Procedure for dissolution. Dissolution of Societies. 108. The Committee of Management of a Society shall, before any proposal to dissolve the Society is submitted to the members, make application to the Commissioners for their consent to the dissolution of the Society, and, subject to the consent of the Commissioners being obtained, the dissolution shall be carried into effect in accordance with the following provisions: : (1) If the Society is registered or established under any Act. of Parliament, other than the principal Act, or by Royal Charter, and if the Act or Charter under or by which it is registered or established, or any rule of the Society made thereunder lays down the procedure to be adopted by it with reference to the holding of any meeting and passing of any resolution for dissolution or otherwise in connection with the dissolution of the Society, that procedure shall be adopted, but in addition to complying with the requirements of such Act, Charter or rules the Society shall (a) at least ten days before the first meeting at which the Provided that no meeting of members of a Society at which a (2) In the case of any Society (other than a Society to which paragraph (1) of this Article applies), if the Society only transacts business under the principal Act, the dissolution shall be carried into effect in accordance with the procedure set forth in the first part of the Fifth Schedule to these Regulations, but no resolution for the dissolution of a Society shall be valid unless it is carried by not less than three-fourths of the insured members voting and one-half of the insured members of the Society. (3) In every case the Committee of Management of the Society shall, not later than fourteen days after the meeting at which a resolution for the dissolution of the Society has been passed, or after the requisite number of consents to dissolution has been received, as they think fit, either insert in some newspaper or newspapers, circulating in the district in which the principal office of the Society is situated, or shall send to each insured member a notice of the decision of the members in the appropriate form set forth in the second part of the Fifth Schedule to these Regulations or in such other form containing substantially similar particulars as the Commissioners may require. (4) A member of the Society may, within ten days of the date of the notice of the result of the meeting, or notice of the decision of members, submit to the Commissioners a written statement of any objections to the proposed dissolution on the ground of noncompliance with this Part of these Regulations or with the rules of the Society, and before giving their consent the Commissioners shall take into consideration any such objections. (5) The Commissioners shall determine the date from which the dissolution shall take effect. (6) From the date on which application is made by the Society for the consent of the Commissioners to the dissolution of the Society, then, except with the consent of the Commissioners, the Society shall not admit any insured member, and the right of insured members to terminate their membership of the Society shall be suspended until such date as the Commissioners may determine. (7) Upon the dissolution of a Society in accordance with this Part of these Regulations, the rules of the Society relating to business under the principal Act shall cease to have effect from the date of the consent of the Commissioners to the dissolution or such other date as the Commissioners may determine. Commis sioners to appoint manager. 109. The Commissioners may, if they consider it expedient Power for in the interests of the insured members of a Society proposing to dissolve, appoint any person or persons to carry on or assist in carrying on the business transacted by the Society under the principal Act during the period between the date of the passing of the resolution for the dissolution of the Society and the date at which the dissolution is to take effect, upon such conditions as the Commissioners consider proper and reasonable, and any remuneration of and any expenditure incurred by any such person. on behalf of the Society or by the Commissioners for the purpose of carrying on or assisting in carrying on the business of the Society may be charged to the Administration Account of the Society as if it had been incurred and duly authorised by the Society. 110. (1) The accounts of a dissolving Society relating to business transacted under the principal Act shall be made up to the date upon which the dissolution takes effect, and for this purpose the Committee of Management shall make proper provision for the discharge of all outstanding liabilities (other than liabilities in respect of the future payment of benefits) which have been properly incurred, and the accounts when made up shall be submitted to audit in accordance with the provisions of the principal Act, Discharge of liabilities of dissolving Society. Apportionment of receipts and payments. (2) Before giving consent to the dissolution of a Society the Commissioners shall be satisfied that proper steps have been taken for the ascertainment of all outstanding liabilities of and claims against the Society, and that proper provision has been, or will be made for the discharge of those liabilities and claims. (3) If the moneys arising from business under the principal Act in the hands of a Society or Branch amalgamating or transferring its engagements are not at the date of such amalgamation or transfer of engagements or any subsequent date sufficient to discharge any such outstanding liabilities which have been properly incurred and for which no other provision has been made by the Committee of Management, the Commissioners may issue such further sums as may be required for the purpose to the trustees or other officers authorised to receive funds on behalf of the Society, and shall charge the sums so issued to any funds available to the Society under the principal Act and in so far as any sums issued by the Commissioners have been applied by the Society in defraying expenses of administration properly incurred they shall be deemed to have been properly expended on account of administration notwithstanding that the maximum available for the purpose under the provisions of any Regulations made by the Commissioners under sub-section (2) of Section 35 of the principal Act is thereby exceeded. (4) Where a Society is dissolving or has ceased to carry on business under the principal Act, the Commissioners may sanction the payment of any expenditure which has, in their opinion, been reasonably incurred in connection with business transacted under the principal Act or with the dissolution of the Society, but which has not been incurred in accordance with the rules of the Society, and any expenditure so sanctioned by the Commissioners shall be deemed to have been duly incurred in accordance with the rules of the Society. (5) Where, upon the dissolution of a Society, there was a deficiency on its Administration Account in respect of any period prior to the final period ending on the date of the dissolution of the Society and such deficiency had not been made good at that date, the Commissioners may, if they think fit, allow the deficiency to be carried forward to the Administration Account for the final period, notwithstanding any Regulations made by the Commissioners, and for the time being in force, relating to the method of dealing with deficiencies on Administration Accounts. (6) The Commissioners may, if they think fit, at any time after the date on which the dissolution of a Society takes effect, appoint a person to receive moneys from the Commissioners for the purpose of discharging outstanding liabilities of the Society.. 