Building Societies Act, 1976

Winding up.

95.—(1) Subject to this section, a society may be wound up in accordance with Part VI of the Act of 1963, and accordingly that Part of that Act shall, subject to any necessary modifications, apply as if the society were a company.

(2) Notwithstanding section 213 of the Act of 1963, a society may be wound up under this section by the Court if—

(a) the society has by special resolution resolved that the society be wound up by the Court;

(b) the society does not commence its business within a year from its incorporation or suspends its business for a period of twelve months;

(c) the society is unable to pay its debts;

(d) the Court is of opinion that it is just and equitable that the society should be wound up.

(3) (a) Notwithstanding anything in section 215 (as applied by this section) of the Act of 1963, an application under that section for the winding up of a society may be made by the Registrar.

(b) Section 215 (d) of the Act of 1963 shall not apply to the winding up of a society.

(4) The winding up of a society shall not bar the right of the Registrar to have it wound up by the Court.

(5) Part X of the Act of 1963 shall not apply to a society and, notwithstanding anything in that or any other Act, a society may not be wound up except in accordance with this section.

(6) Where a society is being wound up, a person to whom a loan has been made by the society under a mortgage or other security shall not be liable to pay the amount payable in respect of the loan except at the time or times and subject (as may be appropriate) to the conditions set out in the mortgage or other security.

(7) Where a society is being wound up under this section the Court may on the application of the liquidator of the society order that the amount deposited by it under section 20 with the Central Bank, together with any interest accrued thereon, shall vest in the liquidator by his official name, and thereupon that amount and interest shall vest accordingly.

(8) The liquidator shall pay from the amount vested in him under subsection (7) to the persons maintaining deposits with the society the amount of each deposit (including interest credited to such persons) remaining due by the society to such persons or, if the amount so vested in him is insufficient for that purpose, shall distribute it to such persons in proportion to the amount of each such deposit so remaining due, and, before making such payments or distribution, the liquidator shall pay or retain out of the amount so vested in him—

(a) any such costs and expenses of the liquidator in relation to the amount aforesaid and to the payments or distribution to such persons as the Court may allow,

(b) any sum which satisfies any claim in relation to interest payable by the society by agreement on amounts deposited with the society,

and any amount remaining after such use of the said balance shall be included in the assets of the society for the purpose of the winding up.

(9) If the total amount so vested in the liquidator is not sufficient to discharge the claims of the persons among whom he is required by subsection (8) to distribute it, those persons may claim as ordinary creditors of the society in respect of the unsatisfied portion of their claims.

(10) Where the winding up of a society commences within one year after the society has changed its name, the former name as well as the existing name shall appear on all notices and advertisements relating to the winding up.

(11) In this section “company” has the same meaning as in the Act of 1963.