Interpreta tion. PART XI. SECESSION, EXPULSION, AND DISSOLUTION OF BRANCHES AND Interpretation. 139.-(1) This Part of these Regulations shall apply to the secession, expulsion and dissolution of a branch of a Society so far as it relates to the business of the branch under the principal Act. (2) In this Part of these Regulations unless the context otherwise requires, "Unattached Members Fund," in relation to a Society with branches, means the central fund established by the Society under this Part of these Regulations, and the provisions of this Part of these Regulations shall apply notwithstanding anything contained in sub-section (3) of Section 40 of the principal Act. Procedure for secession. Secession. 140.-(1) The Committee of Management of a branch of a Society shall, before any proposal to secede from the Society is submitted to the members of the branch, give notice in writing to the Commissioners and to the Committee of Management of the Society of the proposal to secede, and, subject to the provisions hereinafter contained, the secession of a branch of a Society shall be carried into effect in accordance with the provisions of the rules of the Society relating thereto, so, however, that in any case the secession shall not take effect unless a resolution to secede has been passed at a meeting of the branch at which all votes cast shall be received in writing, and the branch shall— (a) at least ten days before that meeting send to each insured member a statement in a form to be approved by the Commissioners containing particulars relating to the proposed secession, and a voting paper upon the resolution to secede and any votes recorded by insured members not present at the meeting on voting papers delivered to the Secretary of the branch not less than twenty-four hours prior to the meeting shall be taken into account as if they were votes cast at the meeting; (b) give not less than ten days' previous notice in writing of the meeting to the Committee of Management of the Society who shall be entitled to be represented at the meeting and whose representative or representatives may take part in the proceedings; (c) immediately after passing any resolution of secession, forward to the Committee of Management of the Society a copy thereof and a statement of the number of members of the branch, the number present at the meeting, and the number of votes cast for and against the resolution by insured members and other members respectively and the Committee of Management of the Society shall, within fourteen days of receipt of (d) as soon as may be, furnish such other particulars as the Provided that no meeting at which a resolution for secession is submitted shall be held earlier than six in the afternoon unless the rules of the branch otherwise provide, or the Commissioners otherwise determine. (2) For the purpose of ascertaining the insured members, if any, of a seceding branch who, being opposed to secession, desire to remain insured members of the Society (hereinafter referred to as loyal members "), the following provisions shall have effect: 66 (a) Where the rules of the Society expressly provide for the (b) Where the rules of the Society do not expressly provide 141. No secession of a branch shall take place unless and until Seceding the branch has received an undertaking by another Society or by branch to arrange for a branch of another Society to accept a transfer of its engage- transfer of ments under the principal Act, or an undertaking by another ergageSociety to accept the branch as a branch of that other Society, ments. or has by itself or together with any other Society or branch complied with the conditions of approval requisite in the case of Approved Societies. provision of 142.-(1) Subject to discharging all liabilities as respects its Transfer of business under the principal Act to the Society of which it is a funds of branch or to any district of the Society (including the provision branches and of transfer values and the payment of any sums in respect of transfer loyal members calculated in manner mentioned in the immedi- values for ately succeeding paragraph), all the funds of the branch as loyal respects its business under the principal Act shall be transferred members. to the Society or branch accepting a transfer of engagements of the branch, or to the Society accepting the branch as a branch of that Society, or to the Society formed by the branch by itself or together with any other Society or branch, and the provisions of Part VIII. of these Regulations relating to the transfer of engagements of a branch of a Society to another Society or a branch of another Society shall, as far as may be, apply as if the seceding branch were transferring its engagements under the principal Act to the Society or branch to which its assets and liabilities are to be transferred as aforesaid. (2) The transfer values of loyal members of a seceding branch shall be calculated in manner following, that is to say: (a) Where a special valuation of the assets and liabilities of the branch, having been ordered by the Joint Committee on request therefor by the Committee of Management of the Society, has been made by a valuer appointed by the Treasury in accordance with the provisions of Section 36 of the principal Act, and a surplus is found, the transfer values shall be calculated having regard to such surplus; (b) Where no special valuation is made, or where a special valuation having been made as aforesaid no surplus is found, the transfer values shall be calculated by reference to the ordinary benefits