INDEPENDENT
STATE OF PAPUA NEW GUINEA
CHAPTER
NO. 141
Rules
for Nasfund Contributors Savings and Loan Society Ltd
PART 1. –PRELIMINARY
1.
Interpretation
(1)
In these Rules, unless
the contrary intention appears-
“the Act” means the Savings
and Loan Societies Act;
“month” means calendar month;
“the society” means Nasfund Contributors Savings and Loan Society
Ltd
(2)
Expressions used
have the same meaning as that ascribed to them by the Act.
(3)
Words in the singular
include the plural and vice versa.
(4)
Words importing the
masculine gender include females.
(5)
References in these
Rules to the Secretary or the Treasurer shall, where there is a Secretary/Treasurer,
be read as including references to the Secretary/Treasurer.
PART
II. –CONSTITUTION OF THE SOCIETY
2.
Name
(1)
The name of the Society
shall be Nasfund Contributors Savings and Loan Society Limited.
(2)
The Society may change
its name only with the consent of the Registrar and as provided by Section
12 of the Act.
3.
Type of Society
The
Society is a Savings and Loan Society under the Act.
4.
Registered office, etc
(1)
The registered office
of the Society shall be at Nasfund Building Lot 7 Section 58, Boroko, Hubert
Murray Highway, 4 mile or such other place as the Board determines from time
to time.
(2)
The Board shall notify
the Registrar of any change of Secretary or in the address of the registered
office within 14 days.
5.
Objects
The objects of the Society are:-
(a)
to promote thrift
among its members; and
(b)
to educate its members
in financial responsibility; and
(c)
to receive the savings
of its members as contributions for shares or on deposit; and
(d)
to make loans to
its members for the purposes set down in Sections 25.
6.
Powers
The Society has power, in accordance
with Section 15 of the Act-
(a)
to deposit money
with an association of which it, or of which an association of which it is
a member, is a member, or in a bank; and
(b)
to raise money on
loan for the objects of the Society, and to mortgage or pledge its property
as security for the loan; and
(c)
to invest funds in
securities of a or guaranteed by the State, or in other prescribed securities;
and
(d)
to insure its loans,
funds or property against loss; and
(e)
to hold, buy, lease,
sell, surrender, exchange, mortgage or otherwise deal in property; and
(f)
to do all other acts
and things that are incidental or conducive to, or consequential on, the attainment
of its objects.
PART
III.-MEMBERSHIP
7. Conditions of membership
(1)
Membership of the
Society shall be limited to persons who-
(a)
in the opinion of
the Board are honest, industrious and of good habits; and
(b)
are above or apparently
above the age of 16 years; and
(c)
are members of the
National Superannuation Fund Limited (NASFUND); and
(d)
are residents of
Papua New Guinea; and
(e)
have signed the application
form prescribed in the regulation and have paid an entrance fee of K1.00;
and
(f)
are not in default
under the terms of a loan made by another society.
(2)
No person shall exercise
any of the rights of membership unless he has paid the entrance fee as required
by Section 11.
(3)
No person who is
a member of another society shall be admitted as a member of the Society except
with the written permission of the Registrar.
(4)
These Rules are binding
on each member of the Society.
8.
Cessation of membership generally
A member of the Society who withdraws, or transfers his savings and or
deposits in total to another savings & loans society approved by the Registrar
ceases to be a member.
9.
Expulsion
(1)
The Board of Directors
may expel a member for breach of these Rules.
(2) The Secretary shall notify
the expelled member in writing of his expulsion within seven days of the meeting.
(3) Within 30 days of the receipt
of the notice the member may appeal in writing to the Registrar who shall
rule on the appeal taking into consideration written submissions together
with any relevant documentation from both the expelled member and the Board
of Directors.
(4) The
Registrar may confirm or rescind the action taken by the Board.
(5)
Expulsion takes effect-
(a)
if no appeal is made
on the expiration of the time for appealing; or
(b) if an
appeal is made-on the date on which the expulsion is confirmed by the Registrar.
10.
Effect of cessation of membership
(1)
A person who by withdrawal,
transfer of his savings and deposits or expulsion ceases to be a member of
the Society has no further rights in the Society, but shall not be released
from any remaining liability to the Society
(2)
Any debt due from
such a person to the Society becomes due and payable immediately on his ceasing
to be a member.
