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

Chapter VI : Special Provisions Applicable to Affiliated Friendly Societies

40. Special provisions applicable to affiliated societies and central societies

 

(1) Notwithstanding anything contained in section five or six —
(a) an application for registration under this Act of an affiliated society may be made by the central society of which such affiliated society is a member, and in such event the information to be supplied by the central society shall be the same as if such application had been made by the person carrying on the business of the affiliated society; and
(b) an affiliated society may be registered under this Act by a name identical with or similar to the name under which the central society of which it is a member is registered, but such affiliated society shall add to the name of the central society some distinguishing name, letter or number which will differentiate it from other affiliated societies of the said central society.

 

(2) The provisions of section thirteen shall mutatis mutandis apply to a central society except that the following paragraphs shall apply instead of paragraphs (b), (c), (d), (e), (f) and (r), namely —
(b) the objects of the central society and of its affiliated societies, the composition and powers of the central society and of its affiliated societies respectively and the manner of settling disputes between the central society and any of its affiliated societies;
(c) the manner in which the funds of the central society are to be raised and the purposes for which they are to be applied;
(d) the conditions (if any) under which, subject to the provisions of this Act, an affiliated society may secede or be expelled from the central society.

 

(3) No rule or part of a rule of an affiliated society shall be valid if it conflicts with the rules, or any part of the rules of the central society of which the affiliated society is a member, and any person who is under this Act entitled to receive a copy of the rules of an affiliated society shall also be entitled to receive a copy of the rules of the central society of which the affiliated society is a member.

 

(4) The Authority may, instead of investigating or appointing an inspector to investigate the affairs or any part of the affairs of an affiliated society in terms of section thirty-two, give the central society of which the affiliated society is a member the option of itself making a similar investigation, and the central society shall, if it exercises such option, report to the Authority the results of its investigation, and thereupon the Authority may make an investigation or cause an investigation to be made in terms of that section, if he considers it necessary.