THE FRIENDLY SOCIETIES BILL.

Otago Witness, Issue 1340, 4 August 1877, Page 8

THE FRIENDLY SOCIETIES BILL.

[By Telegbaph. | (from our own correspondent.) "Wellington-, July 26th. The Friendly Societies Bill now before the Legislative Council consists of 40 clauses. The Bill repeals the Acts of 1867 and 1875. Rules of existing registered societies are to remain in force. Societies may be registered for relief or maintenance of members, their husbands, wives, children, fathers, mothers, brothers or sisters, nephews or nieces, or wards being orphans, during sickness or other infirmity, whether bodily or mental, in old age (which shall mean any age after fifty), or widowhood ; or for relief or maintenance of orphan children of members during their minority; for insuring money to be paid on birth of a member's child, or on the death of a member, or for funeral expenses of husband, wife, or child of - member, or of widow of deceased member ; or, as regards persons of Jewish persuasion, for payment of a sum of money during the period of confinement ; for the relief or mainten ance of members when on travels in search of employment, or when in distressed circumstances, or in case of shipwreck, or loss or damage of or to boats or nets; for endowment of members, or nominees of members, at any age ; for insurance against fire to any amount not exceeding L3O, of tools or implements of trade or calling of members, provided that no society (except as aforesaid) which contracts with any person for the assurance of an annuity exceeding LIOO per annum, or of a gross sum exceeding L4OO, shall be registered Tinder the Act; societies (called cattle insurance societies) for insurance to any amount against loss by death of cattle, sheep, lambs, Bwine, and horses, from disease or otherwise ; societies for any benevolent or charitable purpose; societies for purposes of social intercourse, mutual helpfulness, mental and moral improvement, and ration*! recreation ; societies for any purpose which the Governor may authorise as a purpose to which the powers aud facilities of the Act ought to be extended. Registrars and revising barristers are to be appointed. The Registrar is to prepare model forms of accounts, balance-sheets, &c. ; also, tables for payment of sums of money on death, in sickness or old age, or any other contingency forming the subject of an assurance authorised ! under the Act ; provided that the adoption of such tables by anjr society shall be optional. No rules of any society granting annuities is to be registered without the certificate cf the Government Actuary that its contributions are sufficient. Every registered society must have a registered office, appoint one or more trustees, and submic its accounts for annual audit to the Public Auditor or two or more persons appointed by the rules of the society. Quinqu- ! ennial returns are to be made and laid before the Acßembly, and quinquennial valuations of each society are also to be made by a valuer appointed by the society and approved by the Governor. Friendly societies' receipts, &c, are exempted from stamp duty. Members may nominate anyone to receive a sum of LSO on death of nominator. Minors may be members of societies if above age of 16, under certain rules. Societies may subscribe to hospitals or i charitable institutions to secure members the benefits thereof. Societies' funds may be invested in Post Office Savings Banks or other Banks of the Colony as the Governor may appoint, in debentures, bonds, or Treasury bills issued by or on behalf of the General Government of the Colony under the authority of the General Assembly, in the purchase of land, or in the erection or alteration of offices or other buildings thereon, or upon any other security expressly directed by the rules of the ■ociety or registered branch, not being personal security, except as authorised with respect to loans. Securities may hold land. Fraud or misappropriation of funds ia rendered punishable, and treasurers of societies are to be deemed servants of + iru3tees within meaning of Larceny Act, 1867. Loans may be made by a society of members to not more than one half of the amount of assurance on the life of the • member of at least one full year's standing, on _ written security of himself and .- two satisfactory securities for repayment. A society may, out of any separate loan fund to be formed by contribution or deposits of members, make loans to members on their personal securities, with or without sureties, as may be provided by rule 3, subject to the following restrictions :— No loan can at : any time be made out of moneys contributed for other purposes of the society. No member ahall be capable of holding any interest in loan fund exceeding L2OO. No society shall make v loan to a member on personal security beyond „ amount fixed by rules, or make any loan which together with any money for the time being owing by a member to the society, shall exceed liso. No society shall hold at any one time on deposit from its members, any money beyond the amount fixed by the rules, which shall not exceed two-thirds of total sums for the time being owing to the society by members who have borrowed from loan fund. Officers are to give security. Provisions are made in regard to legal proceedings. Disputes between members are to be decided according „ . to rules, and are not to be removable into any -- Court of law, but may, by mutual consent, be referred to the Registrar, who may enquire on oath, and enforce his decision on the application of a certain proportion of members. The Registrar, with the consent of the Governor, may appoint an inspector to examine into the af • fairs of any company, under certain regulations. Societies may register as joint-stock companies. Separate societies may become, under provisions set out, branches of a general society, and as such may contribute to the general society. Full provision is made for the dissolution of societies under every conceivable contingency. With regard to paymenta on the death of children, not more than L 6 is to b« paid for any child under 10, or more than a proportion

of LlO by all the societies it was registered in. Parents only on this representation can receive payment on a proper certificate. Full provision is made in regard to Ihe establishment and management of branches, collectors, &c. The Governor may appoint public auditors and valuers, and fix fees payable to them by societies. The rules of every society must provide for the following matters : — L Name and place of office of society. 2. The whole of the objects for which the society is to be established, the purposes for whic'a funds shall be applicable, terms of admission of members, conditions under which any member may become entitled to any benefit assured thereby, and fines and forfeitures to be imposed on any member. 3. The made of holding meetings and right of voting, and manner of making, altering, or rescinding rules. 4. The appointment and removal of committees of management (by whatever name) of treasurer and other officers and trustees, and in case of a society with branches, the composition cf the central body, and the conditions under which the branch may secede from the Society. 5. The investment of funds, keeping of accounts, and audit of same once a year at least. 6. Annual returns to the Registrar of receipts, funds, effects, and expenditure, and number of members of society. 7. The inspection of the books of the society by every person having an interest in the funds of the society. 8. The manner in which disputes between the society and any of its members, or any person claiming through a member or under rules, shall be settled. 9. In case of dividing societies, a provision for meeting all claims upon the society existing at the time of the division before any such division takes place, and also, in case of friendly and cattle insurance societies — L The keeping of separate accounts of all moneys received or paid on account of every particular fund or benefit assured, for which a separate table of contributions payable shall have been adopted, and keeping separate accounts of expenses of management, and of all contributions on account thereof. 2 (except as to cattle insurance societies). Returns every five years to registrar of sickness and mortality of society. 3 (except as to cattle insurance societies). A valuation once at least in every five years of the assets and liabilities of the society, including estimated risks and contributions. 4 The voluntary dissolution of the society; by the consent of not less than fivesixths in value of members, and or every person for the time being entitled to any benefit from the funds of the society, unless his ilaim be first satisfied or adaquately provided for. 5. The right of one-fifth of the total number of members, or of 100 members, and not exceeding 10,000, or of 500 members in case of a society ot more than 10,000 member*, to apply to the registrar for the investigation of the affairs of the society, or for winduuj up the same.