b) prohibiting the issue by the society of advertisements of any description specified in the direction;
(c) prohibiting the issue by the society of any advertisements that are, or are substantially, repetitions of an advertisement that has been issued;
(d) requiring the society to take all practicable steps to withdraw any adver- tisement, or any description of advertisement, specified in the direction;
(e) requiring that in any specified kinds of advertisements, or invitations to invest in or lend money to a society, there shall be included a statement giving any information stipulated by the Commission with respect to the society.

(2) Directions under this section may be varied or revoked at any time by a subsequent direction under this section.

(3) Any society that fails to comply with any direction given to it under subsection (1) of this section shall be guilty of an offence and liable to a penalty not exceeding five hundred dollars.

Building Societies Act, 1975

PART XI

MISCELLANEOUS

Minutes
83. A society shall cause full and accurate minutes of every meeting of the board, and of every meeting of the members of a society, to be kept.
Certain insurance policies to be forwarded to members
85. Where, pursuant to an agreement with a member, a society procures the issue of a policy of insurance over any property that provides security for a loan to that member, the society shall, within one month after the date of issue of the policy, forward to the member-
(a) the policy, or a copy thereof;
(b) a statement of the risks covered by the policy.
Special meeting and inquiry
86. (1) The Commission shall, on the application of a majority of the board or of not less than one-third of the members, or may, of its own volition-
(a) call a special meeting of a society;
(b) hold an inquiry into the affairs including the working and financial conditions
of a society.
(2) An application under subsection (1) of this section shall be supported by such evidence as the Commission directs for the purpose of showing that the applicants have good reason for requiring the meeting or inquiry and that the application is made without malicious motive.
(3) Such notice of the application shall be given to the society as the Commission
directs.

(4) The applicants shall give such security for the expenses of the meeting or inquiry

as the Commission directs.
(5) The Commission may direct at what time and place the meeting or inquiry is to be held and what matters are to be discussed and determined and shall give such notice to members of the holding of the meeting or inquiry as it deems tit, notwithstanding any provision in the rules of the society as to the giving of such notice.
(6) A meeting held under this section shall have all the powers of a meeting called in

accordance with the rules of a society and shall have power to appoint its own chairman,

notwithstanding any rule of the society to the contrary.

(7) A person nominated by the Commission may attend and address a meeting held under this section.
(8) All expenses of and incidental to the meeting or inquiry shall be defrayed by the applicants or out of the funds of the society or by any officer or member, or former officer or member, in such proportion as the Commission directs and may be recovered as a debt in anycourt of competent jurisdiction.

PART XI

42 Building Societies Act, 1975

Societies may act as agents of Aboriginal Loans Commission

86a. (1) A society may, by agreement with the Aboriginal Loans Commission, act as an agent of that Commission.

(2) The terms and conditions of an agreement under subsection (1) must be approved by the Commission.

(3) In this section-
"the Aboriginal Loans Commission" means the Aboriginal Loans Commission established under the Aboriginal Loans Commission Act 1974 of the Com- monwealth.

Default penalties

87. (1) Where in, or at the foot of, any section or part of a section of this Act there appears the expression "Default Penalty", it signifies that any person who is convicted of an offence against this Act in relation to that section or part shall be guilty of a further offence against this Act if the offence continues after he is so convicted and liable to an additional penalty for each day during which the offence so continues of not more than the amount expressed in the section or part as the amount of the default penalty.

(2) Where any offence is committed by a person by reason of his failure to comply with any provisions of this Act by or under which he is required or directed to do anything within a particular period, that offence, for the purposes of subsection (1) of this section shall be deemed to continue so long as the thing so required or directed to be done by him remains undone, notwithstanding that the period has elapsed.

Regulations

89. (1) The Governor may make all such regulations as are contemplated by this Act, or as he considers necessary or expedient for the purposes of this Act.

(2) Without limiting the generality of subsection (1) of this section, those regulations

may -

(a) prescribe any form for the purposes of this Act;
(b) prescribe the manner in which a rate of interest is to be calculated for the
purposes of this Act;
(c) prescribe, and provide for the recovery of, fees in respect of any application

under this Act;

(d) limit the charges that may be made by a society in respect of the granting of a

loan by the society, or for any work done by a society in relation to the

granting of a loan;

(e) require societies, or societies of a prescribed class, to keep their offices open to the public throughout prescribed periods;

(f)	limit the amount that a society may subscribe to an association;
and

(g) prescribe penalties not exceeding two hundred dollars in any case for breach of, or non-compliance with, any regulation.

Building Societies Act, 1975

APPENDIX
Legislative History

Legislative history prior to 3 F	:ebruary 1976 appears in marginal notes and footnotes included in the cons	ation of	this
Act contained in Volume 1 of	The Public General Acts of South Australia 1837-1975 at page 750.

Section 3:

amended by 103. 1981, s. 3: 71, 1982, s. 2: 104. 1984. s. 2

Section 5:

redes~gnated as s. 5(1) by 29. 1982. s. 25 (151 Sched.)

definition of "amaimmation" inserted bv 71. 1982, s. 3(a)

definition of "restricied loan" ihserted by 41; 1981; s. 3.

Section 5(2):

inserted by 29, 1982. s. 25 (1st Sched.)

Heading preceding section 6:

inserted by 104, 1984. s. 4

Section 6:

amended bv 41. 1981. s. 4: substituted bv 104. 1984. s. 4

Sections 7 and 8:

gubstitutedVby io4, 1984. Q.

