MAJORITY REPORT. 
249 
er 
in respect of that country, and that the members who are resident 
therein be deemed to be resident in the country in which the head 
office of the Society is situated. 
AMENDMENT OF CONSTITUTION OF SOCIETIES WITH BRANCHES. 
607. We were informed (Ministry of Health, App. I, B, 76-77; 
Manchester Unity of Oddfellows, Q. 5702-5704 ; Loyal Order of 
Ancient Shepherds, Q. 14,062-14,067 ; Grand United Order of 
Oddfellows, App. XCV, 1) that several Approved Societies which 
administer the Act through the medium of Branches had found it 
desirable to amend their constitution by the grouping of Branches 
either completely, thus converting the Society into a centralised 
Society, or partially, by merging the separate Branches in the 
different geographical areas into larger units (generally known 
as districts) for the purpose of the administration of National 
Health Insurance. Asa consequence of changes of this nature, 
the total number of Branches administering the Scheme as 
separate financial units has fallen from about 14,000 in 1912 to 
less than half that number. It is not, however, a simple matter, 
under the Act as it stands, for changes of this kind to be effected 
since any single Branch has absolute autonomy and can decline 
to fall in with any proposed reconstitution of the Society, how- 
ever strong may be the desire throughout the Society as a whole 
to effect that reconstitution. It has been suggested to us that 
some means should be provided by which the decision of the 
Society in cases of this kind should be made binding on all its 
Branches. 
608. We have no desire to impair unnecessarily the autonomy 
which Branches at present enjoy, but we feel that some such 
Provision is desirable (with proper safeguards) to meet the case 
where the general desire of a Society may be frustrated by an 
obstructive and insignificant minority. 
609. We observe, moreover, that there is already provision in 
Section 40 (1) (¢) of the Act for the converse operation—namely, 
the transformation of a centralised Society into a Society with 
Branches. We accordingly recommend that Section 40 of the 
Act should be amended so as to enable a Society with Branches, 
subject to the consent of the Minister and to compliance with 
such conditions as may be prescribed, to centralise either com. 
Pletely, or in geographical areas if the Society in a general meeting 
by a large majority (e.g., four-fifths) representative of its insured 
persons resolves to do so. 
INVESTMENT OF SOCIETIES’ FUNDS. 
610. The Act provides that, of the moneys belonging to 
Societies which are available for investment, one-half is to be 
etained to the credit of the Society in the National Health 
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