of Her Majesty's principal Secretaries of State, or in Scotland by the Lord Advocate, as a purpose to which the powers and facilities of this Act ought to be extended.*

Provided that no member shall subscribe or contract for an annuity exceeding £30 per annum, or sum payable on death, or on any other contingency, exceeding £200.†

And if such persons so intending to form and establish such society, shall transmit Rules for the government, guidance, and regulation of the same to the Registrar, and shall obtain his Certificate that the

* Under this section the following purposes have been authorised by the Secretary of State, viz.:-1. For assisting members when they are compelled to travel in search of employment. 2. For granting temporary relief to members in distressed circumstances. 3. For the relief and maintenance of the members in case of lameness, blindness, or bodily hurt through accident. 4. For the purchase of coals, and other necessaries, to be supplied to the members. 5. For the purposes of assuring the members against loss by disease or death of cattle employed in trade or agriculture. 6. For the purpose of accumulating at interest for the use of the member the surplus fund remaining after providing for his assurance. And 7. For relief in case of shipwreck, or loss or damage to boats or nets.

The Income-tax Act, 16 and 17 Vic. c. 34, by s. 49, exempts Friendly Societies not assuring more than £200, or a greater annuity than £30 per annum, to any one person, from payment of the tax in respect of their stocks, dividends, and interest chargeable under Schedule C of the Act; and also of their interest, and other profits and gains chargeable under Schedule D. And where the property is invested in the public securities, in the Bank of England, the exemption must be claimed and proved by a trustee or treasurer, or any member before the Commissioners for special purposes, 5 & 6 Vic. c. 35, s. 88.

By the 1st sec. of the 18th & 19th Vic. c. 35, continued by 24 Vic. c. 20, members of Friendly Societies may, for the purposes of the Income-tax Acts, deduct the annual premium payable for a life assurance or deferred annuity, if the premiums are made for three months at least.

As to exemption from Stamp Duty, see infra, p. 29,

same are in conformity with law, then the said society shall be deemed to be fully formed and established from the date of the said Certificate.

Rules, how to

be made.

SEC. 25. Before any Friendly Society shall be established under the said Act, the persons intending to establish the same shall agree upon and frame a set of Rules for the regulation, government, and management of such society; and in such Rules they may, amongst other things, make provision for appointing a general committee of management of such society; and delegating to such committee all or any of the powers given by this Act to the members of Friendly Societies, formed or established under, or by virtue of the same; and such Rules shall set forth

1. The name of the society, and place of meeting for the business of the society.

2. The whole of the objects for which the society is to be established, the purposes for which the funds thereof shall be applicable, and the conditions under which any member may become entitled to any benefit assured thereby, and the fines and forfeitures to be imposed on any member of such society.

3. The manner of making, altering, amending, and rescinding Rules.

4. A provision for the appointment and removal of a general committee of management, of a trustee or trustees, treasurer, and other officers.

5. A provision for the investment of the funds, and for an annual or periodical audit of accounts. 6. The manner in which disputes between the society and any of its members, or any person claiming by or through any member, or under the Rules, shall be settled.

And the Rules of every such society shall provide that all moneys received or paid on account of each and every particular fund or benefit assured to the members thereof, their husbands, wives, children, fathers, mothers, brothers or sisters, nephews or nieces, for which a separate table of contributions payable shall have been adopted, shall be entered in a separate account, distinct from the moneys received and paid on account of any other benefit or fund, and also that a contribution shall be made to defray the necessary expenses of management, and a separate account shall be kept of such contribution and expenses.*

Copies of

sent to the

Registrar, and his Cer

SEC. 26. Two printed or written copies of such Rules, signed by three of the intended members and the secretary or other officer, shall be transmitted to the Rules to be Registrar, and the said Registrar shall advise with the secretary or other officer, if required, tificate ob- for the purpose of ascertaining whether the said Rules are calculated to carry into effect the intention and objects of the persons who desire to form such society; and if the Registrar shall find that such Rules are in conformity with law, and with the provisions of this Act, he shall certify and return one of the said copies to the said society, and shall keep the other

tained.

* Besides the Rules mentioned in this section, the society must, if it intend taking advantage of the 16th section (see p. 13), make a Rule setting forth how the money is to be raised.

If by the Rules a medical man is to be appointed, he must by sec. 36 of the Act, 21 and 22 Vic. c. 90, "An Act for regulating the Qualifications of Practitioners in Medicine and Surgery," be duly registered under that Act.

An injunction will be granted to restrain payments by a Friendly Society founded on erroneous principles, tending to exhaust their funds: Reeve v. Parkins, 2 Jac. and Walk., 390.

in such manner as shall be from time to time directed by one of Her Majesty's principal Secretaries of State. No fee is to be payable to the said Registrar for such Certificate, and all Rules when so certified as aforesaid shall be binding on the several members of such society.

be

to

the copies in

case of tables

of annuity.

Provided always that it shall not be lawful for the said Registrar to grant any such Certificate to a society assuring to any member thereof a certain Actuary's annuity, or certain superannuation, deferred or Certentwith immediate, unless the tables of contributions payable for such kind of assurance shall have been certified under the hand of the Actuary to the Commissioners for Reduction of the National Debt, or by an actuary to some life assurance company established in London, Edinburgh, or Dublin, who shall have exercised the profession of an actuary for at least five years; and such Certificate be transmitted to the said Registrar, together with the copies of the Rules aforesaid.

of

Rules may be altered, amended,

rescinded,

or new Rules made.

SEC. 27. After the Rules of a Friendly Society shall have been so certified by the Registrar as aforesaid, it shall be lawful for such society, by resolution at a meeting specially called for that purpose, to alter, amend, or rescind the same, or any them, or to make new Rules; and it shall be lawful for any Friendly Society, formed and established under any of the said repealed Acts, to alter, amend, or rescind the Rules by which their society is governed, regulated, or managed, or to make new Rules. Provided always that two copies of the proposed alterations or amendments, and of such new Rules, signed by three members of such society and the secretary or other officer, shall be transmitted to the Registrar, to one of

which shall be attached a declaration by the secretary or one of the officers of such society, that in making the same, the Rules of such society, respecting the making, altering, amending, and rescinding Rules, or the directions of the Act under which such society was established, have been duly complied with; and if the said Registrar shall find that such alterations, amendments, or new Rules, are in conformity with law, he shall give to the society a Certificate as provided by the Act, and return one of the copies to the society, and shall keep the other, with the Rules of such society, in his custody, and for which Certificate no fee shall be payable to the said Registrar, and as against such members or persons such Certificate shall be conclusive of the validity thereof; and all rules, alterations, and amendments, when so certified as aforesaid, shall be binding on the several members of the said society, and all persons. claiming on account of a member or under the said Rules; but unless and until the same shall be so certified as aforesaid, such Rules, alterations, and amendments shall have no force or validity whatsoever.

When place

SEC. 28. Whenever any Friendly Society established under this Act, or under any of the Acts hereby repealed, shall change its place of business, notice of of meeting such change under the hands of two of the notice to be trustees, or three members and secretary or Registrar. other officer, shall within fourteen days thereafter be sent to the said Registrar.

altered,

sent to

By Sec. 4 of the said Act, 21 & 22 Vic. c. 101, it is enacted that any Friendly Society may, with the Power to approval in writing of the Registrar, change its name; but no such change shall affect any name. rights or obligations of the society or of any member thereof, and any legal proceedings may be

society to change its