PART IV. –MEMBERS’ FUNDS
11.
Capital
The capital of the Society shall be unlimited in amount and be not less
than the total savings and deposits of its members.
12.
Withdrawal of Savings
(1)
Subject to Subsection
(2), money paid on account of savings may be withdrawn, in whole or in part,
subject to any indebtedness to the Society, on any day when the Society is
open for business, but the Board may, in any case, require up to 90 days’
notice of intention to withdraw and regulate the frequency withdrawal in any
one year.
(2)
A withdrawal shall
not be permitted except with the written approval of the Loans Committee if
the withdrawal will reduce the members savings and deposits to an amount that
is less than his total liability to the Society as borrower or guarantor.
(3)
Subject to Subsection
(5), no officer of the Society shall withdraw, or otherwise dispose of his
deposits so long as he remains an officer of the Society, any such withdrawal,
or disposition is void and of no effect.
(4)
The Board shall cause
a record of all withdrawals to be made in the proper books of the Society.
(5)
Subsection (3) does
not apply to or in relation to any case where the Registrar otherwise approves.
13.
Death or bankruptcy
(1)
On the death of a
member, the Society shall transfer any money due to him by way of dividend,
deposit, savings or otherwise-
(a)
to his legal personal
representative; or
(b)
if there is no legal
personal representative, to his next-of-kin.
(2)
Any person who becomes
entitled to money held in the name of a member in consequence of the bankruptcy
of the member is, on such evidence being produced as is from time to required
by the Board, entitled to receive the money in cash.
14. Deposits
(1)
The Society may accept
money on deposit from its members.
(2)
Subject to the approval
of the Registrar, the conditions under which deposits may be accepted and
repaid and the rates of interest that may be paid on deposits shall be determined
by the Board.
(3)
The Society has a
lien on a member’s deposits and interest in respect of any loan made to him,
or in respect of any liability under a guarantee given by him.
15.
Lien on members’ funds
The Society has a lien on the savings and deposits
of a member, past member or deceased member, and on any interest or accumulated
funds payable to him by the Society, in respect of any debt due from him to
the Society or of any guarantee by him of a loan made by the Society, and
may off set any sum credited or payable to him in or toward payment of the
debt or satisfaction of the guarantee.
16.
Statements
(1)
A statement in a
form approved by the Registrar shall be issued to each member, recording payments
made by and to the member.
(2)
Payments referred
to in Subsection (1) include all money paid in or paid out on account of entrance
fees, savings, deposits, interest, loans, fines and other collections.
(3)
Every entry in the
statement shall be initialed by the Treasurer or other person specifically
authorized by the Board.
PART V. –MEETINGS OF THE SOCIETY
17.
General and Special Meetings
(1)
A general meeting
of the Society, to be known as the Annual Meeting, shall be held each year
within three months after the end of the financial year.
(2)
The order of business
at the Annual Meeting shall be-
(a)
minutes of the last
Annual Meeting and any general meetings held since that meeting; and
(b)
reports of the Board,
Treasurer, Loans Committee and Supervisory Committee; and
(c)
other business other
than elections; and
(d)
elections.
(3)
The order of business
prescribed by Subsection (2) may be varied on a vote of at least two-thirds
of the members present at the meeting.
(4)
At the request of
the Board or the Supervisory Committee, or at the written signed request of
at least 10 members, the Secretary shall call a Special Meeting of the Society.
(5)
A request under Subsection
(4) shall state the object of the proposed meeting, and only such business
as is specified in the request shall be discussed at the meeting.
(6)
At least seven day’
notice of any Annual or Special Meeting shall be given, and the notice shall
state-
(a)
the place and time
of the meeting; and
(b)
the business to be
discussed.,
and
shall be displayed in the Society Office
(7)
No business shall
be discussed at a general meeting unless a quorum of members is present.
(8)
Subject to Subsection
(9), full members of the Board of Directors and the Supervisory Committee
Society present at the annual or special general meeting shall constitute
a quorum.
(9)
If at the time and
place fixed in accordance with Subsection (6) for a general meeting a quorum
is not present, the meeting shall be adjourned to a date not less than seven
nor more than 15, days later, and the members present at the adjourned meeting
are a quorum regardless of their number.
