THE LAW OF FRIENDLY SOCIETIES, AND INDUSTRIAL AND PROVIDENT SOCIETIES, WITH THE ACTS, OBSERVATIONS THEREON, FORMS OF RULES, ETC'., REPORTS OF I.:' vDIN'J CASES AT LENGTH, AND A COPIOUS INDEX. FORMERLY (1S39— 1S67) EDITED RY THE LATE WILLIAM TIDD PliATT, Esq. Cents ©tfttfaw, SKcbferti antt (Snlargctf, BY EDWARD WILLIAM BRABR09K F.S.A., Gf Lincoln's Inn, Esquire, Barrister* at-Law ; Assistant Registrar of Friend Ig Societies for England ; Author of The L<zo of Co-operative Societiesf and cf The Law of Trades Unions-” LONDON: SHAW AND SONS, FETTER LANE, PRINTERS AND PUBLISHERS OF TIIE BOOKS AND FORMS FOR SAVINGS BANKS, FRIENDLY SOCIETIES, GOVERNMENT ANNUITY SOCIETIES, ETC., ETC. 1831. —- P S • King Son- ■ Parliamentary • Agency ■ •Canada-Building- •Kin gS*1-Westminster- BIBLIOTHEK DES K. K. HANDELSMINISTER8 EXZELLENZ DR. JOSEPH MARIA BAERNREITHER (12. IV. 1845 — 19. IX. 1925) FUR DIE BIBLIOTHEK DES INSTITUTS FUR WELTWIRTSCHAFT UND SEEVERKEHR KIEL ERWORBEN AUS MITTELN DER DR. GUSTAV DIEDERICHSEN- STIFTUNG LIST OF BOOKS AND FORMS FOR THE USE OF FRIENDLY SOCIETIES PUBLISHED BY SHAW & SONS, Fetter Lane, E.C. Account Books, &c. for Friendly Societies. By Mr. II. Tompkins, Associate of Actuaries. No. s. 1. Cash Steward’s Account Hook ... ••• ° Check Steward’s Account B ook ... ••• - 3. Treasurer’s Cash Book ... ... ... 5 4. Treasurer’s Receipts... ... in hooks of 200 2 5. Ledger, 5 quires, with Index, sufficient for 240 names 13 6. Register of Members ... ... ... 5 7. Forms of Annual Statement and Balance Sheet per quire 4 8. Secretary’s Record of Cases of Sickness, &c. ... 0 9. Annual Return to be sent to the Registrar of Friendly Societies ... ... each 0 10. Bond required as Security from the Treasurer or other Officer ... ... ... each 0 Friendly Societies’ Books and Forms. Settled by II. C. Norman, Esq., and Examined by G. Davies, Esq., E.R.ti. 1. Register Book of Members ... ... ••• H 2. Premium Journal ... ••• ••• ••• I'^' 3. Allowance Book ... • • • • •• • • • 1^ 4. Allowance Journal ... ••• ••• LI- 5. Cash Book... ... ••• ••• ••• 7 SHAW & SONS, Fetter Lane, London. £ Continued at end of Work 3 d. 0 0 0 0 0 0 0 (i 3 4 0 0 0 0 0 THE LAW OF friendly societies, AND INDUSTRIAL AND PROVIDENT SOCIETIES, WITH THE ACTS, OBSERVATIONS TIIEKEON, forms of rules, etc., reports of leading cases at length, AND A COPIOUS INDEX. FORMERLY (1850—1807) EDITED BY THE LATE WILLIAM TIDD .PRATT, Esq., Cmtl) etntion, licbtsrts anH (Snlargctt, BY EDWARD WILLIAM BRABllOOK, F.S.A., * Of Lincoln's Inn, Esquire, Barrister-at-Law; Assistant Registrar of Friendly Societies for England; Author of “ The Laic of Co-operative Societies and “ The Law of Trades Unions LONDON: SHAW AND SONS, FETTER LANE, PRINTERS AND PUBLISHERS OF THE BOOKS AND FORMS FOR SAVINGS BANKS, FRIENDLY SOCIETIES, GOVERNMENT ANNUITY SOCIETIES, ETC., ETC. 1881. i LONDON: PRINTED BY SHAW AND SONS, FETTER, LANE. DEDICATED (dy permission; to THE EIGHT HONOURABLE VV. E. GLADSTONE, FIRST LORD OF THE TREASURY AND CHANCELLOR OF THE EXCHEQUER: THE TRUE FRIEND AND ENLIGHTENED PROMOTER 0F EVERY MOVEMENT OF THE INDUSTRIAL CLASSES TOWARDS SELF-HELP AND SELF-ELEVATION. CONTENTS PAGE Introduction......................................1-46 PART I. Registered Friendly Societies. 38 & 39 Viet. c. 60. Friendly Societies Act, 1875 - 47-125 Sects. ], 2. Short title, commencement of Act - - - 47 3,4. Extent of Act, Definitions - - - - <8 5. Repeal of Acts in schedule - - - - 50 0. As to existing societies - - - - 51 7. Societies with deposited rules - - - 51 8. Classes of societies - - - - - 52 1 q' j Limited application of Act, registry office - Si- ll. Registry of societies - - - - - 58 12. Cancelling and suspension of registry - - 61 13. Rules and amendments - - - - 63 14. Duties and obligations of societies - - 64 15. Privileges of societies - - - - - 69 16. Property and funds of societies - - - 75 17. Investment with National Debt Commissioners 80 18. Loans to members..............................82 19. Accumulating surplus of contributions for mem- bers’ use ------- 83 20. Officers in receipt or charge of money - - 83 21. Legal proceedings- - - - - -84 22. Disputes ------- 86 23. Special powers of registrars on application from members ------- 88 24. Special resolutions and proceedings thereon - 89 25. Dissolution of societies......................93 26. Militiamen and volunteers not to lose benefits 98 27. Limitations of benefits - - - - 99 28. Payments on death of children - - - 100 29. Societies with branches, how to be registered - 103 30. Societies receiving contributions by collectors- 105 31. Cattle insurance societies - 109 32. Penalties -..................................110 a 3 VI CONTENTS. SECT. PAGE 33. Summary procedure and appeals - - - 110 34. Regulation of proceedings in county courts - 113 35 1 gg'r Public auditors: fees, payment of salaries C and expenses ------ 38 1 / Regulations; evidence of documents - - 115 Application of Act to Isle of Man - - - 11(1 41. Application of Act to Channel Islauds - - lid Sclied. 1. Acts and enactments repealed - - - 119 2. Matters to be provided for by rules of societies 120 3. Forms of bond and receipt on mortgage- - 122 4. Acknowledgments of registry - - - 124 39 & 40 Viet. c. 32. Friendly Societies Amendment Act, 1876......................................125-129 Sects. 1, 2, 3. Construction of Act; treasury regulations; conversion into branches - 125 4-8. Contribution to other societies: acknowledg- ment of registry, &c, ... - 127 — 9-12. Distribution of return : nomination, &e. - 128 Schedule.— Forms of acknowledgment of registry- - 129 42 Viet. c. 9. Act to declare meaning of section 30 of Friendly Societies Act, 1875 - - - 129 42 Viet. c. 12. Poor Law Amendment Act, 1879 - - 130 16 & 17 Viet. c. 34, s. 49—Exemption from income tax - 131 ------------------s. 54................................133 18 & 19 Viet. c. 35—Abatement of income tax for premiums 132 21 & 22 Viet. c. 90, s. 36—Medical officer to be registered - 134 33 & 34 Viet. c. 93, ss. 5, 9—Married women’s property 135,136 PART XI. Friendd? Societies not Registered. 31 & 32 Viet. c. 116.................., - 137-143 PART III. Industrial and Provident Societies. 39 & 40 Viet. c. 45 ....................... 144-190 43 Viet. c. 14, s. 8............................191 CONTENTS. APPENDIX. Notes of cases, &c.— page A. As to insanity - 192 B. As to alterations of rules ----- 197 C. As to appointment of trustees ... - 202 D. As to exemption from stamp duty - - - 203 E. Statute of Distributions ----- 207 F. As to bankruptcy of officer .... 210 G. As to misapplication of funds - - - - 212 H. As to settlement of disputes ... - 217 I. Consolidated county court orders and forms - 222 Iv. Societies under Industrial and Provident Societies Act...........................................226 L. Liability for debts............................227 M. Paid-up shareholders ----- 229 N. Discharge of mortgages by receipt endorsed - 231 • Model rules for a friendly society ----- 232 Model rules for a branch ------- 246 Model rules for a benevolent society......................258 Buies for specially authorized societies .... 266 Model rules for an industrial and provident society - - 270 Audit - - - - . . . - - - 282 Valuation.................................................286 Inspection................................................299 Prosecution............................................. 302 Index. \ CASES CITED A. PAGE Absalum r. Gothin ........... 211 Amicable Society of Lancaster, In re ..................... 211 Anon. '6 Mad. 98)............211 Armitage r. Walker...........218 Ashley, Ex parte ............ 211 B. Battey v. Townrow ........... 197 Beaumont r. Meredith......... 139 Barrett v. Markham........80, 215 Beckett r. Willett........64, 202 Briton Friendly Society, In re .. 214 Buckland, Ex parte........... 211 Burton v. Eyden .............192 Burcon v. Tannahiil..........226 C. Callaghan v. Dolwin............220 Carter v. Bond ................ 70 Caundle v. Bingham............ 63 Church v. Great Southern Sick Society..................... 163 C<»ckerell v. Aucompte ....... 139 Crisp r. Bunbury ........217, 220 D. Davis-v. Bird................. 63 Dean v. Millard................ . 228 Dcwhurst v. Clarkson.......... 198 F. Farrer v. Close ...............138 Fleming v. Self.............. 221 Flemyng r. Hector ............139 Fourth City Mutual Building Society v. Williams ....... 78, 231 G. Garnet v. Moseley Gold Mining Company.................... 230 Gordon, Ex parte............. 213 Great Britain Assurance Com- pany, In re................. 139 G rinliam v. Card ........... 219 H. Harris, Ex parte .............211 Harris r. Amory ............. 141 Hodges v. Wale................ 61 PA OF. Holt v. United Patriots Society 1,105 Hornby v. Close.............. 138 Hunsletr. Dewsbury ........... 194 Jardinc, Ex parte.............. 211 Jones v. Woollam.............84, 139* IC. Key worth, re...............74,210- L. Linton v. Blakency Provident Society................ 160, 227 Long, Ex parte...............218 Longworth’s case............. 141 M. Macqueen, In re .............. 217 Margett v. Parkes............. 84 Matthews, re................. 210- Meredith r. Whittingham...... 198v Morrison v. Glover........... 220- Mulkern v. Lord ...............221 3ST. Norrish, Ex parte............ 197' O. O’Donnell, Ex parte.......212, 210 Orford, Ex parte ............ 212- P. Patrick v. Gilbert............ 213 Payne, Ex parte...............217 Phillips v. Eastwood ........ 142 Pike v. Carter................215- Plumstead Water Company, In re ........................ 230- Q. Queensbury Industrial Society v. Pickles.....................160- R. R. v. Cotton..................197' R. v. Davis................... 61 R. v. Evans.................. 218 R. v. Godolpliin ..........197,191* X CASES CITED. PACK E. v. Grant................... 21 h E. v. Hall.................... 214 E. v. Huddersfield.............194 E. v. Manchester.............. 194 E. v. Miller..................215 E. v. Murphy...................215 E. v. Proud................... 215 E.v. Pratt, Registrar of Friendly Societies ................... 04 E. v. Stephenson. Eegistrar of Friendly Societies.......... 138 E. v. Tyree .................. 215 E. v. Welman.................. 214 E. v. West London Burial Society 217 E. v. Woolley..................214 Eay, Ex parte................. 212 Eeeves v. White................218 Eiddell, Ex parte..............211 Eoss, Ex parte ............... 210 Eoyal Liver Friendly Society, S. St. James’ Club, In re........139 Sharpe v. Warren..............214 PACE Sheffield Co-operative Society, In re ....................170,22!> Sindcnr. Banks.....51, 214, 210. 222 Stamford Friendly Society, Ex parte........................ 211 Stevens v. Security Assurance .. 139- Swansea Friendly Society, Ex parte....................... 212- T. Thompson v. Planet Building Society....................220 Timms v. Williams ...........217 Todd r. Emly................. 139* Touthill r. Douglas .......151,226; Trott r. Hughes.............. 2 is. W. Walker v. Giles...........71. 205. Whipham, Ex parte......... 211 Wright r. Monarch Building Society...................22 & ARRANGEMENT OF CLAUSES OF TUB FRIENDLY SOCIETIES ACT, 1875. SECT. PAGE 1. Short title of Act..........................- 47 2. Commencement of Act ------ ib. 3. Extent of Act --------48 4. Definitions -------- ib. 5. Repeal of Acts and parts of Acts in first schedule - - 50 <5. As to existing societies.............................51 7. Societies with deposited rules . - - - ■ ib. 8. Classes of societies ------- 52 9. Limited application of Act ------ 54 10. The registry office - - - - - - ib. 11. Registry of societies -------58 12. Cancelling and suspension of registry - - - - 61 13. Rules and amendments ------ 63 14. Duties and obligations of societies - - - - 64 15. Privileges of societies ------ 69 16. Property and funds of societies.....................75 17. Investments with National Debt Commissioners - - 80 18. Loans to members -------82 19. Accumulating surplus of contributions for member’s use - .- ..-.--83 20. Officers in receipt or charge of money - - - - ib. 21. Legal proceedings...........................84 22. Disputes -................................-86 23. Special powers of registrars to be exercised on appli- cation from members......................88 24. Special resolutions, and proceedings which may be taken thereon..................................89 25. Dissolution of societies...................88 26. Militiamen and volunteers not to lose benefits - - 98 27. Limitation of benefits ------ 99 ARRANGEMENT OF CLAUSES. xii SECT. PAGE 28. Payments on death of children...........................100 21). Societies with branches.................................103 30. Societies receiving contributions by collectors - - 105 31. As to cattle insurance and certain other societies - - 100 32. Penalties - - -..............................110 33. Summary procedure and appeals..........................ib. 34. Regulation of proceedings in county courts - - - 113 35. Public auditors........................................114 36. Fees...................................................ib. 37. Payment of salaries and expenses .... ib. 38. Regulations to he made for carrying out the Act - - 115 39. Evidence of documents - - - - - - it. 40. Application of Act to Isle of Man .... no 41. Application of Act to Channel Islands - - - ib. Schedules................................................110 ♦ I INTRODUCTION. 1. A new Edition o£ this Work having been called for (the Fourteenth from the first publica- tion of “ The Law relating to Friendly Societies/’ by the late Mr. John Tidd Pratt (a), and the Second since the passing of the Friendly Societies Act, 1875, when the Work had to be re-written), the opportunity has been taken of embodying in the text the several amendments in the Friendly Societies Act, 1875, which were introduced by the Friendly Societies Amendment Act, 1876, and the new heading to section 30, which was provided by the Act to declare the true meaning of that section passed in the year 1879 (b) for the purpose of removing the doubt thrown upon that meaning by the decision of the Queen’s Bench Division in the case of Holt v. The United Patriots Friendly Society (c). Some important matters of practical interest which have arisen in the working of the Act have also been explained and additional forms of rules, &c., furnished (d). Part III. of the present Edition, which comprises (a) See p. 46. (b) 42 Viet. c. 9. (c) Law Hep. 4 Q. B. Div. 29. (d) The Treasury regulations and forms appended thereto have not, however, been reprinted in this Edition, as they are now published officially by Her Majesty’s Stationery Office, and may be obtained of Messrs. Shaw and Sons, agents for that department. B o INTRODUCTION. the Industrial and Provident Societies Act; 1876 with notes and forms, is entirely new. 2. Before proceeding to state the effect of the present Friendly Societies Acts, it may he useful briefly to trace the course of past legislation with respect to such associations. The first Act “For the Encouragement and Relief of Friendly Societies” (33 Geo. 3, c. 54), passed on the 21st June, 1793, defined them to be “ societies for raising, by voluntary subscrip- tions of the members, separate funds for their mutual relief and maintenance in sickness, old age, and infirmity/’ The preamble affirmed that the protection and encouragement of such societies would be likely to be attended with very beneficial effects, by promoting the happiness of indivi- duals and at the same time diminishing the public burthens (a). The enacting part of this statute designates the objects it proposed to encourage as “ societies of good fellowship,” and authorized them to make proper and wholesome rules, orders, and regula- tions, so as not to be repugnant to the laws of the realm, nor to any of the express provisions of the Act. That it might be ascertained whether such rules were conformable to the Act, they were to be exhibited in writing to the justices in (a) It is interesting to see the usefulness of Friendly Societies in diminishing the public burthens placed so pro- minently forward from the very first. A recent writer has boon so much impressed with this that he has eloquently advocated the establishment of a National Friendly Society, to which every one should be compelled to subscribe. INTRODUCTION. 3 quarter sessions, who were to review and examine them, to annul and make void all such as were repugnant to the Act, and to allow and confirm the rest. The rules so confirmed were to be signed by the clerk of the peace, and a duplicate on parchment filed by him with the rolls of the sessions (6). 3. The encouragement and relief which this Act provided for those societies who complied with its requirements were :— 1st. Exemption from fees upon enrolment and upon bonds given to the clerk of the peace. 2nd. Exemption from stamp duty on bonds. 3rd. Power to recover funds from defaulting officers by summary proceedings in Chan- cery without fee, either to the officers of the court or to counsel, and without stamp duty. 4th. Priority of claim for moneys of the society on the assets of any deceased or bankrupt officer. 5th. Power to take proceedings in the names of officers for the time being, and continue them without abatement by the death or removal of the officer. 6th. Power to determine disputes, either by arbitration or before justices without appeal to any court of record. 7th. Exemption of members from removal (b) Though this is the first Act providing for the legal recognition of Friendly Societies, the rules of trade guilds had been certified by the Commissary of the Bishop of London as early as 1354. B 2 4 INTRODUCTION. under the poor law, until they become actually chargeable to the parish («). 4. By an Act of the 26th June, 1795 (35 Geo. 3, c. Ill), the provisions for securing the funds of a society were extended to “benevolent and charitable institutions, for relieving by voluntary subscriptions and benefactions, widows, orphans, and families of the clergy, and others in distressed circumstances.'’'’ 5. By an Act of the 20th June, 1809 (49 Geo. 3, c. 125), power was given to justices to enforce the observance of the rules, and to compel payment by a member of arrears due to a society by means of distress and sale. 6. On the 12tli July, 1819, an Act was passed (59 Geo. 3, c. 128) “for the further Protection and Encouragement of Friendly Societies, and for preventing Frauds and abuses therein/-’ It recited that the “ habitual reliance of poor persons upon parochial relief, rather than upon their own industry, tends to the moral deterioration of the people and to the accumulation of heavy burthens upon parishes; and it is desirable, with a view as well to the reduction of the assessment made for the relief of the poor as to the improvement of the habits of the people, that encouragement should be afforded to persons desirous of making (a) The great number of Friendly Societies that must have been in existence in 1793, when this first Act to encourage them was passed, is shown by the fact that in 1879 there were still in operation as many as fifty-nine societies more than 100 years old, having been founded between 1687 and 1778. INTRODUCTION. . 5 provision for themselves or their families out of the fruits of their otvn industry. By the contri- bution of the savings of many persons to one common fund the most effectual provision may he made for the casualties affecting all the contribu- tors ; and it is therefore desirable to afford further facilities and additional security to persons avIio may be willing to unite in appropriating small sums from time to time to a common fund for the purposes aforesaid, and it is desirable to protect such persons against the effects of fraud or mis- calculation ” (b). The preamble went on to recite that the provisions of preceding Acts had been found insufficient for these purposes, and great abuses had prevailed in many societies established under their authority. 7. The statute proceeded to define a Friendly Society as “ an institution whereby it is intended to provide by contribution, on the principle of mutual insurance, for the maintenance or assist- ance of the contributors thereto, their wives or children, in sickness, infancy, advanced age, widoAV- liood, or any other natural state or contingency, whereof the occurrence is susceptible of calcula- tion by way of average.-” Not only the rules but also the tables were to be thenceforth submitted to justices, who, before confirming them, were to satisfy themselves that the contingencies which (b) It Avill be observed that though the problem of Iioav to keep a society sound was present to the legislature from a very early time, the expedient of a periodical valuation was not adopted till the Act of 1875 was passed. 6 INTRODUCTION. the particular society was to provide against were within the true meaning and intent of the Act, and that the formation of the society would he useful and beneficial, regard being had to the existence of other societies in the same district. No tables or rules connected with calculation were to be confirmed by the justices until they had been approved by two persons at least, known to be professional actuaries or persons skilled in calculation (a), as fit and proper, according to the most correct calculation of which the nature of the case would admit. 8. The justices in quarter sessions were also by this Act authorized to publish general rules for the formation and government of Friendly Societies within their county. Every society was required to have at least three trustees, of whom the majority were to be substantial householders, rated at not less than £50. No society was to dis- solve or to divide its funds without the consent of its trustees, aud the certificate of two professional actuaries “ or persons skilled in calculation/'’ approved as such by the justices, that “ according to the most correct calculation of which the case would admit,” the interest of all contributors and claimants, in possession or expectancy, were by the proposed scheme of dissolution fairly dealt with and secured. 9. In exchange for these restrictions, societies were allowed to invest their funds in savings (a) This soon got to he interpreted in practice to mean such persons as the village schoolmaster. INTRODUCTION. 7 banks, or with the Commissioners for the Reduc- tion of the National Debt, as well as in the public funds and on real security; and provisions were made for the adjustment of the affairs of the society hy justices, in the event of a deficiency in its funds, and for the enforcement of claims of widows and children of deceased members. 10. After ten years’ trial, however, of this system, the law relating to Friendly Societies was reconstructed by an Act passed on the 19th June, 1829 (10 Geo. 4, c. 56), which repealed all the previous statutes. The rules were still to be con- firmed by justices and enrolled hy the clerk of the peace, but the only preliminary to such con- firmation and enrolment was the certificate of a barrister, appointed for the purpose, that the rules were “ in conformity to law and to the provisions of this Act ” (b). Upon this certificate being obtained, the jus- tices were “authorized and required” to allow and confirm the rules, without any discretion as to whether the formation of the proposed society would he useful or beneficial, or any sanction of actuaries or other skilled persons. It was pro- vided, however, that the justices were to satisfy themselves that the tables of payments and bene- (6) The barrister so appointed was Mr. John Tidd Pratt, who held the office from 1829 until his death in 1870. During those forty-one years he impressed his personality on the administration of the law in a way that societies have not yet learned to forget. This is not the place to treat of his eminent public services as they deserve, but they ought not to pass unrecorded in the history of Friendly Societies. 8 INTRODUCTION • fits proposed to be used miglit be adopted with safety to all parties concerned. 11. This statute re-enacted the more important of the privileges conferred by that of 1793 on Friendly Societies, and in some particulars ex- tended them. On the other hand, it required them to pay one guinea fee to the barrister for his certificate. It specified a list of securities upon which the funds might be invested ; it made provision against the incapacity or refusal to act of trustees; it authorized societies to pay small sums without the expense of adminis- tration ; it substituted a summary remedy before justices for that in Chancery in the case of defaulting officers; it omitted the provision for the appointment of responsible householders as trustees, and for requiring tlicir consent to a dis- solution of the society; and substituted for the certificate of experts, in cases of dissolution, the agreement of five-sixths of the members and of all those entitled to relief. It also provided that minors might be members, and that an annual audited statement of the funds should be prepared, of which each member should be entitled to a copy on payment of a sum not exceeding sixpence. 12. The Act of 1829 after reciting that it is “ desirable, for the better security of such societies, that correct calculations of tables of payment and allowances, dependent on the duration of sickness and the probabilities of human life, may be con- structed for their assistance, and the present existing data on these subjects have been found INTRODUCTION. 9 imperfect and inefficient,” provided for the making of quinquennial returns of sickness and mortality in a form prescribed, and for their being laid before parliament (a). 13. The provision requiring the justices to be satisfied that the tables proposed to be used were safe, before they allowed and confirmed the rules, was repealed by an Act of the 30th July, 1834' (4 & 5 Will. 4, c. 40). Thenceforth societies were to be free to establish themselves upon what conditions and with what rates they chose, pro- vided only they could satisfy the barrister that the rules were “ calculated to carry into effect the intention of the parties framing them/’ and were “in conformity to law.” The objects or purposes for which societies might be formed were extended to include provision against any natural state or contingency whereof the occurrence is susceptible of calculation by way of average, and any other pui-pose which is not illegal; provided that the contributions for such other purposes were kept distinct. 14. Other sections of this Act improved the provisions with respect to the settlement of dis- putes, and declared that letters to and from the barrister should he free of postage. The Acts of 1829 and 1834 are still in force with regard to such Benefit Building Societies as have not been (a) These returns have regularly been made at the end of every five years from 1835 to 1880. Abstracts of those from 1860 to 1875 have recently been ordered by parliament to be printed. b 3 10 INTRODUCTION. incorporated under 37 & 38 Yict. c. 42 («). They have been long since repealed with regard to Friendly Societies. In 1840 it became neces- sary to restrict the privileges of exemption from stamp duty and of investment with the National Debt Commissioners to such societies only as did not grant assurances exceeding £.200 (3 & 4 Yict. c. 73). 15. In 1846 considerable alterations were made in the law relating to Friendly Societies. The barrister certifying the rules was constituted the “ Registrar of Friendly Societies.” The rules, which had theretofore been filed with the clerk of the peace in each county, were to be collected together and taken charge of by the Registrar. He was authorized to transfer the property of a society from an incapable or absent trustee; to settle disputes; to require the production of documents, and to administer oaths. An actuarial certificate was to be obtained before any society could be registered “ for the purpose of securing any benefit dependent on the laws of sickness and mortality.” No insurance was to be effected on the life of a child under six years of age. The objects for which a Friendly Society might be formed were afresh defined and largely extended so as to include the frugal investment of savings (under which class what are now denominated co-operative societies were established) and in- (a) As to the Law of Building Societies under this statute, and of Benefit Building Societies under that of 1836, see Scratchley and Brabrook on the Law of Building Societies. (Shaw & Sons, 1875.) INTRODUCTION. 11 surance against fire, flood, or shipwreck (9 & 10 Viet. c. 27). 16. By an Act of the 15th August, 1850 (13 & 14 Viet. c. 115), the statutes relating to Friendly Societies were again consolidated, and for that purpose the Acts of 1829, 1834, 1840, and 1846 were all repealed, except with regard to Benefit Building Societies. The wide definition of objects contained in the Act of 1846 was re- enacted with slight alteration, but no society was to be entitled to the privileges of the Act which assured more than £100 in one sum, or more than £30 by way of annuity, or more than 205. per week in sickness. Societies under this Act were divided into two classes, “ Certified Friendly Societies/-’ and “ Registered Friendly Societies.” The certified societies (6) were such as should obtain a certificate to their tables by an actuary possessing a given qualification, who was required to set forth the data of sickness and mortality upon which he proceeded, and the rate of interest assumed in the calculations. All others were to be simply registered. The duty of the Registrar was to see that the rules of every society, whether certified or registered, were in conformity with law, that no rule was repugnant to another, and that they were reasonable and proper. All societies granting annuities were required to come under the class of certified societies (c). The fee (i) Very few of this class were actually established. (c) A provision equivalent to this was re-enacted in the Acts of 1855 and 1875. 12 INTRODUCTION. payable for registry of rules of a branch or amendment of rules was reduced to 2.9. 6d. The privileges of investing money with the Commis- sioners for the Reduction of the National Debt, and of payment of sums up to £50 without letters of administration, were to be granted to certified societies only. An elaborate form of annual return was provided. This Act was to be a tem- porary Act, if not renewed after one year. 17. In 1852, Industrial and Provident (or Co- operative) Societies were taken out of the control of this Act, and a special Act passed in respect to them (15 & 16 Yict. c. 31). In the same session the Friendly Societies Act was continued and slightly amended, and it was again continued in 1854. In 1853 (by 16 & 17 Yict. c. 123) the societies which granted assurances exceeding £200, &c., having been certified under old Acts, were restricted from investing their funds with the National Debt Commissioners, but received in exchange fuller powers of general investment. In 1854 all societies which granted large assurances were discharged from the Friendly Societies Acts (17 & 18 Viet. c. 56J. 18. In 1855 the law of Friendly Societies was again consolidated, with material amendments, by the 18 & 19 Viet. c. 63, which continued to be the principal statute to the commencement of the Act of 1875, on 1st January, 1876. By that Act the purposes for which a Friendly Society might be established, Avcre restricted to life assur- ance, relief in old age, sickness and widowhood, endowments, and such purposes (ejusdem generis) INTRODUCTION. ' IS as a Secretary of State should authorize as those to which the powers and facilities of the Act ought to be extended. The limits of assurance and annuity contained in the Act of 1850 were re-enacted. The distinction between "certified” and " registered ” societies was not maintained (having been found not to be workable) ; but it was provided that annuity societies should still require the certificate of an actuary before re- gistry, and that societies not certified by the Registrar might, by merely depositing a copy of their rules with him, protect their funds from fraud or misapplication, and provide for the settlement of disputes. It was also provided that any Provident, Benevolent, or Charitable Institu- tion formed for the purpose of relieving the physical wants and necessities of persons in poor circumstances, or for improving the dwellings of the labouring classes, or for granting pensions or for providing habitations for the members or other persons elected by them, might, by trans- mitting its rules to the Registrar, and obtaining his certificate as to their "being not repugnant to law,” become entitled to the benefit of so much of the Act as related to the appointment of, and the vesting of the property of the society in, trus- tees, their suing and being sued and their liability, the giving of security by the treasurer, and the rendering of accounts by him, the settlement of disputes, &c., in the same manner as if it were a Registered Friendly Society. 19. Upon the submission of the rules of a Friendly Society to the Registrar, he was to 14 INTRODUCTION. advise with the secretary or other officer, if re- quired, for the purpose of ascertaining whether such rules were calculated to carry into effect the intentions and object of the persons who desired to form the society; and if he found such rules to he in conformity with law and with the pro- visions of the Act, to give a certificate to that effect. Societies granting annuities were, before registration, to obtain the certificate of a qualified actuary. All fees for registry were abolished. 20. In other respects, the Act of 1855 gave new privileges and facilities to societies; for example, it provided :— 1st. That a society might transfer its engagements to any other society, upon such terms as the trustees and com- mittee of management, or a majority of the members of each society, should agree upon. 2nd. That buildings for the purpose of holding the meet- ings of the society might be purchased, built, or taken upon lease; and also adapted and furnished; that land not exceeding one acre might also be taken for the purpose of erecting such a building, and such premises might be mortgaged, sold, exchanged, or let; provided that the money required for such purpose was to be raised “ accord- ing to the rules of the society on such behalf inserted.” 3rd. That whenever on the death of a member a sum not exceeding ,£50 became payable, the same might, with- out talcing out letters of administration, be paid to the person mentioned in the rules, or to the widow or relative of the deceased, nominated by him by any writing deposited with the secretary, or in default of there being any such nominee, then to the person appearing to the trustees to be entitled under the Statute of Distributions. 21. By tbe 21 & 22 Viet. c. 101 (1858), the Act of 1855 was amended by making further provision against undue assurance on the lives of children, INTRODUCTION. 15 by providing for the change of name of a Friendly Society, by authorizing proceedings to he taken against the secretary or other officer on behalf of the society, and in other less important particulars. 22. By the 23 & 24 Viet. c. 58 (1860), further amendments were made, enabling the Registrar to dissolve an insolvent society, to enforce annual returns from societies, and to make application to justices in case of misappropriation of funds. 23. By 29 Yict. c. 34 (1866), further facilities were given for the establishment of societies for the assurance of cattle and other animals, by which such assurances were permitted without limit of amount, and the contributions were made recover- able as a debt. 24. By a Bill introduced to the House of Com- mons on 10th February, 1870 (a), it was proposed to amend the laws relating to Friendly Societies by abolishing the certificate of the Registrar and transferring the duties of the Registrar to the Board of Trade, or where they are of a judicial character, to a local judge. 25. This Bill did not become law; but on 29th October, 1870, Her Majesty issued a commission (b) under the Royal Sign Manual “ to enquire into (a) Shortly after the death of Mr. Tidd Pratt, the first Registrar. (b) The Commissioners were the Right Hon. Sir Stafford H. Northcote, Bart., C.B., Sir M. E. Hicks-Beacli, Bart., Alderman Sir S. H. AVaterlow, J. Bonham-Cavter, Esq., E. M. Richards, Esq., C. S. Roundel!, Esq., F. T. Bircham, Esq., and AY. P. Pattison, Esq. J. M. Ludlow, Esq., was secretary to the Commission. An amended Commission was issued on 17th August, 1871 ; and four Assistant Com- missioners were appointed in the same year. 16 IN Tit O DUCT ION. the existing state of the law relating to Friendly Societies, and to enquire into and report upon the operation of the Acts relating to Friendly Societies and Benefit Building Societies, and the organiza- tion or general condition of societies established under such Acts respectively, and upon the office and duties of the Registrar of Friendly Societies, with power to suggest any improvements to be made in the law with respect to the matters aforesaid.” 26. The Commissioners, after collecting a vast amount of valuable evidence, made their final re- port in the year 1874. This important document, occupying 216 folio pages, affords for the first time means for a comprehensive survey of Friendly Societies, their history and present condition, their beneficial action and their many defects. The scope of the present work does not admit the dis- cussion of these matters, or permit us to do more than state the amendments in the law which have resulted from the labours of the Commission. 27. A Bill was introduced in 1874 to carry out the recommendations of the commissioners. After undergoing considerable modification at the in- stance of the societies, it was withdrawn for the session («), and in 1875 the present Act, 38 & 39 Yict. c. 60, was passed. The foot-notes to the several sections point out in what respects it altered the law; but it may be convenient here to give a brief summary of its provisions. 28. By this Act, the registry of societies in the (a) The withdrawal of the Bill of 1874 is to he regretted, as it had for one object the harmonizing of the law relating to all societies capable of regist^. INTRODUCTION. 17 three kingdoms is entrusted to a Chief Registrar, who has Assistant-Registrars in England, Ireland, and Scotland. With the approval of the Trea- sury, he is authorized to prepare and circulate model forms of accounts, balance-sheets, and valu- ations, and to collect and publish statistics. He may circulate, either generally or in any particu- lar district, information on the statistics of life and sickness, and the application thereof to the business of Friendly Societies, and other informa- tion useful to persons interested in societies capa- ble of registration. 29. The societies affected by the Act are de- scribed under five denominations :— 1. Friendly Societies. 2. Cattle Insurance Societies. 3. Benevolent Societies. 4. Working Men’s Clubs. 5. Specially authorized Societies. 30. The purposes for which a Friendly Society may be formed are :— 1. Relief in sickness, or other infirmity, in- old age, widowhood, or orphanhood. 2. Payments on birth or death. 3. Payments in distress, to seekers for em- ployment, and in case of shipwreck or damage at sea. 4. Endowments. 5. Insurance of tools against fire. 31. Societies having these purposes may adopt any of the following varieties of organization :— 1. As societies having branches. 2. As societies having collectors. 18 INTRODUCTION. 3. As societies having a custom of periodical division of funds. 4. As societies having deposit funds. 32. A branch is “ any number of the members o'f a society, under the control of a central body, having a separate fund, administered by them- selves, or by a committee or officer appointed by themselves ■” but “ where a society has no fund under the control of a central body, to which every branch is bound to contribute, every branch is deemed to be, and must be registered as a separate societyA society which answers the double test of having a fund administered by every branch, and a fund administered by the central body, to which every branch contributes, may be dealt with as a single society. Such are the societies popularly called “ affiliated/-’ which are among the most important of existing Friendly Societies (a); and, under these provisions, the case of county societies also may be met. 33. A society having branches, desiring to be registered as a single body, must accompany the application for registry with lists of its branches and copies of their rules, where they differ. Such societies must register iu each of the three kingdoms in which they do business, but the Assistant-Registrar for Ireland or Scotland is not to decline to register any rules which have been (a) The Manchester Unity of Odd Fellows has 3,611 lodges, 533,520 members, and £4,542,221 funds. The An- cient Order of Foresters has 4,585 courts, 555,062 mem- bers, and £2,933,571 funds. INTRODUCTION. 19 registered in England. Notice of the establish- ment of new branches, and copies of their rules, when necessary, are to he given to the Registrar; and the rules of a branch may be altered in the same manner as the rules of an independent society: 34. On the other hand, the special powers of the Registrar to appoint, with the consent of the Treasury, inspectors to examine into the affairs of a society,and to call special meetings of a society upon application of a certain number of the members, do not apply to a society with branches, without the consent of the central body of the society; and the power to pass special resolutions for the purposes enumerated in section 24, does not apply to branches. The provisions of section 25 also relating to the dissolution of registered societies, do not apply to a society having branches, unless with the consent of its central body. 35. The general effect of these provisions seems to be to enable the governing body of an affiliated order to maintain the compact upon which their union is based more thoroughly than they could formerly do. When every branch was ia law a separate society, it could easily sever its connec- tion with the general body. The result was that secessions from these affiliated bodies frequently took place, new orders being formed, themselves liable in their turn to experience the influence of disaffection in a similar manner. A branch was m that respect in a situation analogous to that of an individual member, who could withdraw at his pleasure. 20 INTRODUCTION. 36. Societies receiving contributions by means of collectors at a greater distance than ten miles from their registered office, are made subject to special provisions, which must be set forth in their rules («). Such a society— 1. Must furnish every member or family with a copy of its rules for one penny, and a printed policy for one penny (b). 2. Cannot enforce forfeiture of a policy or benefit without written or printed notice given at least 14 days before forfei- ture (c). 3. Cannot transfer a member to another society or company without his written (a) The Commissioners reported that their opinion was decidedly adverse to this form of society. The radical evil of the whole system appeared to them to be in the employment of collectors otherwise than under the direct supervision and control of the members, a supervision and control which they feared to be absolutely unattainable in burial societies that are not purely local. The method of collection from house-to-house is not a vicious one in itself, and is appro- priate and economical, indeed virtually indispensable, where the individual contributions are reduced to a minimum as they are when confined to the purpose of securing burial benefits : but in the general burial societies the employ- ment of collectors, from being a mere method of getting in revenue, had become the pivot of the whole system ; the collector was the society, the members were merely pawns whom he moved about at will on the chess-board. [Fourth Eeport, par. 545.] (b) In some societies, they had previously charged a price for the rules equal to six weeks’ subscriptions. [Ibid. 496.] (c) This provision is intended to protect the member against being thrown out of benefit by the collector not calling upon him. “ Societies, in many cases, absolutely maintained themselves by their lapses.” [Ibid. 503,] INTRODUCTION. 21 consent, and remains liable to tbe mem- ber if it attempts to transfer without such written consent. 4. Cannot accept a transfer, even by consent of the member, without notice to the society from whom the transfer is sought . to be made. 5. Must hold at least one general meeting of the members in every year, notice of such meeting to be given by advertise- ments or by letter or post card sent prepaid to every member. 6. Must have open for inspection for seven days preceding the meeting, a copy of its balance-sheet, and must deliver or send prepaid a copy to any member on demand. 7. Must obtain the certificate of a public ac- countant, not an officer of the society (other than auditor), to the annual returns. In any dispute arising in a society of this class, the member has the option to appeal to a County Court or Court of Summary Jurisdiction, in the place where he resides, notwithstanding anything in the rules to the contrary. No collector is capable of taking part in the management of the society or in the proceedings of any of its meetings. Contra- vention of this provision, or of those as to the transferring of members, is an offence punishable by a fine of from JJ1 to £5. The section (30) applies not merely to societies established after 1st January, 1876, but to those in existence at that date. 22 INTRODUCTION. 37. The provisions restraining transfer of mem- bers apply not merely to registered societies but to unregistered societies; and all the provisions of which an abstract is given in the last article (except those as to delivering of rules, policy, and balance-sheet) apply not merely to Friendly So- cieties, but to industrial Assurance Companies. 38. Societies having a custom of periodical divi- sion of funds could not have rules for that purpose certified under 18 & 19 Yict. c. 63, but it is now provided that a society (other than a benevolent society or working men’s club) shall not he dis- entitled to registry by reason of any such rule if the rules contain distinct provision for meeting all claims upon the society existing at the time of division before any such division takes place (a). 39. Societies having deposit funds (heretofore legalized by an authority of the Secretary of State), may provide by their rules for accumu- lating at interest, for the use of any member, any surplus of his contributions to the funds •which may remain after providing for his assurance, and for the withdrawal of such accumulations. (a) The dividing societies liave the advantage of being able to obtain from their members a higher contribution, the prospect of having a portion returned at the end of the year serving as an inducement to the members to pay, and in many parts of England and in Ireland such societies are exceedingly popular. An Irish witness said to the Assistant Commissioner:—“ We should soon die out if we had no- divide. A man who has once been a member of a society which divides every year will never be content in any other society.” The mischief, however, is that the society which divides its funds is almost certain to fail to help its members when they all get old together, and its help is most needed. INTRODUCTION. 23 40. A Friendly Society may not be dissolved voluntarily without the consent of five-sixths in value of the members, including honorary members,, and of all those receiving any relief, annuity, or benefit, unless the claims of such persons are duly satisfied, or adequate provision made for the pur- pose. The instrument of dissolution must either set forth the intended division or appropriation of the funds, or refer such matter to the Registrar. Where the society is in an insolvent state, the Registrar may, upon the application of one-fifth in number of the members (or of a less proportion in a society of 1,000 members or more) dissolve the same compulsorily, by award, if he shall upon investigation so think fit, and may direct how the funds and property of the society are to be divided. The dissolution is in either case to be advertised in the Gazette, and in a county news- paper, by the Registrar, and is binding and effec- tual on all persons, unless proceedings are taken by any member to set it aside within three months from the date of the advertisement. 41. A Friendly Society may, by special resolu- tion, amalgamate with, or transfer its engage- ments to any other society upon the like consent, and subject to the same restrictions as provided for the case of dissolution. 42. No person by reason of enrolment or ser- vice in the militia, naval coast volunteers, naval reserve volunteer force, yeomanry, or volunteers, will lose or forfeit any interest in a Friendly Society,, registered or unregistered, notwithstanding any rule of such society to the contrary; but in a. 124 INTRODUCTION. society whose rules were certified before 23rd July, 1855, a militiaman may be required to pay an extra "contribution during the time he shall be ■serving out of the United Kingdom, or his claim on the society may be suspended, if the rules con- tain a clause against the enrolment or service of any member in the militia. 43. Although a member may, unless the rules of his society provide to the contrary, belong to any number of societies, he cannot receive in the aggregate an assurance of more than £200, or an annuity of more than £50 from such societies collectively, and must, before receiving any such benefit, make a declaration to the effect that the total value of any benefit accruing to him does not exceed the limited amount. 44. With respect to payments on the death of children, not more than £6 («) can be insured, cither in one or more societies, on the death of a child under five years of age, nor more than £10 under ten years of age. To provide for the en- forcement of this restriction, certificates of the death of children, obtained for the purpose of claiming money from a burial society, are to be specially indorsed, and a medical certificate or other (a) In the House of Lords the limit of assurance on a child under three years of age was reduced to £3, on the motion of Lord Aberdare, but this amendment was dis- agreed with by the House of Commons. The object desired of restricting the amount insured to the actual cost 'of burial would, we think, have been better attained if the amend- ment had been adopted. On this point some valuable information was collected by the Chief Registrar in his Report for 1875, pp. 20-25. INTRODUCTION. 25 evidence of the cause of death is to be produced. No money is to be paid except to the parent or personal representative of the parent. These provisions apply to Industrial Assurance Companies as well as to Friendly Societies, and such companies are exempted, with respect to children’s assurances, from the operation of the Gambling Act (b). Any society or claimant paying or claiming money contrary to the directions of the statute, is liable to a fine not less than ifil, and not exceeding £5. 45. Every registered Friendly Society is required, within six months after the expiration of every five years succeeding the 31st December, 1875, to make a return of the sickness and mortality ex- perienced by its members during the quinquennial period; and once at least in every five years to cause its assets and liabilities to be valued (c). The society may either appoint the valuer themselves, and send his signed report and abstract to the Registrar, or may furnish the Registrar with the returns and evidence necessary to enable an actuary employed by him to make the valuation for the society. Where the society appoint their own valuer, his calling or profession are imma- terial, but he must state his address and calling or profession in his signed report. 46. The Chief Registrar may, however, with the approval of the Treasury, dispense with the (6) 14 Geo. 3, c. 48. (c) In tlie year 1879, the valuation returns of 948 socie^- ties were received at the central office, and an abstract made- of them hy Mr. Sutton, the actuary. 33 of the valuations only were hy public valuers. More than half showed an estimated deficiency. See Art. 83, post, p. 45. c 26 INTRODUCTION. valuation in respect of societies to whose opera- tions he may deem it inapplicable; and he may dispense with the quinquennial return, if the society enables him to inspect its hooks, and obtain by that means sufficient information as to its experience of sickness and mortality. 47. Cattle Insurance Societies may insure against loss by death of neat cattle, sheep, lambs, swine and horses from disease or otherwise, with- out limit as to amount. Their rules have the effect of a deed under seal, and contributions payable to them are recoverable as a debt in a County Court. The Treasury may extend these privileges to any specially authorized society. 48. Benevolent Societies which, under 18 & 19 Yict. c. 63, s. 11, were entitled to a special form of certificate, if their rules were not repugnant to law, and thus obtained only the benefit of certain specified sections of the statute, are now brought within its full operation. Division of the funds among the members, however, is not al- lowed, nor is the privilege of nomination; and the power to hold land is restricted to one acre. It is much to be wished that charities generally should avail themselves of the protection to the funds and the other substantial advantages offered by registry under the Friendly Societies Acts. 49. Working Men’s Clubs, or societies for pur- poses of social intercourse, mutual helpfulness, mental and moral improvement, and rational re- creation, may be registered. Division of the funds among the members is not to be provided for in .the rules, nor is the privilege of nomination al- INTRODUCTION. 27 lowed. These societies were formerly registered as Friendly Societies under authority of the Secretary of State, though some of the provisions of 18 & 19 Viet. c. 63, are clearly inapplicable to such societies—an anomaly which the Act of 1875 removes. 50. The Treasury may authorize the registry of societies for any purpose to which the powers and facilities of the Act ought to be extended, and may limit the application of the Act as respects such “ specially authorized ” societies, to such of its provisions as may be specified in the authority for registry. The provisions as to quinquennial returns and valuation do not apply to such societies, unless so directed in the authority. The Treasury may allow to the rules of any such society the effect of a deed under seal, making the contributions recoverable as a debt. (See Art. 47, p. 26.) The power of authorizing registry of societies for special purposes was formerly vested in the Secretary of State, but the power to limit the application of the Act is new. 51. Upon this provision the Chief Registrar has remarked (Report for 1875, p. 6), that it in fact restores in a safer form the old deposit of rules (which is now prohibited, and the benefits of which for existing societies ceased on 31st December, 1878), and will, if the power be judi- ciously made use of, allow the extension of the Act, without its special privileges, to a number of different classes of societies which would either be virtually shut out of the law by the abolition of the deposit, or which can now only obtain under c 2 28 INTRODUCTION. the Companies Acts a legal constitution much less adapted to their nature and proceedings than that which may be obtained under this Act. In this respect, it is an important step towards compre- hensive legislation for societies generally. The following special authorities have already been granted:— 1. (16 May, 1876). To create funds by monthly or other subscriptions to be lent out to or invested for the members of a society or for their benefit, pursuant to the statute 38 & 39 Yict. c. 60. 2. (20 March, 1877). Assisting members out of employment. 3. (22 March, 1877). Protecting and defending members of any lawful trade or calling against frivolous, vexatious, or malicious prosecutions, and, in cases of robbery or other crimes, affording them legal or other assistance for the detection and prosecu- tion of the offenders. 4. (23 March, 1877). Promoting agriculture or horticulture. 5. (23 March, 1877). Promoting temperance and economy by taking small deposits. 6. (31 January, 1878). Guaranteeing, pur- suant to 38 & 39 Yict. c. 60, s. 20, the performance of their duties by officers of Friendly Societies or branches. 7. (6 April, 1878). The playing the game of quoits. 8. (3 July, 1878). The promotion of literature, science, and the fine arts. INTRODUCTION. 29 9. (3 October, 1879). The promotion of a know ledge of music. 52. For the purpose of registry, every society (to whichever of the classes before enumerated it belongs) must have seven members at least, and a secretary, who are to make application to the registrar, with copies of their rules and a list of the trustees or officers to sue and be sued. No society is to be registered under a name identical with, or bearing a deceptive resemblance to, that of an existing registered society. If the society be one assuring annuities, its tables for such assurance must have the certificate of the Actuary of the National Debt or of an actuary of five years'’ standing, approved by the Treasury. 53. In lieu of the certificate formerly granted by the Registrar, an acknowledgment of re- gistry is provided, and, if it be refused, appeal may be made, in England or Ireland, to the High Court of Justice, or in Scotland to the Court of Session. The acknowledgment of registry is conclusive evidence of the due registration of the society, unless it be proved that the registry has been suspended or cancelled. 54. Registry may be cancelled at the request of a society, if the Chief Registrar (or in Scot- land or Ireland the Assistant Registrar) think fit. For the particular case where registry is de- sired to be cancelled in order that a society may convert itself into a registered branch of another society, a modified procedure is provided by sect. 3 of the Friendly Societies Amendment Act, 1876. Registry may also be cancelled, with the approval 30 INTRODUCTION. of the Treasury, upon proof that the acknow- ledgment of registry has keen obtained by fraud or mistake, or that the society exists for an illegal purpose, or has wilfully and after notice from a Registrar whom it may concern violated any of the provisions of the Act, or has ceased to exist. In lieu of cancelling, registry may be suspended for any term not exceeding three months, and the suspension may, with the approval of the Treasury, he renewed from time to time. Notice of a proposed cancelling or suspension must be given to the society; and every cancelling or suspension must be advertized in the Gazette. Appeal from cancelling or prolonged suspension may be made in England or Ireland to the High Court of Justice, or in Scotland to the Court of Session. Under the repealed law, there were no means of altering or rescinding a certificate once granted, either in case of obvious error or double registration, or in the case of a society afterwards becoming disentitled to registry. The power of cancelling or suspending registry where a society has, after notice, violated the provisions of the Act, has afforded the registry office a valuable additional means of enforcing the statutory requirements for valuation and those imposed on collecting societies by section 30. 