Building Societies Act, 1976


Control of Societies by Registrar

Power of Registrar to appoint inspector or call special meeting.

29.—(1) Where—

(a) an application is made to the Registrar, in the case of a society having more than 1,000 members, by not less than 100 of those members and, in any other case, by not less than one-tenth of the total number of members of the society, or

(b) the Registrar is of the opinion that an investigation should be held into the affairs of a society or that the affairs call for consideration by a meeting of the members of the society,

the Registrar may appoint one or more inspectors to investigate the affairs of the society and to report thereon in such manner as he directs, or may call a special meeting of the society.

(2) The Registrar may, either on the same or on different occasions, both appoint an inspector and call a meeting under subsection (1).

(3) (a) An application under this section shall be supported by such evidence as the Registrar may direct, for the purpose of showing that the applicants have good reason for requiring the investigation to be made or the meeting to be called and that they are not actuated by malicious motives in their application.

(b) Notice of the receipt of the application shall be given to the society by the Registrar.

(c) All expenses of and incidental to the investigation or meeting shall be defrayed (whether by the applicants or out of the funds of the society or by the members or officers or former members or officers of the society) as the Registrar may direct and, before appointing an inspector or calling a meeting, the Registrar may require the applicants to give security, in such amount as he considers reasonable, for payment of the cost of the investigation or meeting.

(4) (a) The Registrar may give such directions as he thinks fit in relation to the calling, holding and conduct of a meeting held under this section (including the time and place of the meeting and what matters are to be discussed and determined at the meeting).

(b) The Registrar may appoint a person to be chairman at a meeting held under this section.

(c) The power of a meeting held under this section to appoint its own chairman shall be exercisable in default of such an appointment by the Registrar.

(d) A meeting held under this section shall have all the powers of a meeting called according to the rules of the society.

(e) This subsection shall have effect notwithstanding anything in the rules of the society.

(5) Before appointing an inspector or calling a meeting under this section the Registrar may, if he is of the opinion that it would not be prejudicial to the interests of members or creditors, notify the society in writing of the action which he proposes to take and of the grounds on which he proposes to take it and, in such a case, the society shall, within 14 days of the receipt of the notification, be entitled to give to the Registrar an explanatory statement in writing.

(6) Where an inspector appointed under this section to investigate the affairs of a society thinks it necessary for the purposes of his investigation to investigate also the affairs of any other society or any body corporate which is or has at any relevant time been associated with the first-mentioned society, he shall with the approval of the Registrar, have power to do so, and shall report on the affairs of the other society or body corporate so far as he thinks the results of his investigation thereof are relevant to the investigation of the affairs of the first-mentioned society.