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Friendly Societies Act, 1956 (Act No. 25 of 1956)

Chapter V : Enquiries and Investigations, Applications to Court, Cancellation or Suspension of Registration and Dissolution of Societies

38. Special provisions relating to liquidation of societies

 

(1) In applying the provisions of the Companies Act, 1973 (Act No. 61 of 1973), in terms of section thirty-five or thirty-seven —
(a) the members of a society shall be treated as deferred creditors, and their claims against the society in their capacity as members shall not be settled until the debts of ordinary creditors have been paid.
(b) [Section 38(1)(b) deleted by section 35 of Act No. 104 of 1993]

[Section 38(1) substituted by section 25 of Act No. 103 of 1979]

 

(2) If a society has a share capital, the liability of a shareholder in the event of liquidation under the aforementioned sections shall either be limited to the amount (if any) unpaid on any share held by him, or shall be unlimited according as is provided by the rules of the society.