Industrial and Provident Societies (Amendment) Act, 1978

Use of funds by certain societies.

7.—(1) This section applies to a society which was incorporated before the 4th day of October, 1978, and which had accepted and held deposits which on that date did not exceed £25,000.

(2) A society to which this section applies shall, as soon as practicable but not later than three months after the passing of this Act, submit to the Registrar for his approval a scheme for the repayment to depositors of moneys deposited by them with the society.

(3) A society to which this section applies shall not make any payments which have not been authorised by the Registrar, other than repayments under subsection (2) in accordance with a scheme approved by the Registrar for the purposes of that subsection.

(4) A scheme approved by the Registrar under subsection (2) shall have effect notwithstanding anything in the rules of a society relating to the repayment of deposits by the society.

(5) Where it appears to the Registrar that a society to which this section applies is not complying, or has not complied, with subsection (2) or (3), he may, after giving notice to the society and considering any representations made by it, make an application under section 19 to the Court for the winding up of the society.