Paragraph 4

(1)

This paragraph applies where a person–

(a)

becomes a controller of a friendly society to which section 37(2) or (3) above applies; or

(b)

acquires notifiable voting rights in such a society,

in contravention of sub-paragraph (1)(a) of paragraph 1 or 2 above; and references in this paragraph to the person in breach shall be construed accordingly.

(2)

The Commission–

(a)

may serve the person in breach with a notice of objection at any time within three months after it becomes aware of the contravention; and

(b)

for the purpose of deciding whether to serve the person in breach with such a notice or with a notice imposing conditions under paragraph 5 below, may require that person by notice to provide such information or documents as the Commission may reasonably require.

(3)

Before serving a notice of objection under sub–paragraph (2) above, the Commission shall serve on the person in breach a preliminary notice–

(a)

stating that the Commission is considering serving a notice of objection on the person in breach; and

(b)

specifying the matters mentioned in sub–paragraph (5) below as respects which the Commission is not satisfied.

(4)

A person served with a preliminary notice under sub–paragraph (3) above may, within the period of one month from the date of service of that notice–

(a)

make written representations to the Commission; and

(b)

if that person so requests, oral representations to an officer of the Commission appointed for that purpose by the Commission.

(5)

The Commission shall not serve a notice of objection under sub–paragraph (2) above unless it appears to the Commission–

(a)

that the person in breach is not or may not be a fit and proper person to be a controller of the society or to retain the notifiable voting rights in the society; or

(b)

that the interests of members and potential members of the society are or may in some other manner be jeopardised by that person’s ability to influence the society.

(6)

Where representations are made in accordance with this paragraph the Commission shall take them into consideration before a notice of objection.

(7)

The Commission shall not be obliged to disclose to the person in breach any particulars of the ground on which he is considering the service of a notice of objection.

(8)

The period mentioned in sub–paragraph (2)(a) above shall be deemed not to expire until fourteen days after the end of the period within which representations may be made in accordance with this paragraph.