Part VIIIAmalgamations, Transfers of Engagements and Conversion of Friendly Societies into Companies
Supplementary
92Compensation for loss of office
1
Subject to subsection (3) below, the terms of—
a
an amalgamation under section 85 above,
b
a transfer of engagements of a friendly society under section 86 above, or
c
a conversion under section 91 above,
may include provision for compensation for loss of office or diminution of emoluments attributable to the amalgamation, transfer or conversion to be paid by a participating friendly society to or in respect of any of the persons mentioned in subsection (2) below.
2
Those persons are—
a
the officers of the society which is to pay the compensation;
b
in the case of an amalgamation or transfer, the officers of any other participating society;
c
in the case of a transfer, the officers of any other person participating in the transfer; and
d
the appointed actuary (if any) of any society participating in the amalgamation or transfer.
3
Any such provision as is mentioned in subsection (1) above must be approved by the society which is to pay the compensation by a special resolution separate from any resolution approving the other terms of the amalgamation, transfer or conversion.
4
If compensation which has not been authorised in accordance with subsection (3) above is received by an officer, it shall be repaid.
5
In this section—
“compensation” includes the provision of benefits in kind;
“loss of office” includes, in relation to an officer of an incorporated friendly society holding office by virtue of his position in the society in a subsidiary of the society or body jointly controlled by the society, the loss of that office; and
“participating society”, in relation to an amalgamation or transfer, means a friendly society participating in the amalgamation or transfer and, in relation to the conversion of a friendly society, that society.