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Power of Registrar to suspend raising of funds, etc.
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31.—(1) Where the Registrar is of the opinion that a society has become or is likely to become unable to meet its obligations to its creditors, or considers it expedient in the interests of its members or of the orderly and proper regulation of building society business or if the society is being investigated under section 29, he may direct a society in writing to suspend for such period, not exceeding two months, as shall be specified in the direction one or both of the following:—
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(a) the acceptance of any subscriptions for shares (other than subscriptions which fell due but were not paid before the date of the direction) or any deposits or loans; or
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(b) payments which have not been authorised by the Registrar.
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(2) A direction under this section shall have effect in accordance with its terms but, notwithstanding the issue of a direction, a society may borrow money from a bank or from an officer of the society if the Registrar consents in writing to such borrowing.
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(3) Where he considers that it would not be prejudicial to the members or creditors or to the orderly and proper regulation of building society business, the Registrar may give the society and every director of the society not less than 14 days' notice of his intention to issue a direction under subsection (1) and any such notice shall specify the considerations by reference to which he considers the issue of a direction to be necessary.
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(4) Where notice of intention to give a direction is given under subsection (3), the Registrar shall consider any representations made to him in relation to the proposed direction within such period (of not less than 7 days) as he may specify from the date on which the notice is given.
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(5) A direction under this section by the Registrar to a society shall specify the considerations (being considerations specified in a notice under subsection (3)) by reference to which he considered it necessary to issue the direction.
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(6) A notice under this section may be served on a director of a society by sending it by post to his address as notified to the Registrar, but failure so to serve such a notice shall not affect the validity of a direction under this section.
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(7) A direction may be revoked at any time by the Registrar.
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(8) The Registrar shall cause to be published in Iris Oifigiúil, and in such other way as appears to him expedient for informing the public, notice of the issue of a direction and of its revocation.
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(9) Where at the time a direction is given to a society by the Registrar a member of the society is under an obligation to pay instalments to the society by way of subscriptions for shares, the obligation to pay such instalments shall be suspended for the period during which the direction is in force and, accordingly, if the direction is revoked the subscriptions shall again become payable by instalments.
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(10) (a) This subsection applies where the Registrar has made a direction under this section and the direction has not been revoked.
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(b) It shall be the duty of the society to make reasonable arrangements for using the funds of the society to meet applications by depositors or shareholders in the society (being applications duly made in accordance with the rules of the society) for repayment of the money deposited or subscribed by them.
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(c) Where it appears to the Registrar that the society has been applying an undue proportion of the funds of the society in making loans, in preference to meeting such applications as are mentioned in paragraph (b) he may, after giving notice to the society and affording it an opportunity of making representations, petition the Court under section 95 for an order to wind up the society under that section.
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(11) Reference in this section to the amount due by way of subscriptions for a share in a society shall not include amounts due in respect of a share which represents interest on, or the repayment of, an advance made to the holder of the share.
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