Building Societies (Amendment) Act, 1986

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Rules relating to appointment, etc. of board of directors.

7.—(1) Notwithstanding the provisions of the Acts or the rules of a society, whenever the Minister prescribes rules, pursuant to section 10 (3) of the Principal Act, such rules, in so far as they relate to the appointment, remuneration and removal of the board of directors of societies, shall, if the regulations by which such rules are prescribed so specify, be rules to which this section applies.

(2) Where rules to which this section applies have been prescribed, and the rules of a society to which they are declared to be applicable by the regulations by which such rules have been prescribed are not in the opinion of the Registrar substantially in accordance with the rules as so prescribed, the Registrar shall notify the society of his opinion within one month after the commencement of the regulations, and in such a case the prescribed rules shall, with effect from three months after the commencement of the regulations, be part of the rules of the society and shall have effect notwithstanding any existing provision of the rules of the society.

(3) (a) A society may, before the expiration of the period of three months specified in subsection (2) of this section, appeal to the Court against the opinion of the Registrar.

(b) Where an appeal under this subsection is upheld, the rules of the society may remain in operation.

(c) Where an appeal under this subsection fails, the rules prescribed shall, with effect from one month after the date of the Court's decision on the appeal, be part of the rules of the society and shall have effect notwithstanding any existing provision of the rules of the society.