Heading preceding section 9:

~nserted

by 104. 1984. s. 4

Section 9:

substituted by 104. 1984. s. 4

Section 9a and headine:

inserted bv 104. 1984. s. 4

Section 10:

redesignaied ar's. i0(i) b

104, 1984, s. 5

Section 10(2) - (4):

inserted by 104. 1984. s. Y

Section 12 1) and (2):

amended by 104. 1984. s. 6

Section 1 2 h

amended bv 41. 1981. s. 5: 104. 1984. s. 6

Section 12 4:

amended b t 104. 1984. s. 6

Section 13:

amended by 104, 1984, s. 7

Section 1612):

amended by 104. 1984, s.

Section 16i3\:

amended by 104. 1984. s. amended by 104, 1984, s. amended by 104. 1984. s. amended by 104, 1984. s. amended by 104, 1984, s. amended by 104, 1984. s. amended by 104. 1984, s. 1

amended by 104. 1984. s. 11 amended by 104, 1984. s. 12

Section 21-

substituted by 41, 1981, s. 6

substituted by 41. 1981, s. 6: 71. 1982. s. 4

amended by 104, 1984, s. 13(a)

amended bv 104. 1984. s. 13

substituted.by 4; 1984; s. 6: 71. 1982. s. 4

amended by 104, 1984, s. 14(a)

amended by 104, 1984. s. 14

inserted b

41, 1981, s. 6: substituted by 71. 1982. s. 4

amended i v 104. 1984. s. 15

inserted by.71. 1982, s. 4

amended by 104. 1981. r. 16

amended bv 104. 1984. s. 17

amended b t 104; 1984. s. 18(a)

amended bj. 101. 1984. s. 18'

rubs:ituled by 1 1. 1981, s. 7

amended bv 103. 1981.5. 4fal amended b t 104. 1984: s. 196) amended b4 103; 1981; s. 4 6

amended by 103. 1981, s. 41cj1104, 1984. s.

amended by 104. 1984, s. 20(a)

amended bv 104. 1984. s. 20

Section 35a:

amended h4 64, '1985, s. 2

Section 36(2):

definition of "li uid funds" amended by 103. 1981. s. 57a)

: paragraph

repeale

d by

Section 36(4):

amended by 104.1984. s. 21

Section 37 1:

amended bv 104. 1984. s. 22

Section 38 1:

amended bjr 104, 1984; s. 23

Section 38 3 and (6):

amended by 104, 1984, s. 23(a)

Section 39 2:

amended by 104, 1984. s. 24

Section 40 1:

amended by 103. 1981, s. 6(a). (b);

104. 1984,

Section

40 l 3 i

substituted by 103, 1981, s. 6(c): 104, 1984, s.

Section 40 5:

amended by 104, 1984, s. 25(c)

Section 41 1:

substituted bv 41. 19R1. s. R

~~ - - ~

~~~.~

- ~.

...

Section

41 I

amended b~i03.1981.

s. 7

Section 43 1:	amended by 104; 1984; s. 26
Section 47 5:	amended by 104, 1984, s. 27

Section

47 I

amended by 41, 1981. s. 9

Section 47(10):

amended hv 104. 1984. s. 27

Section 50:

substituted'bv 41. 1981. s. 10

Section 50(2):

amened by 164. 1984, s. 28 amended by 104, 1984, s. 29 amended bv 103. 1981. s. 8

amended bj. 104; 19~1:

s. 30

Section 59 3)

amended by 104. 1984.5. 31

Section 60[4):- (6):

amended by 104. 1984. s. 32

44 BuildingSocieties Act. 1975

Section 63 5)

amended by 104, 1984, s. 33

Section 6411):- (3) and (5):

amended by 104, 1984, s. 34

Division V of Part WI comprising s. 64a and heading inserted by 41, 1981, s. 11

Section 64a(l):	..	amended by 104, 1984. s. 35
Section 66:	substituted by 29, 1982, s. 25 (1st Sched.)

Section 66(2):

amended by 104. 1984, s. 36

amended by 104, 1984, s. 37(a)

amended by 29, 1982, s. 25 (1st Sched.)

inserted by 29, 1982, s. 25 (1st Sched.): amended by 104, 1984, s. 37(b)

amended by 103. 1981, s. 9: 104. 1984, s. 37(a). (c)

amended by 104. 1984, s. 37 a

amended by 104, 1984, s. 37 a,

(d)

Section 67(6\ and (71:

amended by 104. 1984, s. 37 a)

I ]

Section 6%' '	amended by 29. 1982, s. 25 (1st Sched.): 104, 1984, s. 38
Section 69:	amended by 104. 1984, s. 39
Section 70:	amended by 104. 1984, s. 40
Section 71(1 and (2):	amended by 104. 1984, s. 41
Section 72(3]:	amended by 104. 1984, s. 42(a)
Section 72 4	amended by 104. 1984. s. 42
Section 74ilF	amended by 41, 1981, s. 12
Section 77 2).	amended by 104. 1984, s. 43
Section 81j11	amended by 104, 1984. s. 44(a)
Section 81 3:	amended by 104,1984, s. 44
Section 82 1:	amended by 104. 1984, s. 45
Section 84:	repealed by 104. 1984. s. 46
Section 86 1)	amended by 104. 1984. s. 47 a). (b)
Section 8612)'- (4):	amended by L04. 1984. s. 471a)
Section 86j5)j	amended by 104. 1984, s. 47 a). (c)
Section 86 7).	amended by 104. 1984, s. 47 d)
Section 86(8):	amended by 104. 1984, s. 47 a) I
Section 86a:	inserted by 3. 1976. s. 3: substituted by 104. 1984, s. 48
Section 88:	repealed by 104. 1984. s. 49
Section 90:	inserted by 41, 1981, s. 1% repealed by 104, 1984, s. 50