(10)
The President, or
in his absence, the Vice-president, shall preside at all general meetings
of the Society, and if neither the President nor Vice-president is present
at the meeting the members shall elect one of their number to be Chairman.
(11)
Any question arising
at a general meeting shall, except as otherwise provided, be determined by
a simple majority of members personally present at the meeting.
(12)
Subject to Subsection
(13) each member present has one vote, and no vote shall be permitted by proxy.
(13)
The member presiding
has a deliberative vote and, in the case of an equality of votes on a matter,
also a casting vote.
PART
VI.-MANAGEMENT OF THE SOCIETY
18. Nomination and Election
(1)
At the first Annual
Meeting of the Society, the members shall elect from amongst their number
(a)
Board of Directors
of (not less than five) members: and
(b)
Loans Committee of
(not less than three) members who may also be members of the Board but shall
not be members of the Supervisory Committee
(c)
Supervisory Committee
of (not less than three) members who are not members of the Board
(2)
A member of the Board,
the Loans Committee and the Supervisory Committee shall retire from
office at the third annual general meeting of the society following
the date of his election but is eligible for re-election.
(3)
At least 30 days
before each Annual meeting, the Board shall appoint a Nominating Committee
of three members
(4)
It is the duty of
the Nominating Committee –
(a)
to prepare nominations
of at least one member for each vacancy for which elections are being held:
and
(b)
to submit nominations
to the competent authority appointed by the Registrar to conduct the elections.
(5)
At elections –
(a)
Each member is entitled
to one vote only irrespective of his savings or deposits and
(b)
No member may vote
by proxy; and
(c)
When there are two
or more candidates for any vacancy, a secret ballot shall be taken, but if
only one member is nominated for the vacancy he shall be declared elected;
and
(d)
Elections shall be
decided on the number of primary votes recorded.
(6)
The order of elections
shall be as follows-
(a)
Directors; and
(b)
The Loans Committee
(c)
The Supervisory Committee
(7)
Within 14 days of
the election, the names and addresses of all persons elected and their positions
shall be forwarded to the Registrar by the Secretary.
19.
Board of Directors
(1)
The general management
and control of the Society shall be in the hands of the Board of Directors
elected as set out in Section 18.
(2)
The Board shall,
in addition to the duties normally performed by a Board of Directors-
(a)
determine the maximum
loan that may be made to any one member; and
(b)
approve, defer or
reject applications for membership; and
(c)
expel or discipline
members as provided in these Rules; and
(d)
fix interest rates
on loans within the maximum set in the Act and on savings and deposits subject
to the approval of the Registrar; and
(e)
determine general
policy on, and security requirements for, loan; and
(f)
recommend the dividend
rate on shares to the Annual Meeting; and
(g)
fill casual vacancies
among its own number, the members of the Loans committee or the officers of
the Society; and
(h)
have general responsibility
for the investment of the funds of the Society.
(3)
The Board shall hold
meetings regularly and at least once in each month.
(4)
The Secretary shall,
at the request of a Director or the Treasurer, summon a meeting of the Board.
(5)
At a meeting of the
Board-
(a)
a majority of members
are a quorum; and
(b)
the President or,
in his absence, the Vice-president shall act as Chairman, and in the absence
of both the Directors may appoint a Chairman from among their number; and
(c)
all matters shall,
except as otherwise provided, be decided by a majority of votes; and
(d)
the Chairman has
a deliberative and, in the event of an equality of votes on a matter, also
a casting vote.
(6)
The Board shall cause-
(a)
minutes of general
and Board Meetings to be made in books provided for the purpose; and
(b)
the following documents
and books to be kept at the registered office of the Society and open for
inspection, at all reasonable times and without fee, by a member or creditor:-
(i)
a copy of the Act,
the regulations made under the Act and these Standard Rules; and
(ii)
a copy of the Rules;
and
(iii)
a copy of the last
statement of receipts and expenditure, assets and liabilities, together with
the report on the last annual audit; and
(iv)
Registers of Directors,
Members and Shares; and
(v)
A Register of Loans
Raised and Securities Given by the Society; and
(c)
All returns and notices
required by the Act or any regulations made under the Act to be prepared and
forwarded to the Registrar; and
(d)
Such Registers and
accounts to be kept as are required by the Act or any regulations made under
the Act.
