SCHEDULES

SCHEDULE 10Application of Companies Winding Up Legislation to Incorporated Friendly Societies

Part IIIModified Application of Insolvency (Northern Ireland) Order 1989

Members of a friendly society as contributories in winding up

38

1

Article 61 (liability of members) of the Order is modified as follows.

2

In paragraph (1), the reference to any past member shall be omitted.

3

Sub-paragraphs (a) to (d) of paragraph (2) shall be omitted; and so shall paragraph (3).

4

The extent of the liability of a member of an incorporated friendly society in a winding up shall not exceed the extent of his liability under paragraph 8 of Schedule 3 to this Act.

39

Articles 62 to 65 and 69 of the Order (miscellaneous provisions not relevant to incorporated friendly societies) do not apply.

40

1

Article 13 (meaning of “contributory”) of the Order does not apply.

2

In the enactments as applied to an incorporated friendly society “contributory”—

a

means every person liable to contribute to the assets of the society in the event of its being wound up; and

b

for the purposes of all proceedings for determining, and all proceedings prior to the determination of, the persons who are to be deemed contributories, includes any person alleged to be a contributory; and

c

includes persons who are liable to pay or contribute to the payment of—

i

any debt or liability of the incorporated friendly society being wound up; or

ii

any sum for the adjustment of rights of members among themselves; or

iii

the expenses of the winding up;

but does not include persons liable to contribute by virtue of a declaration by the court under Article 177 (imputed responsibility for fraudulent trading) or Article 178 (wrongful trading) of the Order.