Part II Incorporated Friendly Societies

Dissolution and winding up

22 Winding up by court: grounds and petitioners.

1

An incorporated friendly society may be wound up under the applicable winding up legislation by the court on any of the following grounds, that is to say, if—

a

the society has by special resolution resolved that it be wound up by the court;

b

the number of members is reduced below 7;

c

the number of members of the committee of management is reduced below 2;

d

the society has not commenced business within a year from its incorporation or has suspended its business for a whole year;

e

the society exists for an illegal purpose;

f

the society is unable to pay its debts; or

g

the court is of the opinion that it is just and equitable that the society should be wound up.

2

Except as provided by subsection (3) below or the applicable winding up legislation, a petition for the winding up of an incorporated friendly society may be presented by—

a

the Commission;

b

the society or its committee of management;

c

any creditor or creditors (including any contingent or any prospective creditor); or

d

any contributory or contributories,

or by all or any of those parties, together or separately.

3

A contributory may not present a petition unless the number of members is reduced below 7 or he has been a contributory for at least six months before the winding up.

4

In this section “contributory” has the meaning assigned to it by paragraph 9 of Schedule 10 to this Act.