55. The rules of every registered society are to provide for its name and place of office, the object for which it is established, &e., the mode of hold- ing meetings and altering rules, appointment and removal of officers, investment of funds, keeping and audit of accounts, making of annual returns, INTRODUCTION. 31 inspection of books, and settlement of disputes. Alterations of rules are not valid until registered. Every person is entitled to a copy of the rules of a society on payment of Is.; and the delivery of untrue rules is a misdemeanor. 56. Every registered society has the following duties and obligations - 1. The having a registered office. 2. The appointment of trustees. 3. The audit of accounts. 4. The sending annual returns to the Registrar. 5. The allowing members or others interested to inspect the books. 6. The supplying a copy of the annual return gratuitously to every member or person interested. Every registered society neglecting any of these duties is guilty of an offence under the Act, and every officer or member of the committee party to such neglect commits a like offence, and every offence constitutes a new offence in every week during which it continues. This is an important provision, as it renders an offence punishable even though six months have elapsed from the date at which it was first committed. 57. Every registered society has the following privileges:— 1. Exemption from the penalties of the cor- responding Societies Acts. 2. Exemption from stamp duty. 3. Transfer of stock by order of the Registrar. 32 INTRODUCTION. 4. Priority of claim on the death, bankruptcy, or insolvency of an officer. 5. Power to admit minors above 16 as mem- bers. 6. Power to subscribe to hospitals or charitable or provident institutions for securing benefit to members, and (except as before stated) the right to pay a sum not exceeding £50 on the death of a member, to his nominee, without administration. 58. Every registered society may invest its funds in a post office or trustee savings bank, or in the public funds, or with the National Debt Commis- sioners, or in the purchase of land, or in any other security (not personal) expressly directed by its rules. Its property vests in its trustees, and on death, resignation, or removal of a trustee, vests in his successor without conveyance or assignment, except in the case of the public funds. The lord of the manor of copyhold property to which the society is entitled must admit its trustees as tenants on payment of a single fine. A society may discharge mortgages by a mere receipt, in statutory form (a), endorsed on the deed, and if the mortgage is registei’ed a certificate of satisfac- tion from the Registrar of deeds, &c., maybe obtained for 2s. 6cl. Fraud upon a society may be summarily punished; and its trustees are pro- tected from personal liability. (a) The Society may, by rule, provide an alternative form ; but it would seem to be hardly wise to do so. INTRODUCTION. 33 59. A registered society may create a loan fund distinct from its other funds, and may lend a sum not exceeding £50 out of such fund to any member. 60. Every officer of a registered society, having receipt or charge of its money, must, if required by the rules, give security, and must render accounts when called upon. 61. Legal proceedings may be taken against a registered society either in the name of its trustees, or of any officer who receives its contributions, and continue notwithstanding the discontinuance of such officer. Provision is made for the service of summonses, &c., at any place of business of the society; or, if the place of business be closed, by posting a copy on its outer door, and giving notice by registered letter to the committee of manage- ment at the registered office of the society. 62. Disputes are to be decided in the manner the rules of the society direct; and the parties may, by consent, refer a dispute to the Chief (or in Scotland or Ireland the Assistant) Registrar, who may administer oaths, call witnesses, and require the production of documents. 63. Upon application of one-fifth of the members of a registered society (or of 100 members only where the society consists of 1,000 and not exceeding 10,000, or of 500 members of a society exceeding 10,000), the Chief (or in Scotland or Ireland the Assistant) Registrar may with the consent of the Treasury appoint inspectors to examine into the affairs of the society and to report thereon or may call a special meeting of the c 3 34 INTRODUCTION. society (a). He is to have evidence of the good faith of the applicants,, and he may, if he think fit, require them to give security for costs, and shall direct by whom the expenses of the inspection or meeting are to be defrayed. 64. A registered society, by special resolution, may (with approval) change its name, or may unite with another society, or may convert itself into a company. Every special resolution must be registered. 65. A registered society terminates on the hap- pening of any event declared by its rules to be its termination; or (if not a Friendly Society) may he dissolved by the signatures of three-fourths of the members to an instrument of dissolution, set- ting forth certain matters required by the Act, or, if the society’s funds and rates of contribution are (a) It is interesting to remark that while a similar pro- vision to this has existed in the Companies Acts ever since 1862, and as yet, no single inspection has, so far as we know, ever been held under those Acts, already several inspections and special meetings have taken place under this Friendly Societies Act of 1875. They areas follows 1. Loyal Whitworth Lodge of Odd Fellows, Manchester Unity. 2. Loyal Industry Lodge of Odd Fellows, Manchester Unity. 3. Hainford Provident Society. 4. United Family Life Assurance and Sick Benefit Society. 5. Independent Orderof United Brothers, Leicester Unity. C. Friendly Society of Young Seamen. 7. London and Provincial Railway Servants’ United Benefit Society (special meeting). 8. Golborne Female Friendly Society. 9. Kidlington Friendly Society (special meeting). The Instructions given to Inspectors by the Chief Registrar are reprinted in the Appendix. INTRODUCTION. 35 insufficient to meet the claims thereon and the benefits assured, by award of the Chief Registrar. 66. Any person wilfully falsifying a balance- sheet, contribution book, return, or other docu- ment, is liable to a penalty of £50 recoverable at the suit of a Registrar or person aggrieved. Any person committing an offence under the Act for which no other penalty is provided is liable to a penalty of not less than £1 nor more than £5, recoverable in like manner. All penalties imposed by the Act, or by regulations made under it, or by a society’s rules (b), are recoverable in a Court of Summary Jurisdiction. 67. If, by the rules of a Friendly Society, a medical man is to be appointed, he must, by section 36 of 21 & 22 Viet. c. 90, be duly regis- tered under that Act. 68. A Friendly Society (c) is exempt from pay- ment of income tax upon its stocks, dividends, and interest chargeable under Sched. C. of the 5 & 6 Viet. c. 35, as well as upon its interest and other profits and gains chargeable under Sched. D. When the property is invested in the public securities in the Bank of England, the exemption must be claimed and proved by a trustee, or the treasurer, or any member, before the commis- sioners for special purposes. A member of a (6) From this it seems to follow that while contributions payable under the rules of a Friendly Society, being volun- tary, are not recoverable, penalties imposed by such rules may be enforced. (c) Query if it assures annuities exceeding £30. 36 INTRODUCTION. Friendly Society may, for the purposes of the Income Tax Acts, deduct the annual premium payable for a life assurance or deferred annuity, if the premiums are made for three months at least, from the amount in respect of which he is liable to be assessed. 69. By the Married Women’s Property Act, 1870, any married woman or woman about to he married may apply in writing to the trustees of a registered Friendly Society that any benefit in the funds of the society, to the holding of which no liability is attached, and to which she is entitled, may be entered in the books of the society in her name or intended name as a married woman entitled to her separate use, and it shall be the duty of the trustees to cause the same to be so entered, and thereupon such benefit shall be deemed to be her property, and shall be payable as if she were an unmarried woman; provided that if it had been obtained by her by means of moneys of her husband without his consent, the court may order it to be paid to the husband. 70. It will be perceived from the foregoing statement of the provisions of the Friendly Societies Act of 1875, that it “proceeds on the basis of previously existing legislation,” and that its amendments of the Act of 1855, are in the directions of more efficient machinery, and greater facility of registration, &c. In many respects, well-arranged, coherent, and intelligible provisions have been substituted for the often ill-drawn, obscure, and ineffectual clauses of the Act of 1855. INTRODUCTION. 37 71. This opinion, which we expressed in the edition of this Work published upon the passing of the Act, received striking confirmation in the following session of parliament by the introduc- tion of a bill for the regulation of Industrial and Provident Societies, at the instance of the Co- operative Central Board, framed on the Friendly Societies Act of 1875, and having the avowed and excellent object of making the law with regard to the two classes of Societies as nearly uniform as the essential differences between them would allow. It is much to be desired that the same treatment might be applied to the several other forms of association with which the Registry Office for Friendly Societies has to deal, such as Building Societies, Trade Unions, Savings Banks, and Loan Societies. The not unnatural indispo- sition of the officials and members towards any alteration in the procedure to which they have been accustomed for years would soon, we are persuaded, give way to satisfaction at the prac- tical improvements that would result; and the many excellent provisions of the Friendly Societies Acts for protecting the rights of members would, when understood and acted upon, greatly increase public confidence in any institutions to which they were applied. 72. The bill referred to passed into law as “ The Industrial and Provident Societies Act, 1876 ” (a), and it constitutes the text of Part III. in this volume. The main point of difference (a) 39 & 40 Yict. c. 45. 38 INTRODUCTION. between it and the Friendly Societies Acts arises from the circumstance that Industrial and Pro- vident Societies are incorporated bodies, while Friendly Societies have to act through trustees. It was indeed one of the recommendations of the Friendly Societies Commissioners “that the central office should have power to grant a cer- tificate conferring incorporation in such cases as it may deem it advisable ”— and the motive of this recommendation was stated to be [Fourth Report, Art. 890] “to obviate the difficulties which are incident to the trustee system in large societies ”—but that recommendation was not carried into effect by the legislature. A system of optional incorporation might no doubt have given rise to confusion. 73. The Industrial and Provident Societies Act, 1876, differs from the Friendly Societies Act also in not extending to societies registered under it the privilege of freedom from stamp duty. In not seeking from the legislature a renewal of this exemption, which Industrial and Provident Societies had enjoyed, in common with Friendly Societies, from the time of their being first cer- tified under the “ frugal investment ” clause of the Friendly Societies Act of 1846 (see p. 10, ante), the framers of the measure probably had in view the inexpediency of claiming fiscal privi- leges on behalf of societies like the Civil Service Supply Association, Limited, which carries on a business exceeding one million sterling per annum among the wealthier classes, or the Co-operative Wholesale Supply Association, Limited, which INTRODUCTION. 39 has an even larger business, and acts as the hanker of the smaller stores throughout the country. The first named society has been also the occasion of an amendment in the Inland Revenue Acts (see Part III., post), by which societies having limited shares and dealing with the public are exempted from the arrangement made by section 11 (4) of the Industrial and Provident Societies Act, 1876, for enforcing the liability to income tax against the member directly instead of through the society. 74. An Industrial and Provident (frequently called “ Co-operative ”) Society is defined by the Act to be a society for carrying on any labour, trade, or handicraft, including the buying and selling of land and the business of banking, and the interest of any member in the shares (or funds) of such a society is limited to £200. The shares may be either all withdrawable or all transferable, or some shares may be transferable and others withdrawable; but no society carry- ing on the business of banking may have any withdrawable capital. A society may, however, take deposits of not more than 5.?. in any one sum, nor more than £20 from any one person, without being deemed to be carrying on the busi- ness of banking. A society for banking must keep a half-yearly statement of its funds always hung up at every place where it carries on business. 75. The number of Industrial and Provident Societies recorded as in existence in the last Report of the Chief Registrar was 1,028, of 40 INTRODUCTION. -which 963 furnished the annual returns required by the Act. The number of members amounted to 490,584; the share capital to £5,347,199; the loan and deposit capital to £692,478. The sales of goods during the year 1878 were £18,461,753, and the stock in trade at the end of the year £2,281,898. The profit balance of the year was £1,565,497, the trade charges having been £1,306,804. The year in question, however, had been an unfavourable one for trade, and the sales and profits were below those of previous years. 76. It may be interesting to compare these figures with those of the year 1868—ten years earlier—as given in a previous Work of the present Editor (a). The number of societies making returns was then 675, showing an in- crease of 43 per cent, in the ten years ; but the number of members was only 209,000, and has therefore increased by 135 per cent. By a strange coincidence the share capital, which was then £2,020,000, has increased in precisely the same proportion, viz. 135 per cent. The loan capital had increased in even greater proportion, from £184,000 to £692,000, or 276 per cent.; and the last amount, it should be remarked, showed a falling off in the year 1878 from £917,000. The loan capital had therefore been increased fivefold in the nine years from 1868 to 1877. The sales of the year 1868 were £8,113,000, .showing an increase in ten years of 128 per cent. (a) Law relating to Industrial and Provident Societies. By E. W. Brabrook. London, 1^69. INTRODUCTION. 41 The stock in trade was then £610,000; giving an increase of 174 per cent.: and the profit balance £426,000, showing an increase of 267 per cent. The remark of the Chief Registrar (b) on the comparison of the returns of 1877 and 1878 is equally forcible when the comparison is carried nine years further back:—“These figures are eloquent as to the confidence which Co-operative Societies inspire, and apparently deserve.'” 77. With regard to societies and branches registered under the Friendly Societies Acts, 12,300 returns were received for the year 1878, showing 4,692,175 members and £12,148,609 funds. The progressive increase in the number of annual returns received is evidence of the excellent working of the Act of 1875. The circumstance that the return is to be made in a form prescribed by the Chief Registrar, and is not merely a copy of the society’s annual report (as was the case under previous Acts) adds to the usefulness and completeness of the infor- mation obtained. It renders impracticable, how- ever, any comparison between these statistics and those of ten years ago, such as that just made with regard to Industrial and Provident Societies. 78. When to these twelve millions sterling belonging to members of Friendly Societies and the six millions to members of Industrial and Provident Societies are added the seventy-nine millions invested in Post Office and Trustee Savings Banks, the thirty-one millions belonging (/;) Beport, p. 23. 42 INTRODUCTION. to Incorporated Building Societies under tire Act of 1874, tlie smaller sums belonging to Trades Unions and Loan Societies; and the unknown amount invested in Benefit Building Societies under the Act of 1836 and in Friendly Societies which have failed to make returns or are wholly unregistered, we get a truly marvellous aggregate of associated economies. 79. As a quinquennial period has now elapsed since the passing of the Friendly Societies Act, 1875, it may not be undesirable to conclude these introductory remarks by some account of the operation of the Acts during that period; or rather during the four years ending 31st December; 1879, in respect to which alone information has yet been published. In these four years 643 new Friendly Societies and 1,263 new Branches of Societies were registered, while 4,502 existing Registered Societies converted themselves into branches of Orders. Under the same Act 98 Working Me As Clubs, 8 Benevolent Societies, 6 Cattle Insurance Societies, and 30 specially authorized Societies were registered. During the same time as many as 8,142 amendments of rules (about half of them being complete sets of new rules) were made by societies and registered. 80. The most important new element which was introduced by the Act of 1875 into the legal obligations of Friendly Societies is that of the periodical valuation. By section 10 (6) the Chief Registrar is required to include in his Annual Report to Parliament a statement of the valuations returned to him during the year. The INTRODUCTION. 43 year 1876 produced 8 only; the year 1877, 18; the year 1878, 40; the year 1879, 948. The Report for the year 1880 has not yet been pre- sented, but it will of course contain a much larger number. Only 45 of the whole number returned during the four years were made by public valuers. The spirit of the Act would certainly best be carried out if the societies would train among then’ own members persons competent to perform the not very intricate calculations, and possessing at the same time the practical know- ledge of the working of societies which would prevent them from drawing false conclusions from the numerical results obtained. 81. The more the societies endeavour to acquaint themselves with the principles upon which valuations should be made, the more useful will the valuations become. At present it has been pointed out by the Chief Registrar that the valuations made by members of societies do not take into account the possibility that the stan- dard table adopted—that of the late Mr. Rat- cliffe’s Manchester Unity experience—may not represent the actual or probable experience of the society valued, which may consist mainly or wholly of persons of a particular occupation or living under special conditions of climate or sani- tation. Again, the valuers have in some cases not been careful to exclude negative values of contracts, and have therefore treated as assets estimates of future profit that may never be realized, an error similar to that frequently com- mitted by Building Societies, and specially pro- 44 INTRODUCTION. vided against by section 40 of the Building Societies Act, 1874. In this and other respects future quinquennial periods will doubtless bring great improvement. 82. In one respect an improvement may be expected during the next five years, from the completion of the extensive series of calculations based on the returns of sickness and mortality made by societies to the Registrar during the last quarter of a century. Dealt with by the skilled hand of the Actuary to the Registry Office, it may be anticipated that they will furnish to societies the means of more accurately estimating their con- tingent liabilities than the excellent tables of Mr. Ratcliffe, based on the experience of a single affiliated Order, can afford. Many millions of facts will go to form the averages shown in these tables, ascertained from returns prepared with wonderful care and patience by the secretaries of numerous societies, and determined to be trust- worthy by the most searching examination. Indeed one cannot withhold a tribute of admira- tion for the zeal and industry—hardly ever ade- quately requited—with which the secretaries of many societies labour for the public good in this matter (a). (a) “ The classes among whom Friendly Societies are formed are greatly averse to any undertaking involving mental labour, and the idea of periodical returns and of the other requirements of the statute is more alarming to them than it need be. It will be the province of those charged with the administration of the statute to endeavour, as far as possible, to combat this tendency, and by wise use of the materials in their hands to seek to show the societies that INTRODUCTION. 45 83. A word o£ caution may be added against forming too hasty conclusions adverse to Friendly Societies if it should turn out that the valuations in many cases show an estimated deficiency in the funds to meet the liabilities. It would be strange if it were otherwise when for the first time scientific tests are applied to contracts that have been in operation without a scientific basis for a long series of years. It must be borne in mind, however, that nothing is more elastic than the contract made by a Friendly Society with its members; no error more easy of remedy if found out in time than one existing in the original terms of such a contract. Hence the words “ insolvency,” “ rottenness,” and the like, which we sometimes hear freely used as describing the general con- dition of Friendly Societies, are utterly out of place. Of Friendly Societies in general it may be said that as there are no associations the benefits of which are more important to their members, so there are none that are managed with greater rectitude, and few with equal success. 84*. The Editor has to thank the Chief Regis- trar of Friendly Societies, Mr. J. M. Ludlow, for the kindness with which he has accorded valuable advice and aid. Mr. Edward F. Brabrook has assisted in the revision of the Index, the copiousness of which will, it is hoped, greatly add to the usefulness of this Work. tlie Registry Office is a ready and useful auxiliary to them, and that the trouble it gives them is more than met by compensating advantages.”—Encyclopaedia Britcmnica, 9th Ed., Art. “ Friendly Societies.” [The following note of previous editions of the Law relating to Friendly Societies may he interesting :— First edition—By John Tidd Pratt, Esq. (10 Geo. 4, c. 56) ----- - published 1829 Second edition—By the same(including4&5 WilL 4, c. 40).................................... 1834 Third edition—(Same Acts).......................1838 Fourth edition—(Dit o)........................1843 First edition—By William Tidd Pratt, Esq. (13 & 14 Viet. c. 115................................1850 Second edition..................................1853 Third edition............................- 1854 Fourth edition (18 & 19 Viet. c. 63) ... 1855 Fifth edition........................- - 1859 Sixth edition -...............................1862 Seventh edition.................................1867 Eighth edition—By the present editor ... 1873 Ninth edition—By the same (38 & 39 Viet. c. 60) - 1876] THE LAW OF FRIENDLY SOCIETIES. PART I. REGISTERED FRIENDLY SOCIETIES. The Friendly Societies Act, 1875. 38 & 39 YICT. Cap. 60. An Act to consolidate and amend the Law relating to Friendly and other Societies. [11th August 1875.] [As amended by the Act of 1876, and explained by the Act of 1879.] Whereas it is expedient to consolidate and amend the law- relating to friendly and certain other societies : Be it enacted hy the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords spiritual and temporal, and Commons, in this present Parliament as- sembled, and by the authority of the same as follows :— 1. Short title of Act.—This Act may be cited as the Friendly Societies Act, 1875. 2. Commencement of Act.—This Act shall come into operation as to sections ten, thirty-seven, and thirty-eight on the passing of the Act, and as to the remainder of the Act on the first day of January one thousand eight hundred and seventy-six, which day is hereinafter referred to as the commencement of this Act. 48 38 & 39 Vict. Cap. 60, ss. 3, 4.' 3. Extent of Act.—This Act extends to Great Britain and Ireland, tlie Channel Islands, and the Isle of Man (a). 4. Definitions.—In this Act, if not inconsistent rvith the context, the following terms have the meanings herein- after respectively assigned to them :— “ The Treasury” means the Lords Commissioners of Her Majesty’s Treasury (b): “ England ” includes the Channel Islands and the Isle of Man (except as hereinafter provided): “ The Registrar ” means for England the central office, and for Scotland or Ireland the assistant registrar for either country respectively (c): “ Country ” means England, Scotland, or Ireland, as the case may he : The several ridings of the county of York, the several Channel Islands, and the Isle of Man respectively, shall he deemed to be counties : “ Land” includes hereditaments, and in Scotland heritable subjects, of whatever description, and chattels real: “ Property” means all real and personal estate (including hooks and papers): “ Registered society ” means a society registered or deemed to be registered under this Act: (a) Tliis section is the same as sect. 50 of the 18 & 19 Viet, c. 63;—but that Act contained no provisions adapted to the pecu- liarities of the laws of the Channel Islands and the Isle of Man, and was not adopted by the local legislature in either case. The present Act is adapted to the Isle of Man by sect. 40 and to the Channel Islands hy sect. 41. (b) By s. 2 of the Friendly Societies Amendment Act, 1876, (called in these notes “the Act of 1876”) the term “ Treasury regulations ” is defined to mean any regulations made and ap- proved by the Treasury, and for the time being in force under and hy virtue of this Act. (e) By 10 Geo. 4, c. 56 (1829) the rules of friendly societies were required to he submitted to the barrister who had been appointed under an Act of the previous year (9 Geo. 4, c. 92) to certify the rules of savings hanks. By 9 & 10 Vict. c. 27 (1846) this barrister was constituted registrar of friendly societies. 38 & 39 Vict. Cap. 60, S. 4. 49 “ Industrial Assurance Company” means any company, as defined lay “ The Life Assurance Companies Act, 1870,” 'which grants assurances on any one life for a less sum than twenty pounds, and which receives premiums or contributions in Great Britain or Ireland, by means of collectors, at less periodical intervals than two months : « Amendment of rule” includes a new rule, and a resolu- tion rescinding a rule : “ Rules ” means rules for the time being : “ Branch” means any number of the members of a society, under the control of a central body, having a separate fund administered by themselves or by a committee or officers appointed by themselves : “ Persons claiming through a member ” includes the heirs, executors, administrators, and assigns of a member, and also his nominees where nomination is allowed : “ Collector ” includes every paid officer, agent, or person, howsoever remunerated, who, by himself or by any deputy or substitute, collects contributions for a society, or holds any interest in a collecting book of the same, but does not include— (a.) The secretary or other officer of a branch of a society who receives contributions on behalf of such society, or of any other branch of the same ; (&.) Any officer appointed to superintend and receive moneys from collectors within a specified area, and not being himself a collector as hereinbefore defined; (c.) Any agent appointed and remunerated by members,, and not under the control of the society, or of any officer thereof : “ Officer ” extends to anyftrustee, treasurer, secretary, or member of the committee of management of a society,, or person appointed by the society to sue and be sued; on its behalf : D 50 38 & 39 Vict. Cap. 60, s. 5. “ Meeting” includes (where the rules of a society so allow) a meeting of delegates appointed by members (a) : For Scotland, “ court of summary jurisdiction ” means the sheriff court of the county : “ County court ” means for Scotland the sheriff court of the county, and for Ireland the Civil Bill Court, for Scotland, “ administration ” means confirmation, and “ misdemeanor ” a crime and offence : 11 Summary Jurisdiction Acts ” means— As to England, the Act 11 & 12 Vict. c. 43, and any Acts amending the same (b) ; As to Ireland, within the police district of Dublin metropolis the Acts regulating the powers and duties of justices of the peace for such district, and of the police of such district; elsewhere in Ireland, the “ Petty Sessions (Ireland) Act, 1851,” and any Act amending the same : “ Gazette” means the London Gazette for England, the Edinburgh Gazette for Scotland, and the Dublin Gazette for Ireland. 5. Repeal of Acts and parts of Acts in first schedule—The Acts set forth in the first schedule hereto are repealed from (a) Tlie definitions in this section are new, and will have the effect of removing many of the doubts that have arisen under the earlier statutes. For example, the difficulty raised by the inter- pretation clause of 18 & 19 Vict. c. 63 (s. 49) by which the word “ society” extended to and included every branch of a society, by whatever name designated, is removed by the definition of “ branch,” read together with the provisions of sect. 29 as to societies having branches. Again, the definition of “ meeting ” materially assists the affiliated societies in conforming with the provisions of the statute ; and meets the case of societies for medical relief, and societies having members at places distant from the registered office. On the other hand the definitions of “ industrial assurance society” and “collector” give effect to the ■distinction between mere benefit societies and societies partaking ■of a trading character which has become marked, but which did not appear in previous legislation. For further explanation of some portions of the statute, e. g., “ registered office,” the Treasury regulations may he referred to. {b) See the Summary Jurisdiction Act, 1879. 51 \ X 38 & 39 Vict. Cap. 60, ss. 6, 7. the commencement of this Act to the extent set forth in the third column of the said schedule ; hut this repeal, or anything herein contained, shall not affect the past opera- tion of the said Acts, or the force or operation, validity or invalidity, of anything done or suffered, or any bond or security given, right, title, obligation, or liability accrued, contract entered into, or proceedings taken, under any of the said Acts, or under the rules of any society registered or certified thereunder, before the commencement of this Act (c). 6. As to existing societies.—Every society now subsisting whose rules have been registered, enrolled, or certified under any Act relating to friendly societies or cattle insur- ance societies, shall be deemed to be a society registered under this Act, and its rules shall, so far as the same are not contrary to any express provision of this Act, continue in force until altered or rescinded (d). Provided that nothing herein contained shall affect the validity of the rules of friendly societies established before the fifteenth day of August one thousand eight hundred and fifty, notwithstanding that the contingent annual pay- ments to which the members or the nominees of the mem- bers of such societies may become entitled may exceed the limit hereby fixed (e). 7. Societies with deposited rules.—Section forty-four of the Act of the eighteenth and nineteenth Victoria, chapter (c) This section is similar to 18 & 19 Vict. c. 63, s. 1; 37 & 38 Vict. c. 42, s. 7. As to the effect of the words “ under any of the said Acts,” see Sinden v. Hanks, 3 E. & E. 632. (d) This is similar to the provision in the Building Societies Act, 1874, s. 8. Under 18 & 19 Vict. c. 63, s. 3, the rules of subsisting societies are declared valid and in force; under the present statute they will only be so “so far as not contrary to any express provisions of the Act.” This enactment does not of course, affect the Friendly Societies Discharge Act, 1854 (17 & 18 Vict. c. 56), which declared that societies having power to grant assurances exceeding £1,000 should not be deemed to he within the Friendly Societies Acts. (e) This is in continuation of the enactment of 18 & 19 Vict c. 63, s. 46. D 2 52 38 & 39 Viot. Cap. 60, s. 8. sixty-three, shall continue to have effect (notwithstanding its repeal hy this Act) with regard to any society whose rules have been deposited thereunder, hut only until the society is registered under this Act, or until the thirty- first day of December one thousand eight hundred and seventy-eight, whichever shall first happen (a). 8. Classes of Societies.—The following societies may be registered under this Act ; viz. :— (1.) Friendly Societies.—Societies (herein called friendly societies) established to provide by voluntary subscriptions of the members thereof, with or without the aid of dona- tions— For the relief or maintenance of the members, their hus- bands! wives, children, fathers, mothers, brothers, or sisters, nephews or nieces, or wards"¥eing orphans, during sickness or other infirmity, whether bodily or mental, in old age (which shall mean any age after fifty), or in widowhood, or for the relief or mainte- nance of the orphan children of members during minority ; For insuring money to be paid on the birth of a mem- ber’s child, or on the death of a member, or for the funeral expenses of the husband, wife, or child of a member, or of the widow o?'a’ ’deceased member, or, as respects persons of the Jewish persuasion, for the payment of a sum of money during the period of con- fined mourning ; For the relief or maintenance of the members when on travel in search of employment, or when in distressed circumstances, or in case of shipwreck, or loss or damage of or to boats or nets ; For the endowment of members or nominees of members at any age; For the insurance against fire to any amount not exceed- ing fifteen pounds of the tools or implements of the trade or calling of the members ; l (a) This provision expired at the date specified. .38 & 39 Vict. Cap. 60, s. 8. 53 Provided that no society (except as aforesaid) which con- tracts with any person for the assurance ofan annuity exceeding fifty pounds per annum, or of a gross sum exceeding two Eunctrea pounds, shall he registered under this Act : (2.) Cattle insurance societies.—Societies (herein called cattle insurance societies) for the insurance to any amount against loss by death of neat cattle, sheep, lambs, swine, and horses from disease or otherwise : (.3.) Benevolent societies.—Societies for any benevolent or •charitable purpose (herein called benevolent societies) (?>) : (4.) Working men’s chibs— Societies (herein called work- ing men’s clubs) for purposes of social intercourse, mutual helpfulness, mental and moral improvement, and rational recreation : (5.) Specially authorized societies.—Societies for any pur- pose which the Treasury may authorize as a purpose to which the powers and facilities of this Act ought to be extended (herein called “ specially authorized socie- ties ”) (c). (5) This has been interpreted by the central office to mean societies substantially established for the purpose of providing benefits for persons other than the members, their wives or rela- tives. See Rep. of Ch. Reg. for 1879, p. 5. Model rules for a benevolent society are given in the Appendix, post. (c) This enactment differs from 18 & 19 Vict. c. 63, s. 9, in the following particulars :—The purposes previously authorized by Secretaries of State are now specified. The relief or mainte- nance of the fathers or mothers, or wards being orphans of mem- bers, and of the orphan children of members during minority ; the insurance of money for the funeral expenses of members’ widows; and the insurance against fire to an extent not exceed* mg £15, of members’ tools, or of the implements of their calling, •are purposes not authorized under the previous law (but see 9 & 10 Vict. c. 27, as to fire insurance). Sickness or infirmity is expressly defined as “ either bodily or mental,” thus obviating the doubt as to whether lunacy could be treated as sickness (see the 8th edition of this work, pp. 5, 237; and see Appendix, Note A, post). “Old age” is defined to mean any age after fifty. The amount of annuity insurable is raised from £30 to .£50. Benevolent societies are dealt with generally as registrable, 54 38 & 39 Vict. Cap. 60, ss. 9, 10. 9. Limited application of Act.—Tlie Treasury may limit the application of this Act, as respects specially authorized societies, to such of the provisions herein contained as may be specified in the authority for registering any such society (a). JSL , The registry office.—With respect to the registry office, the following provisions shall have effect :— (1.) The chief and assistant registrars.— There shall he a chief registrar of friendly societies (herein termed “the chief registrar”), and one or more assistant registrars of friendly societies for England (herein termed “assistant registrars for England”), and such chief registrar and assistant registrars for England shall constitute the central office after mentioned. There shall he an assistant regis- trar of friendly societies for Scotland (herein termed “ assistant registrar for Scotland”), and an assistant regis- trar of friendly societies for Ireland (herein termed “ assistant registrar for Ireland ”) (b). (2.) Chief and assistant registrars to hold office during pleasure.—Every chief registrar and assistant registrar shall b e appointed by and shall hold his office during the pleasure of the Treasury (c). (3.) Qualification of chief and assistant registrars.—Every chief registrar shall he a barrister of not less than twelve years’ standing, and one at least of the assistant registrars, for England, and every assistant registrar for Ireland shall he a barrister or solicitor of not less than seven years’ stand- instead of being exceptionally provided for as formerly under 18 & 19 Vict. c. 63, s. 11, and their rules certified as “ not re- pugnant to law.” (a) This provision is new. See p. 27, ante. A society, not having any of the objects previously set forth in the section, desiring to be registered under the Act, should address an appli- cation on foolscap paper to “ the Lords of the Treasury, White- hall,” stating fully and clearly the objects of the society, and send with it a copy of the rules proposed to he adopted. (b) This provision is new. Section 10 took effect on the pass- ing of the Act. (e) The registrars were previously appointed by the Commis- 55 38 & 39 Vict. Cap. 60, 8. 10. ing, and every assistant registrar for Scotland an advocate, writer to the signet, or solicitor of not less than seven years’ standing. The central office may also, with the approval of the Treasury, have attached to it such assistants skilled in the business of an actuary and accountant as shall from time to time be required for discharging the duties imposed on the office by this Act (d). (4.) Central office to exercise functions of registrar of friendly or building societies for England, and barrister to certify savings banks.—The central office shall exercise all the functions and powers which are now by law vested in the registrar of friendly societies or the registrar of building societies for England, or as respects loan societies, building societies, and societies instituted for purposes of science, literature, or the fine arts, in the barrister appointed to certify the rules of savings banks or friendly societies, and shall be entitled to receive all statutory fees payable to such registrar or banister, and all enactments relating to such registrar or barrister, so far as respects such societies as aforesaid, shall be construed as applying to the central office (e). (5.) Other functions of central office ; 'preparation of model forms; circulation of information ; construction of tables.— The central office shall, with the approval of the Treasury, from time to time,— (a.) Prepare and cause to be circulated, for the use of societies, model forms of accounts, balance-sheets, and valuations : sioners for the Deduction of the National Debt. See 18 & 19 Vict. c. 63, s. 6. (d) The qualification of registrar was formerly seven years’ standing at the bar. The provision as to actuarial assistants is new. (e) fhis clause introduced modifications into the practice under the following statutes :—As to building societies, fi & 7 Will. 4 c. 32, 10 Geo. 4, c. 56, 4 & 5 Will. 4, e. 40, 37 & 38 Vict. c. 42 • as to loan societies, 3 & 4 Vict. c. 110; as to literary and scientific societies, 6 & 7 Vict. c. 32; and those as to industrial and provident societies, since repealed. It also affected for the period between the 11th August, 1875, and the 1st 38 & 39 Yict. Cap. 60, s. 10. (b.) Collect from tlie returns under this Act and from other sources, and publish and circulate, either generally or in any particular district, or other- wise make known such information on the subject of the statistics of life and sickness, and the appli- cation thereof to the business of friendly societies, and from time to time publish generally or in particular districts such particulars of their returns and valuations, and such other information useful to the members of or to persons interested in friendly or other societies registered or which might be registered under this Act, as the chief registrar shall from time to time think fit (a): (c.) Cause to be constructed and published tables for the payment of sums of money on death, in sickness, or old age, or on any other contingency forming the subject of an assurance authorized under this Act which may appear to be calculable: Provided, nevertheless, that the adoption of such tables by any society shall be optional (b). (6.) Chief registrar to report yearly to parliament.—The chief registrar shall every year lay before parliament a report of his proceedings and of those of the assistant regis- trars, and of the principal matters transacted by him and them, and of the valuations returned to or caused to be made by the registrar during the year preceding (c). January, 1876, tilings required to be done under 18 & 19 Viet. c. 63, and the Acts amending that Act. This is described by the chief registrar (Report for 1875, p. 4) as the first step towards embracing in one statute ail the different classes of bodies formerly dealt with in one capacity or another by the registrar. (a) The abstract of the quinquennial returns laid before Par- liament by the central office in pursuance of s. 14 (le), and ordered to be printed, includes an abstract of the returns for the periods ending 1860, 1865, 1870, and 1875. (i) This provision is new, though the 18 & 19 Viet. c. 63, s. 8, authorized the registrar, with the authority of the Treasury, to expend money on the “ computation of tables.” (c) An annual report by the registrar was provided for by 18 & 19 Viet. c. 63, s. 45. 38 & 39 Vict. Cap. 60, s. 10. 57 (7.) Functions of assistant registrars generally. — The assistant registrars shall, except as after provided, he subordinate to the chief registrar. They shall, within the countries for which they are respectively appointed, exer- cise all functions and powers by this Act given to the regis- trar, and may also, by the written authority of the chief registrar, exercise such of the functions and powers by this Act given to the chief registrar as he shall from time to time delegate to them (d). (8.) Functions of assistant registrars for Scotland and Ireland.—Subject to any regulations to be made under this Act, the assistant registrars for Scotland and Ireland re- spectively shall— (a.) Exercise all the functions and powers now vested in the registrars of friendly or building societies for Scotland and Ireland respectively, or as respects building societies and societies instituted for pur- poses of science, literature, or the fine arts, vested in Scotland in the Lord Advocate or his depute appointed to certify the rules of friendly societies there, or in Ireland in the barrister appointed to certify the rules of friendly societies there, and shall be entitled to receive all fees payable to such registrar, Lord Advocate, or his depute, or bar- rister respectively, and so that all provisions in any Acts of parliament not hereby repealed re- lating to such registrar, Lord Advocate, or his depute, or barrister respectively, shall be con- strued as applying to such assistant registrars re- spectively (e) : ii.) Send to the central office copies of all such docu- ments registered or recorded by them as the chief registrar shall from time to time direct: (d) This provision is new. Great inconvenience had been •caused under former Acts by the requirement that the registrar should personally sign every certificate, as he had no authority to delegate Ins powers to any one. J (e) See note (e), p. 55, ante. D 3 58 38 & 39 Vict. Cap. 60, s. 11. (c.) Record all such documents and matters as shall he sent to them for record from the central office, and such other documents and matters as herein pro- vided (a) : (d.) Circulate and publish, or transmit to or from socie- ties registered within their respective countries from or to the central office, such information and documents relating to the purposes of this Act as the chief registrar, with the approval of the Treasury, shall from time to time direct : (e.) Report from time to time their proceedings to the chief registrar as he shall direct (6). (9.) No assistant registrar for Scotland or Ireland shall refuse to record any rules or amendments of rules which have been registered by the central office (5). 11. Registry of societies.—With respect to the registry of societies, the following provisions shall have effect :— (1.) Societies for registry to consist of seven persons at least. —No society can be registered under this Act which does not consist of seven persons at least (c). (2.) The application for registry.—For the purpose of re- gistry an application to register the society, signed by seven members and the secretary, and written or printed copies of the rules, together with a list of the names of the secre- (а) Under this provision the rules of societies within s. 6, doing business in more than one country, have been recorded in Scotland and Ireland. (б) These provisions are new. The consolidation of the hitherto separate registrations in the three kingdoms into one office, with branches, is in accordance with the recommendation of the Friendly Societies Commissioners. (e) This provision is new. Formerly three members and the secretary were sufficient to constitute a society for the purpose of registration (18 & 19 Vict. c. 63, s. 26), and the same number is still sufficient in the case of a building society (37 & 38 Vict. c. 42, s. 17), and of a loan society (3 & 4 Vict. c. 110) : but seven is the number required for the registration of an industrial and provident society (39 & 40 Vict. c. 45, s. 7), a trade union (34 & 35 Vict. c. 31, s. 6), or a joint stock company (25 & 26 Vict. c. 89, s. 6). 59 38 & 39 Vict. Cap. 60, s. 11. tary and of every trustee or other officer authorized to sue and he sued on behalf of the society, shall be sent to the registrar (d). (3.) Identity, or deceptive similarity of name not to he allowed.—No society shall be registered under a name identical with that under which any other existing society is registered, or so nearly resembling such name as to be likely, or in any name likely, in the opinion of the regis- trar, to deceive the members or the public as to its identity, and no society shall change its name without the sanction of the chief or an assistant registrar as after provided (e). (4.) Dividing societies may he registered.—A society (other than a benevolent society or working men’s club) shall not be disentitled to registry by reason of any rule for or practice of dividing any part of the funds thereof if the rules thereof contain distinct provision for meeting all claims upon the society existing at the time of division before any such division takes place (/). (5.) Societies granting annuities to have tables certified by actuary.—No society assuring to any member a certain annuity shall be entitled to registry, unless the tables of contributions for such assurance, certified by the actuary to the Commissioners for the Reduction of the National Debt, or by some actuary approved by the Treasury, who has (d) The provision as to the list of the officers is new, hut a similar provision is contained in the Trade Unions Act, 1871 (34 & 35 Vict. c. 31, s. 13). The option given of appointing officers to sue and he sued is stated hy the chief registrar to be- founded on the reluctance the trustees of a large society often feel to seeing their names mixed up with legal proceedings (Report, 1875, p. 7). As to the application for registry, sea treasury regulation 1 and Form A. (e) This provision is new as regards friendly societies, but is contained in the Acts relating to industrial and provident so- cieties, trade unions, and building societies. The provision is, important, as enabling the registrar to restrain a society froim using a. name which, though not that of an existing society might give an untrue impression to the public as to the constitu- tion or the society, as where a burial society seeks to call itself- an “assurance society,” etc. L (/) This provision is new. 60 38 & 39 Vict. Oaf. 60, s. 11. exercised tire profession of actuary for at least five years, he sent to the registrar with application for registry (a). (6.) Registry of societies doing business in more than one country. — Societies carrying or intending to carry on busi- ness in more than one country shall be registered in the country in which their registered office, as herein men- tioned, is situate ; but copies of the rules of such societies, and of all amendments of the same, shall, when registered, be sent to the registrar of each of the other countries, to be recorded by him ; and until such rules be so recorded the society shall not be entitled to any of the privileges of this Act in the country in which such rules have not been recorded, and until such amendments of rules be recorded the same shall not take effect in such country (b). (7.) The acknowledgment of registry.—The registrar, on being satisfied that a society has complied with the pro- visions as to registry in force under this Act, shall issue to such society an acknowledgment of registry, which shall specify the designation of the society, according to the classification herein set forth (c). (8.) Appeals from refusal to register.— If any registrar re- fuse to register the society or any rules, the society may appeal from such refusal, as follows :— (a.) If the assistant registrar for Ireland refuse to register, to the Court of Queen’s Bench at Dublin : (b.) If the assistant registrar for Scotland refuse to register, to the Court of Session : (c.) If the central office or the chief registrar refuse to register, to the Court of Queen’s Bench in Eng- land :, (а) This provision is similar to 18 & 19 Vict. c. 63, s. 26. (б) This provision is new. See Treasury regulation 5 and Forms E, EA. (c) The acknowledgment of registry is substituted for the certificate of conformity with law, previously given (18 & 19 Vict. c. 63, Sched. 3). For forms of acknowledgment, see Schedule. A special form is provided by Treasury regulation for societies registered under limited special authorities. 61 38 & 39 Vict. Cap. 60, s. 12. (id.) Either division of the Inner House of the Court of Session, the Court of Queen’s Bench at Dublin, and the judges of the Court of Queen’s Bench in England respectively, may make rules or orders as to the form of appeals and the trying thereof and otherwise relating thereto (<Z). (9.) If refusal overruled, acknowledgment of registry to be given.—If the refusal of registry be overruled on appeal, an acknowledgment of registry shall thereupon be given to the society by the registrar (d). (10.) Effect of acknowledgment of registry.—The acknow- ledgment of registry shall be conclusive evidence that the society therein mentioned is duly registered, unless it be proved that the registry of the society has been suspended or cancelled (d). 12. Cancelling and suspension of registry.—With respect to the cancelling or suspension of registry the following provisions shall have effect :— (1.) Cancelling.—The chief registrar, or in the case of societies registered and doing business in Ireland or Scot- land exclusively, the assistant registrar for Ireland or Scot- land respectively, may cancel the registry of a society by writing under his hand— (a.) If he thinks fit, at the request of a society, to be evidenced in such manner as he shall from time to time direct (e) : (d) These provisions are new. Under the previous law, in the case of Hodges v. Wale, 2 W. It. 65, Wood, Y.-C., held that the registrar’s certificate was conclusive as to the purposes declared in the rules of a society being such as to entitle it to the benefit of the Act; but in R. v. Davis, 14 \V. It. 329; 1 Weekly Notes, 25, it was held that evidence might be admitted to show that a society having certified rules was so carried on as not to be, in fact, a society for the purposes authorized by the Act. It would seem that, under this section, the acknowledg- ment is absolutely conclusive, until cancelled under sect. 12. (e) Where the cancelling is for the purpose of re-registering the society as a branch of an order, a simpler procedure is pro- vided by s. 3 of the Act of 1876. 62 38 & 39 Vict. Cap. 60, s. 12. (6.) With the approval of the Treasury, on proof to his satisfaction that an acknowledgment of registry has keen obtained by fraud or mistake, or that a society exists for an illegal purpose, or has wilfully and after notice from a registrar whom it may concern violated any of the provisions of this Act, or has ceased to exist. (2.) Suspension.—The chief or assistant registrar, in any case in which he might, with the approval of the Treasury, cancel the registry of a society, may suspend the same by writing under his hand, for any term not exceeding three months, and may, with the approval of the Treasury, renew such suspension from time to time for the like period. (3.) Notice of cancelling or suspension.—Not less than two months’ previous notice in writing, specifying briefly the ground of any proposed cancelling or suspension of' registrjq shall be given by the chief or assistant registrar to a society before the registry of the same can be cancelled (except at its request) or suspended ; and notice of every cancelling or suspension shall be published in the Gazette,. and in some newspaper circulating in the county in which the registered office of the society is situate, as soon as racticable after the same takes place. (4.) Appeal from cancelling or suspension.—A society may appeal from the cancelling of its registry, or from any sus- pension of the same which is renewed after six months, in manner herein provided for appeals from the chief regis- trar’s, or the registrar’s refusal to register respectively. (5.) Effect of cancelling or suspension.—A society whose registry has been suspended or cancelled shall from the time of such suspension or cancelling (but if suspended, only whilst such suspension lasts, and subject also to the right of appeal hereby given) absolutely cease to enjoy as such the privileges of a registered society, but without prejudice to any liability actually incurred by such society which may be enforced against the same as if such suspen- sion or cancelling had not taken place (a). (a) The whole of this section is new. See Treasury regula- tions G to 11 and Forms F to J. 63 38 & 39 Yict. Cap. 60, s. 13. 13. Rules and amendments.—With, respect to the rules of societies the following provisions shall have effect:— (1.) Provisions to be contained in rules.—The rules of every society sent for registry shall, according to the class in which the society is to he registered, contain provisions in respect of the several matters mentioned in the second schedule to this Act (6). (2.) Amendments to be registered.—No amendment of a rule made by a registered society shall be valid until the same has been registered under this Act, for which purpose copies of the same, signed by three members and the secre- tary, shall be sent to the registrar (c). (3.) Provision applicable to amendments.—The provision herein contained as to appeals from a refusal of registry shall apply to amendments of rules (d). (4.) Acknowledgment of registry of amendments.—The re- gistrar shall, on being satisfied that any amendment of a rule is not contrary to the provisions of this Act, issue to the society an acknowledgment of registry of the same, wbicli shall be conclusive evidence that the same is duly registered (e). (5.) Copies of rules to be delivered on demand.—A copy of the rules of a registered society [or branch] shall be delivered by the society [or branch] to every person on demand, on payment of a sum not exceeding one shilling (d). (6.) Delivery of untrue rules.—If any person, with intent to mislead or defraud, gives to any other person a copy of any rules, laws, regulations, or other documents, other (4) See 18 & 19 Viet. c. 63, s. 25. (c) Id. sect. 27. See Appendix, Note B, Treasury regulations 2 to 5, and Forms B, C, D. (d) This is new. (e) This is substituted for the certificate of conformity with law. An amendment, even when registered, does not aftect the claim to benefit of which any member was in the actual receipt at the time the amendment was made. Per the Chief Registrar in Caundle v. Bingham, Report for 1879, p. 17, and in Davis v Bird, 11 April, 1881. 64 38 & 39 Vict. Cap. 60, s. 14. than the rules for the time being registered under this Act, on the pretence that the same are existing rules of a regis- tered society [or branch], or that there are no other rules of such society [or branch], or gives to any person a copy of any rules on the pretence that such rules are the rules of a registered society [or branch] when the society [or branch] is not registered, the person so offending shall be deemed guilty of a misdemeanor (a). H^Duties and, obligations of societies.—With respect to the duties and obligations of registered societies the follow- ing provisions shall have effect:— (1.) Every registered society shall— (a.) Registered office,—Have a registered office to which all communications and notices may be addressed, and send to the registrar notice of the situation of such office, and of every change therein (6). (b.) Appointment of tmstees.—From time to time at some meeting of the society, and by a resolution of a majority of the members present and entitled to vote thereat, appoint one or more trustees of the society, and send to the registrar a copy of every resolution appointing a trustee, signed by the trustee so appointed, and by the secretary of the society (c). (c.) Audit.