(7)
If a vacancy occurs
on the Board it shall be filled by the Board, but a person so appointed holds
office for the balance of the term until the next elections.
20. Officers
(1)
The Directors shall,
within seven days after their appointment meet to appoint from their own number
a President and Vice-president, and shall also appoint-
(a)
A Secretary and a
Treasurer; or
(b)
A Secretary/Treasurer.
who shall be members but may
or may not be Directors.
(2)
The Board may, from
time to time as required, appoint persons to act as assistants to the Secretary,
Treasurer or Secretary/Treasurer.
(3)
The President-
(a)
shall preside at
all meetings of the members and at all meetings of the Board at which he is
present; and
(b)
together with the
Treasurer, shall sign all documents required to be signed under the Society
seal; and
(c)
shall perform such
other duties as are customarily the function of a President or as he is directed
to perform by a resolution of the Board not inconsistent with the Act, any
regulations made under the Act or these Rules.
(4)
The Vice-president
has and shall exercise all the powers, authorities and duties of the President
during the latter’s absence from a meeting or in the event of his inability
to act.
(5)
The Secretary or
Secretary/Treasurer shall-
(a)
prepare and maintain
full and correct records of all meetings of the members and of the Board;
and
(b)
ensure that proper
notice is given as required by these Rules, of all meetings of the members;
and
(c)
perform such other
duties as he is directed to perform by a resolution of the board not inconsistent
with the Act any regulations made under the Act or these Rules.
(6)
Subject to the control
and direction of the Board, the Treasurer or Secretary/Treasurer shall-
(a)
have custody of the
seal of the Society and of all funds, securities, valuable papers and other
assets of the Society; and
(b)
deposit all cash
within 48 hours of receipt; and
(c)
sign all cheques
issued by the Society, and other instruments involving liability of the Society;
and
(d)
keep full and complete
records of all assets and liabilities of the Society; and
(e)
within 15 days after
the close of each month, prepare a statement showing the financial position
of the Society as at the close of the month and supply a copy to each Director;
and
(f)
prominently display
a copy of the statement referred to in Paragraph (e) at the registered office
of the Society, where it shall remain displayed until replaced by the financial
statement for next month.
(7)
If the Secretary,
Treasurer or Secretary/Treasurer is not a Director, he shall attend and may
enter into discussion at meetings of the Board, but is not entitled to vote.
(8)
An Assistant Treasurer
or Assistant Secretary/Treasurer-
(a)
shall, under the
direction of the Treasurer, perform such duties as the Board may authorize, including the singing
of cheques; and
(b)
may act as Treasurer
if the Treasurer is absent or unable to act.
(9) If a vacancy occurs among
the officers, if shall be filled by the Board.
21. Loans Committee
(1)
The loans Committee
shall be elected as set out in Section 18.
(2)
The members of the
Loans Committee shall choose, from among their number, a Chairman and a Secretary.
(3)
The Secretary of
the Loans Committee shall-
(a)
prepare and maintain
a full record of all actions taken by it; and
(b)
cause a report to
be presented to the Board each month, and to the members at the Annual Meeting.
(4)
The offices of Chairman
and Secretary of the loans Committee may be held by the same person.
(5)
The Loans Committee
shall meet as often as is necessary to deal with the business of the society,
but in any case shall meet at least once in each month.
(6)
The method of calling
meetings and the notice to be given are as decided by the members of the Loans
Committee.
(7)
If a vacancy occurs
on the Loans Committee it shall be filled by the Board, but a person so appointed
holds office only until the next elections.
(8)
The Loans Committee-
(a)
shall deal with all
applications from members for loans; and
(b)
subject to the policy
laid down by the Board, may approve or refuse loans and fix the rate of interest
applicable to each loan; and
(c)
shall, before granting
an application for a loan, ensure that the loan would be in the best interests
of the applicant or his family; and
(d)
shall require security
to be given on all loans in excess of such amount as is fixed by the Registrar;
and
(e)
subject to the policy
laid down by the Board, shall determine the security and guarantors required
for each loan and the conditions of repayment of the loan; and
(f)
where more applications
for loans are pending than can be granted from the funds available, shall
give preference to loans of an urgent nature and to those that in the opinion
of the Committee are likely to confer the most benefit to the applicants (except
that where loans of an equally beneficial nature are involved, the application
which has been pending for the longer period shall take preference); and
(g)
shall not consider
an application for a loan unless a majority of the committee is present.