111. Where a Society is dissolving, all sums payable by the Society in respect of sanatorium benefit and medical benefit and of the administration expenses of Insurance Committees and all other periodical receipts and liabilities shall be deemed to have accrued from day to day and the proportion payable up to the date of dissolution shall be charged against the Society, unless the Commissioners, whether generally or in any particular case, otherwise determine. 112. The certificate of approval and all books, papers and Surrender of records, relating to business transacted under the principal Act, of certificate of a Society which is being dissolved under this Part of these approval, &c. Regulations shall be handed over to the Commissioners and dis posed of in such manner and at such time as they may direct. resolution. 113. Any copy of a resolution and any statement in regard to Certification the number of votes cast required by this Part of these Regula- of copy of tions to be furnished to the Commissioners shall be certified by the Chairman of the meeting at which the resolution was passed and by the Secretary of the Society, or any person duly authorised to act in that behalf. 114. (1) The Commissioners may, upon the application of the Power to Committee of Management of any Society, if they are of opinion dispense with that special circumstances render it desirable in the interest of requirements of Regulathe insured members so to do, dispense with any of the require- tions. ments of this Part of these Regulations, in regard to the dissolution of that Society. (2) Notwithstanding any failure on the part of a Society to comply with anything contained in this Part of these Regulations the Commissioners may, if they are satisfied that the provisions of this Part of these Regulations have been substantially complied with, confirm the dissolution. 115. Where any notice or other document is required by this Service of Part of these Regulations to be sent to any member of a Society, notices. it shall be deemed to have been duly sent if it has been delivered or sent by post to him at his last known place of abode in the United Kingdom. Dissolved Societies Fund. Societies 116. The Commissioners shall constitute a special fund to be Dissolved called the Dissolved Societies Fund, which shall be under their Fund. control and management and into which all contributions payable by or in respect of persons entitled to benefit out of that fund shall be paid, and the provisions of the principal Act relating to Societies shall, subject to the provisions of this Part of these Regulations, apply to the Dissolved Societies Fund as if it were a Society. Fund. 117.-(1) At the date at which the dissolution of a Society Membership takes effect all the insured members of the Society shall become of Dissolved members of the Dissolved Societies Fund, and from that date Societies until a date to be fixed as hereinafter mentioned the members shall be entitled to receive the benefits to which they would have been entitled as members of that Society if the Society had not been dissolved. (2) The Commissioners shall administer for the members of the Dissolved Societies Fund such of the benefits as are administered by a Society to its members. (3) Any amount payable to an Insurance Committee in respect of medical benefit and the administration thereof for a member of the Dissolved Societies Fund during the period in which he is a member thereof, shall, unless the Commissioners otherwise determine, be calculated at the same rate as was paid by the Society of which he was a member immediately before its dissolution. Power for Commissioners to make rules. Transfer of funds of dissolved Society to Dissolved Societies Fund. Valuation on dissolution of Society. Rates of benefit after valuation. (4) Such sums as the Commissioners shall determine, not exceeding the sum which may be carried to the Administration Account of a Society in respect of each insured member thereof, shall in each year be payable out of the Dissolved Societies Fund in respect of each member thereof towards the expenses of administration of benefits to the members thereof. (5) The Commissioners may at any time cause a valuation to be made of the assets and liabilities of the fund on such basis as may be prescribed, and shall deal with any surplus or deficiency which may be disclosed by the valuation in such manner as may hereafter be prescribed. (6) The sums standing in the National Health Insurance Fund to the credit of the Dissolved Societies Fund and available for investment shall be treated as if the Dissolved Societies Fund were a Society which had given notice to the Commissioners under the proviso to sub-section (1) of Section 56 of the principal Act. (7) Where any member of a Society has before the date at which the dissolution takes effect been suspended from benefits in accordance with the rules of the Society, and the period of suspension has not expired at the date aforesaid, he shall continue to be suspended while being a member of the Dissolved Societies Fund, as though he had continued to be a member of the Society. 118. The powers conferred upon a Society by Section 14 and sub-section (1) of Section 27 of the principal Act of making, altering, and repealing rules shall be exercisable in respect of the Dissolved Societies Fund by the Commissioners. 119. As from the date at which the dissolution takes effect all the funds and effects of the Society arising under the principal Act shall belong to the Dissolved Societies Fund, and the trustees and other officers of the Society in whose names or under whose control any of the funds and effects are standing shall, if so directed by the Commissioners, do all such acts and deeds as may be necessary to realise and convert into money such funds and effects as are so convertible and shall transfer the funds and effects and pay over the proceeds of such sale and conversion to the Dissolved Societies Fund. 120. (1) As soon as may be after the date at which the dissolution of a Society takes effect, a valuation of the assets and liabilities of the Society as at that date shall be made on such basis as may be prescribed under sub-section (2) of Section 36 of the principal Act. (2) Any moneys accruing or becoming payable to the Society after the accounts of the Society have been closed and the valuation completed shall belong to the Dissolved Societies Fund and shall be dealt with accordingly. 121. (1) If upon such valuation being made a deficiency is found, the Commissioners shall prepare a scheme for making good the deficiency by reducing, either temporarily or permanently, the rates of any of the benefits or the periods during which those benefits or any of them are payable or by both methods, but in making such scheme no account shall be taken of the |