—Once at least in every year submit its accounts for audit either to one of the public (а) This is 18 & 19 Vict. c. 63, sect. 29, with important amendments. (б) The registered office is substituted for the “place of meet- ing for business,” provided for by 18 & 19 Vict. c. 63, ss. 25, 28. Hence it would seem that the decision of Reg. v. Tidd Pratt, 6 B. & S. 672, that rules made at a meeting held away from the place of business are void, will no longer apply. The notice of change is to be sent within fourteen days, and to be in Form K. See Treasury regulation 12. (c) See 18 &19 Vict. c. 63, s. 17. The trustees may act as such before the resolution has been sent to the registrar: Beckett v. Willett, 5 W. R. 622. See Appendix, Note C, Treasury regulation 13, and Form L. 65 38 & 39 Vict. Cap. 60, s. 14. auditors appointed as herein mentioned, or to two or more persons appointed as the rules of the society provide, which auditors shall have access to all the hooks and accounts of the society, and shall examine the general statement of the receipts and expenditure, funds and effects of the society, and verify the same with the accounts and vouchers relating thereto, and shall either sign the same as found by them to be correct, duly vouched, and in accordance with law or specially report to the society in what respects they find it incorrect, unvouched, or not in accordance with law (d). (d.) Annual returns.—Once in every year before the first day of June send to the registrar a general state- ment (to be called the annual return) of the re- ceipts and expenditure, funds and effects of the society as audited, which shall show separately the expenditure in respect of the several objects of the society, and shall be made out to the thirty-first December then last inclusively, and a copy of the auditor’s report, if any, shall also be sent to the registrar with such general statement; and such annual return shall state whether the audit has been conducted by a public auditor appointed as in this Act provided, and by whom ; and, if by any person or persons other than a public auditor, shall state the name, address, and calling or profession of each of such persons, and the manner in which, and the authority under which they were respectively appointed (e). (e.) Quinquennial returns.—Within six months after the thirty first day of December one thousand eight hundred and seventy-five, and so again within six (d) This provision is new. m f & 19 Vict. c. 63, s. 45, with important amend- 1 A S/ \ 16 w.or<^8 “person or” are inserted in error, as sub- ieacl (c) requires that the auditors should be two or more persons. 66 38 & 39 Vict. Cap. 60, s. 14. months after the expiration of every five years succeeding, send to the registrar a return (to he called the quinquennial return) of the sickness and mortality experienced hy the society during the five years preceding the thirty-first December then last past; an abstract of which returns shall be laid before parliament (a) : (/•) Quinquennial valuations.— Once at least in the five years next after the commencement of this Act, or the registry of the society, and so again within six months after the expiration of every five years succeeding the date of the first valuation under this Act, either cause its assets and liabilities to be valued hy a valuer to he appointed by the society, and send to the registrar a report, signed by such valuer, and which shall also state his address and calling or profession, on the condition of the society, and an abstract to be made by him of the results of his valuation, together with a return containing such information with respect to the benefits assured and contributions receivable by the society, and of its funds and effects, debts and credits, as the registrar may from time to time require, or send to the registrar a return of the benefits assured and contributions receivable from all the members of the society, and of all its funds and effects, debts and credits, accompanied by such evidence in support thereof as the chief registrar prescribes, in which case the registrar shall cause the assets and liabilities of the society to be valued and reported on by some actuary, and shall send to the society a copy of his (a) This is a continuation of a provision found in every Friendly Societies Aet since the year 1829 (10 Cleo. 4, c. 56; 13 & 14 Vict. c. 115; 18 & 19 Vict. c. 63). An abstract of the returns of sickness and mortality for the periods ending 1860, 1865, 1870, and 1875 has been made by the actuary to the Central Office and ordered by the House of Commons to be printed. 67 38 & 39 Yict. Cap. 60, s. 14. report, and an abstract of the results of his valuation (b) : ((/.) Inspection of books.—Allow any member or person having an interest in the funds of the society to inspect the books at all reasonable hours at the registered office of the society, or at any place where the same are kept, except that no such member or person, unless he be an officer of the society, or be specially authorized by a resolu- tion of the society to do so, shall have the right to inspect the loan account of any other member without the written consent of such member (c) : {h.) Supphjing copies of annual returns.—Supply gra- tuitously every member or person interested in the funds of the society, on his application, with a copy of the last annual return of the society for the time being (d) [or with a balance sheet or other document duly audited, containing the same particulars as to the receipts and expen- diture, funds and effects of the society as are con- tained in the annual return] : (i.) Keep a copy of the last annual balance sheet for the time being, and of the last quinquennial valua- tion for the time being, together with the report of the auditors (if any) always hung up in a conspicuous place at the registered office of the society (e). (b) This provision is new. (c) The provision for inspection of hooks is new for friendly societies; but a similar provision is contaiued in the Industrial and Provident Societies Act, 1876 (see Part III), and Trade Unions Act, 1871 (34 & 35 Viet. c. 31, Sched. 1). _ (d) This provision is new; but a similar one is contained ill the Acts relating to Industrial aud Provident Societies (see Part III.), Trade Unions (34 & 35 Viet. c. 31, s. 16), and Build- ing Societies (37 & 38 Viet. c. 42, s. 40). (e) This provision is new, and is adopted from the Building Societies Act of 1874 (37 & 38 Viet. c. 42, s. 43). A similar provision is contained in the Savings Banks Acts. 68 38 & 39 Vict. Cap. 60, s. 14. (2.) Certificates of death to be required— No society [or branch] shall pay any sum of money upon the death [not being a death at sea] of a member or other person whose death is or ought to be entered in any register of deaths, except upon the production of a certificate of such death, under the hand of the registrar of deaths, or other person haying the care of the register of deaths in which such death is or ought to be entered (a). (3.) Offences.—It shall be an offence under this Act if any registered society [or branch]— (a.) Fails to give any notice, send any return or docu- ment, or do or allow to be done any act or thing which the society [or branch] is by this Act re- quired to give, send, do, or allow to be done : {b.) Wilfully neglects or refuses to do any act or to furnish any information required for the purposes of this Act by the chief or any other registrar or other person authorized under this Act, or does any act or thing forbidden by this Act: (c.) Makes a return or wilfully furnishes information in any respect false or insufficient (!>). (4.) Offences by societies [or branches] to be also offences by officers, dec.—Every offence by a society [or branch] under this Act shall be deemed to have been also committed by every officer of the same bound by the rules thereof to fulfil any duty whereof such offence is a breach, or if there bo no such officer, then by every member of the committee of management of the same, unless such member be proved to have been ignorant of or to have attempted to prevent the commission of such offence; and every default under this Act constituting an offence, if continued, constitutes a new offence in every week during which the same continues (b). 1 (a) This provision is new. " (S) These provisions are wholly recast, and take the place of the very insufficient provision for enforcing the law hitherto made by 23 & 24 Vict. c. 58, s. 7. (5.) Returns to be m prescribed form. —Every . annual, quinquennial, or other return, abstract of valuation, and other document required for the purposes of this Act shall he made in such form and shall contain such particulars as the chief registrar prescribes (c). (6.) Recording of documents.—All documents by this section required to be sent to the registrar shall be deposited with the rules of the societies to which the same respec- tively relate, and shall be registered or recorded by the registrar, with such observations thereon, if any, as the chief registrar shall direct (c). In what cases quinquennial returns, cfcc., may be dis- pensed with.—Provided that the chief registrar, with the approval of the Treasury, may dispense with the quin- quennial return and with the valuation herein required in respect of societies to whose purposes or to the nature of whose operations he may deem the same inapplicable ; and may also dispense with the quinquennial return in cases where, at the request of a society, he may, by inspection of the books thereof through any person whom he appoints, obtain such information as he deems sufficient of the sick- ness and mortality experienced by the society ; and the provisions herein contained in respect of the quinquennial return and valuation shall not apply to benevolent societies, working men’s clubs, or cattle insurance societies, nor to specially authorized societies, unless it be so directed in the authority for registering the same (d). 15. Privileges of societies.—Registered societies shall be entitled to the following privileges [which are extended to branches by the Act of 1876 where so stated] :— (1.) Corresponding Societies Acts, &c., not to affect registered societies [or branches'].—No society [or branch] or meeting of a society [or branch] shall be affected by any of the pro- (e) These provisions are new. For the form of abstract of valuation, see Appendix. (d) These provisions are new. 70 38 & 39 Vict. Cap. 60, s. 15. visions of the Acts of the thirty-ninth George the Third, chapter seventy-nine, or the fifty-seventh George the Third, chapter nineteen, if in such society [or branch] or at such meeting no business is transacted other than that which directly and immediately relates to the objects of the society [or branch] as declared in the registered rules thereof, but such society [or branch] and all officers of the same shall, on request in writing by two justices of the peace, give full information to such justices of the nature, objects, proceedings, and practices of the society [or branch] in default whereof the provisions of the Acts in this section re erred to shall, so far as applicable, be in force in respect of such society [or branch] (a). (2.) Exemption from stamp duty.—Stamp duty shall not s chargeable upon any of the following documents :— (a.) Power, warrant, or letter of attorney, granted by any person as trustee for the transfer of any money of the society [or branch] invested in his name in the public funds : (b.) Order or receipt for money contributed to or received from the funds of the society [or branch] by virtue of its rules or of this Act: (c.) Bond given to or on account of the society [or branch] or by the treasurer or other officer thereof: (d.) Draft or order, or form of policy, or appointment or revocation of appointment of agent, or other docu- ment required or authorized by this Act, or by the rules of the society [or branch] (b). (а) This is a re-enactment of 18 & 19 Vict. c. 63, s. 12. (б) This is a re-enactment of 18 & 19 Vict. c. 63, s. 37. Upon the construction of a clause in 33 Geo. 3, c. 54, similar to this section, it was held that a bond conditioned for the production of a box containing the subscriptions of a friendly society, need not be stamped: Carter v. Bond, 4 Esp. 235. This section gxempts from stamp duty any power, warrant, or letter of attorney for the transfer of any share in the public funds only : and this exemption will not extend to other investments. See Me Moyal Liver Friendly Society, L. R. 6 Exch. 78, where it was decided that a mortgage security, on which the funds of 38 & 39 Vict. Cap. 60, s. 15. 71 (3.) Power of nomination for sums not exceeding fifty pounds.—A member of a society [or branch.] (other than a benevolent society or working men’s club) not being under the age of sixteen years, may, by writing under Ms hand delivered at or sent to the registered office of the society [or to the place where the branch is established] nominate any person, not being an officer or servant of the society [or branch, unless such officer or servant is the husband, wife* father, mother, child, brother, sister, nephew, or niece of the nominator] to whom any moneys payable by the society [or branch] on the death of such member, not exceed- ing fifty pounds, shall be paid at his decease, and may from time to time revoke or vary such nomination by a writing under his hand similarly delivered or sent; and on receiving satisfactory proof of the death of a nominator, the society [or branch] shall pay to the nominee the amount due to the deceased member, not exceeding the sum aforesaid (c). the society were invested, was not exempt from stamp duty. Walker v. Giles (6 C. B. 662) was distinguished, as having been decided under 10 Geo. 4, c. 56, s. 37, the language of which differed from that of the present Act. See Appendix, Note D. Friendly societies, by virtue of this section, are exempt from the duty on drafts or orders imposed by 21 & 22 Vict. c. 20, an Act for granting a stamp duty on certain drafts or orders for the payment of money so far as regards any order on the treasurer, but a banking company cannot he treasurer (see Note D, Appendix), and investment with a bank is not permitted by ■s. 16 (see p. 76). (c) These clauses are founded on 18 & 19 Vict. c. 63, s. 31, with the important distinction that the nominee need not be husband, wife, or kinsman of the nominator, but may be any other person not an officer or servant of the society. The society is required by Treasury regulation 14 to record or register all nominations, revocations, and variations, and may by its rules re- quire a payment not exceeding 3d. for each such record or registry. By 27 & 28 Vict. c. 56, ss. 4, 5, no stamp duty is chargeable on any probate of a will, or letters of administration, with or without a will annexed, granted in England or Ireland, or in- ventory to be exhibited and recorded in any commissary court in Scotland, of the estate and effects of any person deceased, in any case where the whole estate and effects of the deceased person dying after the 25th July, 1864 (exclusive of what he shall have been possessed of or entitled to as a trustee for any other person or persons, and not beneficially), shall be sworn not to exceed, and shall not actually exceed, in value the sum of £100. This 72 38 & 39 Vict. Cap. 60, s. 15. (4.) Distribution of sums not exceeding fifty pounds.—If any member of a society [or branch] entitled from the funds thereof to a sum not exceeding fifty pounds, dies intestate and without having made any nomination under this Act which remains unrevoked at his death, such sum shall be payable, without letters of administration, to the person who appears to a majority of the trustees, upon such evi- dence as they may deem satisfactory, to be entitled by law to receive the same. (5.) Payments to persons apparently entitled valid.—When- ever the society [or branch], after the decease of any mem- ber, pays any sum of money to the person who at the time appears to the trustees to be entitled under this section, the payment is valid and effectual against any demand madeirpon the trustees or the society [or branch] by any other person. (6.) When trustees are absent, <Scc., registrar may order stock to be transferred.—When any person, being or having been a trustee of a society [or branch], and whether ap- pointed before or after the legal establishment thereof, in whose name any stock belonging to such society [or branch] transferable at the Bank of England or Bank of Ireland is standing, either jointly with another or others, or solely, is absent from Great Britain (a) or Ireland respectively, or be- comes bankrupt, or files any petition or executes any deed provision will be found of great benefit to depositors in savings banks and members of friendly societies, particularly with refer- ence to the easy and comparatively inexpensive mode of now obtaining, by personal application at the Court of Probate, London, or at the office of the district registrar in the country, a probate or letters of administration. By 36 & 37 Vict. c. 52, administration to the estate of an intestate not exceeding £100 may be obtained by his widow or children through the county court for a small fee in England or Ireland; and by 38 & 39 Viet. c. 41, confirmation in Scotland for an estate not exceeding £150 may be obtained from the com- missary clerk for a small fee. Further relief from trouble and expense, in the case of small estates, is contemplated by a bill now before parliament. By 38 & 39 Vict. c. 27, the benefits of the Act 36 & 37 Vict. c. 52, are extended to the children of a widow dying intestate. (a) “ England ” in the Act of 1875. The correction to “ Great Britain” is introduced by s. 10 of the Act of 1876. 38 & 39 Yict. Cap. 60, s. 15. 73 for liquidation, of his affairs by assignment or arrangement, or for composition with his creditors, or becomes a lunatic, or is dead, or has been removed from his office of trustee, or if it be unknown whether such person is living or dead, the chief registrar, on application in writing from the secre- tary and three members of the society [or branch], and on proof satisfactory to him, may direct the transfer of the stock into the names of any other persons as trustees for the society [or branch] ; and such transfer shall be made by the surviving or continuing trustees, and if there be no Such trustees, or if such trustees refuse or be unable to make such transfer, and the chief registrar so direct, then by the Accountant-General or Deputy or Assistant Ac- countant-General of the Bank of England or Bank of Ireland, as the case may be ; and the Governors and Com- panies of the Bank of England and Bank of Ireland re- spectively are hereby indemnified for anything done by them or any of their officers in pursuance of this provision against any claim or demand of any person injuriously affected thereby (6). (7.) Priority on death, bankruptcy, &c., of officer.—Upon the death, or bankruptcy, or insolvency of any officer of a society [or branch], having in his possession by virtue of his office any money or property belonging to the society [or branch], or if any execution, attachment, or other process be issued, or action or diligence raised against such officer, or against his property, his heirs, executors, or admi- nistrators, or trustee in bankruptcy or insolvency, or the sheriff or other person executing such process, or the party using such action or diligence respectively shall, upon demand in writing of the trustees of the society [or branch], or any two of them, or any person authorized by the so- ciety [or branch], or by the committee of management of the same, to make such demand, pay such money and de- liver over such property to the trustees of the society [or (b) This is a re-enactment of 18 & 19 Viet. c. 63, s. 36, the privileges of which were extended to building societies by 37 & 38 Viet. c. 42, s. 26. See Tre usury regulations 15 to 18 and Horns M, 17, 0. E 74 38 & 39 Vict. Cap. 60, s. 15. branch] in preference to any other debts or claims against the estate of such officer. Bankruptcy or insolvency in the present section includes liquidation of a debtor’s affairs by arrangement in England, cessio bonorum of a debtor in Scotland, and a petition for arrangement with creditors in Ireland; and a trustee in bankruptcy or insolvency includes an assignee in Ireland and a judicial factor in Scotland (a). (8.) Membership of minors.—A person under the ago of twenty-one, but above the age of sixteen, may be a mem- ber of a society, unless provision be made in the rules thereof to the contrary, and may, subject to the rules of the society, enjoy all the rights of a member (except as herein provided), and execute all instruments and give all acquittances necessary to be executed or given under the rules, but shall not be a member of the committee of management, trustee, manager or treasurer of the so- ciety (b). Provided as follows :— (a.) Societies and branches, consisting wholly of mem- bers of any age under sixteen years, but exceed- ing three years, may be allowed to register under this Act, subject to such regulations as may be made in that behalf; (b.) No rule or practice in force at the commencement of this Act for the admission of members under sixteen years of age shall be deemed contrary to- any express provision of this Act as respects any society already registered (c). (а) This is a restoration or confirmation of the priorities, against the estates of officers, given by 18 & 19 Vict. c. 63, s. 23, which, in the case of bankruptcy, had been considered to be abolished by the Bankruptcy Act, 1869. But see Re Keyworthy in the 8th edition of this work, pp. 23, 240. See also Appendix. (б) This is founded on the 18 & 19 Vict. c. 63, s. 15, but the minimum of sixteen years is new. See Treasury regulations 19, 20. (e) These provisions are new. 38 & 39 Vict. Cap. 60, s. 16. 75 (9.) Limitation of cost of certificates of birth or death.—For tlie purpose of this Act a certificate of the birth or death of any member of, or person insured or to be insured with, a registered friendly society [or branch], shall be given under his hand by the registrar of births or deaths, or other person having the care of the register of births or deaths, in which such birth or death is entered, for a sum not exceeding one shilling, in place of all fees or pay- ments in respect of the same, on application being made for the same in such form and under such regulations as shall be approved of by the registrar-general of births, deaths, and marriages for England, Scotland, and Ireland respectively (d). (10.) Society [or branch] may subscribe to hospitals.—A society [or branch] may subscribe out of 'its funds to any hospital, infirmary, charitable or provident institution, any annual or other sum which may be necessary to secure to members of the society [or branch] and their families the benefits of such hospital, infirmary, or other institution, according to its rules (e). 16. Property and funds of societies.—With respect to the property and funds of registered societies, the following provisions [which are extended to branches by the Act of 1876, where so stated] shall have effect :— (1.) Investment of funds.—The trustees, with the consent of the committee of management, or of a majority of the members of a society [or branch] present and entitled to vote in general meeting, may from time to time invest the funds of such society [or branch], or any part thereof, to any amount in any of the following ways :— (o.) In the Post Office Savings’ Bank, or in any savings’ bank certified under the Act of 1863: (b.) In the public funds : (d) This is an important new privilege. Further provision as-, to fees is made by s. 8 of the Act of 1876. (e) This is a re-enactment of 18 & 19 Vict. c. 63, s. 32, with important amendments in construction and drafting. E 2 76 38 & 39 Vict. Cap. 69, a 16. (c.) With the Commissioners for the Reduction of the National Debt as hereinafter provided : (d.) In the purchase of land, or in the erection or altera- tion of offices or other buildings thereon: (e.) Upon any other security expressly directed by the rules of the society [or branch], not being personal security, except as hereinafter authorized with respect to loans (a). (2.) Holding of land.—A society, or any branch of a society, may (if the rules thereof so provide) hold, pur- chase, or take on lease in the names of the trustees for the time being of such society or branch, in every county where it lias an office, any land, and may sell, exchange, mort- gage, lease, or build upon the same (with power to alter and pull down buildings and again rebuild), and no pur- chaser, assignee, mortgagee, or tenant shall be bound to in- quire as to the authority for any sale, exchange, mortgage, or lease by the trustees, and the receipt of the trustees shall be a discharge lor all moneys arising from or in con- nection with such sale, exchange, mortgage, or lease ; and for the purpose of this section no branch of a registered society need be separately registered : Provided that no- thing herein contained shall authorize any benevolent so- ciety to hold land exceeding one acre in extent at any one- time (5). (a) This differs from 18 & 19 Vict. c. 63, s. 32, in the two following important particulars 1st. The purchase of land is permitted, and to any extent. 2nd. The prohibition of the pur- chase of shares in any company is removed, provided such pur- chase be expressly directed by the rules of the society, and provided the purchase is an investment upon security. Shares to which a liability attaches are not a lawful investment. {b) This differs from 18 & 19 Vict. c. 63, s. 38, by omitting (except for benevolent societies) the limitation to one acre of land ; by omitting the perplexing proviso that the money spent in purchasing and adapting premises shall be raised according to rules in that behalf inserted; by omitting the restriction to a building for holding the meetings of the society; and by extend- ing the privileges of the section to branches not separately registered. As to building societies, see 37 & 38 Vict. c. 42, s. 37; and as to trade unions, 34 & 35 Vict. c. 31, s. 7. (3.) Property of society, how vested.—All property belong- ing to a society, whether acquired before or after the same is registered, shall vest in the trustees for the time being •of the society, for the use and benefit of the society and the members thereof, and of all persons claiming through the members according to the rules of the society ; and the property of any branch of a society shall vest in the trustees of such branch, or in the trustees of the society if the rules of the society so provide, for the use and benefit either of the members of such branch and persons claiming through such members, or of the members of the society generally, and persons claiming through them according to the rules of the society (c). (4.) Devolution on death, &c.—Upon the death, resigna- tion, or removal of a trustee, whether of a society or branch, the property vested in such trustee vests in the succeeding trustees of such society or branch, either solely or together with any surviving or continuing trustees, and until the appointment of succeeding trustees in such surviving or continuing trustees only, or in the executors or adminis- trators of the last surviving or continuing trustee, as per- sonal estate (whether the same be real or personal), subject to the same trusts, without conveyance or assignment, ex- cept that stocks and securities in the public funds of Great Britain and Ireland shall be transferred into the names of the succeeding trustees, either solely or jointly with any surviving or continuing trustees (c). (5.) In all legal proceedings whatsoever concerning any such property, the same shall be stated to be the property of the trustees for the time being in their proper names as trustees for the society or branch (as the case may be) with- out further description (c). (6.) 4s to copyholds.—Where a society for branch] is en- titled in equity to any hereditaments of copyhold or cus- tomary tenure, either absolutely or by way of mortgage or security, the lord of the manor of which the same are held (<-) These clauses are a re-enactment of 18 & 19 Viet. c. 63, .s. 18, with amendments. The provision for resignation of a trustee is new. 78 38 & 39 Vict. Cap. 60, s. 16. shall, from time to time, if the society [or branch] so require, admit the trustees (not to exceed three) of such society [or branch] as tenants in respect of such hereditaments, on payment of the usual fines, fees, and other dues payable on the admission of a single tenant (a). (7.) Discharge of mortgages hj receipt endorsed.—A receipt under the hands of the trustees, countersigned by the secre- tary, in the form contained in the third schedule to this Act, or in any form specified by the rules of the society [or branch], or any schedule thereto, for all moneys secured to the society [or branch] by any mortgage or other assurance, such receipt being endorsed upon or annexed to such mort- gage or other assurance, vacates the same, and vests the property therein comprised in the person entitled to the equity of redemption of the same, without re-conveyance or re-surrender ; hut this provision does not apply to Scot- land or to the Island of Jersey (5). (8.) Registration of receipt.— If such mortgage or other assurance has been registered under any Act for the regis- tration or record of deeds or titles, or is of copyholds or lands of customary tenure and entered on any court rolls, the registrar under such Act, or recording officer, or steward of the manor, or keeper of the register, shall on production of such receipt, verified by oath of any person, enter satis- faction on the register or on the court rolls respectively of such mortgage or of the charge made by such assurance, and shall grant a certificate, either upon such mortgage or (a) This clause is new as regards friendly societies, but was contained in the Industrial and Provident Societies Act, 1871 (34 & 35 Vict. c. 80, s. 2), and the Building Societies Act, 1874 (37 & 38 Vict. c. 42, s. 28). (i) These clauses are new as regards friendly societies, and extend to them a privilege which has been enjoyed since 1836 by building societies under 6 & 7 Wm. 4, c. 32, s. 5, and 37 & 38 Vict. c. 42, s. 42; and since 1871 by industrial and provident societies (34 & 35 Vict. c. 80, s. 3). It is really not so much a privilege to the society as to the mortgagor; and it is difficult to find any substantial reason why all mortgages should not be made dischargeable by receipt endorsed. See the judgment of Sir G. Jessel, M.R., in Fourth City Mutual Building Society v. Williams. Law Rep. 14 Ch. D. 140, and Appendix, Note E. 7!) 38 & 39 Viot. Cap. 60, s. 16. assurance, or separately to tlie like effect, ■which certificate shall be received in evidence in all courts and proceedings •without further proof, and such registrar, recording officer, steward, or keeper of the register is entitled to a fee of two shillings and sixpence for making the said entry and grant- ing the said certificate, and such fee shall in Ireland be paid by stamps, and applied as the other fees of the Registry of Deeds Office and Record of Title Office are by law directed to be paid and applied (c). (9.) Punishment of fraud or misappropriation.—It any person obtains possession by false representation or imposi- tion of any property of a society [or branch], or having the same in his possession withholds or misapplies the same, or wilfully applies any part thereof to purposes other than those expressed or directed in the rules of the society [or branch], and axrthorized by this Act, he shall, on the com- plaint of the society [or branch], or of any member autho- rized by the society [or branch], or the trustees or com- mittee of management of the same, or by the central office, or of the chief registrar or any assistant registrar by his authority, be liable on summary conviction to a penalty not exceeding twenty pounds and costs, and to be ordered to deliver up all such property, or to repay all moneys applied improperly, and in default of such delivery or re- payment, or of the payment of such penalty and costs aforesaid, to be imprisoned, with or without hard labour, for any time not exceeding three months; but nothing herein contained prevents any such person from being pro- ceeded against by way of indictment, if not previously con- victed of the same offence under the provisions of this Act (d). (c) See note (5), p. 78, ante. (d) This is a re-enactment of sect. 24 of 18 & 19 Viet. c. 63, as amended by 23 & 24 Viet. c. 58, s. 9, with the important further amendment that the complaining member need not be, as heretofore, authorized by a general meeting, but may be autho- rized by the society, the trustees, or the committee of manage- ment, or the central office. The form of declaration required by the central office before granting an authority is given in the Appendix. To render the treasurer of a society liable to the penalties imposed by this section, for withholding or misapplying 80 38 & 39 Vict. Cap. 60, s. 17. (10.) Trustees not to be personally liable.—Trustees of a society [or branch] are not liable to make good any defi- ciency in the funds of such society [or branch], but are liable only for moneys actually received by them respectively on account of such society [or branch] (a). 17. Investments with National Debt Commissioners.—With respect to the investments of funds with the Commissioners for the Reduction of the National Debt, the following pro- visions shall have effect (1>) : 1. The society [or branch] may pay to the account of the commissioners of the Bank of England or Ireland any sum of money not less than fifty pounds upon a declaration of the trustees of the society [or branch], or any two of them, that such moneys belong exclu- sively to the society [or branch], 2. The cashier of the bank shall receive all such moneys and place the same to the account of the commis- sioners in the book of the bank named “ The Fund for Friendly Societies:” 3. All moneys paid in upon a false declaration shall be forfeited to the commissioners, and applied by them in the manner directed by the twenty-sixth and twenty-seventh Victoria, chapter eighty-seven, sec- tion thirty-eight : 4. The provisions of the twenty-sixth and twenty-seventh Victoria, chapter eighty-seven, sections twenty-one (except so far as the same may be repealed by any Act to be passed in this session of parliament) (c), twenty-two, twenty-four, twenty-five, twenty-six, moneys of the society which have come to his hands as treasurer, it must be shown that he has been guilty of some fraud or mis- representation. Mere inability to pay over the money to the trustees is not enough: Barrett v. MarJcham, L. R., 7 C. P. 405. See Appendix, Note E. (a) This is a re-enactment of 18 & 19 Vict. c. 63, s. 20. (5) This section is a re-enactment, in a more intellgible form, of the provisions of sects. 33, 34 and 35 of 18 & 19 Vict. c. 63. (e) No such Act was passed; but an alteration in the section referred to was proposed by a bill in 1875 that was ultimately withdrawn. 38 & 39 Vict. Cap. 60, s. 17. 81 twenty-seven, and twenty-eight, as to the regulation of receipts, certificates, and orders, shall apply to moneys paid under this section : 5. The society [or branch] shall be entitled to a receipt bearing interest at the rate of twopence per centum per diem : 6. Provided that a friendly society legally established before the twenty-eighth day of July, one thousand eight hundred and twenty-eight, which has invested any part of its funds with the commissioners before the twenty-third day of July, one thousand eight hundred and fifty-five, shall be entitled for any fur- ther investment made on account of any assurance made before the fifteenth day of August, one thousand eight hundred and fifty to a receipt bearing interest at the rate of threepence per centum per diem : 7. And provided that a friendly society legally established between the twenty-eighth day of July, one thousand eight hundred and twenty-eight and the fifteenth day of August, one thousand eight hundred and fifty, which has invested any part of its funds with the commissioners before the twenty-third day of July, one thousand eight hundred and fifty-five, shall be entitled for any further investment made on account of any assurance made before the fifteenth day of August, one thousand eight hundred and fifty to a receipt hearing interest at the rate of twopence halfpenny per centum per diem : 8. A societ3r [or branch] withdrawing money invested with the commissioners shall not be entitled to make any further deposit without their consent : 9. Every society [or branch] investing money with the commissioners shall furnish from time to time such returns as may be required by the commissioners, in respect of the funds deposited with them, and the assurances to which such funds relate: 10. A society having funds invested witli the commis- sioners at the rate of threepence or twopence half- E 3 82 38 & 39 Vict. Cap. 60, s. 18. penny per centum per diem, sliall retain at such rates so much only of its funds as arises from assur- ances made before the fifteenth day of August, one thousand eight hundred and fifty, after deducting all benefit payments and management expenses incurred on account of such assurances ; and whenever the society fails to satisfy the commissioners of its title to retain at either such rate the whole or any part of its funds, the commissioners shall require the with- drawal of such funds or the transfer of the same to the rate of twopence per centum per diem, and, in default of withdrawal within thirty days, shall transfer the same in their hooks accordingly, and shall notify such transfer to the society. 11. Whenever it shall appear to the commissioners that all the members of a society assured before the fifteenth day of August, one thousand eight hundred and fifty have died or ceased to be members, the commissioners shall forthwith transfer in their books to the rate of twopence per centum per diem, all funds of the society remaining invested at any higher rate, and shall notify the same to the society (a). 18. Loans to members.—With respect to loans to members of registered societies, the following provisions shall have effect:— (1.) Not more than one half of the amount of an assur- ance on the life of a member of at least one full year’s standing may be advanced to him, on the written security of himself and two satisfactory sureties for repayment ; and the amount advanced, with all interest thereon, may be deducted from the sum assured, without prejudice in the meantime to the operation of such security (b). (2.) Loans may be made out of separate loan fund.—A society may, out of any separate loan fund to be formed by (a) Sub-sects. 10 and 11 are new. They are applied to a society after its conversion into a branch by sect. 6 of the Act of 1876. (S) This provision was contained in 18 & 19 Vict. c. 63, s. 32. 83 33 & 39 Vict. Cap. 60, ss. 19, 20. •contributions or deposits of its members, make loans to its members on their personal security, with, or without sure- ties, as may be provided by the rules, subject to the fol- lowing restrictions :— (a.) No loan can at any time be made out of moneys contributed for the other purposes of the society: (b.) No member shall be capable of holding any interest in the loan fund exceeding two hundred pounds: (c.) No society shall make any loan to a member on personal security beyond the amount fixed by the rules, or shall make any loan which, together with any moneys for the time being owing by a member to the society, shall exceed fifty pounds : (d.) No society shall hold at any one time on deposit from its members any moneys beyond the amount fixed by the rules, which shall not exceed two thirds of the total sums for the time being owing to the society by the members who have borrowed from the loan fund (c). 19. Accumulating surplus of contributions for members use. —The rules of a society [or branch] may provide for accu- mulating at interest, for the use of any member of the same, any surplus of his contributions to the funds of the society [or branch] which may remain after providing for any assurance in respect of which the same are paid, and for the withdrawal of such accumulations from time to time (d). 20. Officers in receipt or charge of money.—With respect to officers of registered societies [or branches] having receipt or charge of money, the following provisions shall have effect:— (1.) Security to be given.—Every officer, if the rules of the society [or branch] require, shall, before taking upon him- («) This provision is new. (d) This was formerly permitted by authority of the Secretary of State under 18 & 19 Vict. c. 63, s. 9 (3). The authority was granted to meet the case of the Deposit Friendly Societies, established by the late Hon. and Kev. S. Best. 84 38 & 39 Vict. Cap. 60, s. 21. self the execution of liis office, become bound with one sufficient surety at the least in a bond according to one of the forms set forth in the third schedule to this Act, or give the security of a guarantee society, in such sum as the society [or branch] directs, conditioned for his rendering a just and true account of all moneys received and paid by him on account of the society [or branch] at such times as its rules appoint, or as the society [or branch] or the trustees or committee of management thereof require him to do so, and for the payment by him of all sums due from him to the society [or branch] (a). (2.) Accounts of officers.—Every officer, his executors or administrators, shall, at such times as by the rules of the society [or branch] he should render account, or upon de- mand made, or notice in writing given or left at his last or usual place of residence, give in his account as may be required by the society [or branch], or by the trustees or committee of management of the society [or branch], to be examined and allowed or disallowed by them, and shall, on the like demand or notice, pay over all moneys and deliver all property for the time being in his hands or custody to such person as the society [or branch], or the committee of management, or the trustees appoint; and in case of any neglect or refusal to deliver such account, or to pay over such moneys or to deliver such property in manner afore- said, the trustees or authorized officers of the society [or branch] may sue upon the bond or security before men- tioned, or may apply to the county court (which may proceed in a summary way), or to a court of summary jurisdiction, and the order of either such court shall be final and con- clusive (b). 21. Legal proceedings.—With respect to legal proceedings against registered societies, the following provisions [which (a) Founded on 18 & 19 Vict. c. 63, s. 21, but extended to every officer having receipt or charge of money, as in the Build- ing Societies Act, 1874 (37 & 38 Vict. c. 42, s. 23). (b) Founded on 18 & 19 Vict. c. 63, s. 22. As to the effect of a bond given to an unregistered society, see Jones v. Woollam, 5 B. Aid. 769; Margelt v. TarJces, 1 Bowl. & L. 682. 85 38 & 39 Vict. Cap. GO, s. 21. are extended to brandies by tlie Act of 1876, where so stated] shall have effect:— (1.) The trustees of any society or branch, or any other officers authorized by the rules thereof, may bring or defend, or cause to be brought or defended, any action, suit, or other legal proceeding in any court whatsoever, touching or concerning any property, right, or claim of the society or branch, as the case may be, and shall sue and be sued, implead and be impleaded, in their proper names, without other description than the title of their office (c). (2.) In legal proceedings which may be brought under this Act by a member or person claiming through a mem- ber, the society [or branch] may also be sued in the name, ns defendant, of any officer or person who receives contribu- tions or issues policies on behalf of the society [or branch] within the jurisdiction of the court in which the legal pro- ceeding is brought, with the addition of the words “ on behalf of the society ” [or branch] (naming the same) (d). (3.) No legal proceeding shall abate or be discontinued by the death, resignation, or removal from office of any officer, or by any act of such officer after the commencement of the proceedings (c). (4.) The summons, writ, process or other proceeding to be issued to or against the officer or other person sued on behalf of a society [or branch] shall be sufficiently served by personally serving such officer or other person, or by leaving a true copy thereof at the registered office of the society, or at any place of business of the society [or branch] within the jurisdiction of the court in which the proceeding is brought, or, if such office or place of business be closed, by posting (c) Pounded on 18 & 19 Vict. c. 63, s. 19, extended to officers authorized to sue and he sued. vO These provisions are new, and will greatly facilitate pro- ceedings against societies receiving money through agents and collectors. 86 38 & 39 Vict. Cap. CO, s. 22. such copy on the outer door of the same ; but in all cases where the said summons, writ, process, or other proceeding shall not be served by means of such personal service or by leaving a true copy thereof at the registered office of the society, a copy thereof shall be transmitted addressed to the committee of management at the registered office of the society, and the same shall be enclosed in a registered letter posted at least six days before any further step shall be taken on such summons, writ, process, or other proceed- ing (a) 22. Disputes.—Every dispute between a member or per- son claiming through a member or under the rules of a registered society [or branch], and the society [or branch] or an officer thereof, shall be decided in manner directed by the rules of the rsociety [or branch], and the decision so made shall be binding and conclusive on all parties without appeal, and shall not be removable into any court of law or restrainable by injunction ; and application for the enforce- mement thereof may be made to the county court (&). Provided as follows :— (a.) The parties to a dispute in a society [or branch] may, by consent (unless the rules of such society [or branch] expressly forbid it), refer such dispute to the chief registrar, or to the assistant registrar in Ireland or Scotland, who shall, with the consent of the Treasury, either by himself or by any other registrar, hear and determine such dispute, and shall have power to order the expenses of determin- ing the same to be paid either out of the funds of the society [or branch] or by such parties to the dispute as he shall think fit, and such determina- tion and order shall have the same effect and be enforceable in like manner as a decision made in (a) See note (d), p. 85, ante. \h) See 18 & 19 Vict. c. 63, ss. 40, 41, and note F, Ap- pendix. 38 & 39 Vict. Cai\ 60, s. 22. 87 the manner directed by the rules of the society [or branch] (c) : (b.) The cliiei or other registrar to whom any dispute is referred may administer oaths, and may require the attendance of all parties concerned, and of witnesses, and the production of all books and documents relating to the matter in question; and any person refusing to attend, or to produce any documents, or to give evidence before such chief or other registrar, shall be guilty of an offence under this Act (c) : <c.) Where the rules of a society [or branch] direct that disputes shall be referred to justices, the dispute shall be determined by a court of summary juris- diction : Provided that in every case of dispute cogniz- able under the rules of a society [or branch] by a court of summary jurisdiction, it shall be lawful for the parties thereto to enter into a consent referring such dispute to the county court, which may hear and determine the matter in dis- pute (c). (d.) AVhere the rules contain no direction as to disputes, or where no decision is made on a dispute within forty days after application to the society [or branch] for a reference under its rules, the mem- ber or person aggrieved may apply either to the county court, or to a court of summary jurisdic- tion, which may hear and determine, the matter in dispute : (e.) The court, chief or other registrar, may, at the request of either party, state a case for the opinion in England of the Supreme Court of Judicature, (c) These provisions are new, and render the procedure in cases of dispute much more elastic than formerly. The submission to the chief registrar is to he in duplicate. See Treasury regu- lations 21 to 27 and forms P to V. 88 38 & 39 Vict. Cap. 60, s. 23. in Scotland of either division of the Inner House of the Court of Session, or in Ireland of one of the superior courts of common law at Dublin, on any question of law, and may also grant to either party such discovery as to documents and other- wise, or such inspection of documents, and in Scotland may grant warrant for the recovery of documents and examination of havers, as might be granted by any court of law or equity, such discovery to be made on behalf of the society [or branch] by such officer of the same as such court or registrar may determine (a). 23. Special powers of registrars to be exercised on applica- tion from members,—Upon the application of one-fifth of the whole number of members of a registered society, or of one hundred members in the case of a society of one thousand members and not exceeding ten thousand, or of five hundred members in the case of a society of more than ten thousand members, the chief registrar, [or the assistant registrar for Scotland or Ireland (5)], or in cases of societies registered and doing business exclusively in Ireland or in Scotland the assistant registrars for Ireland and Scotland respectively, but with the consent of the Treasury in every case, may— (1.) Inspectors. —Appoint one or more inspectors to examine into the affairs of such society, and to report thereon, who may require the production of all or any of the books and documents of the society, and may examine on oath its officers, members, agents, and servants in rela- tion to its liusiness, and may administer such oath accord- ingly: (2.) Special meetings.—Call a special meeting of the society in such manner and at such time and place as the chief registrar or such assistant registrar may direct, and (a) This is modelled upon the proviso in sect. 36 of the Build- ing- Societies Act, 1874, but more precisely worded, and adapted to the law of Scotland and Ireland. (S) The words in brackets are unnecessary. 89 38 & 39 Vict. Cap. 60, s. 24. may direct what matters shall he discussed and determined on at such meeting, which shall have all the powers of a meeting called according to the rules of the society, and shall in all cases have power to appoint its own chairman, any rule of the society to the contrary notwithstanding. Provided that— (a.) The application herein mentioned shall he supported by such evidence, for the purpose of showing that the applicants have good reason for requiring such inspection to he made or meeting to he called, and that they are not actuated hy malicious motives in their application, and such notice thereof shall he given to the society, as the chief registrar shall direct: (6.) The chief registrar or such assistant registrar may, if he think fit, require the applicants to give security for the costs of the proposed inspection or meeting before appointing any inspector or calling such meeting: (c.) All expenses of and incidental to any such inspection or meeting shall he defrayed either hy the members applying for the same, or out of the funds of the society, as the chief or such assistant registrar shall direct: (d.) This section shall not apply to a society with branches, unless with the consent of the central body of such society (c). 24. Special resolutions, and proceedings which may be taken thereon.—With respect to special resolutions hy registered societies, and to the proceedings which may he taken hy 'virtue thereof, the following provisions shall have effect: . (®) This section is new. The provisions as to inspection are similar to those of the Companies Act, 1862, ss. 56-59, for the appointment of inspectors by the Board of Trade, lor the Chief Registrar’s Instructions to Inspectors, see Appendix. See also treasury regulations 28 to 32 and Forms W to Z. 90 38 & 39 Vict. Cap. 60, s. 24. (1.) Special resolutions. —A special resolution is one which is passed hy a majority of not less than three fourths of such members of a society for the time being entitled under the rules to vote as may be present in person or by proxy (where the rules allow proxies) at any general meeting of which notice specifying the intention to propose such reso- lutions has been duly given according to the rules, and which resolution is confirmed by a majority of such mem- bers for the time being entitled under the rules to vote as may be present in person or by proxy at a subsequent general meeting of which notice has been duly given, held not less than fourteen days nor more than one month from the day of the meeting at which such resolution was first passed. At any meeting mentioned in this section a decla- ration by the chairman that the resolution has been carried shall be deemed conclusive evidence of the fact (a). (2.) Change of name.—A society may, by special resolu- tion, with the approval in writing of the chief registrar, or in the case of societies registered and doing business exclu- sively in Ireland or Scotland the assistant registrar for Ireland or Scotland respectively, change its name; but no such change shall affect any right or obligation of the society, or of any member thereof, and any pending legal proceedings may be continued by or against the trustees of the society, or any other officer who may sue or be sued on behalf of such society, notwithstanding its new name (b). (3.) Amalgamation of societies. — Any two or more societies may, by special resolution of both or all such societies, become amalgamated together as one society, with or without any dissolution or division of the funds of such societies or either of them; and any society may, by special (a) The machinery of special resolutions is new to friendly societies, being adopted from sect. 51 of the Companies Act, 1862. See Treasury regulations 33 to 40 and Forms AA to AG. (i) Change of name, witli the approval of the registrar, was permitted by 21 & 22 Vict. c. 101, s. 4. The permitting a change of name is wholly in the discretion of the chief registrar, and it is perhaps the only act of registry depending on approval. 38 & 39 Vict. Cap. 60, s. 24. 91 resolution, transfer its engagements to any other registered society which may undertake to fulfil the engagements of srrcli society (c). (4.) Conversion of societies into companies, &c.—A society may by special resolution determine to convert itself into a company under the Companies Acts, or to amalgamate with or transfer its engagements to any such company (d). (5.) Eights of creditors.—No amalgamation or transfer of engagements shall prejudice any right of a creditor of either or any society party thereto (e). (6.) Registration of special resolutions.—A copy of every special resolution for any of the purposes mentioned in this section, signed by the chairman of the meeting and countersigned by the secretary, shall be sent to the central office and registered there, and until such copy is so registered such special resolution shall not take effect (e). (~.) Registration of copy of special resolution as memo- randum of association.—If a special resolution for convert- lng a society into a company contains the particulars by the Companies Act, 1862, required to he contained in the memorandum of association of a company, and a copy thereof has been registered at the central office, a copy of such resolution under the seal or stamp of the central office shall have the same effect as a memorandum of association duly signed and attested under the said Act (e). (8.) Registry of society under Act to become void on regis- tration as a company, dec.—If a society be registered as, or (p) Union of societies, or transfer of tire engagements of a society, was authorized by 18 & 19 Vict. c. 63, s. 14. (d) This provision is new. The Industrial and Provident Societies Act, 1862, s. 21, authorized the conversion of a society Registered under it into a company, but contained no provision sunilar to clause 7 of the present section directing the manner m which such conversion is to be effected, merely enacting that “e society shall conform to the provisions of the Companies Act- The Industrial and Provident Societies Act, 1876, has a Provision adopted from the Friendly Societies Act, 1875. See Uirt III, post' \e) These provisions are new. 92 38 & 39 Vict. Cap. 60, s. 24. amalgamates with, or transfers all its engagements to a ■company, the registry of such society under this Act there- upon becomes void, and the same shall he cancelled by the chief registrar or by the assistant registrar for Scotland or Ireland under his direction; but the registration of a society as a company shall not affect any right or claim for the time being subsisting against such society, or any penalty for the time being incurred by such society; and for the purpose of enforcing any such right, claim, or penalty, the society may be sued and proceeded against in the same manner as if it had not become registered as a •company; and every such right or claim, or the liability to such penalty, lias priority, as against the property of such company, over all other rights or claims against or liabilities of such company (a). Proviso as to friendly societies.—Provided as follows as respects friendly societies :— (rt.) No special resolution by any society for any amal- gamation or transfer of engagements under this section is valid unless five-sixths in value (to be calculated as for dissolution) of the members assent thereto, either at the meetings at which such resolution is passed and confirmed, or one of them, or in writing, if such members were not present thereat, nor without the written consent of every person for the time being receiving or entitled to any relief, annuity, or other benefit from the funds of the society, unless the claim of such person be first duly satisfied, or adequate provision be made for satisfying such claim : (b.) The provisions hereinafter contained in case of dis- solution as to the punishment of officers and the remedy of members or persons dissatisfied with the provision made for satisfying their claims, shall apply to the case of amalgamation and transfer of engagements: (a) This provision is new. 93 38 & 39 Vict. Cap. 60, s. 25. (e.) Upon application of the trustees or committee of management of a society desiring to amalgamate or transfer its engagements, notice of such appli- cation (b) being published in the Gazette, the chief registrar, after hearing such trustees or committee of management and any other persons whom he considers entitled to be heard upon the applica- tion, may, with the consent of the Treasury, order that any of the consents and conditions prescribed in this Act, or in any regulations made under this Act, be dispensed with, and may confirm the amalgamation or transfer: (d.) This section shall not apply to branches (c). 25. Dissolution of societies.—With respect to the dissolu- tion of registered societies, the following provisions shall have effect:— (1.) How societies may be dissolved.