(9)
A loan may be approved
only by the unanimous decision of the members of the Loans Committee present.
(10)
An applicant whose
application has been rejected may appeal to the board, who may, by a majority
vote, reverse the decision of the Loans Committee.
22.
Supervisory Committee
(1)
The Supervisory Committee
shall be elected as set out in Section 18.
(2)
No officer, Director
or member of the Loans Committee shall be a member of the Supervisory Committee.
(3)
The Supervisory Committee
shall choose, from among their number, a Chairman and a Secretary.
(4)
The Secretary of
the Supervisory Committee shall:-
(a)
prepare and maintain
a full record of all actions taken by it; and
(b)
cause a report to
be presented to the Board at least once in each quarter, and to the members
at the Annual Meeting.
(5)
The offices of Chairman
and Secretary of the Supervisory Committee may be held by the same person.
(6)
If a vacancy occurs
in the Supervisory Committee it shall be filled by a vote of the remaining
members, but a person so appointed holds office only until the next elections.
(7)
At a meeting of the
Supervisory Committee:-
(a)
a majority of the
members shall constitute a quorum; and
(b)
questions arising
shall, except as otherwise provided, be decided by a majority of votes; and
(c)
the Chairman has
a deliberative and, in the event of an equality of votes on a matter, also
a casting vote.
(8)
The Supervisory Committee
(a)
is responsible for
the general supervision of the operations of the Society with a view to protecting
the interest of the members and in particular shall:-
(i)
conduct an examination
of the Society’s affairs and audit its books at least quarterly; and
(ii)
conduct or provide
for an annual audit and submit a report on the audit to the Annual Meeting;
and
(b)
may call a Special
Meeting of the Society to consider any matter arising out of any audit or
examination conducted by it that it thinks should be placed before the member;
and
(c)
subject to Subsection
(9), may, if in its opinion it is in the interests of the Society to do so,
suspend an officer, any or all of the Directors or any or all members of the
Loans Committee; and
(d)
may inspect the books
and records of the Society and question any member of the Society who it has
reason to believe can give information relating to the affairs or management
of the Society.
(9)
Suspension action
under Subsection (8)(c) may be taken only on the unanimous vote of the members
of the Supervisory Committee present at a meeting called for the purpose,
and within 10 days of any such suspension, the Committee shall cause a Special
Meeting of the Society to be called to consider its action and the events
leading to it.
23.
Remuneration
(1)
Members of the Board,
Supervisory Committee or the Loans Committee and a member performing the roles
of Secretary, Treasurer or Secretary/Treasurer may be paid an amount determined
at any Annual or Special General Meeting.
(2)
The Board shall notify
the Registrar of the Society’s intention to make a payment, referred to in
Subsection (1), and shall refrain from making the payment until authorized
by the Registrar to do so.
(3)
If the Registrar
directs that the payment shall not be made or shall be varied, the Registrar’s
direction shall be observed.
24.
Removal from office
(1)
An officer, and a
member of the Board, the Loans Committee or the Supervisory Committee, ceases
to hold office if:-
(a)
he becomes bankrupt,
or assigns his estate for the benefit of, or compounds with, his creditors;
or
(b)
he becomes incapable
of performing his duties; or
(c)
he becomes lunatic
or insane; or
(d)
he is convicted of
an offence against the Act; or
(e)
he absents himself
from three consecutive meetings of the Board, the Loans Committee or the Supervisory
Committee, as the case may be, without an excuse satisfactory to the other
members of the Board or Committee; or
(f)
he ceases to be a
member of the society; or
(g)
he gives one month’s
written notice to the President of his intention to resign, and his resignation
is duly accepted by the Board; and
(h)
he is removed from
office by resolution of a general meeting of the Society.
(2)
The Board may, in
its discretion, remove or suspend an officer of the Society.
PART VII.-LOANS
25.
Loans
(1)
Loans shall be made
by the Society only to its members.
(2)
A written application
shall be made for each loan, and an application shall be made only on a form
of a type approved by the Registrar.
(3)
Subject to any directions
of the Board, a loan shall be made on such conditions as the Loans Committee
in the particular case determines.
