Friendly Societies Act 1992

11 At the end of section 16 (companies in financial difficulties) there shall be added the following subsection—

“(10) This section applies to a friendly society, not being a closing society—

(a) with the substitution of the following subsections for subsection (1)—

“(1) A friendly society, not being a closing society, is a society in financial difficulties for the purposes of this section if—

(a) it is required by section 42 or 46 of the Friendly Societies Act 1992 to send abstracts of actuaries' reports to the Commission and the most recent abstract so sent shows that it has ceased to fall within subsection (2) or subsection (3) of section 3A above;

(b) it fails to comply with a direction of the Board under subsection (1A) below;

(c) a provisional liquidator of the society has been appointed under section 135 of the Insolvency Act 1986 or, as the case maybe, Article 115 of the Insolvency (Northern Ireland) Order 1989; or

(d) it has been proved on a winding-up petition to be unable to pay its debts.

(1A) A direction under this subsection is a direction that a society, not required by section 42 or 46 of the Friendly Societies Act 1992 to send abstracts of actuaries' reports to the Commission, satisfy the Board that it possesses sufficient assets to meet its liabilities.

(1B) It shall be the duty of the Commission to send the Board any information required by the Board to enable it to determine whether it is satisfied that a society to which a direction under subsection (1A) above has been given possesses sufficient assets to meet its liabilities.”; and

(b) with the omission of subsection (6)(a).”