The Gazette 1975

documents of or relating to the Society which are in their power, possession or procurement and otherwise to give to him all assistance in connection with the investi- gation as they are reasonably able to give. The Inspector may examine on Oath, the Officers, Members and Agents of the Sociéty, in relation to its business and for this purpose may administer an Oath. If an Agent or Solicitor refuses to comply with this Section his refusal can be referred to the High Court and he may be held to be in contempt of Court for so refusing. Under Sub-section 14 of Section 30 it is provided that any reference in the Section to Officers or Agents of a Society shall include past as well as present Officers and Agents and, for the purposes of this Section "Agents" shall include the Bankers, Solicitors and Auditors of the Society. The Registrar has power to suspend the raising of funds by a Society if he is of the opinion that the Society has become, or is likely to become unable to meet its obligations to its Creditors. If he considers it expedient in the interests of its members, or of the ordinary and proper regulation of Building Society business he may direct a Society in writing to be sus- pended for such period not exceeding two months as therein provided (Section 31). The Registrar also has in similar circumstances, the right to suspend advertising for funds, and he has also power to inspect and obtain documents, deeds and records in like circumstances. Societies have a right of appeal to the High Court against any Direction given by the Registrar and such High Court proceedings may be heard in Chambers (see Sections 32, 33 and 34 of the Bill). As already stated the Minister for Finance has con- trol over the ratios between Assets and Liabilities and the specified ratio may be expressed as a percentage of assets or liabilities concerned. The Minister can exercise these powers hereinafter specified as to investment after consultation with the Minister for Local Government and the Central Bank. This power brings the Society into conformity with the control provided for in Section 23, Central Bank Act, 1971. The next Section of the Bill—Section 38—provides for the investment of surplus funds and it is a very important Section from the point of view of Building Societies. Heretofore Building Societies were only allowed or permitted to invest surplus funds in auth- orised Trustee securities (see Section 25 of the 1874 Act, Sections 16 and 17 of the 1894 Act). The Minister for Finance, after consultation as afore- said, enables a Society to keep its funds not immediately required for lending purposes : (a) On a current account; (b) On deposit with the Central Bank; (c) On deposit or current account with a Bank: (d) In the Post Office Savings Bank, a Trustee Savings Bank cert'fied under the Trustee Savings Banks Acts 1863 to 1965; (e) Agricultural Credit Corporation Limited, and finally (f) Industrial Credit Company Limited. Societies are also given the same privileges as licensed Banks to invest in Central Bank Reserve Bonds. The Minister has been given power to prescribe the limits as to investment in securities or in a specified class of security and also in respect of cash in or on current or deposit account. [to be concluded] .320

(c) The Society shall not carry on business unless it maintains in the Central Bank a déposit of a minimum sum of £20,000.00 and further must continue to make deposits twice yearly with the Central Bank of such sums representing 5 per cent of the value of the Society's Shares and Deposits until a maximum of £500,000.00 is achieved (S.20). (d) A Society incorporated after the date of the publi- cation of the Bill, 5th December 1975, or a Society which on that date has assets of less than one million pounds may not advertise or otherwise solicit subscrip- tions for shares and deposits until it has obtained the written permission of the Registrar (S.19). (e) The liquidity and other ratios will now be con- trolled by the Minister for Finance after consultation with the Minister for Local Government and the Cen- tral Bank and they must maintain a minimum standard as between its assets and its liabilities. This provision brings Building Societies into line with similar pro- visions in the Central Bank Act, 1971 (S.37). (f) The Rules of all Societies must make provision for the items specified in Section 10 of the Bill. The Registrar of Building Societies if satisfied will register the Society and issue a Certificate of Incorporation but the registration of the Rules and the issue of the Certi- ficate of Incorporation do not authorise the Society to commence business unless and until the other provisions of the Bill are implemented to the satisfaction of the Registrar. General provisions The Bill contains provisions for bringing the Building Societies into line with certain provisions of the Central Bank Act, 1971, and these provisions are mainly for the protection of Depositors with Building Societies. There are further provisions for loans by one Society to another for a union of Societies and for transfer of and under- taking to fulfil engagements as between Societies, sub- ject of course to compliance with the procedures laid down by the Act and to the approval of the Registrar. Control of Societies by Registrar (a) The Registrar on an application in the case of a Society having more than one thousand members by not less than one hundred of those members, and in any other case by not less than one-tenth of the total number of members of the Society, may appoint one or more Inspectors to investigate the affairs of the Society and to report thereon, in such manner as he shall direct. (b) The Registrar has power vested in him to carry out an investigation of a Society, where he is of opinion that the affairs of the Society call for consideration by a meeting of the members of a Society. (c) The powers of the Registrar are enlarged by the provisions of Section 30 of the B'.ll, and in Sub-section (13) it is provided as follows : Nothing in this Section shall require disclosure to the Registrar or to an Inspector appointed by him (a) By a Solicitor of any privileged communication made to him in that capacity, or (b) By bankers of any information as to the affairs of any of their customers other than the Society the affairs of which are being investi- gated. In pursuance of Section 30 of the Bill it is the duty of all Officers, Members and Agents of a Society the affairs of which are beings investigated tó produce to the Inspector all books, accounts, deeds, records or other