under the principal Act, unless, where no special valuation having been made, the branch has, immediately prior to the date of secession, been providing additional benefits, in which case the transfer values shall be calculated as representing the liability for the benefits, both ordinary and additional, provided by the branch; and (c) If in any case the Committee of Management of the Society are of opinion that owing to the state of health of any loyal member the transfer value to be provided as aforesaid for that member would be insufficient, they may apply to the Commissioners for an increased transfer value in respect of the member, and if the Joint Committee are of opinion that the transfer value in respect of the member should be increased for the reason aforesaid, the transfer value shall be such sum as the Joint Committee may determine and for the purpose of enabling the Joint Committee to determine the amount of the transfer value, the branch shall furnish such particulars as the Joint Committee may require and the Commissioners may make such enquiries and obtain such medical advice and other assistance as the Joint Committee consider necessary in the circumstances. In addition to the transfer values, there shall be paid to the Society in respect of any loyal members in a case where no valuation has been made such sums, if any, as the Joint Committee may determine to represent the share applicable to such members of any surplus carried forward from the last preceding valuation, and of any sum apportioned to the branch out of the Contingencies Fund of the Society on that valuation so far as the same was not applied towards making good a deficiency in the branch. (3) The cost of any enquiries made or of any medical advice or other assistance obtained by the Commissioners as aforesaid and the charges and costs in connection with any special valuation made as aforesaid shall be a charge against the Administration Account of the branch and be paid by the branch prior to the date on which the secession takes effect. Expulsion. 143. (1) Where the rules of a Society provide for the manner Procedure and conditions in and upon which a branch thereof may be for expulexpelled, a branch may, subject to the provisions hereinafter sion. contained, be expelled in accordance with the provisions of those rules, but no expulsion shall take place unless a resolution to that effect, of which due notice has been given, has been passed at a general meeting of the Society at which the branch has had an opportunity of being heard in its defence. (2) When a branch of a Society only transacts business under the principal Act and the rules of the Society do not provide for the manner and conditions in and upon which a branch may be expelled, the procedure to be adopted shall be as follows: (a) Where it appears to the Committee of Management of (b) Every insured member of the branch shall be given at Ascertaining loyal members. (c) The chairman of the meeting shall be a person appointed by the Committee of Management of the Society, who may also be represented at the meeting, and whose representative or representatives may take part in the proceedings; (d) Where a meeting is convened but a quorum (if any) is not present or where the branch refuses to comply or having agreed to comply, fails to carry such agreement into effect within a period of three months from the date of the meeting, the Committee of Management of the Society may submit to a general meeting of the Society a resolution (of which due notice has been given) to expel the branch, at which meeting the branch shall be given an opportunity of being heard in its defence, and such general meeting may pass that resolution. (3) The Committee of Management of a Society shall immediately they have resolved to submit to a general meeting of the Society a resolution to expel a branch give notice in writing thereof to the Commissioners and to the Committee of Manage ment of the branch. 144. (1) For the purpose of ascertaining the insured members, if any, of an expelled branch of a Society who, having been in favour of compliance, desire to remain insured members of the Society (hereinafter referred to as the "loyal members "), the following provisions shall have effect: (a) Where the rules of the Society expressly provide for the manner in which the loyal members of an expelled branch shall be ascertained, such provisions shall apply; and (b) Where the rules of the Society do not expressly provide for the manner in which the loyal members of an expelled branch shall be ascertained, a voting paper containing the question whether the member desires to remain a member of the Society shall be issued to each member of the branch who has not previously voted in favour of non-compliance not later than two months after the resolution to expel has been passed by a general meeting of the Society, and any insured member not voting in favour of non-compliance and who votes that he desires to remain a member of the Society, shall be treated as if he were a loyal member and remain an insured member of the Society. (2) For the purpose of this Part of these Regulations the Committee of Management of the Society shall, at any stage of the proceedings, be entitled to require a list of the names and addresses of the insured members of the branch to be supplied by the branch, and in the event of that list not being so furnished the Committee of Management of the Society shall be entitled to take possession of such books and records of the branch as will enable such list to be prepared. |