Operation of

statutes.

Provision in case of fraud on the so

ciety.

These enactments operate to prevent members from being unjustly expelled from any society, and before the recent act it was held that the county court had jurisdiction to reinstate a member of a society improperly expelled, although the rules of the society prescribed a different mode of determining disputes under them (g). In all cases it is to be remembered that the society, by its corporate name, and not an individual on its behalf, must be the plaintiff or defendant, as the case may be.

If any person whatsoever, by false representation or imposition, obtains possession of any monies or other effects of a duly registered society, or, having the same in his possession, withholds or misapplies the same, or wilfully applies any part of the same to purposes other than those expressed or directed in the rules of such society or any Mode of pro- part thereof, in England any justice of the peace

cedure in

England,

Ireland,

for the county or borough may, upon complaint made by any person on behalf of the society (h), summon the person complained against, and any two justices present at the time and place mentioned in the summons may hear the complaint, in the manner directed by stat. 11 & 12 Vict. c. 43; and in -and Scot- Scotland every such offence may be prosecuted by summary complaint at the instance of the procurator fiscal of the county, or of the society, with

land.

(g) Ex parte Wooldridge, 31 L. J., Q. B. 122.

(h) By 23 & 24 Vict. c. 58, s. 9, the registrar of friendly societies may make the application,

his concurrence, before the sheriff; and in Ireland, two or one justices or justice may act as two or one justices or justice may in England (i); and if the Penalty. offence be considered proved in either country, the offender may be ordered and adjudged to deliver up all such monies or other effects of the society, or to repay the amount applied improperly, and to pay, if thought fit, a further sum not exceeding 201., together with costs not exceeding 20s.; and, in default, imprisonment, with or without hard labour, for any time not exceeding three months (k). This section does not take away the common law remedy by action in such a case (7). If a member of an un- Not appliregistered society steals the partnership goods, he registered cannot be proceeded against either criminally or at common law; but if any such goods be deposited with an individual not a member, who is responsible for them to the society, and the same are stolen from his possession by a member, the offence will amount to a felony, as the goods might in an indictment be laid as the property of the bailee (m).

cable to un

societies.

one member

No member can hold or claim any interest, in any Interest of society registered under the act, exceeding the sum not to exceed of two hundred pounds, but one society may, as we

2001.

(i) 21 & 22 Vict. c. 101, s. 1.

(k) 18 & 19 Vict. c. 63, s. 24.

(1) Sinden v. Bankes, 30 L. J., Q. B. 102.

(m) See Stone's Justice's Manual, 168, n., 11th ed.

have seen (n), hold any amount of shares in any other (o). This regulation prevents any large undertaking from sharing the benefits of the act, which was passed, as the preamble shows, in order to assist associations formed of the poorer classes. For the protection of the members it is provided (p) the books of that every person or member having an interest in

Members may inspect

the society,

-and are entitled to re

annual state

ment.

the funds of a registered society may inspect the books and the names of the members, at all reasonable hours, at the office of the society; and every ceive copy of member is entitled to receive, on application to the treasurer or secretary of the society, a copy of the annual general statement of the affairs of the society, forwarded to the registrar, without making any payment for the same (q). Every member should be entitled to at least one vote at the general meetings of the society.

Shares.

As to the shares, if they be transferable, all transfers must be in the form prescribed by the rules of the society (r), every such transfer must receive the confirmation of the committee of maConfirmation nagement, and must be again confirmed by the

of transfers.

(n) Ante, p. 32.

(0) 30 & 31 Vict. c. 117, s. 2, repealing 25 & 26 Vict. c. 87, s. 9.

(p) 25 & 26 Vict. c. 87, s. 22; ante, pp. 25, 33.

(q) 25 & 26 Vict. c. 87, s. 24; 30 & 31 Vict. c. 117, s. 9; ante, p. 24.

(r) This transfer will be exempt from stamp duty, 30 & 31 Vict. c. 117, s. 3.

appoint a

receive his

decease.

vocation and

general meeting of the society (s). In reference to this confirmation, it will be advisable to insert a provision in the rules that the society may refuse to register the transfer of any share made by a member who is indebted to the society (t). Any Member may member of a registered society may, whether the nominee to shares be transferable or not, nominate any person shares on his being the husband, wife, father, mother, child, brother, sister, nephew, or niece of such member, to whom his shares in the society (not exceeding 501.) shall be transferred at his decease, and he may re- Power of revoke or vary such nomination as often as he wishes; variation. but the society may, in lieu of making such transfer, elect to pay any nominee the full value of the shares comprised in the nomination to him, and must pay him the full value of any such shares which, if transferred into his name, would increase his interest in the society to more than 2007. (u). This provision enables the society to reject any Power to nominee whom they do not wish to accept as a exclude any member, as of course, if once admitted, he could not be excluded except for a breach of the rules. The words of the act do not seem to provide for the case of an entrance fee being payable on the admission of a new member, and a question might perhaps arise as to whether it could be legally demanded from a nominee. The secretary of every Secretary

(8) 30 & 31 Vict. c. 117, Schedule.

(t) See 25 & 26 Vict. c. 89, Table A., Rule 10.
(u) 30 & 31 Vict. c. 117, s. 5.

society to

nominee.

must keep

book in which to enter all nominations.

Rule as to liability of

members of societies registered under old

society must keep a book, in which the names of all
persons so nominated must be regularly entered (v).
If the shares be not transferable, a member will be
allowed to withdraw from the society by observing
the provisions of the rules, which must be made.
for that purpose (x).
If a member die without
having got rid of his shares, and without having
appointed any nominee, his personal representatives
will take his interest in accordance with the rules,
which must contain provisions on the subject (y).

As we have seen, the individual members become sunk in the body corporate (z), and they can only

be called upon to contribute pro ratâ to the exacts, and un- penses, and that only to the amount of the sum

registered societies.

remaining unpaid on their respective shares (a). In this respect the law differs from that regulating the ordinary partnership liability, which lays down, that "each partner is the accredited agent of the rest, whether they be active, nominal or dormant, and has authority as such to bind them, either by simple contracts respecting the goods or business of the firm, or by negotiable instruments circulated in its behalf, to any person dealing bonâ fide" (b). consequence of this rule, each partner is indivi

In