—A society may ter- minate or be dissolved in any of the following ways:— (a.) Upon the happening of any event declared by the rules to be the termination of the society: (b.) As respects all societies other than friendly societies, by the consent of three-fourths of the members, testified by their signatures to the instrument of' dissolution: (c.) As respects friendly societies, by the consent of five- sixths in value of the members (including honorary members, if any), testified by their signatures to the instrument of dissolution, and also by the- written consent of every person for the time being receiving or entitled to receive any relief, annuity, or other benefit from the funds of the society,, rmless the claim of such person be first duly satisfied, or adequate provision made for satisfying such claim, and in the case of a branch society (d) (b) See Treasury regulations 73 to 78 and Form BA. (c) This provision is new. (id) Sic. 94 38 & 39 Vict. Cap. 60, s. 25. with the consent of the central body of the society, or in accordance with the general rules of the society (a): (d.) By the award of the chief registrar or assistant registrars in the cases herein specified (6). (2.) Contents of instrument of dissolution.—The instru- ment of dissolution shall set forth— (a.) The liabilities and assets of the society in detail: (b.) The number of members and the nature of their interests in the society respectively : (c.) The claims of creditors (if any), and the provision to he made for their payment: (id.) The intended appropriation or division of the funds and property of the society, unless the same he stated in the instrument of dissolution to he left to the award of the chief registrar (a). (3.) Alterations in instrument of dissolution.—Alterations in the instrument of dissolution may he made with the like consents as hereinbefore provided, testified in the same manner (a). (4.) Statutory declaration.—A statutory declaration shall he made hy one of the trustees, or hy three members and the secretary of the society, that the provisions of this Act have been complied with, and shall be sent to the registrar with the instrument of dissolution; and any person know- ingly making a false or fraudulent declaration in the matter shall be guilty of a misdemeanor (c). (a) These provisions are similar to those of the Building Societies Act, 1874, s. 32. The consents to dissolution for a friendly society are the same as those required hy 18 & 19 Viet, c. 63, s. 13. See Treasury regulations 41 to 44 and Forms A1I to AL. (i) This provision is similar to 23 & 24 Vict. c. 58. See Treasury Regulations 45 to 48 and Forms AM to AQ. (e) This provision is similar to 18 & 19 Vict. e. 63, s. 13; 23 & 24 Vict. c. 58. 38 & 39 Vict. Cap. 60, s. 25. 95 (5.) Registry of instrument of dissolution.—The instrument of dissolution and all alterations therein shall he registered in manner herein provided for the registry of rules, and shall he binding upon all the members of the society (d). (6.) Notice of dissolution.—The registrar shall cause a notice of the dissolution to be advertised at the expense of the society in the manner provided by this Act for adver- tising an award of the registrar for dissolution; and un- less within three months from the date of the Gazette in which such advertisement appears, a member or other per- son interested in or having any claim on the funds of the society commences proceedings to set aside the dissolution of the society, and such dissolution is set aside accord- ingly (e), the society shall be legally dissolved from the date of such advertisement, and the requisite consents to the instrument of dissolution shall be considered to have been duly obtained without proof of the signatures thereto. (7.) Special provisions as to friendly societies.—As respects friendly societies— (a.) The value of members shall be ascertained by giving one vote to every member, and an additional vote for every five years that he has been a member, but to no one member more than five votes in the whole: (£>.) No instrument of dissolution shall direct or contain any provision for a division or appropriation of the funds of the society, or any part thereof, other- wise than for the purpose of carrying into effect the objects of the society as declared in the rules thereof for the time being, unless the claim of every member or person claiming any relief, an- (d) See note (a), p. 94, ante. (e) Provision for notice to the central office of proceedings and orders to set aside dissolutions is made by sect. 11 of the Act of 1876. See Treasury regulation 69 and Forms AT, A Z. 96 38 & 39 Vict. Cap. 60, s. 25. nuity, or other benefit from the funds thereof be first duly satisfied, or adequate provision be made for satisfying such claim: (c.) Any officer or person aiding or abetting in the dis- solution of a society, otherwise than as in this Act provided, shall, on summary convictiou, be liable to be committed to the common gaol or house of correction, there to be kept to hard labour for any term not exceeding three months (a) : (d.) If any member of a dissolved society, or person claiming any relief, annuity, or other benefit from the funds thereof, be dissatisfied with the provi- sion made for satisfying his claim, such member or other person may apply to the county court of the district within which the chief or any other place of business of the society is situate for relief or other order, and such court shall have the same powers in the matter as in regard to the settle- ment of disputes under this Act (b). (8.) Dissolution by award, <£c.—With respect to dissolu- tions and the distribution of funds upon the award of the chief registrar:— (a.) Upon the application of one-fifth of the whole number of members of any registered society, or of one hundred members in the case of a society of one thousand members and not exceeding ten thousand, or of five hundred members in the case of a society of more than ten thousand members, made in ‘writing under their hands, setting forth that the funds of the society are insufficient to meet the existing claims thereon, or that the rates of contribution fixed in the rules of such society are insufficient to cover the benefits assured, and (a) This punishment may be mitigated under the Summary Jurisdiction Act, 1879 (42 & 43 Yict. c. 49, s. 4). (i) This provision is similar to 18 & 19 Vict. c. 63, s. 13. 38 & 39 Vict. Cap. 60, s. 25. 97 tlie grounds upon which, such insufficiency is alleged, and requesting an investigation into the affairs of such society with a view to the dissolu- tion thereof, the chief registrar may by himself, or by any assistant registrar, or hy any actuary or public auditor whom the chief registrar may ap- point in writing under his hand, investigate the affairs of the society, giving nevertheless not less than two months previous notice in writing to the society whose affairs are to be investigated at the registered office of such society (c): (b.) If upon such investigation it appears that the funds of the society are insufficient to meet the existing claims thereon, or that the rates of contribution fixed in the rules of the society are insufficient to cover the benefits assured to he given by the same, the chief registrar may, if he considers it expe- dient so to do, award that the society shall be dissolved, and its affairs wound up, and shall direct in what manner the assets of the society shall be divided or appropriated: provided always, that the chief registrar may suspend his award for such period as he may deem necessary to enable the society to make such alterations and adjustment of contributions and benefits as will in his judg- ment prevent the necessity of such award of disso- lution being made (d): (c.) A registrar proceeding under this section has all the same powers and authorities, enforceable by the same penalties, as in the case of a dispute referred to him under this Act (e): (e) This provision is similar to 23 & 24 Viet. c. 58, s. 1, but the number of members who may make application to the regis- trar is reduced from five-eighths to one-fiftli (or less in a large society), and insufficiency of funds is more clearly defined. See Treasury regulations 45 to 48 and Forms AM to AQ. (d) See 23 & 24 Vict. c. 58, s. 1. The power to suspend the , award is new. It was acted upon by the chief registrar in a case recorded in his Eeport for 1876, p. 33. (e) This provision is new. F 98 38 & 39 Vict. Cap. 60, s. 26. (d.) Every award under this or the last preceding section,, whether for dissolution or distribution of funds, is final and conclusive on the society in respect of which the same is made, and on all members of the same, and other persons having any claim on the funds of the society, without appeal, and shall be enforced in the same manner as a decision on a dispute under this Act; and the expenses of every investigation and award, and of publishing every notice of dissolution, shall be paid out of the funds of the society before any other appro- priation thereof shall be made (a): (e.) Notice of every award for dissolution shall, within twenty-one days after the same shall have been made, be advertised by the central office in the Gazette, and in some newspaper circulating in the county in which the registered office of the society is situated, and unless, within three months from the date of the Gazette in which such advertise- ment appears, a member or other person interested in or having any claim on the funds of the society commences proceedings to set aside the dissolution of the society, consequent upon such award, and such dissolution is set aside accordingly, the society shall be legally dissolved from the date of such advertisement, and the requisite consents to the application to the registrar shall be considered to have been duly obtained without proof of the signatures thereto (6). (9.) Consent of central body.—The provisions of the pre- sent section shall not apply to any society having branches without the consent of the central body of such society (c). 26. Militiamen and volunteers not to lose benefits.—No person, by reason of his enrolment or service in the militia (a) See 23 & 24 Vict. c. 68, s. 2. (J) Sec 23 & 24 Vict. c. 58, s. 3. (e) Tills provision is new. 99 38 & 39 Vict. Cap. 60, s. 27. or as a naval coast volunteer, royal naval volunteer, naval artillery volunteer, or in any corps of yeomanry or volun- teers whatsoever, shall lose or forfeit any interest he pos- sesses at the time of his being so enrolled or serving, in any friendly society [or branch], registered or unregistered, or be fined for absence from or non-attendance at any meeting of the society [or branch], such absence or non-attendance being occasioned by the discharge of his military or naval duty as certified by his commanding officer, any rules of such society [or branch] to the contrary notwithstanding, and any dispute between any such society [or branch], and such person by reason of such enrolment or service shall be decided by a court of summary jurisdiction under this Act; but if the rules of a society certified before the twenty-third day of July one thousand eight hundred and fifty-five, and in force at the time of such enrolment or service, provide that a member shall be deprived of any benefit by reason of such enrolment or service, the society may require of such member a contribution exceeding the rate of contribu- tion otherwise payable by him to an amount not exceeding one-tenth of such rate during the time such member shall be serving out of the United Kingdom, or may suspend all claim of such member to any benefits assured by the society, and all claim of the society to any contributions payable by such member, during, the time only he may be serving out of the United Kingdom, but so that if he return to the United Kingdom he shall forthwith be replaced on the same footing as before he went abroad on service (d). , 27. Limitations of benefits.—No member of a registered hiendly society, nor any person claiming through a member, (d) This section is founded on 52 Geo. 3, c. 38, s. 41; 52 Geo. 3, c- 68, s. 39; 17 & 18 Vict. c. 105, s. 44; 17 & 18 Vict. c. 106, s- 69; 17 & 18 Vict. c. 107, S. 27; 18 & 19 Vict. c. 63, s. 47; 22 & 23 Vict. c. 40, s. 23; 23 Vict. c. 13; 26 & 27 Vict. c. 65, s- 44; 36 & 37 Vict. c. 77, s. 33 (all of which are repealed by Sched. I.), with important amendments. The proviso as to ex- isting rules of a society would apply after its conversion into a branch by virtue of sect. 6 of the Act of 1876. P 2 100 38 & 39 Vict. Cap. 60, s. 28. shall be entitled to receive more than two hundred pounds by way of gross sum, together .with any bonuses or addi- tions declared upon assurances not exceeding that amount, or (except as provided by section six of this Act) fifty pounds a year by way of annuity, from any one or more such societies; and any such society may require a member, or person claiming through a member, to make and sign a statutory declaration that the total amount to which such member or person is entitled from one or more such societies does not exceed the sums aforesaid; and any person know- ingly making a false or fraudulent declaration in the matter shall be guilty of a misdemeanor (a). 28. Payments on death of children.—With respect to pay- ments on the death of children under ten years of age, the following provisions shall have effect:— (1.) Limitation of payments.—No society [or branch] shall insure or pay on the death of a child under five years of age any sum of money which, added to any amount pay- able on the death of such child by any other society [or branch], exceeds six pounds, or on the death of a child under ten years of age any sum of money which, added to any amount payable on the death of such child by any other society [or branch], exceeds ten pounds (h). (2.) Who may receive payments.—No society [or branch] shall pay any sum on the death of a child under ten years (a) This section is founded on 18 & 19 Vict. c. 63, ss. 9, 38; hut the limit of annuity is raised from £30 to £50. (5) The provisions in this section are in some respects more stringent than those of 21 & 22 Vict. c. 101, s. 2. The limits of assurance, however, are the same. The certificate of a registrar of deaths is substituted for the medical certificate, and more effectual provision is made against evasion of the Act. It is also .extended to industrial assurance companies, and, on the other hand, such companies are relieved from the operation of the (Gambling Act. It is to be observed that sect. 28 extends to un- registered as well as registered societies, and has been so acted •upon in cases before the sheriffs of Forfar and Dundee. See Report of Assistant Registrar for Scotland for 1875, p. 35. 38 & 39 Vict. Cap. 60, s. 28. 101 of age, except to the parent of such child, or to the personal representative of such parent, and upon the production by such parent or his personal representative of a certificate of death issued by the registrar of deaths, or other person having the care of the register of deaths, containing the particulars after mentioned. (3.) Particulars of certificates.—Whenever a certificate of the death of a child is applied for for the purpose of obtain- ing a sum of money from a society [or branch], the name of such society [or branch], and the sum sought to be obtained therefrom, shall be stated to the registrar of deaths, who shall write on or at the foot of such certificate the words, “ to be produced to the-----Society” [or branch] (naming the same) “said to be liable for payment of the sum of-----pounds ” (stating the same), and all certificates of the same death shall be numbered in consecutive order, and the sum charged by the registrar of deaths for each such certificate shall not exceed one shilling (c). (4.) Registrars of deaths only to give certificates in certain cases.—No registrar of deaths shall give any one or more certificates of death for the payment in the whole of any sum of money exceeding six pounds on the death of a child under five years, or for the payment in the whole of a sum exceeding ten pounds on the death of a child under ten years ; and no such certificate shall be granted unless the cause of death has been previously entered in the register of deaths on the certificate of a coroner or of a registered medical practitioner who attended such deceased childduring its last illness, or except upon the production of a certificate of the probable cause of death, under the hand of a registered medical practitioner, or of other satisfactory evidence of the same (d). (°) Further provision as to the sums to be charged by regis- trars of deaths is made by sect. 8 of the Act of 1876. See p. 127. (d) Tile provision that “ other satisfactory evidence’' of death may be accepted by the registrar of deaths, is one likely to lead to mischief unless great caution be exercised in the reception of such evidence. 102 38 & 39 Vict. Cap. 60, s. 28. (5.) Inquiry to be made by societies [and branches'].—Any society [or branch] to which is produced a certificate of the death of a child which does not purport to be the first, shall, before paying any money thereon, he bound to inquire whether any and what sums of money have been paid on the same death by any other society [or branch], (6.) Offences under this section.—It shall Ire an offence under this Act— (a.) If any society [or branch] pays money on the death of a child under ten years of age otherwise than is provided by this Act; (b.) If any parent, or personal representative of a parent, claiming money on the death of a child produces any certificate of such death other than is herein provided to the society or societies [or branches] from which the money is claimed, or produces a false certificate, or one fraudulently obtained, or in any way attempts to defeat the provisions of this Act with respect to payments upon the death of children. (7.) Extent of the word “society.”—The word “society” in the present section shall include all industrial assurance companies assuring the payment of money on the death of children under the age of ten years. (8.) Assurances on children’s lives not to be void under 14 Geo. 3, c. 48.—No assurance made, or to be made, by any industrial assurance company, of a sum of money payable on the death of a child under the age of ten years, which would be valid if effected with a registered society [or branch], shall be invalidated by reason of any provision contained in the Act of the fourteenth year of His late Majesty King George the Third, chapter forty-eight, for regulating insurances upon lives and for prohibiting all such insurances except in cases where the person insuring shall have an interest in the life of the persons insured. (9.) Insurable interests.—Provided that nothing in this section contained shall apply to insurances on the lives of 103 38 & 39 Vict. Cap. 60, s. 29. •children of any age, where the person insuring has an interest in the life of the person insured, or to existing, •contracts. 29. Societies with branches. —The provisions of the present section apply only to societies having branches (a). (1.) How to be registered.—The application for registry ■shall be accompanied with— (a.) A list of every branch, and of the place wherein the same is established; {b.) If any branch is to have trustees or officers autho- rized to sue and be sued on its behalf other than the trustees or officers authorized to sue and be sued on behalf of the society, a list of the names of all such trustees or officers, distinguishing the branches for which they are authorized to sue and be sued : {»■) If the rules of all the branches (herein called branch rules) are or are intended to be identical, a state- ment to that effect, and copies of such rules: , («) The provisions of this section are new. By the 49th sec- tion of 18 & 19 Vict. c. 63, it was provided that the word “society” shall extend to and include every branch of a society, by whatever name it may he designated. The effect of this pro- vision was, that every branch had to be registered as a separate society. Upon this portion of the Act the chief registrar remarks:—“A very important alteration in the law is the ex- press recognition of societies with branches as registrable units. By sect. 4 a branch is defined as any number of the members of a society, under the control of a central body, having a separate fund administered by themselves, or by a committee of officers appointed by themselves—in other words, having some power of self-government. On the other hand, in order that a society with branches may be entitled to registration as a single society, it must have a fund under the control of a central body, to which every branch is bound to contribute. If there is no such fund, a)l branches must be registered, as heretofore, as separate socie- ties. Amendments of the rules of affiliated societies, when registered under sect. 29, will at once bind all their branches.” 104 38 & 39 Vict. Cap. 60, s. 29. (d.) If the branch rules are not or are not intended to be- identical, a statement to that effect, and copies of all branch rules. (2.) Recording of branch rules.-—A society having a fundi under the control of a central body, to which every branch is hound to contribute, may he registered as a single- society. Where such society has branches in more than one country, the provision herein contained as to the registry of societies doing business in more than one country shall apply to the society. (3.) Notices of establishment of new branches.—Notice of the establishment of every new branch by a registered society, and of the place where the same is established, and if such branch is to have trustees or officers authorized to sue and be sued on its behalf other than the trustees or officers authorized to sue and he sued on behalf of the society, a list of the names of such trustees or officers,, and a statement whether or not the rules of such branch are- identical with those of the other branches of the society,, and if not so, a copy of the rules of such branch shall be sent under the hand of the secretary to the registrar whom it may concern («). (4.) Until copies of branch rules registered, Act not to apply to branch— Until a copy of the rules of a branch (in? the case hereinbefore mentioned) has been registered in the country in which such branch is established, the society is not entitled to any of the privileges of this Act in respect of such branch, and until a copy of any amendment of the rules of a branch has been so registered, the same does not take effect as respects such branch. (5 ) Application of previous provisions.—The provisions of this Act as to appeals, and the result thereof, as to amend- (a) The word “ branch ” does not apply to such “ lodges ” or- “ courts ” as have been registered under 18 & 19 Viet. c. 63, s. 49„ as separate socieths, until such registry has been cancelled. See? Treasury regulations 49 to 56 and Korins Alt to AU. 38 & 39 Vict. Cap. 60, s. 30. 105 merits of rules, as to the acknowledgment of registry, and the evidence of registry and of rules, apply to branch rules. (6.) Where branches must be separately registered. —Where a society has no fund under the control of a central body to which every branch is hound to contribute, every branch is deemed to he and must he registered as a separate society, whether its rules are identical with those of other branches or not. 30. Societies receiving contributions by collectors.— The provisions of the present section apply only to [such] friendly societies [whether registered or unregistered] and, except as after mentioned, industrial assurance companies [as receive] contributions by means of collectors at a greater distance than ten miles from the registered office [or princi- pal place of business] of the society [or company] (6). (1.) Members to receive copies of rules and policies.—The society [or branch] shall deliver to every person, on his becoming a member of or insuring with a society [or branch] a copy of the rules of the society [or branch], together with a printed policy, signed by two of the com- mittee or managers of the society [or branch] and by the secretary, at a price not exceeding one penny for the policy ; in the case of a family enrolled in one book or card, one copy of rules and one family policy shall be sufficient. (2.) Notice to be given before forfeiture.—No forfeiture is incurred by any member or person insured by reason of any default in paying any contribution, until after a written or printed notice has been delivered or sent by post prepaid to him, or left at his last known place of abode, by or on behalf of the society [or branch], stating the amount due by him, and apprising him that in case of default of pay- (V) The words in brackets arc those introduced by the 42 Viet c- 9, passed to declare the true meaning of this section, on which doubt had been thrown by the decision Me Molt, Baw Rep., 4 Q. B. Div. 29. F 3 106 38 & 39 Vict. Cap. 60, s. 30. ment by him -within a reasonable time, not being less than fourteen days, and at a place, to be specified in such notice, his interest or benefit will be forfeited, and after default has been made by him in paying his contribution in accordance with such notice. (3.) No transfers loithout ivritten consent.—No member of or person insured with any society [or branch] can, unless in the case of an amalgamation, transfer of engagements, or conversion into a company under section twenty-four of this Act, or as respects an industrial assurance company of an amalgamation or transfer of business under the Life Assurance Companies Act, 1870 (a), become or be made a member of, or be insured with any other society [or branch] without Ills written consent, or, in the case of an infant, without that of his father or other guardian ; and the society [or branch] to which such member or person is sought to be transferred shall, within seven days from his application for admission to the same, give notice thereof in writing to the society [or branch] from which he is sought to be transferred. The provisions of this sub-section shall apply to all friendly societies, whether registered under this Act or unregistered, and industrial assurance companies receiving contributions by means of collectors. (4.) No collector to be member of committee of management. —No collector, whilst he is such, is capable of being a member of the committee of management, or other govern- ing body (by whatever name) of the society [or branch], or of holding any other office in the society [or branch], except that of superintending collectors within an area to be from time to time specified. (5.) Collectors not to vote.— No collector of a society [or branch] is capable of voting at or taking part in the pro- ceedings of any meeting of the same. (a) By this Act (33 & 34 Vict. c. 61, s. 14), the sanction of the Court of Chancery is necessary to an amalgamation or transfer of business of a life insurance company. 38 & 39 Vict. Cap. 60, s. 30. 107 (6.) One general meeting every year.—At least one general meeting of tlie society [or branch] shall be held in every year. (7.) Notices of meetings.—Except where the day, hour, and place of an annual or other periodical meeting is fixed by the rules, notice of every general meeting shall be given by the society [or branch] to the members by advertise- ment to be published at least twice in two or more of the newspapers in general circulation in every county where the society [or branch] carries on business, or shall be delivered in writing, or sent by post prepaid, to every member. Such notice shall specify the day, hour, and place, and the objects of the meeting, and in case any amendment of a rule is intended to be proposed, shall con- tain a copy of every such amendment; and the society [or branch] shall publish the last of such advertisements, or deliver or send such notice as aforesaid, at least fourteen days before the day appointed for such meeting, and shall during such fourteen days keep affixed a copy of such notice m legible characters in some conspicuous plaee in or out- side of every office at which the business of the society [or branch] is carried on. (8.) Balance-sheets.—A copy of every balance-sheet of a society [or branch] shall, during the seven days next pre- ceding the meeting at which the same is to be presented, be kept open by the society [or branch] for inspection at every office at which the business of the society [or branch] is carried on, and shall be delivered or sent prepaid to every member on demand. (9.) Certification of annual returns.—The annual returns shall be certified by some person not an officer of the society [or branch] (otherwise than as auditor thereof), carrying on publicly the business of an accountant, and if not so certi- fied shall be deemed not to have been made (1). (10.) Disputes.—In all disputes between a society [or branch] and any member or person insured, or any person (*) (*) This is in addition to the certificate or report of the auditors. 108 38 & 39 Vict, Cap. 60, s. 30. claiming through a member or person insured, or under the rules, such member or person may, notwithstanding any provisions of the rules of such society [or branch] to the- contrary, apply to the county court, or to the court of sum- mary jurisdiction for the place where such member or other person resides, and such court may settle such dispute in manner herein provided. (11.) Service by post.—In proving service of any notice by this section authorized to be sent by post, it is sufficient to prove that such notice was properly directed, and was put, as a prepaid letter, into the post-office in such time as to admit of its being delivered in due course of delivery within the period (if any) prescribed for sending the same. (12.) Offences under this section.—It shall be an offence under this Act— (a.) If any collector of a society [or branch] to which this section applies becomes a member of the com- mittee, or holds any other office in the same (except as aforesaid), or if any member of the committee of management becomes a collector, or if any col- lector votes at or takes part in the proceedings of a general meeting : (!>.) If any person attempts to transfer a member or per- son assured from one society [or branch] to another without such written consent as herein mentioned .- (c.) If a society [or branch] to which a member or per- son is sought to be transferred fails to give such notice as hereinbefore required. (13.) Provisions of present section to be containedin rules.— All the provisions of the present section apply to societies existing at the commencement of this Act, and shall be contained in the rules of all future societies [and branches] to which this section applies (a); and any act or omission (a) As any provision in the rules of a society under this section contrary to its enactments is void (see sect. 6), the societies should revise their rules, with the view of rescinding any such provisions. 38 & 39 Viot. Cap. 60, s. 31. 109 wliich by virtue of this and any other section of this Act would be an offence on the part of a registered society shall be an offence on the part of any other society to which this Act applies, and of any officer of such society bound to fulfil the duty (if any) whereof such offence is a breach. The word “ society ” in the present section shall, except in provisions one, eight, and nine, include all industrial assurance companies, but nothing in the present section contained shall apply to any assurance with any such com- pany, the premiums in respect of which are receivable at greater periodical intervals than two months (b). 31. As to cattle insurance and certain other societies.— The provisions of the present section apply only to regis- tered cattle insurance societies, and to such specially autho- rized societies as the Treasury may allow to take the benefit of the present section [and to branches of such societies] : (1.) Rules to have effect of covenant by members.—The rules bind the society [or branch] and the members thereof, and all persons claiming through them respectively, to the same extent as if each member had subscribed his name and affixed his seal thereto, and there were in such rules contained a covenant on the part of himself, his heirs, exe- cutors, and administrators, to conform to such rules, subject, to the provisions of this Act. (2.) Money payable by members to be recoverable as debt.— All moneys payable by a member to the society [or branch] are deemed to be a debt due from such member to the society [or branch], and are recoverable as such in the. county court of the district in which such member- resides (c). (b) The whole of this section is new. The considerations upon which it is based will be found in the fourth Report^ of the -friendly Societies Commissioners, 1874, pp. xci.-cxxxiii. See Treasury regulation 57. (e) This section is founded on 29 Viet. c. 34. The extension to certain specially authorized societies, is new. 110 38 & 39 Vict. Cap. 60, ss. 32, 33. 32. Penalties.—With, respect to penalties under this Act the following provisions shall have effect :— (1.) Penalty for falsification.—If any person wilfully makes, orders, or allows to he made any entry, erasure in, or omission from any balance sheet of a registered society [or branch], or any contribution or collecting book, or any return or document required to be sent, produced, or de- livered for the purposes of this Act, with intent to falsify the same, or to evade any of the provisions of this Act, he is liable to a penalty not exceeding fifty pounds, recover- -able at the suit of the chief or any assistant registrar or of any person aggrieved. (2.) Penalties for ordinary offences.—Every society [or branch] officer or member of a society [or branch] or other person guilty of an offence under this Act for which no penalty is expressly provided herein is liable to a penalty of not less than one pound and not more than five pounds, recoverable at the suit of the chief or any assistant regis- trar or of any person aggrieved. (3.) Recovery of penalties.—All penalties imposed by this Act, or to be imposed by any regulations under the same, or by the rules of a registered society [or branch], are recoverable in a court of summary jurisdiction (a). 33. Summary procedure and appeals.—With respect to summary procedure and appeals from orders or convic- tions thereon made, the following provisions shall have •effect:— (1.) In England and Ireland respectively all offences and penalties under this Act may be prosecuted and recovered in the manner directed by the Summary Jurisdiction Acts, as respects a prosecution against a society [or branch] or its officers in the place where the registered office of the society is [or where the branch is established], or where the (a) This section is new. The penalties may he mitigated under the Summary Jurisdiction Act, 1879 (42 & 43 Vict. •c. 49, g. 4). 38 & 39 Vict. Cap. 60, s. 33. Ill offence lias been committed, or as respects any prosecution against any person other than a society [or branch] or its officers in the place where such person is resident at the time of the institution of such prosecution, or where the offence has been committed. (2.) In England and Ireland summary orders under this Act may be made and enforced on complaint before a court of summary jurisdiction in the manner provided by the Summary Jurisdiction Acts (b). (3.) The court of summary jurisdiction, when hearing and determining an information or complaint, shall con- sist as follows :— In England— (a.) In any place within the jurisdiction of a metropoli- tan police magistrate or other stipendiary magis- trate, of such magistrate or his substitute : (b.) In the city of London, of the Lord Mayor or any alderman of that city: (c.) In any other place, of two or more justices of the peace sitting in petty sessions (c). In Ireland— (a.) In the police district of Dublin metropolis, of a divisional justice : (b.) In any other place of two or more justices of the peace sitting in petty sessions. {■!•) In Scotland— {«.) All offences and penalties under this Act may be prosecuted and recovered by the procurator fiscal of the county in the Sheriff Court, under the pro- visions of the Summary Procedure Act, 1864 : (b.) Summary orders may be made and enforced on com- plaint in the Sheriff Court: (b) For England these Acts are amended by the Summary ■Jurisdiction Act, 1879 (42 & 43 Yict. c. 49). (°) Further, as to the constitution of the court, see the Sum- mary Jurisdiction Act, 1879 (42 & 43 Vict. c. 49, s. 20). 112 38 & 39 Vict. Cap. 60, s. 33. (c.) All penalties may lie enforced in default of payment by imprisonment for a term to be specified in the order or conviction, but not exceeding three months : (d.) All penalties recovered shall be paid to the sheriff clerk, and by him accounted for and paid to the Queen’s and Lord Treasurer’s Remembrancer on behalf of the Crown : (e.) The sheriffs and their substitutes shall have all juris- diction, power, and authority necessary for giving effect to these provisions. (5.) Description of offences.—In any information or com- plaint under this Act it is sufficient to describe the offence in the words of this Act, and no exception, exemption, proviso, excuse, or qualification accompanying the descrip- tion of the offence in this Act need be specified or nega- tived. (6.) Appeals.—In England or Ireland any party may appeal from any order or conviction made by a court of summary jurisdiction on determining any complaint or information under this Act as follows (a) (a.) The appeal shall be made to some court of general or quarter sessions for the county or place in which the cause of appeal has arisen, holden not less than fifteen days and not more than four months after the decision appealed from : (6.) The appellant shall, within seven days after the cause of appeal has arisen, give notice to the other party and to the court of summary juris- diction of his intention to appeal, and of the ground thereof: (e.) The appellant shall, immediately after such notice, enter into a recognizance before a justice of the peace in the sum of ten pounds, with two suffi- cient sureties in the sum of ten pounds, condi- (a) Further, as to procedure on' appeal, see ss. 31, 32, 33 of Summary Jurisdiction Act, 1879 (42 & 43 Viet. c. 49). 38 & 39 Yict. Cap. 60, s. 34. 113 tioned personally to try such appeal, and to abide the judgment of the court thereon, and to pay costs if awarded : (d.) Where the appellant is in custody, the justice may,, on the appellant entering into such recognizance as aforesaid, release him from custody : (<?.) The court of appeal may adjourn the appeal, and upon the hearing thereof may confirm, reverse, or modify the decision of the court of summary jurisdiction, or remit the matter to such court with the opinion of the court of appeal thereon,, or make such other order in the matter as the court thinks just : (/.) If the matter he remitted to the court of summary jurisdiction, such court shall thereupon rehear and decide the information or complaint in accordance with the opinion of the court of appeal. (V.) In Scotland any person may appeal from any order or conviction under this Act to the Court of Justiciary, or any circuit court thereof, under and in terms of the Act of tlie twentieth year of the reign of His Majesty King George the Second, chapter forty-three, or under any Act amending that Act, or applying or- incorporating its provi- sions or any of them with regal’d to appeals; or to the Court of Justiciary at Edinburgh, under and in terms of “ The Summary Prosecutions Appeals (Scotland) Act,. 1875” (J). 34. Regulation of proceedings in county courts.—Proceed- 'ngs under this Act directed to be taken by and before the (S) These provisions are new as regards friendly societies, and are founded on sects. 19, 20, and 21 of the Trade Unions Act, 1871 (34 & 35 Viet. c. 31). The Act 20 Geo. 2, c. 43, abolished, from 25th March, 1748, all heritable jurisdictions in Scotland, except the office of High Constable, provided for the adminis- tration of justice there by the King’s courts and judges, and rendered “ the union of the two kingdoms more complete. So much of the Act as relates to the power of appealing to the cir- cuit courts in civil cases is made perpetual by 31 Geo. 2, c. 42, s. 7. 114 38 & 39 Vict. Cap. 60, ss. 35—37. judges of county courts may be regulated in Scotland by any acts of sederunt of the Court of Session, and in Ire- land by any orders made by tlie Lord Chancellor, and until otherwise provided are regulated by such rules and orders, and acts of sederunt, made under the forty-third section of the eighteenth and nineteenth years of Her pre- sent Majesty, chapter sixty-tliree, as may be in force at the commencement of this Act. The registrars and high bailiffs of the county courts shall be remunerated for the duties to be performed by them under this Act in such manner as the Treasury, with the consent of the Lord Chancellor, shall from time to time order and direct (a). 35. Public auditors—The Treasury may from time to time appoint public auditors and valuers for the purposes of this Act, and may determine from time to time the rates of remuneration to be paid by societies for the ser- vices of such auditors and valuers ; but the employment of such auditors and valuer’s is not compulsory on any society (6). 36. Fees.—The Treasury may determine a scale of fees to be paid for matters to be transacted or for the inspection of documents under this Act; but no fee shall be payable on the registry of any friendly, benevolent, or cattle insur- ance society, or working men's club, or of any amendment of the rules of the same. All fees which may be received by any registrar under or by virtue of this Act shall be paid into the receipt of Her Majesty’s Exchequer (c). 37. Payment of salaries and expenses.—The Treasury shall, ■out of money to be provided by parliament, pay to the chief and assistant registrars such salaries or other remunera- («) See, for England, extract from Consolidated County Court Kules and Orders in the Appendix, note Or. (J) This section is new. (c) The freedom from fees for rules of friendly and other societies is adopted from 18 & 19 Viet. c. 63, s. 26. For the scale of fees, see Treasury regulation 58. 115 38 & 3.9 Vict. Cap. 60, ss. 38, 39. tions respectively, and such sums, of money for defray- ing the expenses of office rent, salaries of assistants, clerics, and servants, remuneration for actuaries, accountants, and inspectors, computation of tables, publication of docu- ments, diffusion of information, expenses of prosecutions, travelling expenses and other allowances of the chief or any assistant registrar, and other expenses which may be incurred for carrrying out the purposes of this Act, and may also pay to any public auditors or valuers to be ap- pointed under this Act such remuneration (if any) as the Treasury shall from time to time allow (d). 38. Regulations to be made for carrying out the Act.—The Treasury may from time to time make regulations [called the Treasury regulations, see Act of 1876, s. 2], respecting registry and procedure under this Act, and the seal and forms to be used for such registry, and the duties and func- tions of the registrar, and the inspection of documents kept by the registrar under this Act, and generally for carrying this Act into effect. All such regulations shall be laid before both Houses of Parliament within ten days after the approval thereof it parliament is then sitting, or if not then sitting, then within ten days from the then next assembling of parliament. Until otherwise provided, the forms contained in the fourth schedule to this Act shall be used (e). 39. Evidence of documents.—!Every instrument or docu- ment, copy or extract of an instrument or document, bear- ing the seal or stamp of the central office, shall be received ]n evidence without further proof; and every document Purporting to be signed by the chief or any assistant regis- trar, or any inspector, or public auditor or valuer under this Act, shall, in the absence of any evidence to the con- trary, be received in evidence without proof of the signa- (/)■______________________________________________ (d) This section is founded on 18 & 19 Vict. c. 63, s. 8, with amendments. (e) This section is new. Sec Treasury regulations 59 to 64 and form AV. (/) See 18 & 19 Vict. c. 63, s. 30. 116 38 & 39 Yict. Cap. 60, ss. 40, 41. 40. Application of Act to Isle of Man.—With respect to the Isle of Man the provisions of this Act shall be varied as follows :— (1.) The terms “Supreme Court of Judicature” and “ County Court ” respectively mean tire Court of Chancery of the said isle, in which court the proceedings under this Act may be regulated by the rules and orders to be made in that behalf by the court, and, irntil otherwise provided, shall be regulated according to the ordinary practice of such court: (2.) The terms “ the Companies Acts ” and the “Com- panies Act, 1862,” respectively mean the law for the time being in force in the said isle for the regulating and wind- ing up of companies : (3.) The term “ Summary Jurisdiction Acts” means the law for the time being in force in the said isle for regu- lating tlie exercise of summary jurisdiction by justices of the peace : (4.) All offences and penalties under this Act shall be prosecuted and recovered summarily before a high bailiff or two justices of the peace, at tlie suit or instance of a registrar or of a head constable : (5.) All penalties recovered under this Act shall be paid to the treasurer of the said isle, and be added to the general revenue of the said isle : , (6.) Any person may appeal from any order or conviction to be made in a case of summary jurisdiction under this Act in the manner prescribed by the law in force in the said isle as to appeals in cases of sumary jurisdiction (a). 41. Application of Act to Channel Islands.—With respect to the Channel Islands this Act shall be varied as follows:— (1.) As respects the Island of Jersey the following pro- visions shall have effect:— {a) Tliis section is new. 38 & 39 Vict. Cap. 60, s. 41. 117 (a.) Tlie term “ county court ” means tire court for the recovery of petty debts, in all cases in which the claim or demand shall not exceed the sum of ten pounds sterling, and in all other cases it means the inferior number of the royal court of the said island, composed of the bailiff and two jurats of the said court : (b.) The term “court of summary jurisdiction” has in civil cases the same meaning as the term county court : (c.) All misdemeanors under this Act shall be prosecuted, tried, and punished in the form and manner pre- scribed by the law and custom of the said island with respect to crimes and offences (crimes et dUits): 0d.) All other offences and all penalties under this Act shall be prosecuted and recovered summarily before the magistrate of the court for the repression of minor offences, in all cases of his competency, at the suit or instance of the bailiff of the parish in which the offence or other unlawful act shall have been committed, and in all other cases before the bailiff and two jurats of the royal court, at the suit or instance of Her Majesty’s Procurator General for the said island : (e.) All penalties recovered under this Act shall be paid to the officers who by the law and practice of the said island are entitled to receive fines levied by order of the said courts respectively, and shall by such officers be accounted for and paid to Her Majesty’s Receiver-General in the said island on behalf of the Crown : (/.) The powers conferred under this Act on two justices shall be exercised by the inferior number of the royal court of the said island : (?•) Clause thirty-three of this Act, and the term “ Sum- mary Jurisdiction Acts,” shall not apply to the said island, but all proceedings under this Act, in any of the courts of the said island, shall be 118 38 & 39 Vict. Cap. 60, s. 41. regulated according to the ordinary practice of such courts respectively, and all penalties shall, in default of payment, he enforced in the same manner as fines payable to the Crown in the said island : (h.) The rules prescribed by the law of the said island with respect to appeals in civil and criminal cases shall be followed as to appeals from [any orders, judgments, or convictions made in cases of sum- mary jurisdiction under this Act : (i. The terms “ the Companies Acts,” and the “ Com- panies .Act, 1862,” shall be taken to mean the law which from time to time may be in force in the said island for the formation, regulation, and winding up of companies. (2.) As respects the bailiwick of the island of Guernsey: (a.) The court of primary instance within the bailiwick shall have all such powers and authorities as are by this Act conferred either on justices of the peace or on judges of county courts in England r Provided that a sentence may be appealed from, if the case admits of an appeal, under the orders in council now in force within the bailiwick, but that the decision of the royal court, when sitting in a body as a court of appeal shall be final : (h.) When any sum of money becomes payable on the death of a member, such sum of money shall, in default of any direction or nomination such as is contemplated by this Act, be paid to the deceased member’s legal representative, according to the law of Guernsey: (c.) All friendly societies within the bailiwick shall be authorized to invest any part of their funds in the states bonds either of Guernsey or of Alderney : (rZ.) The term “the Companies Act” means the law for the time being in force in the said bailiwick for the regulation and winding up of companies : 38 & 39 Vict. Cap. 60, Sched. 1. 119- (e.) All offences and penalties under tliis Act shall he prosecuted and recovered summarily before the court of primary jurisdiction, at the suit or in- stance of the law officers of the Crown or of a constable of a parish : (/.) All penalties recovered under this Act shall be paid to the Receiver-General, to be by him carried to- the account of the Crown revenue («). SCHEDULES. SCHEDULE I. ACTS AND ENACTMENTS REPEALED. Date and Title of Act. Extent of Repeal. 52 Geo. 3, c. 38.—An Act to amend the laws re- lating to Local Militia in England. Section 41.. 52 Geo. 3, c. 68.—An Act for amending the Laws relating to Local Militia in Scotland. Section 39. 17 & 18 Vict. c. 105.—An Act to amend the Law relating to the Militia in England and Wales. Section 44. 17 & 18 Vict. c. 106.—An Act for amending the Laws relating to the Militia and raising a Volunteer Militia Force in Scotland. Section 69. 17 & 18 Vict. c. 107.—An Act for amending the Laws relating to the Militia and raising a Volunteer Militia Force in Ireland. Section 27. 18 & 19 Vict. c. 63.—An Act to consolidate and amend the Law relating to Friendly So- cieties. The whole. 21 & 22 Vict c. 101.—An Act to amend the Act of the 18tli and 19th years of her present Majesty, chapter 63, relating to Friendly Societies. The whole. 22 & 23 Vict. c. 40.—An Act for the establishment of a Deserve Volunteer Force of Seamen, and for the government of the same. Section 23. (as) This section is new. 5.20 38 & 39 Vict. Cai>. 60, Sch. 2. Date and Title of Act. Extent of Kepeal. '23 Vict. c. 13.'—An Act to prevent the members of Benefit Societies from forfeiting their interest therein by being enrolled in Yeo- manry or Volunteer Corps. The whole. '23 & 24 Vict. c. 58.—An Act to amend an Act of the 18th and 19th years of Her Majesty relating to Friendly Societies. The whole. 26 & 27 Vict. c. 65.—An Act to consolidate and amend the Acts relating to the Volunteer Force in Great Britain. Section 44. 29 Vict. c. 34.—An Act to give further facilities for the establishment of Societies for the Assurance of Cattle and other Animals. The whole. •36 & 37 Vict. c. 77.—An Act to provide for the establishment of a Royal Naval Artillery Volunteer Force. Section 33. SCHEDULE II. MATTERS TO BE PROVIDED FOR BY THE RULES OP SOCIETIES REGISTERED UNDER THIS ACT. 1. The name and place of_office of the society (a). 2. The whole of the objects for which the society is to he established, the purposes for which the funds thereof shall be applicable, the terms of admission of members, the conditions under which any member may become en- titled to any benefit assured thereby, and the fines and forfeitures to be imposed on any member (J). 3. The mode of lidding meetings and right of voting (c), and the manner of making, altering, or rescinding rules (b). (a) Sec 18 & 19 Vict. c. 63, s. 25. “ Place of office” is substi- tuted for “place of meeting for the business,” as in 30 & 31 Vict. c. 117. (&) Prom 18 & 19 Vict. c. 63, s. 25. (e) Prom 30 & 31 Vict. c. 117. 38 & 39 Vict. Cap. 60, Sch. 2. 121 4. Tlie appointment and removal of a committee of management (by whatever name), of a treasurer and other officers, and of trustees, and in the case of a society with branches, the composition of the central body, and the conditions under which a branch may secede from the society (d). 5. The investment of the funds, the keeping of the accounts, and the audit of the same once a year at least (e). 6. Annual returns to the registrar of the receipts, funds, effects and expenditure, and number of members of the society (f). 7. Tiie inspection of the hooks of the society by every person having an interest in the funds of the society (</). 8. The manner in which disputes between the society and any of its members, or any person claiming through a member or under the rules, shall be settled (7i). 9. In case of dividing societies, a provision for meeting all claims upon the society existing at the time of division before any such division takes place (i). And also in. the case of friendly and cattle insurance societies :— 1. The keeping separate accounts of all moneys received °r paid on account of every particular fund or benefit assured, for which a separate table of contributions payable shall have been adopted, and the keeping separate account of the expenses of management, and of all contributions on account thereof (7i). (d) Prom 18 & 19 Vict. c. 63, s. 25. The words "by what- ever name ” and the provisions as to a society with branches, are new. ' (e) Prom 18 & 19 Vict. c. 63, s. 25. The audff being once a year at least ” instead of “ annual or periodk al. (f) New as a rule. (//) Prom 25 & 26 Vict. c. 87, 34 & 35 Vict. c. 31. id) See note (b), ante, p. 120. (i) These provisions are new. G 122 38 & 39 Vict. Cap. 60, Sch. 3. 2. (Except as to cattle insurance societies) returns e very five years to tlie registrar of the sickness ancl mortality of the society (a). 3. (Except as to cattle insurance societies) a valuation once at least in every five years of the assets and liabilities of the society, including the estimated risks and contribu- tions (b). 4. The voluntary dissolution of the society by consent of not less than five-sixths in value of the members, and of every person for the time being entitled to any benefit from the funds of the society, unless his claim be first satisfied or adequately provided for (a) 5. The right of one-fifth of the total number of members, or of one hundred members in the case of a society of one thousand members and not exceeding [ten] thousand, or of five hundred members in the case of a society of more than ten thousand members, to apply to the chief registrar or in case of societies registered and doing business exclu- sively in Ireland or Scotland to the assistant registrar for Ireland or Scotland, for an investigation of the affairs of the society, or for'winding up the same (b). SCHEDULE III. Form op Bord. (1.)—In England or Ireland. Know all men by these presents, that we, A.B. of----, one of the officers of the ----- Society, established at -----, in the county of---------, and G.D. of------ (as surety on behalf of the said A.B.), are jointly and severally held and firmly bound to A.B. of-------, G.T). of-----, and E.F. of------, the trustees of the said society, in the (а) New as a rule. (б) These provisions are new. 38 & 39 Vict. Cap. 60, Sch. 3. 123 sum of--------to be paid to tlie said A.B., G.D., and E.F., as such trustees, or their successors, trustees for the time being, or their certain attorney, for which payment well and truly to be made we jointly and severally bind our- selves, and each of us by himself, our and each of our heirs, executors, and administrators, firmly by these presents. Sealed with our seals. Dated the-------day of-------in the year of our Lord------. Whereas the above-bounden A.B. has been duly ap- pointed to the office of----of the-------Society, estab- lished as aforesaid, and he, together with the above-bounden C.D., as his surety, have entered into the above-written bond, subject to the condition hereinafter contained : Now there- fore the condition of the above-written bond is such, that if ihe said A.B. do render a just and true account of all moneys received and paid by him on account of the said society, at such times as the rules thereof appoint, and do pay over all the moneys remaining in his hands, and assign and transfer or deliver all property (including books and papers) belonging to the said society in his hands or custody to such person or persons as the said society or the trustees or committee of management thereof shall appoint, accord- ing to the rules of the said society, together with the proper and legal receipts or vouchers for such payments, then the above-written bond shall be void, otherwise shall remain in full force. Sealed and delivered in the presence of ---------[twa witnesses]. (2.)—In Scotland. I, A.B. of-----, hereby bind and oblige myself, to the extent of £-------at most, as cantion and surety for C.D., a person employed by the---------Society, that he, the said G.D., shall on demand faithfully and truly account for all moneys received and paid to him for behoof of the said society, and also assign and transfer or deliver all property (including books and papers) belonging to the said society m his hands or custody, and that to such person or persons G 2 124 38 & 39 Vict. Cap. 60, Sch. 4. as the said society or the trustees thereof shall appoint, according to the rules of the said society. Dated at ------this---------day of----------. Signature of Cautioner. E. F. of witness. G. H. of witness. The above bond shall not require a testing clause or sub- scription clause, and may be wholly written or wholly printed, or partly written and partly printed. FORM OP RECEIPT TO BE ENDORSED ON MORTGAGE OR FURTHER CHARGE (a). The trustees of the -------- Society hereby acknowledge to have received all moneys intended to be secured by the within [or above] written deed. Signed [Signatures of Trustees.] Trustees. Countersigned [Signature of Secretary.'] Secretary. SCHEDULE IV. (b). ACKNOWLEDGMENT OF REGISTRY OF SOCIETY. The------Society is registered as a [friendly society, cattle insurance society, benevolent society, ivorking men’s club, or specially authorized society], under the Friendly Societies Act, 1875, this----day of------. [Seal or stamp of central office, or signature of Assistant Registrar for Scotland or Ireland.] (a) This form is similar to that in the schedule to the Building Societies Act, 1874. (1) The forms in this schedule are new. 39 & 40 Vict. Cap. 32, ss. 1—3. 125 ACKNOWLEDGMENT OP REGISTRY OP AMENDMENT OP RULES. The foregoing amendment of the rules of the ■ ■ - Society is registered under the Friendly Societies Act, 1875, this------day of-------. [Seal or stamp of central office, or signature of Assistant Registrar for Scotland or Ireland.] 39 & 40 YICT. Cap. 32. An Act to amend the Friendly Societies Act, 1875. [24th July, 1876.J Whereas it is expedient to amend on some points the Friendly Societies Act, 1875 : Be it enacted hy the Queen’s most excellent Majesty, hy and with the advice and consent of the Lords spiritual and temporal, and Commons, in this present parliament assembled, and hy the authority of the same, as follows :— 1. Construction of Act.