FRIENDLY SOCIETIES BILL

Otago Daily Times, Issue 14698, 4 December 1909, Page 11

FRIENDLY SOCIETIES BILL

FIN A N CIA L SAFEGUARDS. (Fbom Obr Own C'onßEsro:<DK.\'T.) WELLINGTON, December 3. The Friendly Societies' Bill, which was introduced to-day, is similar to that circulated last year. It ie in substitution for " Tho Friendly Societies Act, 3908." which is a re-enactment of " The Fi-iendlv Sorielies Act, 1.83 L'," as amended in 1886 and 18S2. The bill incorporates such provisions of the Imperial Acts of 18S6 ''ml 1.808 as seem applicable to New Zeai 'ami, as well as several new provisions j lor improving tho financial soundness of ! the societies. The classes of societies to .be registered arc. slightly altered, cattle insurance societies " are omitted, and no such societies have ever made use of (he Friendly Societies' statutes in NewZealand. The provisions of the societies may include among their objects the guarantee of the fidelity of their officers and servants. In future no society or branch is to be registered unless the rates of contributions shown in the rules are certified by an actuary. Any existing society or branch having an adequate scale of contributions may obtain, on application to the registrar,'an actuarial certificate to that cflect. No amendment of tho rules of a society or branch is in be registered until ail actuary has reported thai the amendment does not adversely affect the financial soundness of the society or branch. Additional provisions as to powers of investment are proposed. Trustees, when investing money on mortgage of land or buildings, must not advance more than a fixed proportion of the value of the security, and if any benefit funds are in future invested in tho purchase of land or the erection or alteration of buildings wholly or partly occupied by the society or branch, a specified rate of interest on the sums invested must be guaranteed by the society or branch. Money payable by a, Briendly Society to a member, or on the Heath of a member, is protected against creditois in tho same manner afi life insurance policies. The provisions as to inspection and the settlement of disputes by arbitration have been extended in accordance with tho English and New South Wales Acts. The provisions in " The Friendly Societies Act, 1908 " as to " collecting societies " have been omitted, as no longer neccssary or operative.