(4)
A loan may be made
to a member only:-
(a)
to assist him to
purchase furniture for a home; or
(b)
to assist him to
pay the expenses of removing household furniture and effects; or
(c)
to assist, him to
acquire tools of employment, machinery, and material or stock in trade for
a business, trade or industry; or
(d)
to assist him to
commence, acquire or carry on any business, trade or industry; or
(e)
to assist him to
pay a deposit in respect of the purchase or lease of a home or place of business,
trade or industry; or
(f)
to assist him to
defray the cost of painting or effecting additions or repairs to his home;
or
(g)
to assist him to
pay off a mortgage on a home; or
(h)
to assist him or
his dependants to defray expenses incurred in connection with any accident,
sickness or death to or of a member or any of his dependants; or
(i)
to assist him in
the formal education of himself or any of his dependants, or
with the approval of the Registrar -
to assist him to discharge any financial liability reasonably incurred
by him; or
(j)
to assist him or
his dependants to defray expenses incurred in connection with any accident,
sickness or death to or of a member or any of his dependants; or
(k)
to assist him in
the formal education of himself or any of his dependants, or
with the approval of the Registrar -
to assist him to discharge any financial liability reasonably incurred
by him; or
(l)
to assist him or
his dependants to defray expenses incurred in connection with any accident,
sickness or death to or of a member or any of his dependants; or
(m)
to assist him in
the formal education of himself or any of his dependants, or
(n)
with the approval
of the Registrar - to assist him to
discharge any financial liability reasonably incurred by him; or
(o)
for any other purpose
approved by the Registrar.
(5)
A member of the Board,
the Loans Committee or the Supervisory Committee shall not be granted a loan
that would result in the total of loans to him outstanding exceeding the value
of his savings and deposits, except on the authority of resolutions of each
of the Board, the Loans Committee and the Supervisory Committee at meetings
at which he is not present.
(6)
No members shall
borrow from the Society so that the total loans outstanding to him exceed:-
(a)
20% of the value
of savings and or deposits held by the Society ; or
(b)
such lesser proportion
or amount as the Board from time to time determines.
(7)
When an additional
loan is made to a member:-
(a)
his total indebtedness
to the Society shall be amalgamated; and
(b)
terms of repayments
of the total shall be determined by the Loans Committee.
(8)
The interest rate
to be charged on loans shall be determined by the Board from time to time,
but:-
(a)
the interest rate
shall not in any case exceed 1% per month on the unpaid balance of the loan;
and
(b)
a society may in
any case charge a minimum amount of interest of K0.10 per month; and
(c)
interest may be calculated
to the nearest whole month during which a portion of the loan remains unpaid.
(9)
All money due to
the Society by a member is a debt due by him to the Society, and is recoverable
as such in any court of competent jurisdiction.
(10)
The Registrar may,
by written notice to a Society, limit the total amount that may be outstanding
by way of a loan or loans to any one member of the society at any one time.
26. Security
Security to be taken on loans
made by the Society shall be in such form as is approved by the Registrar
from time to time.
27.
Repayments
(1)
Repayments as required
by the conditions of a loan may be made on any day on which the office of
the Society is open for business.
(2)
Interest owing to
the Society is a first charge against payments made from time to time to the
Society in discharge of loan obligations.
(3)
A borrower may repay
his loan in full or reduce it in excess of the approved conditions on any
day on which the office of the Society is open for business.
PART VIII.-THE SOCIETY’S FINANCES
28.
Banking
(1)
All money paid to
the Society shall be:-
(a)
paid to the Treasurer;
and
(b)
deposited by him
in the name of the Society in such bank as the Board determines.
(2)
Except where special
provision has been approved by the Registrar, and subject to Subsections (3)
and (4), all disbursements by the Society shall be made by cheque drawn on
the Society’s accounts.
(3)
Cheques may be drawn
for such amounts as are determined by the Board and cashed to form a Petty
Cash fund from which small disbursements may be made for operating costs.
(4)
Loans shall not be
made from petty cash, which shall be held by the Treasurer.
(5)
A cheque or other
instrument drawn on the bank accounts of the Society shall be signed by the
Treasurer and counter-signed by the President or vice-president or another
Director authorized by the Board to do so.
29. Financial year
The
financial year of the Society ends on the last day of December.
30.