—Short title.— This Act shall be construed as one with the Friendly Societies Act, 1875 (herein termed “ the principal Act”), and may be cited as “ The Friendly Societies Amendment Act, 1876,” or together with the principal Act as “ The Friendly Societies Acts.” 2. Meaning of “ Treasury regulations.”—In this Act the term “ Treasury regulations” means any regulations made and approved by the Treasury and for the time being in force under and by virtue of the principal Act. 3. Conversion of registered societies into branches.—With respect to the conversion of registered societies into branches the following provisions shall have effect:— (!•) A society registered before the first day of January, one thousand eight hundred and seventy-six may, 126 39 & 40 Vict. Cap. 32, s. 3. by a resolution passed by three-fourths of the members or delegates present and entitled to vote at any general meeting, of which notice specifying the intention to propose such resolution has been duly given according to the rules, determine to become a branch under the Friendly Societies Acts of any other- registered society, and also, if thought fit, of any registered branch thereof; and if the rules of such society do not comply with all the provisions of the principal Act and of the Treasury regulations in respect of the registry of branches, the meeting at which such resolution is passed may amend such rules so as "to bring the same in compliance with the principal Act and with the Treasury regulations. (2.) A copy of the rules of such first-mentioned society marked to show the amendments, if any, made at such meeting, and two copies of such resolu- tion as aforesaid, and of such amendment of rules, if any, each signed by the chairman of the meet- ing and by the secretary of the society so deter- mining to become a branch of any other society, and countersigned by the secretary of such other society, shall be sent to the registrar, and if the registrar finds that such rules, with or without such amendment as aforesaid, comply with the provisions of the Act and of the Treasury regula- tions, he shall cancel the registry of such first- mentioned society and register the same as a branch of such other society, and also, if so specified in the resolution before mentioned, of any branch of such other society, without further request or notice, and shall register such amend- ment of rules without further application or evidence, and until such registry such resolution as aforesaid shall not take effect. (3.) No advertisement of any cancelling or registry under this section shall be requisite. 39 & 40 Vict. Cap. 32, ss. 4—8. 127 <(4.) Tlie rules of a society which becomes a branch under this section shall, so for as the same are not con- trary to any express provision of the principal Act or of the Treasury regulations, and subject to any amendment thereof as hereinbefore provided, continue in force as the rules of such branch until amended. 4. Registered societies may contribute to fiends of other socie- ties.—Nothing in the principal Actor in this Act contained shall prevent any registered society or branch from con- tributing to tlie funds or taking part by delegates or other- wise in the government of any other registered society or registered branch of a society, as may be provided in the rules of such first-named society or branch, without becom- ing a branch under the Friendly Societies Acts of such other society or branch. 5. Forms of acknowledgment of registry for branches.—The acknowledgment of registry of a branch, and of any amend- ment of the rules of a branch, shall be in the forms pro- vided in the schedule to this Act. 6. Term££ society” when to include registered branch.—It is •declared that the word “ society ” 'extends to a registered branch in sub-sections (5) and (6) of section 13, sub-sections (2), (3), and (4) of section 14, sub-sections (1) to (7), both included, (9) and (10) of section 15, sub-sections (1), (6), '(7), (9), and (10), of section 16, sections 17,19, and 20, sub- sections (2) and (4) of section 21, sections 22, 26, 28, 30, 31, 32, and 33 of the principal Act. 7. As to deaths at sea.—Section 14, sub-section (2) of the principal Act shall not apply to deaths at sea. 8. Amendment in fees payable on certificates of births or deaths—Whenever application is made at one time to any registrar or other person having the care of any register of births or deaths for more certificates than one of the same birth or death for the purposes of and in the 128 39 & 40 Vict. Cap. 32, ss. 9—12. manner prescribed by section 15, sub-section 9, or section 28, sub-section 3 of the principal Act, the sum charged for every such certificate other than the first shall not exceed sixpence ; and whenever the registrar or other person having the care of the register is required by the person applying for any certificate of birth or death to fill up the form of application, he may demand a sum not exceeding threepence for so doing. 9. What shall be sufficient distribution of annual return.— It shall be a sufficient compliance with section 14, sub- section (1), sub-liead (It) of the principal Act, if the society supplies gratuitously every member or person interested with a balance sheet or other document duly audited, con- taining the same particulars as to the receipts and expen- diture, funds and effects of the society as are contained in the annual return. 10. Amendment of sub-sections (3) and (6) of section 15 of principal Act.—Section 15, sub-section (3) of the principal Act shall be read as if after the words “ not being an officer- or servant of the society” there were inserted the words “ unless such officer or servant is the husband, wife, father,, mother, child, brother, sister, nephew, or niece of the nominator,” and sub-section (6) of the said section shall be read as if instead of the words “ absent from England or- Ireland respectively,” there were substituted the words “ absent from Great Britain or Ireland respectively.” 11. Notice of proceedings or order to set aside dissolution.— Notice shall be sent to the central office of any proceeding, to set aside the dissolution of a society or branch, not less than seven days before it is commenced, by the person taking such proceeding, and of any order setting a dissolu- tion aside, by the society or branch, within seven days after- such order is made. 12. Correction of misprint in Schedule II.—In Schedule II. to the principal Act the provision marked 5 and beginning with the words “ the right of one fifth” shall be read as if, instead of the words “ five thousand,” there were inserted' therein the words “ ten thousand.” 42 Vict. Cap. 9, s. 1. 129 SCHEDULE. Acknowledgment op Registry op Branch. The-------is registered as a branch of the-Society [and of the----branch of the same] under the Friendly Societies Act, 1875, this-- day of---. [f&al of central office or signature of Assistant Registrar for Scotland or Ireland.] Acknowledgment op Registry op Amendment of Branch Rules. The foregoing amendment of the branch rules of the —-----is registered under the Friendly Societies Act, 1875, this--------day of---------. [Seal of central office or signature of Assistant Registrar for Scotland or Ireland.] 42 YICT. Cap. 9. An Act to declare the true meaning of section 30 of the Friendly Societies Act, 1875. [23rd May, 1879.] Be it declared and enacted by the Queen’s most excellent Majesty, by and with the advice and consent of the Lords spiritual and temporal, and Commons, in this present par- liament assembled, and by the authority of the same as follows :— 1. Interpretation of section 30 of 38 & 39 Vict. c. 60.___ Section 30 of the Friendly Societies Act, 1875, applies only to such friendly societies, whether registered or unregis- tered, and industrial assurance companies as receive con- G 3 130 42 Vict. Cap. 12, s. 1. tributions by means of collectors at a greater distance than 10 miles from the registered office or principal place of business of the society or company. 2. Act to be construed with 38 <£• 39 Vict. c. 60, and 39 <£• 40 Vict. c. 32.—This Act shall be construed as one with the Friendly Societies Act, 1875, and the Friendly Societies Amendment Act, 1876, and may be cited together with the same as “ the Friendly Societies Acts.” 42 VICT. Cap. 12. An Act to amend the Divided Parishes and Poor Law Amend- ment Act, 1876. [23rd May, 1879.] Be it enacted by the Queen’s most excellent Majesty, by and with the advice and consent of the Lords spiritual and temporal, and Commons, in this present parliament assem- bled, and by the authority of the same, as follows :— 1. The provisions of section 23 of 39 Sf 40 Vict. c. 61, not to apply to moneys to which a pauper or pauper lunatic may be entitled as a member of friendly or benefit society.—The provisions contained in the 23rd section of the Divided Parishes and Poor Law Amendment Act, 1876, shall not apply to any moneys which a pauper or pauper lunatic having a wife or other relative dependent upon him for maintenance may be entitled to receive as a member of any friendly or benefit society, but such moneys shall, subject to any deductions for keeping up his membership required by the rules of such society, or any branch thereof, from which suchpauperor pauper lunatic is entitled to receivesuch moneys, be paid or applied by the trustees, committee, or other officers of such society or branch to or for the maintenance of such wife or relative ; and where a pauper or pauper lunatic having no wife or relative so dependent upon him is entitled to any such moneys, no claim shall be made under .the said Act by the guardians of any union or parish upon 16 & 17 Vict. Cap. 34, s. 49. 131 any such society of which he is a member, or against any branch thereof, for the expenses incurred in his relief, unless -and until the guardians or their relieving officer shall have declared the relief to be given on loan, and shall have, within 30 days thereof, notified the same in writing to the secretary or trustees of the society or branch of which the pauper or pauper lunatic is a member, and as such entitled to receive any payment. 2. Short title.—This Act may be cited as the Poor Law Amendment Act, 1879. 16 & 17 VICT. Cap. 34. An Act for granting to Her Majesty Duties on Profits arising from Property, Professions, Trades, and Offices. [28th June, 1853.] 49. Eriendly societies legally established, entitled to exemp- tion under loth Schedule (0.) and Schedule (D.)—Any friendly society legally established under any Act of par- liament relating to friendly societies, and which does not •assure or grant to any individual any sum or annuity to an amount which would debar such society from the benefit of the exemption granted to friendly societies by the said Act of the fifth and sixth years of Her Majesty, chapter thirty-five, in respect of their stocks, dividends, and in- terest chargeable under schedule (C.) of the said Act shall be entitled to exemption under this Act, as well in respect of all their interest and other profits and gains chargeable under schedule (D.), as in respect of their stocks, dividends, and interest chargeable under Schedule (C.) of this Act (a). N.B.—The 88th section of 5 & 6 Vict. c. 35, is as fol- lows : “ Exemption.—The stock, dividends, or interest of (a) This section has been continued by the different Acts, relating to the property tax. 132 18 & 19 Vict. Cap. 35. any friendly society legally established under any Act of parliament relating to friendly societies : provided it shall appear by the rules of any such society deposited at or to be deposited with the Commissioners for the Reduction of the National Debt, or with the trustees of any savings bank, that the sums assured by any such society to any individual, or to any person nominated by or to claim under him, shall not exceed the sum of two hundred pounds, or the amount of any annuity or annuites granted or to be granted by any such society to any individual, or to any person nominated by or to claim under him, shall not exceed the sum of thirty pounds per annum : provided also, that when any property belonging to any such society shall be invested in the public securities in the Bank of England, the said last-mentioned property shall be duly claimed and proved by any trustee or treasurer of any such society, or by any member thereof, before the said commissioners for special purposes.” 18 & 19 YICT. Cap. 35. An Act to continue the Act for extending for a limited time the provision for abatement of Income Tax in respect of Insurances on Lives. [26tli June, 1855.] Whereas by an Act passed in the session of parliament holden in the sixteenth and seventeenth years of the reign of Her present Majesty, intituled “ An Act to extend for a limited time the Provision for Abatement of Income Tax in respect of Insurance on Lives,” which Act was limited to continue in force until the fifth day of July, one thousand eight hundred and fifty-four : and whereas by an A ct passed in the last session of parliament the said first- mentioned Act was continued until the fifth day of July, one thousand eight hundred and fifty-five : And whereas it is expedient to extend the benefit of the recited provisions to persons insuring or contracting with such friendly societies m 16 & 17 Vict. Cap. 34, s. 54. as hereinafter mentioned, and to continue the said first- recited Act for such period as hereinafter mentioned : Be- it therefore, &c. 1. Persons having made insurance until friendly societies to be entitled to benefits of recited Acts.—Any person or persons who shall have made any such insurance or contracted for any such deferred annuity as in the said recited Acts men- tioned in or with any friendly society legally established- under any Act of parliament relating to friendly societies, shall he entitled to all the benefits and advantages conferred by the said recited Acts ; provided that the premiums pay- able in respect of such insurances shall not he made for shorter periods than three months (a). N.B.—The provision of 16 & 17 Yict. c. 34, for abate- ment of income tax in respect of life insurance, is as follows :— 54. Persons who have made insurance or contracted for a deferred annuity on the lives of themselves or wives to be allowed an abatement of duty in respect of the annual pre- miums made.—Any person who shall have made insurance on his life or on the life of his wife, or shall have con- tracted for any deferred annuity on his own life or on the life of his wife, in or with any insurance company which shall become registered under any Act to he passed in the- present session of parliament for that pirrpose and which shall comply with the requirements of such Act, and any person who shall under any Act of parliament be liable to the payment of an annual sum, or to have an annual sum deducted from his salary or stipend in order to secure a de- ferred annuity to his widow or a provision to his children after his death, shall be entitled to deduct the amount of the annual premium paid by him for such insurance or contract, or the annual sum paid by him or deducted from his salary or stipend as aforesaid, from any profits or gains in respect of which he shall be liable to be assessed under («) This Act has been annually extended by the Inland Revenue Acts, the last of which is 43 Vict. c. 14. 134 21 & 22 Vict. Cap. 90, s. 36. either of the Schedules (D.) or(E.) of this Act, or to have any assessment which may be made upon him under either of the said schedules reduced or abated by the deduction of the amount of the said annual premium from the amount of the profits or gains on which such assessment has been made; or if such person shall be assessed to duties under any of the schedules contained in this Act, and shall have paid such assessment, or shall have paid or been charged with any of the said duties by deduction or otherwise, such person, on claim made to the commis- sioners for special purposes, and on production to them of the receipt of such annual payment, and on proof of the facts to the satisfaction of the said commissioners, shall be entitled to have repaid to him such proportion of the said duties paid by such person as the amount of the said annual premium bears to the whole amount of his profits and .gains on which lie shall be chargeable under all or any of the schedules of this Act: Provided always, that no such abatement, allowance, or repayment as aforesaid, shall be made in respect of any such annual premium beyond one- sixth part of the whole amount of the profits and gains of such person so chargeable as aforesaid, nor shall any such deduction or abatement entitle any such person to claim total exemption or any relief from duty on the ground of his profits and gains being thereby reduced below one hun- dred or one hundred and fifty pounds, as the case may be. 21 & 22 VICT. Cap. 90. An Act to regulate the Qualifications of Practitioners in Medicine and Surgery. [2nd August, 1858.] 36. Unregistered persons not to hold certain appoint- ments.—After the first day of January, one thousand eight hundred and fifty-nine, no person shall hold any apppoint- rnent as a physician, surgeon, or other medical officer, either in the military or naval service, or in emigrant or 135 33 & 34 Vict. Cap. 93, s. 5. other vessels, or in any hospital, infirmarj^, dispensary, or lying-in hospital, not supported wholly by voluntary con- tributions, or in any lunatic asylum, gaol, penitentiary, house of correction, house of industry, parochial or union workhouse, or poor-house, parish-union, or other public establishment, body, or institution, or to any friendly or other society for affording mutual relief in sickness, in- firmity, or old age, or as a medical officer of health, unless he be registered under this Act : Provided always, that nothing in this Act contained shall extend to repeal or alter any of the provisions of the Passengers Act, 1855. 33 & 34 YICT. Cap. 93. An Act to amend the Laiv relating to the Property of Married Women. [9th August, 1870.] 5. As to a married woman’s property in a society.—Any married woman, or any woman about to be married, may apply in writing to the committee of management of any industrial and provident society, or to the trustees of any friendly society, benefit building society, or loan society, duly registered, certified, or enrolled under the Acts relating to such societies respective^, that any share, benefit, deben- ture, right, or claim whatsoever in, to, or upon the funds of such society, to the holding of which share, benefit, or debenture no liability is attached, and to which the woman so applying is entitled, may be entered in the books of the society in the name or intended name of the woman as a married woman entitled to her separate use, and it shall be the duty of such committee or trustees to cause the same to be so entered, and thereupon such share, benefit, debenture, right, or claim shall be deemed to be the separate property of such woman, and shall be transferable and payable with all dividends and profits thereon as if she were an unmarried woman ; provided that if any such share, benefit, deben- ture, right, or claim has been obtained by a married woman by means of moneys of her husband without his consent, 136 33 & 34 Vict. Cap. 93, s. 5. the court may, upon an application under section nine (a)> of this Act, order the same and the dividends and profits thereon, or any part thereof, to he transferred and paid to the husband. (a) Section 9 provides as follows:—In any case between husband and wife as to property, declared by tins Act to be the separate property of the wife, either party may apply by sum- mons or motion in a summary way, either to the Court of Chancery in England or Ireland, according as such party is in England or Ireland, or in England, irrespective, of the value of the property, to the judge of the county court of the district in which either party resides ; and thereupon the judge may make such order, direct such enquiry, and award such costs as he shall think fit, provided that any order made by such judge shall be subject to appeal in the same manner as the order of the same judge made in a pending suit, or on an equitable plaint would have been ,• and the judge may, if either party so require, hear the- application in liis private room. PART II. FRIENDLY SOCIETIES NOT REGISTERED. [Russell Gurney’s Act, 31 & 32 Vict. Cap. 116.] The Friendly Societies Acts given at length in Pt. I., with the exception of sect. 7 of the Act of 1875, which has expired,, sect. 26, as to members in the militia, sect. 28, as to pay- ments on the deaths of children, and sect 30, affect only such societies as obtain the privileges of the Acts by registration under their provisions. It may be worth while to consider the legal position of the members of those associations which do not comply with these statutory requirements. Such societies, having lawful objects in view, not being the acqui- sition of gain by the society or its members, and not being the issue of policies of assurances on human life or the grant- ing of annuities, do not become unlawful merely because they fail to acquire a statutory status. The committee of the House of Commons on friendly societies, in the year 1825 (J), reported, that “ it is only in consideration of ad- vantages conferred by law that any restrictive interference can be justified with voluntary associations established for lawful and innocent purposes. It is for the individuals themselves to determine whether to adopt the provisions °f the statute, which offers them at the same time regula- tion and privilege, or to remain perfectly unfettered by anything but their own will, and the common or more ancient law against fraud or embezzlement. For your committee apprehend, that although the Act of 1793 appears to begin by rendering lawful the institution of friendly societies, there neither was at that time, nor is now, any law or statute which deprives the King’s subjects of the right of associating themselves for mutual support.” (5) Report, p. 5. Parly. Paper, H. C. 522,1825. 138 FRIENDLY SOCIETIES NOT REGISTERED. An example of the application of these remarks is afforded hy trade unions, respecting which some misappre- hension has prevailed both with regard to the legal status of those existing prior to, and of those not registered under, the Act of 1871. By 18 & 19 Yict. c. 63, s. 44, any society for the purposes authorized hy that Act as those of a friendly society, or for any purpose (ejusdem generis under- stood) not illegal, might, by mere deposit of its rules, have obtained the power of settling disputes in the manner its rules provided, and that of proceeding against defaulters hy a summary method. The cases of Hornby v. Close, 8 B. & S. 175, and Farrar v. Close, L. B. 4 Q. B. 602, established the doctrine that trades unions, not having objects analogous to those of a friendly society, were not entitled to the benefit of this section. These cases did not imply, however, that the objects of trades unions were unlawful, in the sense of being criminal, or to such an extent as to deprive the members of any right they possessed at common law, or by prior statute, to combine together. (See remarks of Blackburn, J., in B. v. Stephenson, L. B. 7 Q. B. 741.) A trade union, so long as it did not infringe the “ Combination Acts,” was as lawful as any other voluntary society (a). Though an unregistered society is not necessarily un- lawful, it has none of the facilities and privileges secured by registration, and is in law a mere partnership or club (b). (a) The Trade Union Act Amendment Act, 1876 (39 & 40 Viet. e. 22, s. 16), amends the definition of a trade union given in the Act of 1871, so as to include such regulation of trade as would have been lawful before the passing of the Act. A trade ■union is now defined to be a “ combination, whether temporary or permanent, for regulating the relations between workmen and masters, or between workmen and workmen, or between masters and masters, or for imposing restrictive conditions on the conduct of any trade or business, whether such combination would or would not, if the principal Act” (£. e., the Act of 1871) “ had not been passed, have been deemed to be an unlawful ■combination by reason of some one or more of its purposes being in restraint of trade.” (b) There is a distinction between a club and a partnership, and a friendly society partakes of the characters of both. In a FRIENDLY SOCIETIES NOT REGISTERED. 139 Where a bill had been filed against the trustees of an unregistered society to compel them to restore a portion of its funds, which had been divided among the members in pursuance of a vote of the majority, Lord Eldon said, “ The society can be considered in this court only as a partnership, and neither has nor can have a corporate character. The plaintiffs, suing on behalf of themselves and all the other members, have no right to come upon the defendants (the trustees) without bringing in the other forty-seven members (who had shared in the division) Beaumont v. Meredith, 3 Y. & B. 180. So, at common law, such a society had no corporate existence; but in a case where the treasurer of a society sued upon a bond, given to him as such, which was a good bond at common law to him as an individual, it ivas held that he was entitled to recover : Jones v. IVoollam 5 B. & Aid. 769. So again, in criminal proceedings, until recently a member of such a society could not be prosecuted for embezzling its funds, being himself a partner; but this is partnership one member can bind the rest; in a club or voluntary society, not for trading purposes, which by its rules does not contemplate the incurring debt, the committee cannot pledge the credit of the other members : Flemyng v. Hector, 2 M. & W. W2; Todd v. Truly, 7 M. & W. 427; lie St. James’s Club, 16 •lur. 1075. It is presumed that, in general, this rule would apply a friendly society. (See, however, Cockerell v. Aucompte, 2 B. (n.s.) 440.) In a registered friendly society, as it is i oElesaly provided by section 8 of the Friendly Societies Act, 1875, that the contributions of members are voluntary, no lia- oihty can attach to the members. The case of a mutual life Assurance society has been recently considered by the courts; 111 Be the Albion Life Assurance Society the members insured Yefe. m accordance with the established practice under former Acts (see 7 & 8 Viet. c. 110; Stevens v. Security Mutual Assur- ance, 28 L. T. 250), placed on the list of contributories by Fry, • (L. R., 12 Ch. Div. 239); but in a more recent case in the Court ot Appeal (Re the• Great Britain Mutual Life Assurance Society), Was remarked by James, L. J.: “ In my judgment an associa- tion of this kind is incapable of contracting any debt or liability 9k \^eVer‘ It is a mere benefit society” (Law Rep. 16 Ch. Div. 140 FRIENDLY SOCIETIES NOT REGISTERED. altered by 31 & 32 Viet. c. 116 (commonly called “Russell Gurney’s Act”), which provides as follows :—■ 31 & 32 VICT. Cap. 116. An Act to amend the Law relating to Larceny and Embezzle- ment. [31st July, 1868.] “ Whereas it is is expedient to provide for the better se- curity of the property of copartnerships and other joint beneficial owners against offences by part owners thereof, and further to amend the law relating to embezzlement: Be it enacted by the Queen’s most excellent Majesty, by and with the advice and consent of the Lords spiritual and temporal, and Commons, in this present parliament assembled, and by the authority of the same, as follows :— “ 1. Member of copartnership guilty of converting to his own use, &c., property of copartnership, liable to be tried as if not such member.—If any person, being a member of any co- partnership, or being one of two or more beneficial owners of any money, goods, or effects, bills, notes, securities, or other property, shall steal or embezzle any such money, goods, or effects, bills, notes, securities, or other property of or belonging to any such copartnership, or to such joint beneficial oivners, every such person shall be liable to be dealt with, tried, convicted, and punished for the same as if such person had not been or was not a member of such copartnership, or one of such beneficial owners.” Section 2 extended the provisions of 18 & 19 Viet. c. 126, <! An Act for diminishing Expense and delay in the Admi- nistration of Criminal Justice in certain Cases,” to embezzle- ment by clerks or servants; but the section is repealed, and other provision made (so far as regards England) by the Summary Jurisdiction Act, 1879. The Act does not extend to Scotland. Her Majesty’s Friendly Societies Commissioners, in their fourth Report, pp. clxxvii-viii, in a notice of the remarks on this head in the eighth edition of the present work, pointed out the classes of friendly societies which, by the operation of the statute law, are made absolutely unlawful in default of registration. These are (1st) those having for object the acquisition of gain by the society or its members; (2nd) FRIENDLY SOCIETIES NOT REGISTERED. 141 those issuing or liable under policies of assurance upon human life, or granting annuities upon human life. (1st.) By sect. 4 of the Companies Act, 1862, it is provided that “ no company, association, or partnership, consisting of more than twenty persons, shall be formed after the com- mencement of this Act for the purpose of carrying on any business (a) that has for its object the acquisition of gain by the company, association, or partnership, unless it is registered as a company under this Act, or is formed in pursuance of some other Act of parliament, or of letters patent, or is a company engaged in working mines within and subject to the jurisdiction of the Stannaries.” On this the commissioners remark that “it would seem at least doubtful whether an unregistered society of more than twenty members, which places out at interest the contribu- tions of its members, and divides its funds among them at stated periods, is not, since the Companies Act, 1862, an illegal company.” This point is of great importance, and, while the doubt which it raises exists, all societies having a rule or practice of dividing funds should accept the benefits of registration under the Friendly Societies Act of 1875. If it should prove correct that all societies for mutual assurance (or even only those which have a practice of dividing), that exceed twenty in number and are not registered, are illegal, it becomes important to consider what is the effect of such illegality. The question arises, whether all persons concerned might not be found guilty of misdemeanor at common law, for violation of the re- quirements of the statute, since, in the words of Lord Campbell, “ to violate an Act of parliament, although there is no specific penalty attached to the violation, is a misde- meanor, and a person who does so is liable to be indicted mid punished It is not the practice, however, of (a) The word “business” lias a more extensive signification than “trade.” Per Willes, J., in Karris v. Amory, where fanning was held to be a business within the meaning of the Companies Act, L. It. 1 C. P. 148. (b) Longworth’s case, 1 De Gex, F. & J. 31. Further as to illegality in contracts of partnership, see Scratchley and Bra- brook on Building Societies, pp. 99-101. 142 FRIENDLY SOCIETIES NOT REGISTERED. modern legislation to rely on the procedure for a common law misdemeanor alone. Usually, provision is made for meeting disobedience to the injunctions of a statute by an appropriate penalty ; but no such provision is contained in the Companies Acts with regard to the prohibition of un- registered companies. A question of more practical weight p>robably than the one of criminal liability is that of the means which persons, joining an unregistered society, have of enforcing their claims against the officers or persons whom they trust. No court would give effect to the rules of a society which by its constitution was illegal, or would recognize the asso- ciation in any way as an aggregate body, and it might be doubted whether even Russell Gurney’s Act, beneficial as its operation is, would avail to protect the members of such an association, if its illegality were proved. A further consequence of illegality in a contract of partnership is that the members have no remedy against each other, for contribution or apportionment in respect of the partnership dealings and transactions. (2nd.) By the Life Assurance Companies Act, 1870 (33 & 34 Viet. c. 61), it is declared that “the term ‘ Company’ means any person or persons, corporate or incorporate, not being registered under the Acts relating to Friendly Societies, who issue or are liable under policies of assurance upon human life within the United Kingdom, or who grant annuities upon human life within the United Kingdom.” Every such company which does not comply with the prolusions of that statute is made liable to heavy penalties. The commissioners remark that the word policy has no technical meaning. In an Irish case, Sugden, C. (a), is reported to have said that a policy is nothing but an engagement by the directors that the funds of the company are liable to pay a certain sum of money upon a given event. It is certainly not to be supposed that a society which contracts for a payment of a sum at death can relieve itself of the responsibility of complying with the provisions (a) Since Lord St. Leonards ; Phillips v. Fastwooil, Lloyd & Gould, 291. FRIENDLY SOCIETIES NOT REGISTERED. 143 of tlie statute merely by not calling the contract a “policy.” Hence the commissioners infer that every form of assurance practised hy a friendly society is inclosed within the defini- tion above given, and remark that it may be contended that every unregistered friendly society granting death benefits is within the provisions of the Life Assurance Companies Act, 1870, and liable to its penalties. The practical importance of this subject is shown by the statement of the commissioners that unregistered societies are in England probably nearly co-extensive with, in Scot- land far surpass, the registered bodies. If the law be as we have stated it, such societies and their funds are in a certain degree of peril. It is to be hoped that the bene- ficial extensions of the advantages of registration offered by the provisions of the Friendly Societies Act, 1875, will induce all such societies to become registered. The general principle upon which legislation with regard to Friendly Societies has proceeded is that registration should not be compulsory, but that the provisions of the law should be so wisely liberal that no society would, willingly remain without the advantages of registration. There is nothing m the Friendly Societies Acts which need cause an honest society rather to abstain from registration than to be sub- jected to it. They will not fully realise the intention of the legislature until unregistered societies have ceased to exist as such, and voluntary registry -has become universal.. PART III. INDUSTRIAL AND PROVIDENT SOCIETIES. [39 & 40 VICT. Cap. 45.] ARRANGEMENT OF CLAUSES. ■CI-AUSE PAGE 1. 2. 3. 4. 5. 6. 7. Short title of Act .... * - 148 Extent of Act .... - - 148 Definitions ..... Repeal of Acts in first schedule - - 150 Existing societies .... - . 151 Societies which may be registered - - - 151 Registry of societies ... • - 151 To consist of seven persons at least - . 151 The application for registry - - 151 Identity or deceptive similarity of name not to be allowed.............................. 152 As to societies registered under former Acts- - 152 “ Limited ” to be last word of name ... 152 ■8. S. Registry of societies doing business in more than one country.................................. The acknowledgment of registry - Appeals from refusal to register - If refusal overruled, acknowledgment to he giveu- EfEect of acknowledgment of registry - Cancelling and suspeusion of registry Cancelling....................................... Suspension...................................... Notice of cancelling or suspension Appeal from cancelling or suspension - Effect of cancelling or suspension Rules and amendments ...... Provisions to he contained in rules 152 152 153 153 153 153 153 154 154 154 154 155 155 30 & 40 Vict. Cap. 45. 145 ♦CLAUSE PAGE Amendments to be registered .... 155 Provision applicable to amendments - - - 153 Acknowledgment of registry of amendments • 155 Copies of rules to be delivered on demand - - 155 Delivery of. untrue rules ..... 156 IQ. Duties and obligations of societies .... 156 Registered .office» - - - - - - 156 Publication of name ...... 156 Audit ........ 156 Annual returns ------- 157 Inspection of books ... - 157 Supplying copies of annual returns - - - 158 Provisions as to banking...................158 Offences - - -......................159 Offences by societies to be also offences by officers, &e. 159 Returns to be in. prescribed.form- - - - 159 Recording of documents.............160 11. Privileges of societies.......................160 Incorporation of society with limited liability - 160 Rules to bind the members.....................160 Moneys due from members to be a debt recover- able from them - 161 Exemption from income tax .... 161 Power of nomination for sums not exceeding fifty pounds - 161 Distribution of sums not exceeding fifty pounds - 162 Payments to persons apparently entitled valid - 162 When trustees are absent, &c., registrar may order stock to be transferred.....................162 Membership of minors..........................163 Promissory notes and bills of exchange- - - J.63 Register of members or shares .... 163 Contracts how made............................164 12. Property and funds of societies .... 165 Holding of land - - - - - - -165 Advances to members ------ 165 As to copyholds - - - - - - -166 Investments ....... 166 Other corporate bodies ..... X66 Forms - - -......................166 Application of profits........................167 H 146 39 & 40 Yict. Cap. 45. CLAUSE PACE 13. 14, 15. 16. 17. Discharge of mortgages by receipt endorsed- - 167 Registration of receipt ..... 1G7 Punishment of fraud or misappropriation - - 168 Officers in receipt or charge of money ... 168 Security to he given...............................168 Accounts of officers ...... 169 Disputes- ........ 169 To he decided by rules of society- - - - 169 May he referred to chief registrar - - - 169 Chief registrar may administer oaths, &c, - - 170 Reference to justices 170 Application to county courts, &c. - ... 170 Case for opinion of Supreme Court ... 170 Special powers of registrar to be exercised on appli- cation from members ..... 171 Inspectors ........ 171 Special meetings- ...... 171 Application to he supported by evidence - - 172 Security for costs - - - - . - 172 Expenses ..........................................172 Special resolutions, and proceedings which may be taken thereon....................................172 Special resolutions ...... 172 Change of name ...... 173 Amalgamation of societies ----- 173 Conversion of societies into companies, &c. - - 173 Rights of creditors ...... 173 Registration of special resolutions ... 174- Registration of copy of special resolution as memo- randum of association ..... 174, Registry of society under Act to become void on registration as a company, &c. ... 174 Dissolution of societies ...... 174 How societies may he dissolved .... 175 Liability of the members...........................175 Contents of instrument of dissolution - - - 176 Alterations - - - - - - -176 Statutory declaration..............................176 Registry of instrument of dissolution ... 176 Notice of dissolution 177 Notice of proceedings to set aside a dissolution - 177 39 & 40 Vict. Cap. 45. 147 CLAUSE PAGE 18. Penalties - - 177 Penalty for falsification - - 177 Not using the name of the society - - 178 Penalties for ordinary offences - - - 178 Recovery of penalties - - - 178 19. Summary procedure and appeals - - 178 Prosecutions for offences, &c. - - 178 Summary orders- - - - 179 Summary jurisdiction in England and Ireland - 179 Summary jurisdiction in Scotland - - 179 Description of offences - - 180 Appeals in England or Ireland - - - 180 Appeals in Scotland - - - 181 20. Regulation of proceedings in county courts - 181 21. Public auditors - - - 182 22. Pees - 182 23. Regulations to be made for carrying out tlie Act - 182 24. Evidence of documents - - - 182 25. Duties of the registrars ... - - 183 26. Application of Act to Channel Islands - - 183 Schedules. Schedule I.—Acts and enactments repealed - - 186 Schedule II.—Matters to he provided for by the rules of societies registered under this Act - 186 Schedule III.—Form of statement to be made out by a society carrying on the business of hank- ing ; form of bond; and form of receipt to he endorsed on mortgage or further charge - - 188 Schedule IV.—Acknowledgment of registry of society. Acknowledgment of registry of amend- ment of rules............................190 It 2 148 39 & 40 Vict. Cap. 45, ss. 1—3. 39 & 40 VICT. Cap. 45. An Act to consolidate and amend the Laws relating to Industrial and Provident Societies. [11 til August, 1876.] Whereas it is expedient to consolidate and amend the law relating to industrial and provident societies, and to assimilate the same in certain respects to the law relating to friendly societies (a) : Be it enacted by the Queen’s most Excellent Majesty, by and with, the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows : 1. Short title of Act.—This Act may be cited as The Industrial and Provident Societies Act, 1876. 2. Extent of Act.—This Act shall extend to Great Britain, and Ireland, and the Channel Islands. 3. Definitions.—In this Act, if not inconsistent with the context, the following terms shall have the meanings here- inafter respectively assigned to them : “ The Treasury ” shall mean the Lords Commissioners of Her Majesty’s Treasury : (a) Co-operative societies were at first registered as friendly societies under the frugal investment clause of the Act of 1846 (see Introduction, ante). In 1852 the "first Industrial and Pro- vident Societies Act was passed. The societies registered under it however, were still made subject to several provisions of the Friendly Societies Acts. The Act of 1852 (15 & 16 Vict. c. 31) was amended in 1854 by 17 & 18 Vict. c. 25, and in 1856 by 19 & 20 Vict. c. 40. These Acts were consolidated and amended in 1862 by 25 & 26 Vict. c. 87, and further amended in 1867 by 30 & 31 Vict. c. 117, both which Acts have for short title “The Industrial and Provident Societies Act, 1867.” They created the societies corporate bodies, and showed a grow- ing tendency to assimilate the legislation regarding them rather 149 39 & 40 Vict. Cap. 45, s. 3. “ England ” shall include the Channel Islands (except as hereinafter provided) : “ The registrar ” shall mean for England the centra office established by the Friendly Societies Act, 1875, and for Scotland or Ireland the assistant registrar of friendly societies for either country respectively; “ the central office ” shall mean the central office so established; and “chief registrar” and “assistant registrar ” shall mean chief registrar and assistant registrar of friendly societies respectively : “ Country ” shall mean England, Scotland, or Ireland, as the case may be : The several ridings of the county of York, and the several Channel Islands, respectively, shall be deemed to be counties : “Land” shall include hereditaments, and in Scotland heritable subjects, of whatever description, and chattels real: “ Property ” shall mean all real and personal estate (in- cluding books and papers) : “ Registered society ” shall mean a society registered or deemed to be registered under this Act: “ Amendment of rule ” shall include a new rule, and a resolution rescinding a rule : ' “ Rules ” shall mean rules for the time being : “ The committee ” shall mean the committee of manage- ment or other directing body of a society : Persons claiming through a member” shall include the beirs, executors, administrators, and assigns of a member, and also his nominees where nomination is allowed : to the provisions of the Companies Acts than to those of the miendly Societies Acts. They were again amended in 1871 hy 31 & 35 Vict. c. 80. The present Act (by which all these are repealed) indicates in some degree a reversion to the original 1 luridly society type, though the important character of incor- poration is retained. 150 39 & 40 Vict. Cap. 45, s. 4. “Officer” shall extend to any trustee (a), treasurer, secretary, member of the committee, manager, or servant, other than a servant appointed by the com- mittee, of a society : “ Meeting ” shall include (where the rules of a society so allow) a meeting of delegates appointed by members : For Scotland “court of summary jurisdiction” shall mean the sheriff court of the county : “ County court ” shall mean for Scotland the sheriff court of the county, and for Ireland the Civil Bill Court; for Scotland, “ administration ” means confir- mation, and “misdemeanor” a crime and offence : “Summary Jurisdiction Acts” shall mean — As to England, the Act 11 & 12 Yict. c. 43, and any Acts amending the same (b) : As to Scotland, the Summary Procedure Act, 1864, and any Acts amending the same : As to Ireland, within the police district of Dublin metropolis, the Acts regulating the powers and duties of justices of the peace for such district, and of the police of such district; elsewhere in Ireland, the “ Petty Sessions (Ireland) Act, 1851,” and any Act amending the same : “ Gazette ” shall mean the London Gazette for England, the Edinburgh Gazette for Scotland, and the Dublin Gazette for Ireland. 4. Repeal of Acts in first schedule.—The Acts set forth in the first schedule hereto shall be repealed from the com- mencement of this Act; but this repeal, or anything herein contained, shall not affect the past operation of the said Acts, or the force or operation, validity or invalidity, of anything done or suffered, or any bond or security given, right, title, obligation, or liability accrued, contract entered into, or proceedings taken, under any of the said Acts, or (a) This word is an unnecessary importation from the Friendly Societies Act, 1875. (b) The Summary Jurisdiction Aet, 1879 (42 & 43 Yict. c. 49), has since been passed. 39 & 40 Vict. Cap. 45, ss. 5—7. 151 under the rules of any society registered or certified (c) thereunder, before the commencement of this Act. 5. Existing societies.—Every incorporated society now subsisting whose rules have been registered or certified under any Act relating to industrial and provident societies, shall be deemed to be a society registered under this Act, and its rules shall, so far as the same are not contrary to ■any express provision of this Act, continue in force until altered or rescinded (d). 6. Societies which may be registered.—The societies which may be registered under this Act are societies (herein called industrial and provident societies) for carrying on ■any labour, trade, or handicraft, whether wholesale or retail, including the buying and selling of land, (e) but as to the business of banking subject to the provisions herein- after contained, of which societies no member other than a society registered under this Act shall have or claim an interest in the funds exceeding two hundred pounds •sterling. 7. Registry of societies.—With respect to the registry ot societies, the following provisions shall have effect: (1.) To consist of seven persons at least.—No society can he registered under this Act which does not consist of •-seven persons at least. (2.) The application for registry.—For the purpose of registry an application to register the society, signed (®) The words “ or certified ” appear to be out of place in this section. They are required in s. 5, which includes societies existing before the Act of 1862 and never registered under it. (d) This section cures the defect in the Industrial and Pro- vident Societies Act, 1862, s. 1, by which a society established under the Acts thereby repealed lapsed into a mere partnership until it obtained a fresh certificate of registration. See Toutill V. Douglas, 31 L. J. (Q. B.) 66, and Note K, Appendix. (e) This was defined to be a trade within the meaning of the Industrial and Provident Societies Acts by 34 & 35 Vict. c. 80, s. 5. 152 39 & 40 Vicx. Cap. 45, s, 7. "by seven members and the secretary, and two written or printed copies of tlie rules, shall be sent to the registrar. (3.) Identity or deceptive similarity of name not to be allowed.—No society shall be registered under a name identical with that under which any other existing society is registered, or so nearly resembling such name as to be likely, in the opinion of the registrar, to deceive the members or the public, as to its identity, and no society shall change its name without sanction of the chief or an assistant registrar or otherwise than is hereinafter pro- vided (a). (4.) As to societies registered under former Acts.—A society registered under the Industrial and Provident Societies Act, 1852, and not registered under the Industrial and Provident Societies Acts, 1802, or 1867, may,, on applica- tion to the registrar, obtain an acknowledgment of registry under this Act. (5.) “Limited” to be last word of name.—The word “limited” shall be the last word in tlie name of every society registered under this Act (a). (G.) Registry of societies doing business in more than one country.—Societies carrying or intending to carry on busi- ness in more than one country shall be registered in the- country in which their registered office, as herein men- tioned, is situate ; but copies of the rules of such societies, and of all amendments of the same, shall, when registered, be sent to the registrar of each of the other countries, to be recorded by him ; and until such rules be so recorded the society shall not be entitled to any of the privileges of this Act in the country in which such rules have not been recorded, and until such amendments of rules be recorded the same shall not take effect in such country. (7.) The acknowledgment of registry.—The registrar, on being satisfied that a society has complied with the pro- visions as to registry in force under this Act, shall issue to- such society an acknowledgment of registry. («) Amended from 25 & 26 Viet. c. 87, s. 8. 1.33 39 & 40 Vict. Cap. 45, s. 8. (8.) Appeals from refusal to register.—If any registrar refuse to register the society or any rules, the society may appeal from such refusal, as follows : (a.) If the assistant registrar for Scotland refuse to re- gister, to either division of the Inner House of the Court of Session : (h.) If the assistant registrar for Ireland refuse to register, to the Court of Queen’s Bench at Dublin : (c.) If the central office or the chief registrar refuse to register, to the Court of Queen’s Bench in England : (cl.) The Court of Session, the Court of Queen’s Bench at Dublin, and the Judges of the Court of the Queen’s Bench Division of the High Court in England respectively, may make rules or orders as to the form of appeals and the trying thereof aud otherwise relating thereto. (9.) If refusal overruled, acknoioledgment to be given.—If the refusal of registry be overruled on appeal, an acknow- ledgment of registry shall thereupon be given to the society 1JJ' the registrar. (10.) Effect of acknowledgment of registry. —Ilia acknow- ledgment of registry shall be conclusive evidence that the society therein mentioned is duly registered, unless it be proved that the registry of the society has been suspended °r cancelled (6). 8. Cancelling and suspension of registry.—With respect to the cancelling or suspension of registry the following pro- visions shall have effect: (1.) Cancelling.—The chief registrar, or, in the case of societies registered and doing business in Scotland or Ireland exclusively, the assistant registrar for Scotland or- These provisions are new, and are adopted from s. 11 of. 10 * riendly Societies Act, li>75. See p. 58, ante. H 3 154 39 & 40 Vict. Cap. 45, s. 8. Ireland respectively, may cancel the registry of a society by writing under his hand,— (a.) If he thinks fit, at the request of a society, to be evidenced in such manner as he shall from time to time direct: (6.) With the approval of the Treasury, on proof to his satisfaction that an acknowledgment of registry has been obtained by fraud or mistake, or that a society exists for an illegal purpose, or has wilfully and after notice from a registrar whom it may concern violated any of the provisions of this Act, or has ceased to exist. (2.) Suspension.—The chief or assistant registrar, in any case in which he might, with the approval of the Treasury, cancel the registry of a society, may suspend the same, by writing under his hand, for any term not exceeding three months, and may, with the approval of the Treasury, renew such suspension from time to time for the like period. (3.) Notice of cancelling or suspension.—Not less than two months previous notice in writing, specifying briefly the ground of any proposed cancelling or suspension of registry, shall be given by the chief or assistant registrar to a society before the registry of the same can be cancelled (except at its request) or suspended; and notice of every cancelling or suspension shall be published in the Gazette, and in some newspaper circulating in the county in which the registered office of the society is situated, as soon as practicable after the same takes place. (4.) Appeal from cancelling or suspension.—A society may appeal from the cancelling of its registry, or from any sus- pension of the same which is renewed after six months, in manner herein provided for appeals from the chief regis- trar’s or the registrar’s refusal to register respectively. ((5.) Effect of cancelling or suspension.—A society whose registry has been suspended or cancelled shall from the {time of such suspension or cancelling (but if suspended, 39 & 40 Vict. Cap. 45, s. 9. 155 •only whilst such suspension lasts, and subject also to the right of appeal hereby given) absolutely cease to enjoy as such the privileges of a registered society, but without pre- judice to any liability actually incurred by such society, which may he enforced against the same as if such suspen- sion or cancelling had not taken place (a). 9. Rules and amendments.-—With respect to the rules of societies the following provisions shall have effect:— (1.) Provisions to be contained in rules.—The rules of •every society sent for registry shall contain provisions in respect of the several matters mentioned in the second schedule to this Act (b). (2.) Amendments to be registered.—No amendment of a rule made by a registered society shall be valid until the same has been registered under this Act, for which purpose copies of the same, signed by three members and the secre- tary, shall be sent to the registrar (c). (3.) Provision applicable to amendments.—The provision herein contained as to appeals from a refusal of registry shall apply to amendments of rules. (4.) Acknowledgment of registry of amendments.—The re- gistrar shall, on being satisfied that any amendment of a rule is not contrary to the provisions of this Act, issue to the society an acknowledgment of registry of the same, which shall be conclusive evidence that the same is duly registered. (5.) Copies of rules to be delivered on demand.—A copy of the rules of a registered society shall be delivered by the society to every person on demand, on payment of a sum not exceeding one shilling. ia) These provisions are new, and are adopted from sect. 12 of ‘■no Friendly Societies Act, 1875. See p. 61, ante. (o) For form of rules, see Appendix. (e) See note B., Appendix. 156 39 & 40 Viol. Cap. 45, s. 10. (6.) Delivery of untrue rules.—If any person, with intent to mislead or defraud, gives to any other person a copy of any rules, laws, regulations, or other documents, other than the rules for the time being registered under this Act, on the pretence that the same are existing rules of a registered society, or that there are no other rules of such society, or gives to any person a copy of any rules on the pretence that such rules are the rules of a registered society when the society is not registered, the person so offending shall he deemed guilty of a misdemeanor (a). 10. Duties and obligations of societies.—With respect to tire duties and obligations of registered societies the follow- ing provisions shall have effect: (1.) Every society shall— (ft.) Registered office.— Have a registered office to which all communications and notices may be addressed, and send to the registrar notice of the situation of such office, and of every change therein : (&.) Publication of name.—Paint or affix, and keep painted or affixed, its name on the outside of every office or place in which the business of the society is carried on, in a conspicuous position, in letters easily legible, and have its name engraven in legible characters on its seal, and have its name mentioned in legible characters in all notices, advertisements, and other official publications of the society, and in all bills of exchange, promis- sory notes, endorsements, cheques, and orders for money or goods, purporting to be signed by or on behalf of such society, and in all hills of parcels, invoices, receipts, and letters of credit of the society : (c.) Audit.—Once at least in every year submit its accounts for audit either to one of the public (a) These provisions arc new, and arc adopted from sect. 13 of the Friendly Societies Act, 1875. See p. 63, ante. 39 & 40 Vict. Cap. 45, s. 10. 15? auditors appointed as herein mentioned, or to two> or more persons appointed as the rules of the society provide, who shall have access to all the books and accounts of the society, and shall ex- amine the general statement of the receipts and expenditure, funds and effects of the society, and verify the same with the accounts and vouchers, relating thereto, and shall either sign the same as. found by them to be correct, duly vouched, and in accordance with law, or specially report to the. society in what respects they find it incorrect, un- vouched, or not in accordance with law: (d.) Annual returns.—Once in every year before the first day of June send to the registrar a general state- ment (to be called the annual return) of the receipts and expenditure, funds and effects of the society as audited, which shall show separately the expenditure in respect of the several objects of the- society, and shall be made out to the thirty-first December then last inclusively, and shall state whether the audit has been conducted by a public auditor appointed as by this Act is provided, and by whom, and if by any person (b) other than a public auditor, shall state the name, address, and calling or profession of each such person, and the manner in which and the authority under which he is appointed, and together therewith shall send a copy of the auditor’s report: (e-) Inspection of books.—Allow any member or person having an interest in the funds of the society to- inspect the books and the names of the members at all reasonable hours at the registered office of the society, or at any place where the same are kept; subject to such regulations as to the time and manner of such inspection as may be made from time to time by the general meetings of the society, except that no such member or person, (l) Sic. The word should be “persons.” / 158 39 & 40 Vict. Cap. 45, s. 10. unless lie be an officer of tbe society, or be specially authorized by a resolution thereof, shall have the right to inspect a loan or deposit account of any other member without the written consent of such member: i(/.) Supplying copies of annual returns.