Section 51 Power to forbid acceptance of new members.I1

(1)

Subject to the provisions of this section, if the Commission considers it expedient to do so in the interests of the members or potential members of a friendly society, it may give the society a direction forbidding it to accept any new members.

(2)

If the Commission proposes to give such a direction, it shall serve on the society a notice stating that it proposes to give a direction.

(3)

A notice under subsection (2) above shall specify the grounds for the proposed direction.

(4)

The Commission shall consider any representations made by the society within such period (not being less than one month) from the date on which the society is served with the notice as the Commission may allow and, if the society so requests, shall afford to it an opportunity of being heard by the Commission within that period.

(5)

The Commission may not give a direction unless all the grounds for giving it are those, or among those, which were specified in the notice served on the society under subsection (2) above.

(6)

On giving a direction, the Commission shall—

(a)

serve notice of it on the society, specifying the grounds for making it;

(b)

publish notice of it in one or more of the London, Edinburgh and Belfast Gazettes and in any such other ways as it considers appropriate; and

(c)

send a copy of it to the central office.

(7)

A society which contravenes a direction given to it under this section shall be guilty of an offence and shall be liable—

(a)

on conviction on indictment, to a fine; and

(b)

on summary conviction, to a fine not exceeding the statutory maximum.

(8)

The central office shall keep a copy of a direction given to a friendly society under this section in the public file of the society.

Annotations

Commencement

I1: S. 51 wholly in force; s. 51 not in force at Royal Assent see s. 126(2); s. 51 in force for certain purposes at 13.1.1993 by S.I. 1993/16, art. 2, Sch. 1; s. 51 in force for all remaining purposes at 28.4.1993 by S.I. 1993/1186, art. 2(2), Sch. 2

Notes on Powers of FCA and PRA

Textual amendments

F1: Words in s. 51 cross-heading substituted (1.4.2013) by The Financial Services Act 2012 (Mutual Societies) Order 2013 (S.I. 2013/496), art. 1(1), Sch. 9 para. 16 (with Sch. 12)