General Reserve Fund
(1)
The Society shall
maintain a General Reserve Fund into which shall be paid all entrance fees
and fines paid to the Society.
(2)
The Society shall
at the end of each financial year and before declaring interest on deposits
set aside for payments into the General Reserve fund at least 20% of the net
earnings of the Society for that year, provided that the Society shall not
be required to set aside or pay into the General Reserve Fund a sum greater
than the sum which when aggregated with the amount standing to the credit
of the Fund would equal 10% of the total liabilities (actual and contingent)
of the Society.
(3)
Money standing to
the credit of the General Reserve Fund of the Society may be invested in the
same manner as other money of the Society under these Rules.
(4)
Any income earned
from investment of money in the General Reserve Fund may be paid into the
general revenue of the Society.
(5)
The General Reserve
Fund:-
(a)
shall be held as
a reserve against bad loans or losses other than operating deficits;
and
(b)
shall not be used
for any other purposes except on the winding-up of the Society.
31.
Special Reserve Funds
(1)
In addition to the
General Reserve fund, special reserve funds may be established at the direction
of the Board.
(2)
Special reserve funds
shall be used for such purposes as the Board determines.
32.
Additional Savings Interest
The Society may:-
(a)
pay additional interest
on a members savings
(b)
Interest in excess
of 7 % per annum shall not be paid without the approval of the Registrar
33.
Borrowings by the Society
(1)
The Society may,
if authorized by a majority of members at a general meeting with due notice
given to the NASFUND Board and with the approval of the Registrar, raise money
by way of mortgage of its assets or otherwise up to an amount that, together
with the amount outstanding on previous borrowings, does not exceed 25% of
the aggregate at the time of the borrowing of money deposited with it
(2)
With the approval
of:-
(a)
A Special Meeting
of members at which the full Board and Supervisory Committee Members are present
and;
(b)
the Registrar,
the Society may raise money,
buy way of mortgage of its assets or otherwise, up to an amount that, together
with the amount outstanding on previous borrowings, does not exceed 50% of
the aggregate at the time of the borrowing of money deposited with it.
(3)
The form of security,
when required, to be given by the Society to secure any borrowings shall be
as approved by the Registrar.
(4)
The Society shall
maintain a Register of Loans Raised and Securities given by it.
34. Books of Account
The Society shall keep such
books and accounts in such form as is prescribed in the regulation or as the
Registrar directs.
35. Annual
Statements and Audit
The society shall, not later
than two months after the end of its financial year, send to the Registrar
its statement of the receipts and expenditure, assets and liabilities, together
with report on the annual audit and such other information as is required
by the Registrar from time to time.
36. Winding-up
(1)
Two-thirds or more
of the members may petition the Registrar for the winding-up of the Society.
(2)
In the event that
the membership of the Society falls below 20, the Board shall immediately
notify the Registrar, who shall decide whether the society should be wound
up.
(3)
On receipt by it
of a notice from the Registrar of his intention to order the winding-up of
the Society, the Society shall immediately cease the transaction of any business,
pending the appointment of a liquidator.
PART IX.-MISCELLANEOUS
37. Advisers
Any person appointed by the
Registrar to act as an adviser to the Society may take part in any meetings
of the Society, the Board, the Loans Committee or the Supervisory committee,
but is not entitled to vote.
38.
Disputes
Where a dispute concerning the business of the Society
arises:-
(a)
among members, past
members or persons claiming through members, past members or deceased members;
or
(b)
between a member,
a past member or a person claiming through a member, past member or deceased
member and the Society, the Board or an officer of the Society; or
(c)
between the Society
or the Board and an officer of the Society; or
(d)
between he society
and any other Society,
it shall be referred to the Registrar for decision.
39. Association of Societies
The Society may, by resolution
of a general meeting on the recommendation of the Board, join an Association
of Savings and Loan Societies that has been registered under the Act.
40. Supplementary
Rules
(1)
The Society may,
by resolution passes by at least two-thirds of the members entitled to vote
present at an Annual Meeting or at a Special Meeting called for the purpose,
make rules, not inconsistent with the Act, or any regulations made under the
Act, in addition to or amending these Rules.
(2)
Rules, additions
or amendments made in accordance with Subsection (1) have no force or effect
until they have been approved and registered by the Registrar.
(3)
The Society shall
include in its rules any additional rules directed by the Registrar.