—Supply gratui- tously to every member or person interested in the funds of the society, on his application, a copy of the last annual return of the society for the time being: {g.) Balance sheet, Joe., to he hung up at office.—Keep a copy of the last balance sheet for the time being, together with the report of the auditors, always hung up in a conspicuous place at the registered office of the society. (2.) Provisions as to hanlcing.—The following provisions shall apply to the business of banking by societies (a)— (a.) No society which has any withdrawable share capital shall carry on the business of banking: (b.) Every society which carries on the business of bank- ing shall, on the first Mondays in February and August in each year, make out and keep con- spicuously hung up in its registered office, and every other place of business belonging to it, a statement in the form in the third schedule hereto annexed, or as near thereto as the circumstances admit (6): (c.) The taking deposits of not more than five shillings in any one payment, nor more than twenty pounds for any one depositor, payable on not less than two clear days’ notice, shall not be included in the business of banking within the meaning of (а) The business of banking is for the first time permitted by tliis Act to be carried on by an industrial and provident society. It was expressly excepted from the trades allowed to be carried :on under the Act of 1862. (25 & 26 Vict. c. 87> s. 3.) (б) This statement is similar to that required by the Com- panies Act, 1862, to be made by a banking company. 39 & 40 Vict. Cap. 45, s. 10. 159 tliis Act; hut no society which takes such deposits shall make any payment of withdrawable capital while any claim due on account of any such de- posit is unsatisfied. <(3.) Offences.—It shall he an offence under this Act if any registered society— (a.) Fails to give any notice, send any return or docu- ment, or do or allow to he done any act or thing which the society is hy this Act required to give, send, do, or allow to he done: (b.) Wilfully neglects or refuses to do any act or to fur- nish any information required for the purposes of this Act hy the chief or any other registrar or other person authorized under this Act, or does any act or thing forbidden hy this Act: (c.) Makes a return or wilfully furnishes information in any respect false or insufficient: (d.) Carries on the business of hanking having any with- drawable share capital, or in carrying on such business does not make out and keep conspicuously hung up such statement as is hereinbefore re- quired, or makes any payment of withdrawable capital contrary to the provision hereinbefore contained. (4.) Offences by societies to be also offences by officers, &c.— Every offence by a society under this Act shall be deemed to have been also committed by every officer of the same bound by the rules thereof to fulfil the duty whereof such offence is a breach, or if there be no such officer, then by every member of the committee of the same, unless such member be proved to have been ignorant of or to have •attempted to prevent the commission of such offence; and every act or default under this Act constituting an offence, if continued, shall constitute a new offence in every week during which the same continues. (5.) Returns to be in prescribed form.—Every return and ■other document required for the purposes of this Act shall 39 & 40 Vxct. Cap. 45, s. 11. ICO lie made in such form and shall contain such particulars as the chief registrar prescribes. (6.) Recording of documents.—All documents by this sec- tion required to be sent to the registrar shall be deposited -with the rules of the societies to which the same respec- tively relate, and shall be registered or recorded by the registrar, with such observations thereon, if any, as the chief registrar shall direct. 11. Privileges of societies.—Registered societies shall be entitled to the following privileges (a): (1.) Incorporation of society with limited liability.—The registration of a society shall render it a body corporate by the name described in the acknowledgment of registry by which it may sue and be sued, with perpetual succession and a common seal, and with limited liability; and shall vest in the society all property for the time being vested in any person in trust for the society; and all legal proceed- ings pending by or against the trustees of any such society may be prosecuted by or against the society in its registered name without abatement (6). (2.) Rules to bind the members.—The rules of the society shall bind the society and all members thereof and all per- sons claiming through them respectively to the same extent as if each member had subscribed his name and affixed his seal thereto, and there were contained in such rules a cove- nant on the part of himself, his heirs, executors, and administrators, to conform thereto, subject to the provisions of this Act: Provided that a society registered at the time when this Act comes into operation, or the members thereof, may respectively exercise any power given by this (a) The privilege of exemption from stamp duty, which was granted by previous Acts (see 30 & 31 Viet. c. 117, s. 3), is not contained in this Act. (J) As to societies in existence before the Act of 1862, and not incorporated under it, see Queensbury Industrial Society v- Pickles, 14 W. R. 30; Linton v. The Blakeney Joint Industrial Provident Society, 34 L. J. Exch. 211, and note L., Appendix. 39 & 40 Vict. Cap. 45, s. 11. 1G1 Act, and not made to depend on the provisions of its rules, notwithstanding any provision contained in any rule thereof certified before this Act was passed. (3.) Moneys due from members to be a debt recoverable from them.—All moneys payable by a member to the society shall be a debt due from such member to the society, and shall be recoverable as such either in the county court of the district in which the registered office of the society is situate, or that of the district in which such member resides, at the option of the society. (4.) Exemption from income tax.—'The society shall not he chargeable under Schedule (C.) or Schedule (D.) of the Income Tax Acts, hut no member of or person employed by the same to whom any profits are paid shall he exempted from any assessment to the said duties to which he would otherwise he liable (c). (5.) Power of nomination for sums not exceeding fifty pounds.—A member of a society, not being under the age of sixteen j'ears, may, by writing under his hand delivered at or sent to the registered office of the society, nominate any person, not being an officer or servant of, the society, unless such officer or servant is the husband, wife, father, mother, child, brother, sister, nephew, or niece of the nominator, to whom his shares in the society shall be transferred at his decease, provided that the amount credited to him in the books of the society does not exceed fifty pounds, and may from time to time revoke or vary such nomination by a writing under his hand similarly de- livered or sent, but not otherwise, and every such society shall keep a book wherein the names of all persons so- nominated shall be regularly entered, and the shares com- prised in any such nomination shall be transferable to the nominee although the rules of the society declare its shares to be generally not transferable; and on receiving satisfac- tory proof of the death of a nominator the committee of the (c) Tills provision is qualified by sect. 8 of the Customs and Inland Revenue Act, 1880 (43 Vict. c. 14). See p. 191, post. 162 39 & 40 Vict. Cap. 45, s. 11. society shall either transfer the shares in manner directed on such nomination or pay to every person entitled there- under the full value of his interest, at their option, unless the shares if transferred to any such nominee would raise his interest in the society to an amount exceeding two hundred pounds sterling, in which case they shall pay him the full value of such shares, not exceeding the sum afore- said (a). (6.) Distribution of sums not exceeding fifty pounds.—If any member of a society, entitled to an interest in the society not exceeding fifty pounds, dies intestate and with- out having made any nomination under this Act which remains unrevoked at his death, such interest shall be transferable or payable, without letters of administration, to or among the persons who appear to a majority of the committee, upon such evidence as they may deem satisfac- tory, to be entitled by law to receive the same (b). (7.) Payments to persons apparently entitled valid.— Whenever the committee, after the decease of any member, make any payment or transfer to any person who at the ■time appears to them to be entitled under this section, the ■payment or transfer shall be valid and effectual against any demand made upon the committee or the society by any ■other person. (8.) When trustees are absent, &c., registrar may order stock to be transferred.—When any person, in whose name any stock belonging to any such society transferable at the Bank of England or Bank of Ireland is standing, either jointly with another or others or solely, as a trustee there- for, is absent from Great Britain or Ireland respectively, or becomes bankrupt, or files any petition or executes any deed for liquidation of his affairs by assignment or arrange- ment, or for composition with his creditors, or becomes a lunatic, or is dead, or has been removed from his office of (a) This is re-enacted, with amendments, from 30 & 31 Vict. •c. 117, s. 5. (5) See Table of Distribution, Appendix E. 39 & 40 Vict. Cap. 45, s. 11. 163 trustee, or if it be unknown whether such person is living or dead, the chief registrar, on application in writing from the secretary and three members of the society, and od proof satisfactory to him, may direct the transfer of the stock into the names of any other persons as trustees for the society; and such transfer shall be made by the sur- viving or continuing trustees, and if there be no such trustee, or if such trustees refuse or be unable to make such transfer, and the chief registrar so direct, then by the accountant general or deputy or assistant accountant general of the Bank of England or Bank of Ireland, as the case may be; and the governors and companies of the Bank of England and Bank of Ireland respectively are hereby indemnified for anything done by them or any ot their officers in pursuance of this provision against any claim or demand of any person injuriously affected thereby (c). (9.) Membership of minors.—A person under the age of twenty-one, but above the age of sixteen, maybe a member °f a society, unless provision be made in the rules thereof to the contrary, and may, subject to the rules of the society, enjoy all the rights of a member (except as herein provided), and execute all instruments and give all acquittances neces- sary to be executed or given under the rules, but shall h°t be a member of the committee, trustee, manager, or treasurer of the society (c). (10.) Promissory notes and bills of exchange.—A promissory note or bill of exchange shall be deemed to have been made, accepted, or endorsed on behalf of any society if made, accepted, or endorsed in the name of the society, or by or on behalf or account of the society, by any person acting under the authority of the society. (If-) Register of members or shares.—Any register or list of members or shares kept by any society shall be primd (c). These privileges are new for industrial and provident societies, and are adopted from the Friendly Societies Act, 1875, s. 15. 164 39 & 40 Vict. Cap. 45, s. 11. facie evidence of any of tlie following particulars entered therein : (a.) Tlie names, addresses, and occupations of the members, the number of shares held by them respectively, the numbers of such shares, if they are distinguished by numbers, and the amount paid or agreed to be considered as paid on any such shares : (b.) The date at which the name of any person, com- pany, or society was entered in such register or list as a member: (c.) The date at which any such person, company, or society ceased to be a member. (12.) Contracts, liow made.—Contracts on behalf of the society may be made, varied, or discharged as follows :— (a.) Any contract, which if made between private persons would be by law required to be in writing, and if made according to the English law to be under seal, may be made on behalf of the society in writing under the common seal of the society, and may in the same maimer be varied or discharged : (&.) Any contract, which if made between private per- sons would be by law required to be in writing and signed by the persons to be charged therewith, may be made on behalf of the society in writing by any person acting under the express or implied authority of the society, and may in the same manner be varied or discharged : (c.) Any contract under seal, which if made between private persons might be varied or discharged at law or in equity by a writing not under seal signed by any person interested therein, may be similarly varied or discharged on behalf of the society by a writing not under seal signed by any person acting under the express or implied authority of the society : 39 & 40 Vict. Cap. 45, s. 12. 165 (d.) Any contract, which if made between private per- sons would be by law valid, though made by parol only and not reduced into writing, may be made by parol on behalf of the society by any person acting under the express or implied authority of the society, and may in the same manner be varied or discharged : (e.) A signature purporting to be made by a person hold- ing any office in the society attached to a writing whereby any contract purports to be made, varied, or discharged by or on behalf of the society shall primd facie be taken to be the signature of a per- son holding at the time when the signature was made the office so stated : And all contracts which may be or have been made, varied, or discharged, according to the provisions herein contained, shall, so far as concerns the form thereof, be effectual in law and binding on the society and all other parties thereto, their heirs, executors, or administrators, as the case may be (a). 12. Property and funds of societies.—With respect to the property and funds of registered societies, the following provisions shall have effect : (1.) Holding of land.—A society may (if its rules do not direct otherwise) hold, purchase, or take on lease in its own name any land, and may sell, exchange, mortgage, lease, or build upon the same (with power to alter and pull down buildings and again rebuild), and ho purchaser, assignee, mortgagee, or tenant shall be bound to inquire as to the ■authority for any such sale, exchange, mortgage, or lease by the society, and the receipt of the society shall be a dis- charge for all moneys arising from or in connection with such sale, exchange, mortgage, or lease (b). (2.) Advances to members.—The rules may provide for the advancing of money by the society to members on the security of real or personal property (b). (c) These provisions are adopted from the Companies Acts. (b) These provisions are re-enacted, with amendments, from ss-1, 2 of the Act of 1871 (34 & 35 Vict. c. 80). Similar provisions are contained in the Friendly Societies Act, 1875, see p. 76, ante. 166 39 & 40 Yict. Cap. 45, s. 12. (3.) As to copyholds.~Wh.eTe any society is entitled in equity to any hereditaments of copyhold or customary tenure, either absolutely or by way of mortgage or security, the lord of the manor of which the same are held shall from, time to time, if the society so require, admit such persons (not to exceed three) as such society appoints, to be trus- tees on its behalf, as tenants in respect of such hereditaments, on payment of the usual fines, fees, and other dues payable on the admission of a single tenant, or may admit the society as tenant in respect of the same on payment of such special fine or compensation, in lieu of fines and fees, as may be agreed upon between such lord and the society (o). (4.) Investments.—A society may, if its rules so allow invest any part of its capital in the shares or on the security of any other society (6) registered under this Act or under the Building Societies Acts, or of any company registered under the Companies Acts or incorporated by Act of parliament or by charter, provided that no such investment be made in the shares of any society or company' other than one with limited liability, and a society so investing may make such investment in its registered name and shall be deemed to he a person within the meaning of the Companies Acts, 1862 and 1867, and the Building Societies Act, 1874, and any investment made before the passing of this Act which would have been valid if this Act had been then in force is hereby made valid and confirmed. (5.) Other corporate bodies.—Any other body corporate may, if its regulations permit, hold shares by its corporate name in a society'. (6.) Forms.—In the rules or any schedule thereto may be set forth the forms of conveyance, surrender, admittance, mortgage, transfer, agreement, bond or other instrument necessary for carrying the purposes of the society into effect. (a) See note (b), ante, p. 165. (5) But not in its own shares. 39 & 40 Vict. Cap. 45, s. 12. 167' (7.) Application of profits.—The profits of the society may be applied to any lawful purpose (c). (8.) Discharge of mortgages by receipt endorsed.—A receipt under the hands of two members of the committee of the society, countersigned by the secretary, in the form, con- tained in the third schedule to this Act, or in any form specified by the rules of the society or any schedule thereto,, for all moneys secured to the society by any mortgage or other assurance endorsed upon or annexed to'such mortgage or other assurance, shall vacate the same, and vest the pro- perty therein comprised in the person entitled to the equity of redemption of the same, without re-conveyance or re-surrender; but this provision shall not apply to Scotland or to the island of Jersey. (9.) Registration of receipt.—If such mortgage or other assurance has been registered under any Act for the regis- tration or record of deeds or titles, or is of copyholds or lands of customary tenure and entered on any court rolls, the registrar under such Act, or recording officer, or steward of the manor, or keeper of the register, shall, on production of such receipt, verified by oath of any person, enter satis- faction on the register or on the court rolls respectively of such mortgage or of the charge made by such assurance, and shall grant a certificate, either upon such mortgage or assurance or separately to the like effect, which certificate shall be received in evidence in all courts and proceedings without further proof, and such registrar, recording officer, steward, or keeper of the register shall be entitled to a fee of two shillings and sixpence for making the said entry and granting the said certificate, and such fee shall in Ireland be paid by stamps, and applied as other fees of the Registry of Deeds Office and Record of Title Office are by law directed to be paid and applied. (c) By sect. 3 of the Act of 1862, “ applying the profits for any purposes allowed by the Friendly Societies Acts or otherwise permitted by law,” was defined as part of the purposes of a. society. •168 39 & 40 Vict. Cap. 45, s. 13. (10.) Punishment of fraud or misappropriation.—If any person obtains possession by false representation or impo- sition of any property of a society, or having the same in his possession, withholds or misapplies the same, or wilfully applies any part thereof to purposes other than those ex- pressed or directed in the rules of the society and authorized by this Act, he shall, on the complaint of the society, or of any member authorized by the society, or the committee thereof, ■or by the central office, or of the chief registrar, or any assistant registrar by his authority, be liable on summary conviction to a penalty not exceeding twenty pounds, with costs not exceeding twenty shillings, and to be ordered to deliver up all such property or to repay all moneys applied improperly, and in default of such delivery or repayment, or of the payment of such penalty and costs aforesaid, to be imprisoned with or without hard labour, for any time not ■exceeding three months; but nothing herein contained shall prevent an3r such person from being proceeded against by way of indictment, if not previously convicted of the same offence under the provisions of this Act (a). 13. Officers in receipt or charge of money.—With respect to ■officers of registered societies having receipt or charge of money, the following provisions shall have effect: (1.) Security to he given.—Every officer, if the rules of the society require, shall, before taking upon himself the •execution of his office, become bound, either with or with- out a surety as the committee require, in a bond according to one of the forms set forth in the third schedule to this Act, or such other form as the committee of the society approve, or give the security of a guarantee society, in such sum as the committee directs, conditioned for his rendering ■a just and true account of all moneys received and paid by him on account of the society at such times as its rules appoint, or as the society or the committee thereof require (a) The provisions of this section are similar to those of sect. 16 of the Friendly Societies Act, 1875. See p. 75, ante, and see note G., Appendix. 39 & 40 Vict. Cap. 45, s. 14. iefr him to do, and for the payment hy him of all sums due from him to the society. / (2.) Accounts of officers.—Every officer, fiis executors or administrators, shall, at such times as by the 'rules of tlidf society he should render account, or upon cfflmaftd made, or notice in writing given or left at his last or usual' p^ace of residence, give m his account as may be required by the •• society, or by the committee thereof, to be examined and allowed or disallowed by them, and shall, on the like de- mand or notice, pay over all moneys and deliver all pro- perty for the time being in liis hands or custody to such person as the society or the committee appoint; and in case of any neglect or refusal to deliver such account, or to pay over such moneys or to deliver such property in manner aforesaid, the society may sue upon the bond or security before mentioned, or may apply to the county court (which may proceed in a summary way), or to a court of summary jurisdiction, and the order of either such court shall be final and conclusive (b). 14. Disputes.—With respect to disputes concerning registered societies the following provisions shall have effect: (1.) To be decided by rules of society.—Every dispute between a member or person claiming through a member °r under the rules of a registered society, and the society or an officer thereof, shall be decided in manner directed by the rules of the society, if they contain any such direction, and the decision so made shall be binding and conclusive on all parties without appeal, and shall not be removable into any court of law or restrainable by injunction; and application for the enforcement thereof may be made to the county court. (2.) May be referred to chief registrar. —The parties to a dispute in a society may, by consent (unless the rules of such society expressly forbid it), refer such dispute to the (^) The provisions of this section are similar to those of sect. 20 ot the Friendly Societies Act, 1875. See p. 83, ante. I 170 39 & 40 Vict. Cap. 45, e. 14. chief registrar, or to the assistant registrar in Scotland or Ireland, who shall, with the consent of the Treasury, either by himself or by any other registrar, hear and determine such dispute, and shall have power to order the expenses of determining the same to be paid either out of the funds of the society or by such parties to the dispute as he shall think fit, and such determination and order shall have the same effect and be enforceable in like manner as a decision made in the manner directed by the rules of the society. (3.) Chief registrar may administer oaths, Ac.—'The chief or other registrar to whom any dispute is referred may administer oaths, and may require the attendance of all parties concerned and of witnesses, and the production of all books and documents relating to the matter in ques- tion ; and any person refusing to attend, or to produce any documents, or to give evidence before such chief or other registrar, shall be guilty of an offence under this Act. (4.) Reference to justices.—Where the rules of a society direct that disputes shall be referred to justices, the dispute shall be determined by a court of summary jurisdictions. Provided that in every case of dispute cognizable under the rules of a society by a court of summary jurisdiction, it shall be lawful for the parties thereto to enter into a con- sent referring such dispute to the county court, which may hear and determine the matter in dispute. (5.) Application to county courts, Ac.—Where the rules contain no direction as to disputes, or where no decision is made on a dispute within forty days after application to the society for a reference under its rules, the member or person aggrieved may apply either to the county court, or to a court of summary jurisdiction, which may hear and determine the matter in dispute. (6.) Case for opinion of supreme court, Ac.—The court, chief, or other registrar, may, at the request of either party state a case for the opinion in England of the Supreme Court of Judicature, in Scotland of either division of the 39 & 40 Vict. Cap. 45, s. 15. 171 Inner House of the Court of Session, or in Ireland of one of the superior courts of common law at Dublin, on any question of law, and may also grant to either party such discovery as to documents and otherwise, or such inspection of documents, and in Scotland may grant warrant for the recovery of documents and examination of havers, as might be granted by any court of law or equity, such discovery to be made on behalf of the society by such officer of the same as such court or registrar may determine (a). 15. Special powers of registrars to be exercised on applica- tion from members. —With respect to the inspection of the affairs of registered societies, the following provisions shall have effect: (1.) Upon the application of one-fifth of the whole number of members of a registered society, or of one hundred members in the case of a society of one thousand members and not exceeding ten thousand, or of five hundred members in the case of a society of more than ten thousand members, the chief registrar, or, in the case of societies registered and doing business exclusively in Scot- land or Ireland, the assistant registrar for Scotland or Ireland respectively, but, with the consent of the Treasury in every case, may— (a.) Inspectors.—Appoint one or more inspectors to ex- amine into the affairs of such society, and to report thereon, who may require the production of all or any of the books and documents of the society, and may examine on oath its officers, members, agents, and servants in relation to its business, and may administer such oath accord- ingly : {b.) Special meetings.—Call a special meeting of the society in such manner and at such time and place as the chief registrar, or such assistant 9 (“) The provisions of this section are similar to those of sect. of the Friendly Societies Act, 1875. See p. 86, ante, and see »ote H., Appendix. I 2 172 39 & 40 Vict. Cap. 45, s. 16. registrar, may direct, and may direct what matters shall he discussed and determined on at such meeting, which shall haye all the powers of a meeting called according to the rules of the society, and shall in all cases have power to appoint its own chairman, any rule of the society to the contrary notwithstanding. (2.) Application to be supported by evidence.—The applica- tion iierein mentioned shall he supported l>y such evidence, for the purpose of showing that the applicants have good reason for requiring such inspection to he made or meeting to he called, and that they are not actuated hy malicious motives in their application, and such notice thereof shall he given to the society as the chief registrar shall direct. (3.) Security for costs.—The chief registrar or such assist- ant registrar may, if he think fit, require the applicants to give security for the costs of the proposed inspection or meeting, before appointing any inspector Or calling such meeting. (4.) Expenses.—All expenses of and incidental to any such inspection or meeting shall be defrayed either hy the members applying for the same, or out of the funds of the society, as the chief registrar or such assistant registrar shall direct (a). 16. Special resolutions, and proceedings which may be taken thereon.—With respect to special resolutions hy registered societies, and to the proceedings which may he taken hy virtue thereof, the following provisions shall have effect: (1.) Special resolutions.—A special resolution is one which is passed hy a majority of not less than three-fourths of such members of a society for the time being entitled under the rules to vote as may he present in person or by proxy (where the rules allow proxies) at any general meet- ing of which notice specifying the intention to propose such (a) The provisions of this section arc similar to those of sect. 23 of the Friendly Societies Act, 1875. See p. 88, ante. A 39 & 40 Vict. Cap. 45, s. 16. 173 resolutions (sic) has been duly given according to the rules, and which resolution is confirmed by a majority of such members for the time being entitled under the rules to votes as may he present, in person or by proxy, at a subse- quent general meeting of which notice has been duly given, held not less than fourteen days nor more than one montli from the day of the meeting at which such resolution was first passed. At any meeting mentioned in this section a declaration by the chairman that the resolution has been carried shall he deemed conclusive evidence of the fact. (2.) Change of name.—A society may, by special resolu- tion, with the approval in writing of the chief registrar, or, in the case of societies registered and doing business exclu- sively in Scotland or Ireland, the assistant registrar for Scotland or Ireland respectively, change its name ; hut no such change shall affect any right or obligation of the society, or of any member thereof, and any pending legal proceedings may he continued by or against the society, notwithstanding its new name. (3.) Amalgamation of societies.—Any two or more socie- ties may, by special resolution of both or all such societies, become amalgamated together as one society, with or with- out any dissolution or division of the funds of such societies or either of them; and any society may by special resolu- tion transfer its engagements to any other registered society ■which may undertake to fulfil the engagements of such society. (4.) Conversion of societies into companies, Ac.—A society may by special resolution determine to convert itself into a company under the Companies Acts, or to amalgamate ■with or transfer its engagements to any such company (5). (5.) Eights of creditors. —No amalgamation or transfer of engagements shall prejudice any right of a creditor of either or any society party thereto. (6) This was allowed by the Act of 1862 (25 & 26 Vict. c. 87, 21), but the machinery of conversion was not provided by that Act, and is now supplied. 174 39 & 40 Vict. Cap. 45, s. 17. (6.) Registration of special resolutions.—A copy of every special resolution for any of the purposes mentioned in this section, signed hy the chairman of the meeting and counter- signed by the secretary, shall be sent to the central office and registered there, and until such copy is so registered, such special resolution shall not take effect. (7.) Registration of copy of special resolution as memoran- dum of association.—If a special resolution for converting a society into a company contains the particulars by the Companies Act, 1862, required to be contained in the memorandum of association of a company, and a copy thereof has been registered at the central office, a copy of such resolution under the seal or stamp of the central office shall have the same effect as a memorandum of asso- ciation duly signed and attested under the said Act (a). (8.) Registry of society under Act to become void on registra- tion as a company, &c.—If a society be registered as, or amalgamates with, or transfers all its engagements to a company, the registry of such society under this Act shall thereupon become void, and the same shall be cancelled hy the chief registrar or by the assistant registrar for Scotland or Ireland under his direction ; but the registration of a society as a company shall not affect any right or claim for the time being subsisting against such society, or any penalty for the time being incurred by such society ; and for the purpose of enforcing any such right, claim, or penalty, the society may be sued and proceeded against in the same manner as if it had not become registered as a company ; and every such right or claim, or the liability to such penalty, shall have priority as against the property of such company over all other rights or claims against or liabilities of such company. 17. Dissolution of societies.—With respect to the dissolu- tion of registered societies, the following provisions shall have effect: (cr) Sec note (4), p. 173, ante. 39 & 40 Vict. Cap. 45, s. 17. 175 (1.) How societies may he dissolved.—A society may Toe dissolved.— By an order to wind up the society, or a resolution for the winding up thereof, made as is directed in regard to companies by the Companies Act, 1862, the pro- visions whereof shall apply to any such order or reso- lution, except that the court having jurisdiction in the winding up shall be the county court (b), and that the term registrar shall for the purpose of such winding up mean the central office in England, or the assistant registrar in Scotland or Ireland, as the case may be ; or, By the consent of three fourths of the members, testified by their signatures to an instrument of dissolution. (2.) Liability of the members. — Where a society is wound up the liability of a present or past member of the society to contribute for payment of the debts and liabilities of the society, the expenses of winding up, and the adjustment of the rights of contributories amongst themselves, shall bo qualified as follows : («•) No individual, society, or company who or which has ceased to be a member for one year or upwards prior to the commencement of the winding up shall be liable to contribute : (&•) No individual, society, or company shall be liable to contribute in respect of any debt or liability con- tracted after he or it ceased to be a member : (c-) No individual, society, or company not a member shall be liable to contribute, unless it appears to the court that the contributions of the existing members are - insufficient to satisfy the just demands on the society : (d.) No contribution shall be required from any indi- vidual, society, or company exceeding the amount, . W This is a re-enactment, with amendments, of s. 17 of the ndustrial and Provident Societies Act, 1862. 176 39 & 40 Vict. Cap. 45, s. 17. if any, unpaid on the shares in respect of which he or it is liable as a past or present member (a): (e.) An individual, society, or company shall be taken to have ceased to be a member, in respect of any withdrawable share withdrawn, from the date of the notice or application for withdrawal (b). (3.) Contents of instrument of dissolution.—"Where a society is terminated by an instrument of dissolution the following provisions shall apply : (a.) The instrument of dissolution shall set forth the liabilities and assets of the society in detail, the number of members and the nature of their interests in the society respectively, the claims of creditors (if any), and the provision to be made for their payment, and the intended appropriation or division of the funds and property of the society, unless the same be stated in the instru- ment of dissolution to be left to the award of the chief registrar : (b.) Alterations.—Alterations in the instrument of disso- lution may be made with the like consents as hereinbefore provided, and testified in the same manner : (c.) Statutory declaration.—A statutory declaration shall be made by three members and the secretary of the society that the provisions of this Act have been cofnplied with, and shall be sent to the registrar with the instrument of dissolution ; and any person knowingly making a false or fraudulent declaration in the matter shall be guilty of a mis- demeanor : (cl.) Registry of instrument of dissolution.—The instru- ment of dissolution and all alterations therein (a) See Sheffield Co-operative Society, in re, 13 W. R. 667, and Note M. Appendix. The qualifications are re-enacted, with amendments from s. 20 of the Industrial and Provident Societies Act, 1872. (b) The provision in this sub-head is new. 177 39 & 40 Vict. Cap. 45, s. 18. shall be registered in manner herein provided for the registry of rules, and shall he binding upon all the members of the society : (e.) Notice of dissolution.—The registrar shall cause a notice of the dissolution to be advertised at the expense of the society in the Gazette and in some newspaper circulating in the county in which the registered office of the society is situated ; and unless within three months from the date of the Gazette in which such advertisement appears, a member or other person interested in or having any claim on the funds of the society commences proceedings to set aside the dissolution of the society in the county court of the district where the registered office of the society is situate, and such dissolution is set aside accordingly, the society shall be legally dissolved from the date of such advertisement, and the requisite consents to the instrument of dissolution shall be considered to have been duly obtained without proof of the signatures thereto : (/.) Notice of 'proceedings to set aside a dissolution.— Notice shall be sent to the central office of any proceeding to set aside the dissolution of a society, not less than seven days before it is commenced, by the person by whom it is taken, or of any order setting it aside, within seven days after it is made by the society (c). 18. Penalties.—With respect to penalties under this Act, the following provisions shall have effect: (!•) Penalty for falsification.—If any person wdlfully makes, orders, or allows to be made any entry or erasure m, or omission from any balance sheet of a registered society, or any contribution or collecting book, or any return or document required to be sent, produced, or (c) The provision in this sub-head is adopted from the -l reasury regulations under the Friendly Societies Acts. I 3 178 39 & 40 Vict. Cap. 45, s. 19. delivered for the purposes of this Act, with intent to falsify the same, or to evade any of the provisions of this Act, he shall he liable to a penalty not exceeding fifty pounds. (2.) Not using the name of the society.—If any officer of the society, or any person on its behalf, uses any seal! purporting to be a seal of the society, whereon its name is- not so engraved as aforesaid, or issues or authorizes the issue of any notice, advertisement, or other official publica- tion of the society, or signs or authorizes to be signed on. behalf of the society any bill of exchange, promissory note, endorsement, cheque, order for money or goods, or issues or authorizes to be issued any bills of parcels, invoice, receipt, or letters of credit of the society, wherein its name is not mentioned in manner aforesaid, he shall be liable to a penalty of fifty pounds, and shall further be personally liable to the holder of any such hill of exchange, pro- missory note, cheque, or order for money or goods for the amount thereof unless the same is duly paid by the society. (3.) Penalties for ordinary offences.—Every society, officer, or member of a society, or other person guilty of an offence under this Act for which no penalty is expressly provided herein shall be liable to a penalty of not less than one pound and not more than five pounds. (4.) Recovery of penalties.—The penalties imposed or to be imposed (1) by this Act, (2) by any regulations under the same, or (3) by the rules of a registered society, shall be recoverable in a court of summary jurisdiction, and at the suit, in cases (1) and (2), of the chief registrar, or of any assistant registrar or of any person aggrieved, and, in case (3), of the society. 19. Summary procedure and appeals.—With respect to summary procedure and appeals from orders or convictions thereon made, the following provisions shall have effect: (1.) Prosecution for offences, dec.—In England and Ireland all offences and penalties under this Act may be prosecuted and recovered, in the manner directed by the Summary Jurisdiction Acts, as respects a prosecution against a society 39 & 40 Vict. Cap. 45, s. 19. 179 or its officers, in the place where the registered office of the society is, or where the offence has been committed, or, as respects a prosecution against any person other than a society or its officers, in the place where such person is resident at the time of the institution of such prosecution, or where the offence was committed. (2.) Summary orders.—Tn England and Ireland summary orders under this Act may be made and enforced on com- plaint before a court of summary jurisdiction in the manner provided by the Summary Jurisdiction Acts (a). (3.) Summary jurisdiction in England and Ireland.— The court of summary jurisdiction, when hearing and determining an information or complaint, shall consist as follows : In England— (a.) In any place within the jurisdiction of a metro- politan police magistrate or other stipendiary magistrate, of such magistrate or his substitute : (fi.) In the city of London, of the lord mayor or any alderman of that city : (c.) In any other place, of two or more justices of the peace sitting in petty sessions. In Ireland— (a.) In the police district of Dublin metropolis, of a divisional justice : (J.) In any other place, of two or more justices of the peace sitting in petty sessions. (4.) Summary jurisdiction in Scotland.—In Scotland— (a.) All offences and penalties under this Act may be prosecuted and recovered by the procurator fiscal of the county in the sheriff court, under the pro- visions of the Summary Procedure Act, 1864 : Q>.) Summary orders may be made and enforced on complaint in the sheriff court: (3) The Acts referred to are materially altered as to England J the Summary Jurisdiction Act, 1879, 180 39 & 40 Vict. Cap. 45, s. 19. (c.) All penalties may be enforced in default of payment by imprisonment for a term to be specified in the order or conviction, but not exceeding three months : (d.) All penalties recovered shall be paid to the sheriff clerk, and by him accounted for and paid to the Queen’s and lord treasurer’s remembrancer on behalf of the crown : (e.) The sheriffs and their substitutes shall have all juris- diction, power, and authority necessary for giving effect to these provisions. (5.) Description of offences—In any information or com- plaint under this Act it shall be sufficient to describe the offence in the words of this Act, and no exception, exemp- tion, proviso, excuse, or qualification accompanying the description of the offence in this Act need be specified or negatived, (6.) Appeals in England or Ireland. —In England or Ire- land any party may appeal from any order or conviction made by a court of summary jurisdiction on determining any complaint or information under this Act as follows : (a.) The appeal shall be made to some court of general or quarter sessions for the county or place in which the cause of appeal has arisen, holden not less than fifteen days and not more than four months after the decision appealed from : (b.) The appellant shall within seven days after the cause of appeal has arisen give notice to the other party and to the court of summary jurisdiction of his intention to appeal, and of the ground thereof : (c.) The appellant shall immediately after such notice enter into a recognizance before a justice of the peace in the sum of ten pounds, with two sufficient sureties in the sum of ten pounds, conditioned personally to try such appeal, and to abide the judgment of the court thereon, and to pay costs if awarded: 39 & 40 Vict. Cap. 45, s. 20. 181 (d.) Where the appellant is in custody, the justice may, on the appellant entering into such recognizance as aforesaid, release him from custody : (e.) The court of appeal may adjourn the appeal, and upon the hearing thereof may confirm, reverse, or modify the decision of the court of summary juris- diction, or remit the matter to such court with the opinion of the court of appeal thereon, or make such other order in the matter as the court thinks fit : (/.) If the matter he remitted to the court of summary jurisdiction such court shall thereupon rehear and decide the information or complaint in accordance with the opinion of the court of appeal (a). (7.) Appeals in Scotland.—In Scotland any person may appeal from any order or conviction under this Act to the Court of Justiciary, or any circuit court thereof, under or in terms of the Act of the twentieth year of his Majesty King George the Second, chapter forty-three, or under any Act amending that Act or applying or incorporating its provisions with regard to appeals, or to the Court of Jus- ticiary in Edinburgh under or in terms of “ The Summary Prosecutions Appeals (Scotland) Act, 1875” (5). 20. Regulation of proceedings in county courts.—Proceed- ings under this Act by and before the judges of county courts may be regulated in Scotland by any acts of sederunt of the Court of Session, and in Ireland by any orders made by the Lord Chancellor, and until otherwise provided are regulated by such rules and orders and acts of sederunt as may be in force at the commencement of this Act. file registrar and high bailiffs of the county courts shall be remunerated for the duties to be performed by them (a) Further as to the procedure in England on appeals, sec the Summary Jurisdiction Act, 1879. (5) These provisions are similar to those of the Friendly Societies Act, 1875. For the County Court Orders m force in England, see Note I., Appendix. 182 39 & 40 Vict. Cap. 45, ss. 21—24. under this Act in such manner as the Treasury, with the- consent of the Lord Chancellor, from time to time orders- and directs (a). 21. Public auditors.—The Treasury may from time to- time appoint public auditors for the purposes of this Act,, and may determine from time to time the rates of remune- ration to be paid by societies for the services of such auditors; but the employment of such auditors is not compulsory on any society (a). 22. Fees.—The Treasury may determine a scale of fees to be paid for matters to be transacted or for the inspection of documents under this Act. All fees which may be received by any registrar under or by virtue of this Act shall be paid into the receipt of Her Majesty’s Exchequer (a). 23. Regulations to be made for carrying out the Act.—The Treasury may from time to time make regulations respect- ing registry and procedure under this Act, and the forms to be used for such registry, and the duties and functions of the registrar, and the inspection of documents kept by the registrar under this Act, and generally for carrying this Act into effect. All -such regulations shall be laid before both houses of j>arliament within ten days after the approval thereof if parliament is then sitting, or if not then sitting, then within ten days from the then next assembling of parliament. Until otherwise provided, the forms contained in the fourth schedule to this Act shall be used (a). 24. Evidence of documents.—Every instrument or docu- ment, copy or extract of an instrument or document, bearing the seal or stamp of the central office, shall be received in evidence without further proof; and every document pur- porting to be signed by the chief or any assistant registrar, (a) See note (6), p. 181, ante. 39 & 40 Yict. Cap. 45, ss. 25, 26. 183 or any inspector or public auditor under this Act, shall, in the absence of any evidence to the contrary he received in evidence without proof of the signature (5). 25. Duties of the registrars.—Sub-sections six, seven, eight,, and nine of the Friendly Societies Act, section ten, relating to the duties of the chief registrar and assistant registrars, shall, so far as the same are applicable to industrial and provident societies, he deemed to he incorporated with this Act (c). 26. Application of Act to Channel Islands.—With re- spect to the Channel Islands this Act shall he varied as follows : 1. As respects the island of Jersey, the following pro- visions shall have effect: (a.) The term “ county court ” shall mean the court for the recovery of petty debts, in all cases in which the claim or demand shall not exceed the sum of ten pounds sterling, and in all other cases the inferior number of the royal court of the said island, composed of the bailiff and two jurats of the said court : (b.) The term “court of summary jurisdiction” shall have in civil cases the same meaning as the term county court: (c0 All misdemeanors under this Act shall he prosecuted, tried, and punished in the form and manner prescribed by the law and custom of the said island with respect to crimes and offences (crimes et delits~) : (d.) All other offences and all penalties under this Act shall be prosecuted and recovered summarily be- fore the magistrate of the court for the repression of minor offences, in all cases of his competency, at the suit or instance of the bailiff of the parish in which the offence or other unlawful act shall (b) See note (b), p. 181, ante. (c) See pp. 56—58, ante. 184 39 & 40 Vict. Cap. 45, s. 26. have been committed, and in all other eases before the bailiff and two jurats of the royal court, at the suit or instance of B>r Majesty’s Procurator General for the said island : (e.) All penalties recovered under this Act shall be paid to the officers who by the law and practice of the said island are entitled to receive fines levied by order of the said courts respectively, and shall by such officers be accounted for and paid to Her Majesty’s Receiver General in the said island on behalf of the Crown : •{/.) The powers conferred under this Act on two justices shall be exercised by the inferior number of the royal court of the said island : (g.) Clause nineteen of this Act, and the term “ Summary Jurisdiction Acts,” shall not apply to the said island, but all proceedings under this Act in any of the courts of the said island shall be regulated according to the ordinary practice of such courts respectively, and all penalties shall in default of payment be enforced in the same manner as fines payable to the Crown in the said island : (7i.) The rules prescribed by the law of the said island with respect to appeals in civil and criminal cases shall be followed as to appeals from any orders, judgments, or convictions made in cases of sum- mary jurisdiction under this Act : (i.) The terms “the Companies Acts” and “the Com- panies Act, 1862,” shall be taken to mean the law which from time to time is in force in the said island for the formation, regulation, and winding up of companies : 2. As respects the bailiwick of the island of Guernsey : («.) The court of primary instance within the bailiwick shall have all such powers and authorities as are by this Act conferred either on justices of the peace or on judges of county courts in Eng- land : Provided that a sentence may be appealed from if the case admits of an appeal, under the 185 39 & 40 Vict. Cap. 45, s. 26. Orders in Council now in force witliin the baili- wick, hut that the decision of the royal court when sitting in a hody as a court of appeal shall he final: •(b.) When any sum of money becomes payable on the death of a member, such sum of money shall, in default of any direction or nomination such as is contemplated by this Act, be paid to the deceased member’s legal representative, according to the law of Guernsey : (c.) All industrial and provident societies within the bailiwick shall be authorized to invest any part of their funds in the state bonds either of Guernsey or Alderney : (d.) The term “the Companies Act” shall mean the law for the time being in force in the said bailiwick for the regulation and winding up of companies : (e.) All offences and penalties under this Act shall be prosecuted and recovered summarily before the court of primary jurisdiction at the suit or instance of the law officers of the Crown or of a constable of a parish : . {/.) All penalties recovered under this Act shall be paid to the Receiver General, to be by him carried to the account of the Crown revenue (a). (a) This section is new, and is adopted from section 41 of the Friendly Societies Act, 1875. See p. 116, ante. 18a 39 & 40 Vict. Cap. 45, s. 20. SCHEDULES. SCHEDULE I. Acts and Enactments 'Repealed. Date of Act. Title of Act. Extent of Repeal. 25 & 26 Vict. c. 87. An Act to consolidate and amend the Laws relating to Industrial and Provident Societies. The whole. 30 & 31 Vict. c. 117. An Act to amend the Indus- trial and Provident So- cieties Acts. The whole. 34 & 35 Vict. c. 80. An Act to explain and amend the Law relating to In- dustrial and Provident So- cieties. The whole* SCHEDULE II. Matters to be provided for by the Rules of Societies Registered under this Act. 1. Object, name, ancl place of office of the society. 2. Terms of admission of the members, including any society or company investing funds in the society under the provisions of sub-section (4) or sub-section (5) of sec- tion 12. 3. Mode of holding meetings and right of voting, and of making, altering, or rescinding rules. 4. The appointment and removal of a committee of management, by whatever name, of managers or other officers, and their respective powers and remuneration. 187 39 & 40 Vict. Cap. 45, s. 26. 5. Determination of tlie amount of interest, not exceed- ing two hundred pounds sterling, in the shares (a) of the society which any member other than a registered society may hold. 6. Determination whether the society may contract loans or receive money on deposit subject to the provisions of sub-section (2) of section 10 of this Act, from members or others ; and if so, under what conditions, on what security, and to what limits of amount. 7. Determination whether the shares or any number thereof shall he transferable ; and if it be determined that the shares or any number thereof shall be transferable, provision for the form of transfer and registration of the shares, and for the consent of the committee thereto ; and if it be determined that the shares or any of them shall be ■withdrawable, provision for paying the members the balance due thereon on withdrawing from the society (b). 8. Provision for the audit of accounts. 9. Determination whether and how members may with- draw from the society, and provision for the claims of executors, administrators, or trustees of the property of bankrupt members, and for the payment of nominees in the case herein mentioned. 10. Mode of application of profits. 11. Provisions for the custody, use, and device of the seal of the society, which shall in all cases bear the re- gistered name of the society. 12. Determination whether and by what authority, and 111 '"’bat manner, any part of the capital may be invested. (a) Section 6 of the Act (see p. 151, o»/eb limits the interest Of a member (other than a registered society) m the funds of the society to 2001. sterling. , _ . > (4) From this it appears that the same shares cannot ho hotli transferable and -withdrawable. 151, ante), limits the interest 188 39 & 40 Vict. Cap. 45, s. 26. SCHEDULE III. Fokm of Statement to be made out by a Society CARRYING ON THE BUSINESS OF BANKING. 1. Capital of the society :— (a.) Amount of each share. (6.) Number of shares issued. (c.) Amount paid up on shares. 2. Liabilities of the society on the first day of January (or July) last previous : — («.) On judgments. (5.) On specialty. (c.) On notes or bills. (d.) On simple contract. I(e.) On estimated liabilities. 3. Assets of the society on the same date :— (a.) Government securities (stating them). (b.) Bills of exchange and promissory notes. (c.) Cash at the bankers. (d.) Other securities. Form of Bond. (1.)—In England or Ireland. Know all men by these presents, that we, A.B., of , one of the officers ot the Society, Limited, established at , in the county of , and G.D., of (as surety on behalf of the said A.B.), are jointly and severally held and firmly bound to the said society in the sum of , to be paid to the said society, or their certain attorney, for which payment well and truly to be made we jointly and severally bind our- selves, and each of us by himself, our and each of our heirs, executors, and administrators, firmly by these presents. Sealed with our seals. Dated the day of > in the year of our Lord , 189“ 39 & 40 Vict. Cap. 45, s. 26. Whereas the above-bounden A.B. has been duly ap- pointed to the office of of the Society (a), established as aforesaid, and he, together with the above- bounden G.D. as his surety, have entered into the above- written bond, subject to the condition hereinafter contained: Now, therefore, the condition of the above-written bond is such, that if the said A.B. do render a just and true account of all moneys received and paid by him on account of the- said society, at such times as the rules thereof appoint, and do pay over all the moneys remaining in his hands, and assign and transfer or deliver all property (including books and papers) belonging to the said society in his hands or- custody to such person or persons as the said society or the committee thereof appoint, according to the rules of the said society, together with the proper and legal receipts or vouchers for such payments, then the above-written bond shall be void, otherwise shall remain in full force. Sealed and delivered in the presence of [two witnesses.'] (2.)—In Scotland. I, A.B., of hereby bind and oblige myself to. the extent of £ at most, as caution and security for G.D., a person employed by the Society (a),. that he the said G.D., shall on demand faithfully and truly account for all moneys received and paid to him for behoof of the said society, and also assign or transfer or deliver all property (including books and papers) belonging to the said society in his hands or custody, and that to such person or persons as the said society or the committee thereof appoint- aecording to the rules of the said society. Dated at this day of Signature of Cautioner. E.F. of witness. G.H. of witness. The above bond shall not require a testing clause or sub- scription clause, and may be wholly written or wholly printed, or partly written and partly printed. ('a) Sic. The word “ limited” should be added. 190 39 & 40 Vict. Cap. 45, s. 26. Form op Receipt to be endorsed on Mortgage or Further Charge (a). Tlie Society, Limited, hereby acknowledge to have received all moneys intended to he secured hy the •within [or above] written deed. Signed [Two members of the committee.'} Countersigned [Signature of Secretary.} Secretary. SCHEDULE IV. Acknowledgment op Registry op Society. The Society, Limited, is registered under the Industrial and Provident Societies Act, 1876, this day of [>Sect£ or stamp of central office, or signature of Assistant Registrar for Scotland or Ireland.} Acknowledgment op Registry op Amendment op Rules. The foregoing amendment of the rules of the Society, Limited, is registered under the Industrial and Provident Societies Act, 1876, this day of [Seal or stamp of central office, or signature of Assistant Registrar for Scotland or Ireland.} (a) By 34 & 35 Vict. c. 80, s. 3, the form of receipt was to be specified in the Rules or a Schedule thereto. A society may now specify hy its Rules or Schedule a form different to the above. 43 Vict. Cap. 14, s. 8. 191 43 VICT. Cap. 14, s. 8. Customs and Inland Revenue Act, 1880. “ Notwithstanding the provisions contained in sub-sec- lion 4 of section 11 of the Industrial and Provident Societies Act, 1876, a society registered under that Act shall be chargeable to the duties of income tax, under Schedule (C.) and Schedule (D.), in case the society sells to persons who are not members thereof, and the number of the shares of the society is limited either by its rules or practice.” APPENDIX. I. NOTES OE CASES, &c. The Acts set forth in Parts I. and III. having repealed the previous statutes, it is thought convenient to state here, under suitable heads, the principal cases decided under those statutes, and their application to the new Acts— A. Note to Section 8 of the Friendly Societies Act, 1875. By this section friendly societies may he registered, pro- viding for relief “during sickness or other infirmity, whether bodily or mental.” It will still be open to societies, if they think fit, to restrain the payment of sick pay to cases not involving mental infirmity, but that must be done by express provision in a rule. Where nothing is said to the contrary in the rules, a society is liable to pay sick allow- ance in cases of insanity. This is shown by the following case, determined under 18 & 19 Yict. c. 63 :— Burton, app., Eyden, resp. Friendly Society—“ Sickness”—Insanity. [Law Eep. 8 Q. B. 295.] By the rules of a friendly society, after payment of a year’s subscription, any member sliali receive 8s. per week during any sickness or accident that may befall him, unless by rioting or drunkenness:—Held, that insanity was “sick- ness” within the meaning of the society’s rules. Case stated by the justices of Northamptonshire under 20 & 21 Viet. c. 43. APPENDIX OF CASES. 193 Aii information was preferred by the appellant (as parent and next friend of Samuel Burton, a member of the Stoke Bruern Friendly Society), against the respondent, as secre- tary of the society, for that Samuel Burton, a member of the society, was then insane, and an inmate of the North- ampton General Lunatic Asylum, and, as such, sick, and entitled to relief from the society, which relief has been refused to him. At the hearing, on the 2nd of July, 1871, a copy of the rules was put in, of which the following axe material:— On the first page was the preamble ; “ Whereas it is a laudable custom in Great Britain, for divers artists and other [well] disposed persons to meet and form themselves into societies for the relief of such members as by illness or accident shall not be able to work at their usual employment; it is therefore agreed by us, rrho have entered our names in a book and subscribed, as follows:— “ Rule 11. That if any member remove from his present place of abode to any part of England, he shall be allowed two months to send his contribution money in, or forfeit Is. 6d., hut if he neglect to send it in three months he shall be excluded. And if the person absent shall duly send ms contribution, and be there taken sick and unable to work at his trade, he shall send a certificate signed by the minister, churchwarden, and doctor of the parish where he resides, certifying how long he hath been ill, and what his disorder is. But if such member’s illness shall continue mr more than a month, he shall send a certificate every month as above, and on the receipt of such certificate he shall receive his money the same as if he were present. “Rule 13. That no member shall be entitled to any benefit from this society until one year has expired from he day of his entrance, and all his contributions, &c., to -.‘at time be cleared off; he shall then receive 8.s. per week < uring any sickness or accident that may befall him, unless ? .n°ting or drunkenness (the venereal' disease excepted), _,UC l shall be carried to him by the stewards weekly; 1° are required to visit and inquire after the state of the ■ iclv, tor which they shall receive 3d. per mile from the. jox for their trouble; and accordingly make their report Is society> m case °f failure, to forfeit for each offence „ * Rule 32. That if any member shal1, by quarrelling,, (gating, wrestling, or any other unlawful cr needless exer- c,lse mil into either sickness, lameness, or blin ’ness, &c., he ■s mil not be allowed the benefit of this society.” K 194 APPENDIX OF CASES. The justices being of opinion that insanity was not a sickness which entitled the members to relief from the society under its rules, dismissed the summons. The question for the court was, whether the above facts justified a dismissal of the summons or not. Metcalfe, Q.C., for the appellant, contended that insanity was sickness within the rules of the society. He referred to Rules 11 and 13, and cited Reg. v. Manchester {a). Quain, J., referred to the preamble of the rules. The court called upon Edmund Thomas, for the respondent. He referred to the terms of the Act 18 & 19 Viet. c. 63, s. 9, sub-sect. 2, “old age, sickness, or widowhood; ” and cited Reg. v. Hudders- field (h). In Reg. v. Manchester (a) and Hunslet v. Dews- bury (c), lunacy was assumed by the court not to be sickness. Blackburn, J.—I am of opinion that lunacy is sickness within the meaning of the rules of this society. If we look at the terms of the Acts (d) they speak of sickness, old age, and widowhood, and it is quite clear that mere temporary sickness is not what is contemplated; and I see nothing in the rules themselves that confines the relief to temporary illness; and Buie 11 shows that the society contemplated relief at all events that would not be temporary, but might last over months. Insanity depends on the state of mind and body of the person. The poor law cases proceeded on Acts passed with a different object from that of friendly societies, by which it was enacted that a pauper should not be removed if his chargeability were owing to such sickness or accident as would primd facie be only temporary ; and the question arose whether insanity came within the meaning of sick- ness for this purpose, but no absolute decision has been .come to, though it seems to have been assumed that lunacy \was sickness. It certainly seems to me that lunacy is a isickness affecting the health of the body in such a way as (a) 6 E. & B. 919; 26 L. J. (M. C.) 1. (J) 7 E. & B. 794, at p. 798; 26 L. J. (M. C.) 169. ,(c) 26 L. J. (M. C.) 3 (n.) {d) See 10 Geo. 4, c. 56, s. 2; and 18 & 19 Viet. c. 63, s. 9, :sub-sect. 2. APPENDIX OF CASES. 105 to prevent a man’s ability of earning liis livelihood. If it were not the intention to include it, the rules of the society -should be framed so as expressly to exclude it. Quain, J.—I am also of opinion that insanity is sick- ness within the society’s rules. The preamble of the rules is wide enough to include it; the words of Rule 13, en- titling the member to relief, are “ during any sickness or accident,” except certain excluded cases, insanity not being one. There is nothing to show that temporary illness only was contemplated; and if we look at Rule 32, that seems to show that blindness was intended in general to be included, as it exempts it in particular cases, and blind- ness is certainly not temporary in most cases. Archibald, J., concurred. Case remitted to the justices accordingly. The following extract from the judgment of Mr. Serjeant Wheeler in the Liveipool County Court in a case of Church v. The Great Southern Sick and Burial Society, is interesting, as showing the medical aspect of the question whether insanity is or is not bodily sickness:—It is ne- cessary in considering the question to bear in mind the natural and essential relations of mind and body. Every manifestation of mind in this life is made by and through its bodily organ, the brain, and the mind is so influenced by the brain that the condition of the former is an invariable index to the constitution and condition of the latter. Hence all causes of temporary or permanent disturbance in the health of those parts of the brain that manifest the mind produce in the same degree the signs of mental derangement, and vice versd all symptoms of mental derangement indicate a proportionate disturbance in the sanitary state of the mind’s bodily organ, the brain. Some years since when it rvas a common circumstance to examine the brain with the aid only of the naked eye, it was not possible in many cases to discover those lesions of brain structure which produce and accompany insanity. But now, by the recent application of the microscope, the minute structure of the brain is revealed, and pathologists can trace distinctly the very seat and nature of those morbid changes which are the real essence of insanity. Hence Schroeder van der Kolk, an eminent German anatomist, says K. 2 196 APPENDIX OF CASES. that “ lie does not remember to have performed the dissec- tion of one lunatic during the last twenty-five years with- out finding a satisfactory explanation of the phenomena observed during life,” If we glance back to the year 1831, when Dr. Andrew Combe published his work on mental derangement, we find this principle laid down:—“ Every derangement of function is accompanied by disorder either in the structure or mode of action of the organ which per- forms it, and without the removal or cure of which the function cannot be restored to its healthy state.” The same author observes:—“ Sight is never impaired or hearing de- stroyed unless the organs which execute these functions are diseased, and in like manner thought and feeling are never deranged unless the cerebral organs by which they are manifested have undergone some morbid change.” The latest expression of authoritative opinion upon this subject is by Dr. Maudesly, in his Gulstonian lectures, “on the relations between body and mind,” delivered this year at the Royal College of Physicians. That gentleman thus speaks:—-“I have given a survey of the physiology of our mental functions, showing how indissolubly they are bound up with the bodily functions, and how barren must of necessity bo a study of mind apart from body. I now propose to show that the phenomena of mental derangement bear out fully this view of its nature, that we have not to deal with disease of a metaphysical entity which the method of inductive inquiry cannot reach, or the resources of medical art touch, but with disease of the nervous system disclosing itself by physical and mental symptoms.” It seems then that the question in this case is concluded both by reasoning and medical testimony, and it appears to me that insanity is just as much bodily disease as paralysis and apoplexy, which are notoriously affections of the brain, and therefore admitted to be bodily disease. It has been suggested, I see, in the Lancet that in cases of insanity the right of relief out of the sick fund ought, on account of the usually chronic character of the malady, to be made subject to a special limit in point of time. * That matter I leave to others to whom its decision properly belongs. All that remains for me to do is to give effect to the conclusion to which, after much consideration, I have come, and to direct that a verdict be entered for the plaintiff for the sum claimed” («). (a) I am indebted to my friend Mr. W. U. Whitney, surgeon, for kindly revising the report of this decision, which originally- appeared in the Liverpool Mercury for 12th July, 1870. APPENDIX OP CASES. 197 B. Eote to Friendly Societies Act, 1875, s. 13; Indus- trial and Provident Societies Act, 1876, s. 9. By this section it is provided that no amendment of a Tule shall he valid until it has been registered. This is in conformity with the law as previously declared. In Battey v. Townrow, 4 Camp. 5, it was held that an action could not be maintained by the trustees of a friendly ■society elected under new regulations agreed to by the members, but not confirmed according to the statute. Per Lord Ellenborough (Easter Term, 53 Geo. 3):—“The plaintiffs have no right to stand here, except by the Act of Parliament, and the Act of Parliament gives them no such right, unless they be lawfully elected to the office they fill; but it appears they were elected contrary to law. The section (33 Geo. 3, c. 54, s. 3) which permits an alteration of rules provides that such alteration shall be subject to the review of the justices, and shall have no force or effect until confirmed by them. I cannot look, therefore, at the rule altering the mode of electing the stewards. It is ad- mitted that the plaintiffs were not elected according to the original rule; therefore they are not the legal trustees of the society for the time being, and the effects sought to be recovered never vested in them.” In Beg. v. Godolphin, 8 A. & E. 338, it appeared that cer- tain alterations were made in the rules of a friendly society ■established under the 33 Geo. 3, c. 54. The altered rules, however, were never enrolled, and it was held that the rules as altered could not legally be acted upon ; and in giving judgment Lord Denman said it would be well if it were generally understood that these societies cannot depart Lom their established rules, or neglect to comply with the statute in the mode of altering or repealing them without •exposing their property to danger, and themselves to great expense, loss, and inconvenience. A doubt was also enter- tained as to whether the original rules continued in force even for the purpose of holding the society legal under the statute, in consequence of the case of Ex parte Norrish, Jac. 162. In the case of Beg. v. Gotton, 15 Q. B. 569 ; 19 L. J. (n.s.) Q. B. 233, where the rules had been approved accord- 198 APPENDIX OF CASES. ing to the 33 Geo. 3, c. 54, and alterations made therein but not properly enrolled, and it was contended that the original rules were no longer in existence, the court held otherwise, and in giving judgment, said:—“The society rvas duly enrolled; how has it ceased to be so? Alterations have been made from time to time, but not properly; and that being so, the society must still be considered a friendly society within the 33 Geo. 3, c. 54. This case is very dif- ferent from II. v. Godolphin, there the rules were regularly altered, and a new set adopted. It is too much to say that from the time the new rules were improperly made the society ceased to be; if that is not so, it subsisted under the rules which were enrolled; the objection to the new rules may be got rid of by having them enrolled. The question of agreement is met by the fact that the rules of the society could only be altered by certain proceedings which were- ineffectually taken.” In Meredith v. Whittingliam, 1 0. B. (n.s.) 216, where a society had enrolled its rules under the 10 Geo. 4, c. 56, and shortly afterwards had framed new rules, which were never enrolled or certified, it was held that the society was- a subsisting society under the original rules, by virtue of 18 & 19 Viet. c. 63, s. 2 [to which sect. 6 of the Friendly Societies Act, 1875, is similar]. Dewhurst and others v. Clarkson, 3 E. & B. 194.—Where an amendment of the rules of a friendly society had received, the barristers certificate, under 4 it 5 Will. 4, c. 40, s. 4,. such amendment was valid, though there had been no resolu- tion of the society in compliance with 10 Geo. 4, c. 56, s. 9, or with the rules of the society incorporating that section.— Per Lord Campbell, Coleridge, and Wightman, JJ.; dis- sentiente, Erle, J. The rules of a society directed that three trustees should, be appointed, of whom one should be the treasurer, in whose name the funds of the society should be invested, and that the treasurer should invest the unappro- priated stock exceeding £50 as the board, of management should direct, pursuant to 13 ct 14 Viet. c. 115. Three trustees rcere elected, but a fourth person ivas elected trea- surer :—Held, that the three trustees could not sue a former treasurer for the balance in his hands under these rules, and that they had no title to do so under 10 Geo. 4, c. 56, or 13 cfc 14 Viet. c. 115, ivhich were prior to the rules talcing' effect. On the trial of this action, which was for money had and APPENDIX OF OASES. 199 received by the defendant to the use of the society, it appeared that the society had been established as early as 1825, and had, till 1853, been governed by a set of rules duly certified. By one of the rules a treasurer was to be appointed, and by another rule provision was made for making alterations, which rule incorporated the 9th section of 10 Geo. 4, c. 56. Under these rules the defendant was appointed treasurer, and nothing had occurred to put an end to his tenure of such office, unless the circumstances after mentioned had that effect. In 1853 a set of new rules was transmitted to the barrister, with an affidavit that, in malting of them, the provisions of the Act under which the rules of the society were enrolled had been duly complied with. The new rules were duly certified, but it afterwards appeared that they had been drawn up and transmitted without any such meeting having been held as was pre- scribed by the old rules and 10 Geo. 4, c. 56, s. 9. By the new rules three trustees were to be appointed, one of whom should be treasurer, in whose names the funds of the society were to be invested. And whenever the unappropriated stock amounted to above .£50, the same was to be invested by the treasurer as a majority of the board of management should direct, and pursuant to the 13 & 14 Viet. c. 115. After the enrolment of the new rules, the three plaintiffs were elected trustees, according to the regulations therein prescribed, except that no one of them was treasurer, but that another person, named Thomas Grune, was elected treasurer. It was admitted on the part of the defendant that he had received the money claimed on behalf of the society ; but it was contended for him that he continued treasurer, and that the plaintiffs were not legally appointed trustees. For the plaintiffs it was admitted that the action must fail, unless the plaintiffs could establish their title under the new rules ; and it was further admitted that the new rules had not been made in conformity with the old rules ; but it was contended that the registrar’s certificate was conclusive as to the validity of the new rules, and that rt was not open to object that they were not regularly adopted in the manner prescribed in the old rules. The learned judge was of opinion that the certificate was not conclusive, aud he directed a verdict for the defendant j but it was afterwards arranged that the plaintiffs should be nonsuited, with leave reserved to enter a verdict for them. For the defendant it was further objected that the plaintiffs were notentitled to sue, even supposing the new rules valid, inasmuch as the 12th of those rules directed that one of the three trustees should be treasurer, and none of the rules 200 APPENDIX OP CASES. vested the money in a trustee not being treasurer. It ivas agreed that the defendant should be allowed to raise this point upon showing cause against the rule to be moved for. In Michaelmas term, 1853, Atherton obtained a rule for setting aside the nonsuit and entering a verdict for plaintiff. Against the rule cause was shown by Watson, Q. C., and Row ; Atherton and Cowling, contra. Lord Campbell, C. J.—My brothersCoLERiDGEand Wight- jian concur in the opinion which I am about to pronounce ; my brother Erle differs from us. During the argument I entertained considerable doubt respecting the point on which the rule was granted, but, after looking into the statutes on which it depends, I think that the objection taken to the plaintiffs’ right to sue was not open to defen- dant, the 4 & 5 Will. 4, c. 40, s. 4, having enacted that all rules, alterations, and amendments thereof, from the time when the same shall be certified by the said barrister to whom they were submitted, shall be binding on the several members and officers of the said society and all other persons having interest therein. The intention of the legislature seems to have been to give the like effect to the certificate of the barrister under 4 & 5 Will. 4, c. 40, s. 4, as was given to the confirmation by the sessions under 10 Geo. 4, c. 56, s. 8. I cannot doubt that when rules had been so confirmed and made binding, a member could not have questioned the regularity of the manner in which they were made. Under 4 & 5 WilL 4, c. 40, s. 3, a new process for confirming the rules is given, but the object still was to make them bind- ing. If, notwithstanding the precaution taken, any rule has been certified by the barrister which was not regularly made, a remedy would be open to a member who disap- proves of it by moving its repeal or modification, and if there be a majority of the society who agree with him, the wrong would be redressed. The defendant’s counsel admit that the certified rule is primd facie valid ; but great mischief might arise if this were only a presumption to be rebutted, as then in every case where a rule is to be enforced evi- dence might, without notice, be given of some alleged irregularity in making it. I cannot doubt that it would be for the general benefit of the friendly society that the rules, when certified, should be considered binding till repealed or altered ; and the language used by the legis- lature seems to me fairly to bear this construction. I therefore think that the nonsuit cannot be supported on this ground. Al’PENDIX OP CASES. 201 Erle, J. (after reviewing all the enactments at length).— The words of the section, (a) the purview of the statute, the provisions of other statutes in pari materid, and expediency, lead me to the conclusion that the certificate of the barrister hoes not create a rule or amendment, but fixes the time when it becomes operative, and that the defendant is entitled to succeed. Watson and Rew.—The defendant is still entitled to keep the money until his successor is appointed. No good suc- cessor to him has been appointed under the new rules. Atherton and Cowling, contra.—The 12th rule of the society refers to 13 & 14 Viet. c. 115, ss. 12, 13, and intro- duces so much of them as relates to the funds of the society. The treasurer, therefore, is a mere banker of the society ; and the trustees, though not entitled to keep the money, have that legal interest in it which entitles them to sue and maintain the action. Lord Campbell, C. J. —I think the nonsuit ought to stand, the plaintiffs having made out no right to sue. We must now assume that the new rules are binding ; but they have not been pursued. Instead of making one of the three trustees a treasurer, three trustees are appointed, and a fourth person is made treasurer. Supposing the election of trustees to be good, what right have they to claim the money 2 The learned counsel reverted to the Acts of parliament, but they are superseded by the new rules in this respect. And under 13 & 14 Viet. c. 115, money does not, before it is invested, vest in trustees of whom no one is treasurer (b). Coleridge, J.—I am of the same opinion. The plaintiffs were, I think, well appointed trustees ; till then the money Was clearly in the treasurer. Then, how does it come to the trustees ? One suggestion rather surprised me—-that the sim- ple election of the trustees gave them the funds of the society. In all the Friendly Societies Acts you find clauses directing (a) The arguments of the learned judge are not applicable to the provisions of the Act of 1875. (5) Under sect. 16, (3) of the Friendly Societies Act, 1.875, however, all property of a society vests in its trustees, who have the right under sect. 20 to call upon every officer to render an account and to pay over all moneys to such person as they appoint. .202 APPENDIX OF CASES. the money to be invested in the names of the trustees : how could their mere appointment give them what is in other hands 2 Then, as to the new rule 12, the treasurer is to invest, if the sum in his hands exceed £50. Till the invest- ment, therefore, the money must he in his hands. The provisions of 10 Geo. 4, c. 56, do not interfere with this view. According to them the money is to be in the hands of a single person, called indifferently treasurer or trustee. The essence of the provision is, that the person who is really treasurer has the custody of the money. Then reliance is placed on 13 & 14 Yict. c. 115, but the new rules would supersede the provisions there—though, indeed, I think that sect. 13, compared with sect. 12, gives the trea- surer the custody of the money till it is invested. Wightman, J., and Erle, J., were of the same opinion. Rule discharge!1- With regard to the effect of these cases, it is to be borne in mind that by the present Acts, an acknowledgment of registry is conclusive evidence that the society is registered, unless it be proved that the registry has been suspended or cancelled, and so also an acknowledgment of registry of an amendment of rule in conclusive evidence that such amend- ment is duly registered. C. Note to Friendly Societies Act, 1875, s. 14. By this section every registered society is required to> appoint trustees, and send to the registrar a copy of the resolution of appointment. To this it would seem the principle ot the following case is applicable :— Beckett v. Willett, 5 W. R. 622.—Where trustees of a friendly society, established under 13 d- 14 Viet. c. 115, ivere appointed after 18 <£- 19 Viet. c. 63, had become law, held, that it was not necessary to send to the registrar the resolution appointing the trustees, and that such trustees viere liable to be sued for the debts of the society incurred before their ap- pointment. This was an action upon a printer’s bill brought against the defendants as trustees of a friendly society duly regis- tered and certified May 28, 1855, when 13 & 14 Yict. c. 115, was law. No trustees were appointed until March4,1856, APPENDIX OF CASES. 203 when by a resolution of the society, the three defendants were appointed trustees. At that time the 18 & 19 Viet, c. 63, repealing 13 & 14 Viet. c. 115, had become law, and no notice of the resolution was given to the registrar of friendly societies. At the trial it was argued for the defen- dants, that by the society’s rules, and 13 & 14 Viet. c. 115, s. 13, the resolutions appointing the trustees ought to have been transmitted to the registrar to make the appointment valid, and this not having been done, this action would not lie; and moreover as to £44, part of the claim, the defendants could not be liable, because it was for expenses incurred before their appointment; the plaintiff had a ver- dict, leave being reserved to move for a nonsuit. A rule nisi having been obtained. Atherton, Q. 0., and Day, showed cause. Hawkins and Lewis, contra. Lord Campbell, C. J.—At the trial I considered the only serious objection to be, that no notice of appointment of trustess had been transmitted to the registrar, but that difficulty is now got over; 13 & 14 Viet, was repealed before the appointment, and 18 & 19 Viet, confers the power of appointing trustees without the condition of send- ing the resolutions to the registrar. I think, therefore, that these defendants were duly appointed trustees, and are liable to be sued for the whole debt. Wightman, Erle, and Crompton, J.J., concurred. Eule discharged. It is to be borne in mind, however, that the society, neglecting to send a copy of a resolution appointing a trustee to the registrar, commits an offence under the Act, and that sect. 16 (10) exempts the trustees from personal liability. D. Note to Friendly Societies Act, 1875, Section 15, Sub-section 2. By this, section societies registered under the Friendly Societies Acts (except indeed specially authorized societies* as regards which the Treasury usually limit the application of the Acts so as not to include this privilege) are entitled, to certain exemptions from stamp duty. The documents; exempted are more clearly set forth than in previous. Acts;, 204 APPENDIX OF CASES. and the principle established by the following case is applic- able :— In the matter of the Royal Liver Friendly Society L. R., 5 Exch. 78.—Stamps; exemption from duty; friendly society; investment of the funds of a friendly society in securities; 18 cfc 19 Viet. c. 63, s. 37. The Friendly Societies Act (18 <£■ 19 Viet. c. 63, s. 37) does not exempt from stamp duty securities on which the funds of a friendly society are invested. Case stated by the Commissioners of Inland Revenue under 13 & 14 Viet. c. 97, s. 14, on an appeal against their decision as to the liability to stamp duty of a deed, trans- ferring to the trustees of “ The Royal Liver Friendly Society” a mortgage of £1,100, the transfer containing a declaration that the money was advanced out of the funds of the society. The commissioners, whose opinion was requested under 13 & 14 Viet-, c. 97, s. 14, and 16 & 17 Viet, c. 59, s. 13, charged a duty of os. 6d., ad valorem (under 28 & 29 Viet. c. 96, s. 17), and 5s. 6d. progressive duty, and from this decision the trustees appealed. The society was one established previously to, but then regulated by, 18 & 19 Viet. c. 63, which amended and consolidated the law relating to friendly societies, and the trustees claimed exemption from stamp duty under sect. 37. By their 9th rule, it is one of the duties of the committee of management to negotiate all money transactions, order and direct how, when, and upon what security the funds of the society shall be invested, and execute all the powers vested in them by 18 & 19 Viet. c. 63 (ss. 17-19). Kelly, C. B.—The Act exempts from duty all docu- ments required or authorized by the rules of the society, and no doubt the society by its rules authorizes the trustees to invest their funds in mortgages of real estate. But the question is whether, looking at the whole of sect. 37, it only exempts documents required or authorized for the purpose of carrying on the internal affairs of the society, or required or authorized for the purpose of bringing the society into a position to carry on business with the outside world, or whether it also exempts all documents which may become necessary in the course of carrying out that business. We should have expected very express and specific language if it had been intended to exempt secu- rities to so large an amount as on this view the statute would include. But on the contrary, when we read the - earlier part of the section we find that the instruments a APPENDIX OP CASES. 205 there enumerated all relate to matters of a comparatively small amount, and are of the character I have mentioned, and the general words must he construed by reference to ■the particular terms which precede them, and must be taken to refer to matters ejnsdem generis with them. But we have had presented to our attention the case of Walker v. Giles, 6 C. B. 662 (a), followed by other cases, in which it was held that the words of the corresponding section of the earlier Act applied to mortgages made to the society by strangers, and were not confined to mortgages by their own members. In that Act, however, the words “nor other security” occurred after the word “bond,” and it is possible, and I am far from thinking it improbable, that those words were omitted by the legislature in consequence of the decision in that case. What the legislature meant was to exempt transactions relating to small sums, and to official ■acts and the conduct of internal business ; they therefore left out the words “ nor other security ” for the purpose of confining the exemption to bonds, and to such bonds as are required in the administration of the society’s affairs. If the transfer of a mortgage to the society is exempt, it is impossible to exclude from the exemption the case of an original mortgage to them, where by universal usage the duty with other cost of conveyance is to be paid not by them but by the mortgagor. It is impossible without clear words to suppose that the legislature can have done anything so mischievous or so contrary to equity as to extend exceptional privileges, not only to the society, but to all those that deal with it. We must therefore either read the words as applicable only to cases where by usage or under the contract the society would have to pay the duty, for which, however, there is no authority, no such limitation being expressed in the Act, or we must read the section as referring to acts, such as a power of attorney, which bring into exist- ence or create the possibility of negotiation, acts which are in a manner exclusively the acts of the society, or of its officers and members in their relation to it and to one another. Martin, B.—I am of the same opinion. It is obvious both from 13 Geo. 4, c. 56, and 18 & 19 Viet. c. 63, that the object of the legislature was to relieve these societies and («) This case related to a Benefit Building Society under 6 & 7 Will. 4, c. 32. 206 APPENDIX OF CASES. their members from stamp duty in respect of documents immediately connected with the society. The conclusion was drawn in Walker v. Giles from the peculiar words of the earlier Act, that its operation was extended to mortgages made to the society, but my impres- sion is that it was never intended that strangers borrowing money of such societies should be put in a different position from other persons. Now I agree that if transfers of mort- gages are exempted, then equally original mortgages are exempted, where according to the universal course of busi- ness the duty is paid not by the lender but by the borrower. But this would be to secure a benefit not to the society but to those who borrow of it. Now, if the words in this section are read in their ordinary meaning, there is no word applic- able to this case; but moreover I think that the words “nor other security” are omitted for the very purpose of prevent- ing this question arising. The Court of Common Pleas had thought that mortgages were within the terms of the pre- vious Act, and it is clear that the words they relied on were those very words which are now left out. Further, my im- pression is that the word “ bond,” which occurs in both the earlier and present section, refers not to a loan or invest- ment of the society’s funds in or upon bonds, such as the harbour bonds of the Mersey Docks, but to bonds given whether with or without security by clerks, agents to receive money, and others as security for their duly accounting or otherwise discharging the functions of their office. That I think also was the nature of the security mentioned in the earlier Act, but a more extensive meaning having been attributed to it, the word was afterwards omitted. Then the question comes to this, whether the words in the latter part of the section, read in conjunction with the instru- ments previously enumerated, where bonds are mentioned,, but securities are omitted, are not to be confined to instru- ments ejusdem cjeneris. I concur in thinking that they are, and that this mortgage was not within the meaning of the section. PictOTT, B.—I am of the same opinion. If this question had arisen under the old Act I should have agreed with the Court of Common Pleas in Walker v. Giles, that giving their fair meaning to the words, they were large enough to. have embraced this mortgage, but I can find no words in the late Act showing an intention to create so wide an exemption, the very words relied on in that case being omitted. The only ground of argument in favour of the exemption is that the words “ any other document what- APPENDIX OP CASES. 207 ever required or authorized by or in pursuance of this Act or the rules of any society,” are even larger than the cor- responding words in the earlier Act, and are sufficiently wide to include this ease. But I agree with my lord and my brother Martin that we must read this language with reference to the preceding words, and that such documents as they have described will satisfy the meaning of the Act- Judgment for the Crown. The arrangement of sub-section 2 of section 15 of the Friendly Societies Act, 1875, would seem to make the matter even less open to doubt; for there the general words “ or other document, &e.,” aye attached to sub-liead (d), which relates to “draft, or order, or form of policy, or appointment, or revocation of appointment of agent,” which are all matters connected with the transaction of the internal business of a society. Note to sect. 15 (4) of the Friendly Societies Act, 1875, and sect. 11 (6) of the Industrial and Pro- vident Societies Act, 1876. TABLE OF DISTBIBUTION. In default of nomination by a member, a society may pay any sum not exceeding fifty pounds on his death intestate, “ without letters of administration, to the person who appears to a majority of the trustees [or in an Industrial and Provident Society, the Committee of Management] upon such evidence as they may deem satisfactory, to he entitled by law to receive the same.” The following is a table of distribution of personal estate of intestates pursuant to 22 & 23 Car. 2, c. 10 ; 29 Car. 2, c. 30 If the Intestate die, His personal Representatives leaving. take as follows:— Wife and child, or children . One-third to wife, rest to child or children; and if chil- dren are dead, then to their representatives (that is, their lineal descendants), except such child or children not heirs-at-law, who had estate by settlement of intestate, in his lifetime, equal to other shares. 208 TABLE OF DISTRIBUTION. If the Intestate die leaving. Wife only . Iso wife or child . ■Child, children, or represen- tatives of them. ■Children hy two wives. If no child, children, or re- presentatives of them. ■Child and grandchild . Husband .... Father, and brother or sister Mother, and brother or sister Wife, mother, brother, sisters, and nieces. Wife, mother, nephews, and nieces. Wife, brothers, or sisters, and mother. Mother only. Wife and mother . , Brother or sister of whole blood, and brother or sister of half blood. His personal Representatives take as follows :— Half to wife, rest to next of kin in equal degrees to in- testate, or their legal repre- sentatives. All to next of kin and to their legal representatives. All to him, her, or them. Equally to all. All to next of kin in equal degrees to intestate. Half to child, half to grand- child, who takes by repre- sentation. Whole to him. Whole to father. Whole to them equally. Half to wife, residue to mother, brothers, sisters, and nieces. Two-fourtlis to wife, one- fourth to mother, and other fourth to neq>hews and nieces. Half to wife (under statute of Car. 2), half to brothers or sisters, and mother. The whole (it being then out of the statute of 1 J ac. 2, c. 17) (a). Half to wife, half to mother. Equally to both. (a) By this statute, sect. 17, “ If after the death of a father, any of liis children shall die intestate, without wife or children, in the lifetime of the mother, every brother and sister, and the representatives of them, shall have an equal share with her.” TABLE OF DISTRIBUTION. 209 If the Intestate die, leaving Posthumous brother or sister, and mother. Posthumous brother or sister, and brother or sister horn in lifetime of father. Father’s father, and mother’s mother. Uncle or aunt’s children, and brother or sister’s grand- children. •Grandmother, uncle, or aunt Two aunts, nephew, and niece Uncle and deceased uncle’s child. Uncle by mother’s side, and deceased uncle or aunt’s child. Nephew by brother, and nephew by half-sister. Brother or sister’s nephew or nieces. Nephew by deceased brother, and nephews and nieces by deceased sister. Brother and grandfather Brother’s grandson, and brother or sister’s daughter Brother and two aunts. Brother and wife . Mother and brother Wife, mother and children of a deceased brother or sister Wife, brother, or sister, and children of a deceased brother or sister. His personal Representatives take as follows :— Equally to both. Equally to both. Equally to both. Equally to all. All to grandmother. Equally to all. All to uncle. All to uncle. Equally per head. Where nephews and nieces, by families and not per head. Each in equal shares per head. AVhole to brother. To daughter. To brother. Half to brother, half to wife. Equally. Half to wife, a fourth to mother, and a fourth by families to deceased’s brother or sister’s children. Half to wife, one-fourth to brother or sister per head, one-fourth to deceased’s brother or sister’s children by families. 210 APPENDIX OP CASES. If the Intestate die, His personal Representatives leaving take as follows:— Brother or sister, and chil- Half to brother or sister per dren of a deceased brother head, half to children of or sister. deceased brother or sister by families. Grandfather and brother , All to brother. A study of the contents of this table may afford to mem- bers of Friendly and Industrial Societies good reason why they should exercise the privilege of nomination, which has been extended to them, and is now so completely un- restrained that the member may nominate any person what- ever, whether related to him or not, with the restriction only that the nominee, if a stranger in blood, is not to be an officer or servant of the society. F. Note to sect. 15, sub-sect. 7 op the Friendly Societies/. Act, 1875. Preference is given to a society on the bankruptcy or insolvency of an officer having in his possession by virtue of his office any money or property belonging to the society, as well as on the death of such officer. This is a provision well characterized by Lord FjLdon {Ex parte Ross, 6 Ves. 802)- as “ very liberal, and perhaps more liberal than just, that all creditors, however meritorious, shall be sacrificed to the demand of a friendly society.” It was believed that the provision of the Bankruptcy Act, 1869 (32 & 33 Viet. c. 71, s. 32) by which all debts provable under a bankruptcy are to be paid pari passu, except rates and taxes, and the wages- of clerks and servants, had operated to repeal the priority of friendly societies given by former statutes, though on this point county court judges had given conflicting deci- sions {Re Matthews, Ex parte the Society of Women, held at the Blacksmith’s Arms, Mynnddislwyn ; County Courts- Chronicle, 1st May, 1872 ; Re Keywortli, Ex parte the Society of Good Samaritans, Lincoln, Law Times, 24th August,. 1872). The statute now expressly restores it. Under the old statutes, the following decisions have been given, and appear still to be applicable :— The circumstance of the society not having audited the treasurer’s accounts, was held not to deprive it of the APPENDIX OF CASES. 211 priority given by this section, and the filing and service of' a hill by the trustees to enforce such right, held to be a demand in -writing within the section : Absalum v. Gethin, 11 W. R 332 ; 32 Beav. 322. The priority of payment applies only to moneys received by an officer by virtue of his office, independent of contract. Thus, it was held upon the construction of 33 Geo. 3, c. 54, s. 10 (similar to this section), that the section did not apply to a debt due from an officer in his individual, and not in his official, character : Ex parte The Amicable Society of Lancaster, 6 Ve3. 98 ; nor to money held by a person not appointed treasurer, or by the treasurer upon notes carrying interest : Ex parte Ashley, 6 Yes. 441 ; Ex parte Ross, Id. 802 ; Ex parte Stamford Friendly Society, 55 Ves. 280 and see Ex parte Buckland, 1 Buck. 514 ; Anon. 6 Mad. 98. Where the treasurer of a savings bank was partner in a bank into which all moneys received by the manager were paid to the credit of the trustees, and interest allowed thereon, it being the custom of the bankers to- allow interest upon deposits, and the treasurer acknow- ledged from time to time the balance to be moneys in his hands as treasurer, it was held under a similar clause in a Savings Bank Act to that now under consideration, that such balance was to he deemed as in his hands as treasurer, and that the trustees were entitled to recover the amount in full : Ex parte Riddell, 3 Mont. D. & G. 80. An actuary of a savings bank, who by the rules had no- power to receive money, but was allowed to do so by the manager, was held not to have received it by virtue of his office, and therefore, the trustees of the bank had no priority over the other creditors : Ex parte Jardine, 10 L. J.. (n.s.) (B.) 11; 1 Fonblanqrm, 324. The rules of a friendly society provided that the treasurer retaining upwards of i!10 more than seven days after he was required to pay it over, should be excluded from the society. They also provided that a particular firm should; be the bankers of the society, with power for a general meeting to appoint other bankers. It was held that the bankers for the time being were not officers : Ex parte Harris, 1 De Gex, 162. Country bankers appointed by a friendly society to- receive moneys and to transmit them to their London agents for the purpose of investment in the Bank of England ta the account of the Commissioners of the National Debt, were held not to be appointed to an office within the meaning of the Act 4 & 5 Will. 4, c. 40, s. 12 Hx parte Whipham, 3 Mont. D. & D. 564. 2 12 APPENDIX OF CASES. On the appointment of a treasurer of a friendly society, it was agreed that of the funds then in hand, she was to pay interest for £120. It was held that this was not to he con- sidered as a loan to her, hut that it was in her hands and possession by virtue of her office of treasurer, within the meaning of the 4 & 5 Will. 4, c. 40, s. 12, and that the assignees were bound to pay over the amount to the society : Ex parte Ray, 3 Dea. S37. By the rules of a friendly society it was provided that there should be appointed a treasurer or treasurers, in whose hands should be deposited all the cash belonging to the society, until the same should be placed out at interest; . and that as soon as a sufficient sum should be collected, it should (after leaving in the club-box a sufficient sum to pay the sick and other expenses of the society), be deposited in the hands of the treasurer or treasurers of the society ; and that the clerk and two stewards should take the same to the bank. No formal appointment of treasurer was made, but the moneys of the society were paid into a bank. It was held that the bankers were not employed as officers of the society: Ex parte Orford, 1 De Gex, M. & G. 483. A friendly society appointed a Joint Stock Bank its treasurer. Held, that the treasurer must be a natural person not a corporation, and that the words of sect. 15 (7) as to insolvency do not apply to proceedings in winding-up a ■ company : Ex parte Swansea Friendly Society, Law Rep. 11 Ch. Div. 768. G. Note to sect. 16 (9) of the Friendly Societies Act, 1879, AND SECT. 12 (10) OF THE INDUSTRIAL AND PRO- VIDENT Societies Act, 1876. These sub-sections are to the same effect as 18 & 19 Viet. ■ c. 63, s. 24 and previous Friendly Societies Acts, with respect to which the following cases have been decided :— Where an officer of a society had received, as such, moneys -belonging to the society, and afterwards executed an assign- ment for the benefit of his creditors, and his assignees had enough to repay the amount, but the specific moneys so received were not traced to the assignees, the assignees were held not liable to be proceeded against under this section : Ex parte O’Donnell, 1 L. R. (Q. B.) 274; 30 J. P. 279. The remedy given by this section applies where the APPENDIX OP CASES. 213 moneys, &c., were tlie property of tlie society previously to its registry. In Ex parte Gordon, 15 J. P. 767, a rule nisi for a certiorari was moved for, to bring up a con- viction of Mr. Alderman Carrol, made under 13 & 14 Viet. c. 115, s. 26, by which Gordon was ordered to pay over to certain persons named therein the sum of ill ,014 5s. 6d. The certiorari was taken away, and this rule could not therefore be granted, unless "there was entire want of jurisdiction ; but it was submitted that there was a want of jurisdiction, both as to the facts and upon the face of the conviction itself. First, as to the facts :—In and before 1848, Gordon had been the treasurer of a certain society of Foresters ; in that year there was a division in the society, which was in consequence split into two. Gordon remained with the larger division, and con- tinued to act as treasurer to such division. At the time of the division, Gordon held, as treasurer to the entire societ}-,. a considerable sum of money. He continued to hold this money after the division, and permitted the society, of which he remained a member, to enjoy the proceeds of it -r but he considered that he still held it as a trustee for the entire society. In December, 1850, the said larger division of the original society was duly registered, and Mr. Aider- man Carrol had convicted Mr. Gordon of withholding this money from such registered society, and had ordered him to pay over to certain officers of the society the sum of ,£1,014 5s. 6d., being double the sum so alleged to have been withheld. It was now submitted that the magistrate acted without jurisdiction, as the money withheld was clearly the money of the original entire society, and not of the divided society. And secondly, that the conviction was bad for- ward; of jurisdiction on the face of it, as it did not show, as required by the 26th section of the Act, that it was- made on the complaint of any officer of the society appointed lor that purpose, but simply that it was made on the com- plaint of certain officers of the society. The court held that on the first point there would be no rule, as the magistrate had jurisdiction over the subject-matter, and the facts were for his determination, but granted a rule on tire other point.. Where, however, an unregistered society had dissolved, and a portion of its members formed themselves into a registered society, it was held that the justices had no jurisdiction under this section against an officer of the original society who did not join the new society, and retained in his possession the papers of the original society Patrick v. Gilbert, 34 J. P. 597. The summary power given by this section does not pre- 214 APPENDIX OF CASES. vent proceedings by indictment, although the offender may he a member of the society. In Rexv. Hall, 1 Moo. 0. 0 474, it was held to be embezzlement for a member, who was also the secretary of a society, fraudulently to withhold money received on account of the society. But, on this point, see 31 & 32 Viet. c. 116, Part II., ante. The remedy given by this section does not take away the common law remedy by action : Sindenv. Banks, 3 E. & E. ■623 ; 30 L. J. (Q. B.) 102. Assumpsit for money had and received might be main- tained against one who had been a member, for money intrusted to his keeping by the rest of the society : Sharpe v. Warren, 6 Price, 131. A petition was presented by the officers of a friendly ■society, enrolled under the 10 Geo. 4, c. 56, seeking to enforce payment by two members of the society of a sum of money, part of the funds of the society, with which they had been intrusted by the other members. It appeared that at a general meeting it was resolved that the funds of the society should be got in and divided, and then that the society should be dissolved. Subsequently, a portion of the funds had been delivered to the respondents, in order that they might deposit it in the bank at Carmarthen. The money was accordingly deposited by them in the hank, but they subsequently drew it out, and, notwith- standing frequent demands made upon them, they had not replaced it, and it was now sought to enforce payment of such moneys. Stuart, V.-C., said the justice of the case was clear, and accordingly made the order asked for : In re Briton Friendly Society, 20 Nov., 1852, ex rel. W. Tidd Pratt. Upon an indictment for obtaining money under false pretences, it appeared that in the month of July the prisoner asked the prosecutrix to belong to a burial club, which he praised as strong and respectable, and which he said had £7,000 in a bank. He did not then induce the prosecutrix to become a member. A month afterwards he went again, and “ still praised the club,” but said nothing of the ,£7,000. The prosecutrix then subscribed :—Held, that the jury might connect the two statements, and the statement as to the £7,000 being false, they found that the prisoner had •obtained the money by that false pretence : Rea. v. Welman 1 C. C. R. 189. Obtaining money by the secretary of a society from a member, by telling him he owed it to the club, whereas he owed part only Held to be obtaining money by false pretences : Reg. v. Woolley, 1 Den. 559. APPENDIX OP CASES. 215 Where the clerk of a friendly society embezzled rents collected by him in the capacity of cleric :—Held, that he might be stated to be the cleric to the trustees, to whom the house had been conveyed, whether appointed by them or by the society, and that it was no defence that the affairs of the society had not been conducted according to the statute : R. v. Miller, 2 Mood. 249. See also R. v. Proud, 31 L. J. M. 0. 71, and R. v. Murphy, 4 Cox C. C. 101. The treasurer of a society is an accountable officer, not a “ clerk or servant,” and cannot be indicted for embezzle- ment : R. v. Tyree, 1 L. B. (C. 0.) 177. Trespass does not lie against a magistrate for anything done by him in the discharge of his duty, unless he be made acquainted with every fact necessary to enable him to determine when called on to act. Where, therefore, the treasurer of a benefit society brought such an action against a magistrate, for issuing a warrant of distress against him upon a previous order of two magistrates for the relief of a member, in pursuance of 33 Geo. 3, c. 54, s. 15 :—Held, that the action could not be maintained, it appearing on the face of the order that the treasurer made no defence, the defendant’s jurisdiction not having been questioned at the time, and the treasurer having neglected to present to his notice a rule of the society, which directed all disputes between its members to be referred to arbitration, and which rule was confirmed *by section 16 of the statute, whereby the award was made conclusive, without being subject to the control of the magistrate : Pike v. Garter, 10 Moore, 376. Barrett, app., Markham, resp., L. B. C. P. 405, 8th June, 1872.- 18 (£• 19 Viet. e. 63, s. 24. To render the treasurer °f a, friendly society liable to the penalties imposed by this section for withholding or misapplying moneys of the society which have come to his hands as treasurer, it must be shown that he has been guilty of some fraud or misrepresentation. Mere inability to pay the money to the trustees is not enough. Case stated by a police magistrate under 20 & 21 Viet, •c. 43. 1. The appellant is one of the trustees of a friendly society called the “ Prince of Wales Lodge, Order of Ancient Shepherds, Ashton Unity, South London District,” and the respondent was, until the 28th of October last, the treasurer ■°f that society. 2. The parties appeared before the magistrate at the Bamheth Police Court upon a complaint preferred by the 216 APPENDIX OF CASES. appellant, as such, trustee, under 18 & 19 Yict. e. 63, s. 24, in which the respondent was charged “ for that, being an officer of the said friendly society, he did, having in his possession certain moneys belonging to the said society to the amount of £31 2s. lid., unlawfully withhold and mis- apply the same. The following facts were proved : — 3. The respondent was duly appointed treasurer of the society, but had not been required to give the security directed by section 21 of the Act. The moneys which lie was charged with withholding and misapplying had been received by him in his character of treasurer for the use of the society. It was his duty to render quarterly an account of all moneys received and paid by him on account of the society, and to pay over to the trustees, on demand, the balance due from him on such accounts. The last account rendered by him was dated the 5th of August last, and it appeared therefrom that he was indebted to the society in the sum of ,£26 10s. 2\d., to that date, and from subsequent entries in the treasurer’s books, further sums, making a total sum due by him to the society of £31 2s. lid., the amount charged in the complaint. This sum he was unable to pay; and as he could not give such security for the payment as was satisfactory to the trustees, these pro- ceedings were taken. There was no charge of fraud or misrepresentation against the respondent in respect of these moneys. 4. The magistrate held that the inability and consequent refusal of the respondent to pay the balance was not a with- holding or misapplying under section 24. The question lor the opinion of the court was whether the magistrate was right in dismissing the complaint. Oppenheim, for the appellant, cited Sinden v. Banks, 3 E. & E. 623, and Ex parte O’Donnell, L. R. 1 Q. B. 274. John Thompson, for the respondent, was not called upon. Willes, J.—It appears to me that the statement in para- graph 3 of the case that there was no charge of fraud or misrepresentation against the respondent in respect of these moneys makes an end of the matter. A civil remedy having been given against a defaulting officer by section 22, a proceeding of a criminal or penal nature is given by section 24 in respect of something which is of a criminal character. I do not say it is necessary that the matter complained of must, to bring it within section 24, be a thing for which an indictment would lie. I found my decision upon the language used in the beginning and at APPENDIX OF CASES. 217 the end of section 24, “ If any officer having any moneys, securities, &e., of the society in his possession, shall with- hold or misapply the same.” That clearly means a with- holding or misapplying under circumstances importing misconduct. And this is confirmed by the proviso at the end of the section : “ Provided that nothing herein con- tained shall prevent the said society from proceeding by indictment against the said party ; provided also, that no person shall be proceeded against by indictment, if a con- viction shall have been previously obtained for the same offence under the provisions of this Act.” It is evident that the section intended to create an offence. Fraud and misrepresentation being negatived, I think the decision of the magistrate was right. Keating, J., concurred. Decision affirmed ; costs to he set off against the debt due from the respondent to the society. H. Note to Section 22 of the Friendly Societies Act, 1875, and Section 14 of the Industrial and Provident Societies Act, 1876. _ The following cases have been decided under the pre- visions of former Acts relating to the settlement of dis- putes :— Upon a reference before arbitrators, they may decline to hear counsel : In re Macqueen, 9 C. B. (n. s.) 793. _ Where, by acquiescence of the society, justices decide a dispute in a case where the rules did not direct disputes to be referred to them, the court refused to grant a certiorari °n the application of the society : R. v. IVest London Philanthropic Burial Society, 33 J. P. 614. The direction of the Acts, as to the reference of disputes, has the effect so far as regards such disputes, of excluding the jurisdiction of the superior courts : Crisp v. Bunbury, 8 Bing. 394 ; Timms v. Williams, 3 Q. B. 413. In Ex parte Payne, 5 Dowl. & L. 679, by the rules of a benefit building; society, it was provided that all matters in dispute s&mjM be referred to justices, in pursuance of 10 Geo.. 4,, e. 56, 218 APPENDIX OP CASES. s, 27 ; held on motion for a mandamus to the judge of one of the county courts, to proceed and hear a plaint levied hy one of the members against an officer of the society, that the section of the Act and the rules providing for a cheap, simple, and speedy decision, ousted the jurisdiction of the ordinary courts. In 1Reeves v. White, 16 J. P. 118 ; 17 Q. B. 995, the court held that the summary remedy provided by the statute for the settlement of disputes by arbitration is conclusive, and ousts the jurisdiction of the superior courts. Per Lord Campbell, C. J., “Where there may be, there must be, a reference to the arbitrators.” In Armitage v. Walker, 2 Kay & J. 211, upon the con- struction of the arbitration clause in the Benefit Building Societies Act of 1836, Wood, Y.C., held that neither a court of law nor equity had jurisdiction to alter the award of arbitrators or justices unless there was error upon the face of it, or it was shown to have been corruptly obtained. He said :—“ The legislature intended carefully to provide that these societies should not be dragged before courts of law or equity, if it could possibly be avoided, and has taken care to enact that the 'whole discussion of their affairs shall be disposed of in a cheap and summary manner by the decision of an arbitrator or justice as the parties .shall choose, and when they have once made their election, the power of the justice or of the arbitrator acting always within the rules of the society is complete, and is not sub- ject to revision by any court of law or equity. That is the primary matter to which attention must be drawn, and it is necessary to be extremely careful that the jurisdiction of this court shall not be set up to control the arbitrators so selected, except upon a very clear and distinct case being made out of their abuse of their office.” See also Ex parte Long, 3 W. It. 18, and 11. v. Evans, 3 E. & B. 363. Where, however, the rules directed that the arbitrators should hear evidence on both sides, and their decision, binding on all parties, shall be final, and the arbitrators refused to hear the evidence of one side, it was held that their award was not made according to the rules, and there- fore was not an award final and binding within 10 Geo. 4, •c. 56, s. 27. Per Lord Denman, C. J., in B. v. Grant, 14 Q. B. 43. In Trott v. Hughes, 16 L. T. 260, a bill was filed on behalf of some of the members of the “ Second Borough of .Southwark Benefit Building and Investment Association,” APPENDIX OF OASES. 210 against the directors and a portion of the shareholders who concurred in the acts complained of. The plaintiffs alleged that, being dissatisfied with the management, they had, in pursuance of the provisions of their deed of associ- ation, given a month’s notice of their intention to withdraw from the society, and that the directors had denied their right so to withdraw. The plaintiffs thereupon filed their bill to recover their subscriptions, and by the present motion sought to restrain the directors from transferring or appropriating the funds of the society at the bankers. The defendants contended that the proper course for the plain- tiffs, if dissatisfied with the conduct of the directors, was, according to the rules of the society, to appeal to arbitrators duly elected at a meeting for that purpose, and if that step ■did not produce a satisfactory result, they were then em- powered to apply to two justices of the peace, whose decision would be final. Cbaxworth, V.-C., said that the case was one in which the regulations of the society, and the provisions of the legislature with regard to such associ- ations, permitted the members, in the event of a dispute arising, to bring the case before the directors for their decision ; and if that should be unsatisfactory, to appeal to arbitrators, and ultimately to carry the case before two magistrates for their determination. The plaintiffs, how- ever, had thought proper to apply to the court to put a construction on their rules, instead of adopting those means of redress which were clearly pointed out by the rules themselves. He was of opinion that there was no necessity for the interference of the court, and refused the motion with costs. In Grinham v. Card, 7 Exeh. 883, a dispute arose between two of the members of the committee of a friendly society and the trustees touching the distribution of a fund in the hands of the latter, and by one of the rules it was ordered that disputes were to be referred to such members of the committee as should not be personally interested in the matter ; and it was held that the judge of the county court had no jurisdiction in such case according to the rule of the society, which provided for the reference to the committee, and then to private arbitration, of all disputes, and the question now raised was, whether this particular dispute was one which could have been the subject of a suit in equity. The court restrained the judge of the county court from hearing the cause, on the ground that the dispute ivas one which ought to have been referred under the above rule. 220 APPENDIX OF CASES. These decisions have been followed in the recent cases of Callaghan v. Dolioin, L. B. 4 0. P. 288, and Thompson v. Planet Building Society, L. R. 15 Eq. 333. The words “ every dispute ” must he read as referring only to disputes between the society and the members as members, and not in any other capacity they may be placed in, by having the funds of the society advanced to them by way of mortgage, or on loan on the security of their policies. In Morrison v. Glover, 19 L. J. (Excli.) 20, the defendant, a member of a building society, having mort- gaged some leasehold premises to the society, and thereby covenanted to observe the rules, and also to pay certain rents due to the superior landlord, was sued for breaches of both these covenants; but contended by his plea that the cause of action ought to have been referred to arbitration pursuant to the rules. The court, in delivering judgment, said :—“ The only point that remained for our consideration was, whether this was a matter in dispute between the society and one of its members, according to the true meaning of the rules established by the society, so as to be the subject-matter of arbitration, or whether it might be made the subject of an action. It was contended on the part of the defendant, that whatever question arose between the society and its members must be referred to arbitration. They way in which it became material was this : Some of the grounds of the action were undoubtedly between the society and the defendant in the character of a member, and there may be strong reasons for saying that, if the claim had been entirely confined to a right on the part of the plaintiff of that description, then the case which was referred to of Crisp v. Bunbury, ■would apply, and the plea would be good ; therefore the demurrer ought not to be allowed, and the defendant would be entitled to judgment. But it is clear that some of the breaches relied upon by the plaintiffs, for instance, a covenant to pay rent to Lord Cadogan, were matters not between the defendant as a member of the society and the society ; they were merely between the defendant and the society as a mortgagor. Now, we are of opinion that if any other rule be established than that the dispute must be with the party as member— if we go beyond that one step—the consequence would be, that any extraneous matter of any sort that might happen to arise between the society and any of its members, having no connection with the society, would become the subject- matter of reference. It appears to us, therefore, the words ‘matter in dispute’ must be read ‘matter in difference APPENDIX OF CASES. 221 between the society and the members as members,’ and not in any other capacity. That being our opinion on consider- ation, the plea which set up this necessity of the arbitration as a bar to the whole question raised by the plaintiffs, part of which clearly was not between the society and the defendant as a member, if the rest was, is a bad plea. The demurrer, therefore, to the plea must be allowed, and the plaintiffs will be entitled to judgment. We have abstained from expressing any opinion whether, if this had not been so, the particular case before the court was such as to fall within the doctrine in Crisp v. Bunbury—it may or may not be ; and it is clear that on the present record, the plaintiffs are entitled to judgment.” See also upon this point Fleming v. Self, 1 Kay, 518, and the recent case of Mulkern v. Lord, in the House of Lords (4 App. Cas. 183 ; V April, 1879), where Earl Cairns, L. C., held that it was impossible that the rights of mortgagor and mortgagee, especially those of foreclosure and redemption, could be enforced or adjusted by such a reference to arbitration as is provided by 10 Geo. 4, c. 56, s. 27, and therefore that the provisions of that Act are not applicable to those pur- poses of a benefit building society which involve the adjustment of rights created by mortgage. In this decision Lords Hatherley and O’Hagan concurred, quoting with approval the remarks of Lord Cranworth in Fleming v. Self, that the “total absence of adequate machinery for enabling arbitrators to enforce any award they might make on the mortgage, in a case like the present, affords cogent evidence that the dispute is not within their competency.” It may be remarked that this decision turns upon the application of the 10 Geo. 4, c. 56, to benefit building societies established under the Act of 1836, and not in- corporated under that of 1874 ; and it does not over- rule the decision of the Master of the Rolls in Wright v. The Monarch Investment Building Society, 5 Ch. D. 726, where the plaintiff sought an account against a society incorporated under the Building Societies Act of 1874, of money due to him in respect of an alleged overcharge upon his mortgage; and Sir G. Jessel, M. R., held that the jurisdiction of the court was ousted. That case, however, turned upon the construction of the Building Societies Act, 1874, and is not applicable to a friendly society nor to any industrial and provident society except possibly to such as carry on the trade of the buying and selling of land, and provide by their rules for making advances to members on mortgage. The claim of. a society upon its treasurer for misappro- 222 APPENDIX OF CASES. priating and keeping in his hands the moneys of the society,, is not a dispute within the meaning of the Act : Sinden v. Banks, 3 E. & E. 633 ; 30 L. J. (Q. B.) 105. I. Note to Section 34, Friendly Societies Act, 1875,. and Section 20, Industrial and Provident Societies Act, 1876. Extract from the Consolidated County Court Orders and Rules, 1875, Order XXXV. Proceedings under the Friendly Societies Act, 1875. 1. Applications to be made by plaint, 38 4' 39 Viet. c. 60.. —All applications to the court ky the trustees or authorized officers of a friendly society, in respect of any of the matters mentioned in sect. 20 of the Friendly Societies Act, 1875 (a)y shall, whether any bond he put in suit or not, be by action commenced by plaint and summons in the ordinary way, in which the society or the trustees, or authorized officers thereof, shall be plaintiffs, and the person against whom the application is made, defendant. 2. Particulars.-—If the application be made by action, without putting the bond in suit, the summons or the par- ticulars annexed thereto, shall state shortly the nature of the act required to be done or the neglect complained of. 3. Where property is required to be delivered up.—If the act required to be done be the delivering up of any pro- perty, the summons or the particulars annexed thereto, shall contain an intelligible description of the property required to be given up. 4. Reference under sect. 22 to beby plaint.—Every dispute which shall be referred to the county court under sect. 22- of the said Act (b) shall be so referred by action commenced by plaint and summons in the ordinary way in which the claiming or aggrieved member or other person shall be the- (tf) Seep. 83. (b) See p. 86. APPENDIX OP CASES. 223 plaintiff, and the society, by such of the persons authorized by sect. 21 of the said Act (c) to be sued on behalf of the society as the plaintiff shall elect to sue, shall be defendant. 5. Summons.—The summons, or the particulars annexed thereto, shall state correctly the nature of the dispute re- ferred, and the relief which the plaintiff claims. Order XXXVIII. Application of preceding Orders. Application of rules of procedure.—The rules of procedure contained in the preceding orders shall apply to proceedings under the. . . “Friendly Societies Act, 1875,” except where Order . . . XXXV provide (s) any other or incon- sistent mode of procedure. Order XXXIX. The Companies Acts, 1862 and 1867, The Industrial and Provident Societies Act, 1862 (d), and the Building Societies Act, 1874 (25 & 26 Viet. cc. 86 (e), 89 ; 30 A 31 Viet. c. 131, s. 44 (/) ; 37 A 38 Viet c. 42, s. 32). The general orders, rules, and forms of the Chancery Division of the High Court of Justice, regulating for the time being the mode of proceeding under “ The Companies Acts, 1862 and 1867,” shall be the orders, rules, and forms in all proceedings in the county courts for the winding up of (g) a society registered under “ The Industrial and Pro- vident Societies -Act, 1862” (d), “ The Building Societies Apt, 1874,” or for the winding up of (g) a company under “ The Companies Acts, 1862 and 1867,” so far as the same are applicable : Provided that where it shall appear to the court inconvenient that the Bank of England should be the bank used for the purposes mentioned in the order and rules, it shall be competent for the court to name some bank to be used in lieu of the Bank of England. (/) Now 39 & 40 Vict.Jc.45,' s. 20. (g) Sic. (e) See p. 84. (d) Now 1876. (e) Qu. 87. 224 SCHEDULE OP FOBJIS. FORMS. 11. Ordinary Summons. [After statement of parties]. You are hereby summoned to appear at a county court to be holden at , on the day of , 18 , •at the hour of in the noon, to answer the plaintiff, to a claim, the particulars of which are hereunto annexed. Dated the day of 18 Registrar of the court. 'To the defendant. 190. Order under the Friendly Societies and other Acts. Upon hearing this cause at a court this day holden it is ordered that the defendant do [here insert the terms of the order made by the court]. And it is further ordered that [recite terms of order]. 191. Order for Warrant of Execution to issue under the Friendly Societies and other Acts. Whereas at a court holden at , on the day of 18 , it was ordered by the said court [here insert the terms of the order of the court] : And it was then further ordered that [recite terms of order]. And whereas it appears to the court that the defendant has not obeyed either of the said orders, although demand in that behalf was duly made upon him : It is therefore ordered that a warrant of execution issue for the said sum, being the amount of such penalty and the costs thereof. 192. Warrant of Execution against the Goods under the Friendly Societies and other Acts. Whereas at a court holden at , on the day of 18 , it was ordered by the said court that [here insert the terms of the order of the court] : SCHEDULE OP FORMS. 225 And it was then further ordered that [recite terms of order]. And whereas the defendant lias not obeyed either of the said orders : These are therefore to require and order you forthwith to make and levy, by distress and sale ot the goods and chattels of the defendant, wheresoever they may he found within the district of this court (excepting the wearing apparel and bedding of the defendant or his family, and the tools and implements of his trade, if any, to the value of five pounds), the sum stated at the foot of this warrant, being the amount of such penalty and costs, including the costs of this execution, and also to seize and take any money or bank notes (whether of the Bank of England or of any other bank), and any cheques, bills of exchange, pro- missory notes, bonds, specialties, or securities for money of the defendant which may there be found, or such part or so much thereof as may be sufficient to satisfy this execu- tion, and the costs of making and executing the same, and to pay what you shall have so levied to the registrar of the court, and make return of what you have done under this warrant immediately upon the execution thereof Given under the seal of the court this day of ,18 . By the court, Registrar of the court. To the high bailiff of the said court, and others, the bailiffs thereof. Amount ordered to be paid - - - £ s. d. Costs Poundage for issuing this warrant- Total amount to be levied - Notice—The goods and chattels are not to be sold until after the end of five (a) next following the day on which they were seized, unless they be of a perishable nature, or at the request of the said defendant. Application was made to the registrar for this warrant at minutes past the hour of in the noon ■of the day of , 18 (a) Sic, <inare “ days ” omitted. L 8 22G APPENDIX OF CASES. K. Note to Section 5 of the Industrial and Provident Societies Act, 1876. Touthill and another v. Douglas and others, 33 L. J. Q. B. 66.—Industrial and Provident Society; action; 15 & 16 Viet. c. 31; 25 <$• 26 Viet. c. 87; liability of trustees. The trustees of a provident society formed under 15 <£• 16 Viet. c. 31, but not registered under 25 4' 26 Viet. c. 87, cannot be sued in an action commenced after the passing of the latter Act, as the previous Act is absolutely repealed by it without any saving clause. Declaration dated the 30tli of December, 1862, that the plaintiffs sue James Douglas, John Baines, and Bobert Waterwath, as trustees of “ The York City and District Provident and Industrial Hour Mill Society,” according to the statutes in such case made and provided, for money payable by the said society to the plaintiffs for goods bar- gained anti sold and sold and delivered by the plaintiffs to the society, and for money found to be due by the society to the plaintiffs on account stated between the plaintiffs and the society. Demurrer and rejoinder. Kemplay, for the defendants.—This was not an action pending at the passing, on the 7th of August, 1862, of “The Industrial and Provident Societies Act, 1862,” 25 & 26 Yict. c. 87, and though the society was registered under the original Act of 1852, 15 & 16 Viet. c. 31, that Act and the amending Acts 17 & 18 Viet. c. 25, and 19 & 20 Viet, c. 40, are repealed by the 1st section of 25 and 26 Viet, c. 87, from the passing of that Act. So that although under sect. 2 of 17 & 18 Viet. c. 25, the society’s officers might and ought to have been sued (Burton v. Tannahill), on the passing of the Act of 1862 the society ceased to be a statutable society and became a mere partnership until registered under that Act, and so continues: the action ought to have been brought against all the members. Upon the repeal of the first two Acts, all the statutable machinery was gone. APPENDIX OF CASES. 227 Mellish (Patchett with him), for the defendants.—The 6th section of 25 & 26 Yict. c. 87, shows that the property remains in the trustees until registration under that Act. By the 48th section of 18 & 19 Viet. c. 63, that Act is to apply to all provident societies under 15 & 16 Viet. c. 31, and by sect. 19, actions are to be brought by or against the trustees. Cockburn, C. J.—The Act of 1852, and the subsequent Acts have been repealed by 25 & 26 Viet. c. 87, and that statute contemplates that these societies would acquire a new status by being incorporated, and it is for the purpose of registration onty under the new Act that these societies can be said to he any longer in existence. All their rights and liabilities under the former Acts, in the absence of any saving clause, must have ceased with the repeal of the Acts under which they were constituted. Wiohtman, J.—There are no words in the new Act to keep alive the provisions of the old Acts in the event of a society not registered under the new Act. The legislature no doubt did not contemplate such a case. J udgment for the defendants. L. Note to Section 11 (1) of the Industrial and Provident Societies Act, 1876. Linton v. The Blakeney Joint Industrial Provident Society, 34 L. J. (Exch.) 211.—Industrial and Provident Societies Act, 1862 (25 dc 26 Viet. c. 87); liability for debts incurred before the Act. A provident society formed before the passing of. the In- dustrial and Provident Societies Act, 1862 (25 c5 26 Viet. c• 87), but incorporated by certificate of registration under that Act cannot be sued in its corporate capacity for a debt in- curred before the Act in an action commenced after the Act. This was an action brought against the defendants in their corporate name to recover ka debt incurred by the society before the passing of the Industrial and Provident Societies Act, 1862. The society was formed under the Industrial and Pro- vident Societies Act, 1852 (15 & 16 Viet. c. 31), while that 228 APPENDIX OF CASES. Act was in force, but after the passing of the Industrial and Provident Societies Act, 1862 (25 & 26 Viet. c. 87), it obtained a certificate of registration under it. The debt sought to be recovered was incurred before the passing of the last-mentioned Act, but the action was commenced after. The case was tried before Martin, B., at West- minster, and a verdict was found for the plaintiff, leave being reserved to the defendants to move to enter a nonsuit if the court should be of opinion that they were not liable in their corporate capacity. Macnamam in this term moved to enter a nonsuit accord- ingly. Gates now showed cause. Martin, B.—We are all of opinion that this rule must be made absolute. The case is governed by that of Dean v. Millard. In that case the action was brought against the individual members, and the court held that it was well brought, on the ground that though for the sake of con- venience, before the late statute, the names of public officers were to be used in actions against the society, yet the real cause of action was against the individual members, and they were ultimately liable. Williams, J., there says:— “ That argument” (referring to the argument for the defend- ants) “ would have been admissible if the legislature, instead of saying, as they have done in sect. 6, that the certificate of registration shall vest in the society all the property that may at the time be vested in any person in trust for the society, and all legal proceedings then pending by or against any such trustee or other officer on account of the society may be prosecuted by or against the society in its registered name without abatement, had gone on to say that all claims and rights of action existing at the time of the passing of the Act might be so prosecuted. But they have not said so; they have confined the indulgence to actions pending at the time of the obtaining of the certi- ficate of registration. That must mean actions commenced before the passing of 25 & 26 Viet. c. 87, because none could be commenced after against any but existing members.” I was much struck by Mr. Gates’s argument on the construction of the 6th section, but we cannot adopt Iris construction in opposition to the Court of Common Pleas. Bramwell, B.—I was much struck with Mr. Gates’s ^argument on the 6th section that it could not be meant to APPENDIX OP CASES. 229 make a distinction between actions already begun and actions not yet begun. But the decision of the Common Pleas is express, and the legislature may have intended merely to avoid the inconvenience which would otherwise have arisen in the case of proceedings in progress at the time of the passing of the Act. Channell, B., concurred. Buie absolute. M. Note to Section 17 op the Industrial and Provident Societies Act, 1876. In re Sheffield Co-operative and Industrial Society; Fountain’s Case, 13 W. R. C67.—Joint stock company; winding up; contributory; Industrial and Provident Societies Act, 1862, s. 20; Companies Act, 1862, s. 74. An industrial and provident society established with un- limited liability under 13 4' 14 Viet. c. 115, was subsequently registered with limited liability under the Industrial and Provident Societies Act, 1862 (25 fy 26 Viet. c. 87), for the purpose of being wound up. On an application to place on the list of contributories a person icho held shares fully paid up before the subsequent registration, held, that on the true construction of the last-mentioned Act, and of the Companies Act, 1862, such a shareholder could not be made liable as a contributory. This was an application on behalf of the official liqui- dator of “ The Sheffield and Hallamshire Ancient Order of Foresters Co-operative and Industrial Society (Limited)” to place the names of R. Fountain and G. E. Swift on the list of contributories in respect of their shares. The society was formed in 1861 under the Industrial and Provident Societies Act, 1852 (13 & 14 Viet. c. 115), and 15 & 16 Viet. c. 31, with unlimited liability. A petition was presented to the Master of the Rolls that the society might be wound up, blit his Honour considered that, the Industrial and Provident Societies Act, 1852, having been repealed by the Act of 1862, he had no jurisdiction to make the order. The matter was then mentioned to the Lord Chancellor, who confirmed the decision of the Master of the Rolls, and said that the society should he registered under . the Industrial and Provident Societies Act, 1862. This 230 APPENDIX OF CASES. was accordingly done, and a winding-np order made by the county court judge at Sheffield, and an official liquidator appointed. Upon a motion to settle the list of contri- butories, it was held that persons who like the shareholders in question were shareholders before the registration under the Act of 1862, could not be made liable as contributories under the winding-up order. The present appeal was brought by the official liquidator against that decision. The shareholders in question had fully paid up, and one of them, Mr. Fountain, had parted with all his shares except one, before the society became limited. Druce, for the official liquidator, contended that though the society was registered as limited for the purpose of winding-up, yet as it was established under the former Act as unlimited, the liability of those who were then members had not ceased. He referred to In re the Plumstead Water Company, 2 De G. F. & J. 20; Garnet v. Moseley Gold Mining Company, 13 W. R. 412; 34 L. J. Q. B. 118. Elderton, for the respondents, was not called on. The Lord Chancellor said that he could not accede to the application for making an order for contribution as between the members. He must take the case as he found it for the purpose of determining the liability in question. The society was for the purpose of winding-up a limited company, and as such, the members in question were not liable to contribution, for they had paid up their shares. The society was registered nnder the Industrial Societies Acts, 1862, in which was incorporated the Companies Act of 1862, and in the section in that Act defining “ a con- tributory,” that term was described as meaning “every person liable to contribute to the assets of a company under this Act.” If these words were applied to the Industrial Societies Act, we could only arrive at the same conclusion, namely, that a member was liable as between himself and the other members, according to the qualifications mentioned in the- Companies Act, 1862. Then it was said that the definition of a contributory was qualified by the following section,, which provided that “ the registration under that part of the Act of any company should not affect or prejudice the liability of such company to have enforced against it, or its rights to enforce any debt or obligation incurred on any contract entered into by, to, with, or on behalf of such APPENDIX OP CASES. 231 company previous to the registration.” The case of Gar- nett v. Moseley Gold Mining Company, in the Exchequer- Chamber, had no application to the case of contribution. On what was the notion of contribution founded ? Accord- ing to the rules of partnership. But that contract of part- nership as it existed, and with respect to which only the court had power to enforce contribution, was one which excluded all liability to contribute, because the parties had paid to the full amount of their shares. It was not neces- sary to consider what were the rights of the creditors, but only whether where a company was a limited partnership,, and had become the subject of a winding-up order, the members of that company, who, on the principle of limited partnership had nothing to contribute, must contribute in respect of the rights of creditors who might have claims against the company. At the time when the winding-up order was made, his Lordship thought he had no such power. There might be some failure of justice, but that would not warrant a construction that would have the effect of adding a new clause to the Act of 1862. It appeared to him that these two gentlemen were not liable. The official liquidator must pay the respondents’ costs, and have his costs out of the estate. N. Note to Section 16, Sub-section 7, op the Friendly Societies Act, 1875, and Section 12, Sub-section 8, op the Industrial and Provident Societies Act, 1876. These sub-sections are similar to sect. 42 of the Building Societies Act, 1874, which is a re-enactment of sect. 5 of the Benefit Building Societies Act, 1836 (6 & 7 Will, 4, c. 32), and has recently received judicial interpretation from Sir George Jbssel, M. R., in the case of the Fourth City Mutual Building Society v. Williams (Law Rep. 14 Ch. Div. 140). This case shows very clearly the advantage a society possesses in being able, by a mere receipt, to discharge itself from all responsibility of inquiring to whom the legal estate ought to be conveyed. See Repiort of Chief Registrar of Friendly Societies for 1879, pp. 28, 29. 232 MODEL RULES. MODEL RULES FOR A FRIENDLY SOCIETY. The following Form op Rules has heen prepared by the ■chief registrar for the purpose of assisting new friendly societies. It is applicable, with slight modifications, to cattle in- surance societies. The blanks may be filled with such numbers as the society may decide irpon. I.—Constitution of Society. The society is a friendly society, composed of persons ■over sixteen years of age (a). II.—Name of Society and Place of Registered Office. The society shall bo called “ The (b) Its registered office is in England, and is at No. , Street, , in the county of In the event of any change in the situation of the re- gistered office, notice of such change shall be sent within fourteen days thereafter to the registrar in the form pre- scribed by the treasury regulation in that behalf.—Friendly Societies Act, 1875, s. 14 (1 a). III.—Objects and Purposes, Admission of Members, Con- ditions of Benefit, Sfc. (1.) Objects for which the society is established (c).—This society is established fro provide, by voluntary subscriptions (а) No person under the age of 16 years may be a member of a society registered after 1st January, 1876, unless it is one con- sisting wholly of members under 16. (б) State the name, which is not to be that of any existing registered society. (c) So much of this rule as is not intended to he adopted by the society should he omitted, and if the society is to be for any J10DEL RULES. 233 of the members, with [or without] the aid of donations, for the relief or maintenance of the members, their husbands, wives, children, fathers, mothers, brothers, or sisters, nephews or neices, and wards being orphans, during sick- ness or other infirmity, whether bodily or mental; in old age, being any age after [fifty (d)] years, and in widow- hood; and for the relief or maintenance of the orphan ■children of members during their minority. For insuring money to be paid on the death of a member or for the funeral expenses of the husband, wife, or child of a member ■or the widow of a deceased member; for the relief or main- tenance of the members when on travel in search of ■employment or when in distressed circumstances. (2.) Purposes for which the funds shall be applicable.—All moneys received on account of contributions, donations, admissions, fines or otherwise, shall be applied towards carrying out the objects of the society, according to the rules and tables (if any) thereof. Any officer misapplying the funds shall repay the same and be excluded,, without prejudice to his liability to prosecution for such misappli- cation. (3.) Terms of admission of members (e).— (4.) Conditions under which members may become entitled ■to benefits (/).— No money shall be paid upon the death, otherwise than •at sea, of a member or other person whose death is or ought to be entered in any register of deaths, except upon the production of a certificate of such death under the hand other of the objects authorised by the Act, they should be stated, following closely the words of sect. 8 of the Act, as in this model. (d) Any other age after 50 may be stated. (e) Here should be stated in what manner a candidate for membership is to be proposed and elected; what entrance fee, if any, he is to pay; what classes of persons, if any, are not to be eligible for membership, &e. (f) Here should be stated, with respect to each benefit, what ■are the contributions payable to assure it, for how long they must be paid before a member is to be entitled to the benefit, ■and in what manner a member is to make and prove his •claim, &c. 234 MODEL RULES. of the registrar of deaths, or other person having the care of the register of deaths in which such death is or ought to be entered (Friendly Societies Act, 1875, s. 14 (2), and Friendly Societies Amendment Act, 1876, s. 7) [nor upon the death of a child under ten years of age, except upon the production of such certificate of death as is required by sect. 28 of the Friendly Societies Act, 1875, and otherwise in conformity with the provisions of the said Act], (5.) Fines and forfeitures to be imposed on members (a).— (6.) Provision for expenses of management.—The necessary expenses of the management of the society shall be provided for by (6)— IV.—Meetings. Right of Voting (c). Y.—New Rules and Alteration of Rules. No new rule shall be made, nor any of the rules herein contained or hereafter to be made shall be amended, altered, or rescinded, unless with the consent of a majority of the members present at a general meeting of the society specially called for that purpose. (a) Here is to be stated the amount of every fine, the cause for which it is to be inflicted, and the authority empowered to inflict it. A rule which imposes a fine or forfeiture not of a fixed or limited amount is not in accordance with the Act. (4) Here should be stated whether the expenses of manage- ment are to be provided for by a separate contribution, or by setting apart a specific proportion of the contribution. (c) Here should be stated how often, when and where, meet- ings are to be held; what notice is to be given of them; by whose authority and how meetings are to be specially called, and upon what requisition; whether any and what number of members is necessary to constitute a quorum, either generally or in any particular cases; who is to take the chair; what are the- qualifications of voters; whether votes may be given by proxy,, and how questions on which there is an equality of votes arc to. be decided. MODEL EXILES. 23h VI.—Appointment and Removal of Committee of Manage- ment, Treasurer, Trustees, and other Officers. At a special meeting of the society to be called as soon as practicable after the registry of the society there shall be- elected by a majority of the members then present a com- mittee of management, consisting of ten persons, a treasurer, secretary [two auditors (tf)], and three trustees. The com- mittee of management, treasurer, and secretary shall con- tinue in office until the general annual meeting of the society, unless previously removed by a resolution of the major part of the members present at any meeting called for that purpose; and at every annual meeting a committee of management, treasurer, and secretary shall be appointed for the ensuing year, or, in failure thereof, those last appointed shall be considered as again appointed; and in case any member of the committee of management, trea- surer, or secretary shall die or be removed prior to such annual meeting, the committee of management shall appoint a person to fill the vacancy. The trustees shall continue in office during the pleasure of the society, and be removable at a general meeting; and in case of a vacancy* another shall be elected by a majority of members at a- meeting called for that purpose. A copy of every resolu- tion appointing a trustee shall be sent to the registrar within fourteen days after the date of the meeting at which such resolution was passed, in the form prescribed by the. treasury regulation in that behalf. VII.—Pmoers and Duties of Officers. 1. The committee of management shall meet on every at the hour of . Any (six) of the com- mittee of management duly assembled at any such meeting shall form a quorum, and shall have full power to superin- tend and conduct the business of this society according to the rules provided for the government thereof, and shall in all things act for and in the name of this society; and all acts and orders under the powers delegated to them shall have the like force and effect as the acts and orders of this society at any general meeting. Every question at such (<7) Auditors need not be appointed if the accounts are audited by a public auditor. 236 MODEL RULES. ■meeting shall he decided by a majority of votes, and if the votes are equal the chairman shall have a casting vote. Any (two) of the committee of management may call a special meeting thereof, by giving (seven) clear days’ notice in writing to the secretary, but at such special meeting no other business than that specified in the notice shall be taken into consideration. The committee of management shall convene all the meetings of the society, on such requi- sitions as are herein mentioned. 2. The treasurer shall, in the month of in every year, and also when required by a general meeting, or by the trustees or committee of management upon demand made, or notice in writing given to him or left at his last or usual place of residence, render a just and true account •of all moneys received and paid by him on account of the society; and shall also, on the like demand or notice, pay over all moneys and deliver all property for the time being in his hands or custody to such persons as a general meet- ing, or the committee of management, or the trustees appoint. He shall be responsible for such sums of money as may from time to time be paid into his hands by the secretary, or by any person on account of this society; he shall balance his cash account monthly, and supply the secretary with a duplicate thereof, and shall, if required, attend every general meeting. He shall, before taking upon himself the execution of his office, give security, pur- suant to the Friendly Societies Act, 1876, s. 20 (1). 3. The secretary shall give his attendance at all meetings of this society; he shall record correctly the names of the members of the committee of management or trustees there present, and the minutes of their proceedings, which he shall transcribe into a book to be authenticated by the signature of the chairman as the proceedings of the meet- ing; he shall receive proposals for admission, and demands for allowances of every description granted by the rules; he shall keep the accounts, documents, and papers of the society in such manner and for such purposes as the com- mittee may appoint, and shall prepare and send all returns and other documents required by the Friendly Societies Act, 1875, or the Treasury regulations, to be sent to the registrar. The secretary shall, on all occasions, in the execution of his office, act under the superintendence, control, and directions of the committee of management. 4. The trustees shall be admitted to all meetings of the ■committee of management, and shall be at liberty to take part in the proceedings thereof, and vote on any question under discussion. MODEL EULES 237' 5. In case any trustee being removed shall refuse or neglect to assign or transfer any property of the society as the committee of management shall direct, he shall (if he he a member) be expelled the society, and shall cease to- have any claim on the society on account of any contribu- tions paid by him, without prejudice to any liability to- prosecution which he may have incurred. [In a society with branches, the composition of the central body must also be stated and the conditions under which a branch may secede from the society; and provision should be made for a fund under the control of the central body, to which every branch is bound to contribute, and for the control of the central body over the branches.] VIII.—Copies of Rules. It shall be the duty of the committee of management to provide the secretary with a sufficient number of copies of the rules, to enable him to deliver to any person on demand a copy of such rules on payment of a sum not exceeding Is., [for non-members, and 6d. for members (a)], and of the secretary to deliver such copies accordingly.—Friendly Societies Act, 1875, s. 13 (5). IX.—Keeping and Auditing of Accounts. (1.) The committee of management shall cause the accounts of the society to be regularly entered in proper books. (2.) Separate accounts shall be kept of all moneys received or paid on account of every particular fund or benefit assured by tlxe society, for which a separate table of contributions payable is adopted, distinct from all moneys received and paid on account of any other benefit or fund". (3.) A separate account shall also be kept of tlie expenses of management of the society, and of all contributions on account thereof. (4.) The committee of management shall once at least in every year submit the accounts, together with a general statement of the same and all necessary vouchers up to the 31st December then last, for audit, either to one of the (a) If no distinction is intended, the words in brackets may he omitted. Any other figure not exceeding Is. may be inserted. 238 MODEL RULES. public auditors appointed under the Friendly Societies Act, 1875, or to two or more persons appointed as auditors by the members at the meeting next before each yearly meeting of the society, and shall lay before every such meeting a balance sheet (which either may or may not be identical with the annual return, but must not be in con- tradiction to the same), showing the receipts and expendi- ture, funds and effects of the society, together with a state- ment of the affairs of the society since the last ordinary meeting, and of their then condition. Such auditors shall have access to all the books and accounts of the society, and -shall examine every balance sheet and annual return of the receipts and expenditure, funds and effects of the society, and shall verify the same with the accounts and vouchers relating thereto, and shall either sign the same as found by them to be correct, duly vouched, and in accordance with law, or shall specially report to the meeting of the society before which the same is laid in what respects they find it incorrect, unvouched, or not in accordance with law.— Friendly Societies Act, 1875, s. 14 (1 c). X.—Annual Returns. 1. Every year before the 1st June the committee of management shall cause the secretary to send to the registrar, as required by the Friendly Societies Act, 1875, ■the annual return, in the form prescribed by the chief registrar of friendly societies, of the receipts and expendi- ture, funds and effects of the society, and of the number of members of the same, up to the 31st December then last inclusively, as audited and laid before a general meeting, showing separately the expenditure in respect of the several objects of the society, together with a copy of the auditor’s report, if any. 2. Such return shall state whether the audit has been •conducted by a public auditor aprpointed under the Friendly Societies Act, 1875, and by whom, and if such audit has been conducted by any persons other than a public auditor, shall state the name, address, and calling or profession of each of such persons, and the manner in which, and the -authority under which, they were respectively appointed.— Friendly Societies Act, 1875, s. 14 (1 cl). 3. It shall be the duty of the committee of management to provide the secretary with a sufficient number of copies -of the annual return, or of some balance sheet or other document duly audited, containing the same particulars as MODEL RULES. 239 ni the annual return as to the receipts and expenditure, funds and effects of the society, for supplying gratuitously every member or person interested in the funds of the society, on his application, with a copy of the last annual return of the society or of such balance sheet or other document for the time being, and it shall be the duty of the secretary to supply such gratuitous copies on application accordingly.—Friendly Societies Act, 1875, s. 14 (1 h), and Friendly Societies Amendment Act, 1876, s. 9. XI.—Quinquennial Returns. Within six calendar months after the expiration of every live years succeeding the 31st December, 1880, the com- mittee of management shall cause a return, in the form prescribed by the chief registrar, of the sickness (ct) and mortality experienced by the society during the five years preceding the 31st December then last past to be sent by the secretary to the registrar.—Friendly Societies Act, 1875, e. 14(1 e). XIJ.—Valuations. 1. Once at least in the five years next following the registry of the society, and so again within six calendar months after the expiration of every five years succeeding the date of the first valuation to be made under these rules, the assets and liabilities of the society (including the estimated risks and contributions) shall be valued in manner provided by the Friendly Societies Act, 1875, s. 14 (1 /). 2. It shall be the duty ot any valuer appointed by the society, at the cost of the society, to make a report to be signed by him, and which shall also state his address and calling or profession, on the condition of the society, and also an abstract of the results of his valuation, in the form prescribed by the Chief Registrar. 3. On receiving such report it shall be the duty of the committee of management to call forthwith a special meeting of the society for the purpose of receiving the same ; and to lay such report and the abstract thereof before such meeting; and to cause the secretary to forward such report and ■abstract to the registrar, together with a return containing ■such information with respect to the benefits assured and (a) If the society does not insure against sickness the words sickness and” to he left out. 240 MODEL RULES. contributions receivable by tlie society, and to its funds and effects, debts and credits, as the registrar may from time to time require. XIII.—Inspection of Books. 1. The books and accounts of the society shall be open to the inspection of any member or person having an interest in the funds of the society at all reasonable hours, at the registered office of the society, or at any place where the same are kept [except (a) that no such member or person, unless he be an officer of the society, or be specially autho- rised by a resolution of the society to do so, shall have the right to inspect the loan or deposit account of any other member without the written consent of such member], and it shall be the duty of the secretary to produce the same.— Friendly Societies Act, 1875, s. 14(1 g). 2. It shall be the duty of the committee of management to keep a copy of the last annual balance sheet of the society for the time being, together with the report of the auditors, if any, and of the last quinquennial valuation for the time being, always hung up in a conspicuous place at the regis- tered office of the society.—Friendly Societies Act, 1875,. s. 14 (1 i). XIIIc*.—Dividing Societies. If the society is a dividing one, a rule should he inserted' stating when and how the division is to he made, and that— It shall be the duty of the committee of management to see that all claims upon the society existing at the time of any division of the funds thereof are met and provided for before any such division takes place.—Friendly Societies Act, 1875, s. 11 (4). XIY.—Investment of Funds, Holding of Land, <&c. 1. So much of the funds of the society as may not be wanted for immediate use, or to meet the usual accruing liabilities, shall, with the consent of the committee of management, or a majority of the members of a society present and entitled to vote at a general meeting, be invested by the trustees in such of the following ways as such com* mittee or general meeting shall direct : namely, in any savings bank certified under the Act of 1863, or post office (a) If the society does not grant loans to members, the words- in brackets to be left ont. MODEL RULES. 241 savings bank, in the public funds, or with the commissioners for the reduction of the national debt, or upon government or real securities in Great Britain or Ireland (&) or in the purchase of land, or in the erection or alteration of offices or other buildings thereon as after mentioned.—- Friendly Societies Act, 1875, s. 16 (1). 2. The committee of management, with the consent of a special meeting of the society called for the purpose, may purchase or take on lease in the names of the trustees any land (c) in the county where the society’s registered office is situate [or in any other county where it has an office], and may sell, exchange, mortgage, lease, or build upon the same (with power to alter and pull down buildings and again rebuild), and no purchaser, assignee, mortgagee, or tenant shall be bound to inquire as to the authority for any sale, exchange, mortgage, or lease by the trustees, and the receipt of the trustees shall be a discharge for all moneys arising from or in connexion with such sale, exchange, mortgage, or lease.—Friendly Societies Act, 1875, s. 16 (2). 3. Mortgages or other assurances for securing money to the society may be vacated by a receipt indorsed, signed by the trustees, and countersigned by the secretary, in the form contained in the third schedule to the Friendly Societies Act, 1875 [or if a special form be provided, in the form herein specified, or in the form specified in the schedule to these rules],—Friendly Societies Act, 1875, s. 16 (7). XV.—Loans to Members. [If a loan fund is intended to be established, it must be stated whether the same is to be formed out of the contributions or deposits of the members, or by both means, and whether moneys may be advanced to members on their personal security, with or without sureties; also to what extent not exceeding ,£200, a member shall be capable of holding any interest in the loan fund; to what amount loans may be granted, such amount not to exceed, together vrith any moneys for the time being owing by the member to the society, the sum of £50; and to what total amount, not to exceed two-tliirds of the total sums for the. (b) [Any other securities upon which it is proposed the funds should be invested should here be specified]. (c) If the extent or value of the land is to be, limited, srfet here “ not exceeding acres ” (stating quantity) or “ not ex«e«d» ing in value £ .” (stating value). M 242 MODEL RULES. time being owing to the society by the members who have borrowed from the loan fiend, moneys may be held by the society on deposit from its members.—Friendly Societies Act, 1875, s. 18. XVI.—Accumulating Surplus of Contributions for Members’ TJse. [If it is intended that the surplus contributions of any of the members to the funds of the society which may remain after providing for any assurance in respect of which the same are paid should be accumulated at interest for the use of such members, a rule must be made for this purpose, and for the withdrawal of such accumulation from time to time.—Friendly Societies Act, 1875, s. 19.] XVII.—Nomination. 1. The secretary shall keep a hook in which he shall register or record all nominations made by members of the society by writing, signed by them, delivered at or sent to the registered office of the society, of any person or persons not being officers or servants of the society, unless such officer or servant he the husband, wife, father, mother, child, brother, sister, nephew, or niece of the nominator, to whom any moneys payable by the society on the death of such members not exceeding £50 shall be paid. 2. The secretary shall in like manner record or register all revocations, or variations of such nominations by the nominator, made in writing, and signed and delivered or sent as aforesaid. 3. The nominator shall pay 3d. to the management fund for the recording or registering of every such nomination, revocation, or variation. 4. The secretary neglecting to ask a new member to nominate within three calendar months of his admission shall pay a fine of 3d. 5. All nominations, revocations, or variations are to be in the following form (1.] Nomination. Friendly Society, registered pursuant to the Friendly Societies Acts, I hereby nominate of , in the county of , to receive the money payable at my death under the rules of the society above named. ■--------Signature. ----------Witness. MODEL RULES. 243 (2.) Revocation. I hereby revoke the above nomination. ■Witness. ■18 ■Signature. (3.) Variation. I hereby vary the above nomination as follows : I nominate , of , in the county of , to receive [one half] of the money payable at my death as aforesaid in lieu of the above named. ■Witness. ■Signature. —-------18 • —Friendly Societies Act, 1875, s. 15 (3), and Friendly Societies Amendment Act, 1876, s. 10. XVIII.—Voluntary Dissolution. The society may at any time be dissolved by the consent of five-sixths in value of the members, including honorary members, if any, testified by their signatures to some instrument of dissolution in the form provided by the treasury regulations in that behalf, and also by the written consent of every person for the time being receiving or entitled to receive any relief, annuity or other benefit from the funds of the society, unless the claim of such person be first duly satisfied, or adequate provision made for satisfy- ing such claim ; the value of members to be ascertained by giving one vote to every member, and an additional vote lor every five years that he has been a member, but to no one member more than five votes in the whole.—Friendly •Societies Act, 1875, s. 25 (1, 3, 7). XIX.—Applications for Inspection, Special Meetings, or Dissolution. It shall be the right of one fifth of the total number of members, or if the number of members shall at any time amount to 1,000, and shall not exceed 10,000, it shall be the right of 100 members, or if the number shall at any time exceed 10,000 it shall be the right of 500 members. M 2 244 MODEL RULES. by an application in writing to tlie Chief' Registrar, (a) signed by them in the forms respectively provided by the treasury regulations in that behalf:— (a.) To apply for the appointment of one or more inspec- tors to examine into the affairs of the society and to report thereon,—Friendly Societies Act, 1875, s. 23 (1) ; (6.) To apply for the calling of a special meeting of the society,—Friendly Societies Act, 1875, s. 23 (2) ; Either such application to be made upon such notice to the society, and to be supported by such evidence for the purpose of showing that the applicants have good reason for requiring such inspection to be made or meeting to be called, and that they are not actuated by malicious motives in their application, as the chief registrar shall direct; (c.) Or to apply for an investigation into the affairs of the society with a view to the dissolution thereof; Such application as last aforesaid to set forth that the fluids of the society are insufficient to meet the existing claims thereon, or that the rates of contribution fixed in the rules of such society are insufficient to cover the benefits assured, and the grounds upon which such insufficiency is alleged.—Friendly Societies Act, 1875, s. 25 (8). XX.—Disz>utes. 1. If any dispute shall arise between a member, or person claiming through a member, or under the rules of the society, and the society, or any officer thereof, it shall be referred to arbitration. 2. At the second meeting of the society after the registry of the same, five arbitrators shall be elected, none of them being directly or indirectly interested in the funds of the society ; and in each case of dispute the names of the arbitrators shall be written on pieces of paper and placed in a box or glass, and the three whose names are first drawn out by the complaining party, or by some one appointed by him or her, shall be the arbitrators to decide on the matter in difference. In case of a vacancy, or vacancies, another arbitrator, or other arbitrators, shall be elected at a general meeting. Or, If any dispute shall arise between a member, or person claiming through a member, or under the rules of the (a) If the society is registered and does business exclusively in Scotland or Ireland, instead of the words “ chief registrar ” insert the words “assistant registrar for Scotland,” or, “for Ireland,” as the case may be. MODEL RULES. 245 society, and the society, or any officer thereof, it shall ho referred to justices pursuant to the Friendly Societies Act, 1875, s. 22 (c). Note as to Societies already Registered. A society desiring to have a complete amendment of rules may use the above form with the heading “ the former rules are rescinded,” and the following modifications : Rule VI., leave out first 20 words. Rule XII., substitute, “ once at least in every five years,” for the first 41 words. Rule XVII., line 3, if the society has members under 16 . years of age, add after “ society ” “ aged 16 years or up- wards.” Rule XX., paragraph 2, leave out first 13 words. 240 MODEL BRANCH RULES. MODEL BRANCH RULES. The following Form of Rules lias Been prepared by the chief registrar for the purpose of assisting branches of Friendly Societies in complying with the provisions of the Act 38 & 39 Viet. c. 60. For tire word “ Branch ” may be substituted the words “ District,” “ Lodge,” “ Court,”" “ Division,” &e., as the case may be. I.—Name, Place, and Constitution of Branch. The branch shall be called “ The of the [District of the] (a) Society [herein called the Order] ; and all the rules of the Order [and of the district], and all amendments thereof duly registered, shall be as binding on the branch as if the same were herein inserted. It is composed of persons over sixteen years of age (b). It is established in England, at No. , Street, , in the county of In the event of any change in the place of the branch,. notice of such change shall be sent within seven days there- after to the secretary of the Order. II.—Objects cmd Pmyoses, Admission of Members, Conditions - of Benefit, fyc. (1.) Objects for which the branch is established.—(c) This branch is established to provide, by voluntary subscriptions of the members, with [or without] the aid of donations, for the following objects, being those or some of those of the (a) If the branch is not to be in district, words relating to a district are to be omitted. (£) No person under the age of 16 years may be a member of a branch unless it is one consisting wholly of members under 16. (e) So much of this rule as is not intended to be adopted by the branch should be omitted, and if the society lias, and the branch is to have any other of the objects authorised by the Act, they should he stated, following closely the words of section 8 of the Act, as in this model. MODEL BRANCH RULES 247 Older, viz. :—(a) tlie relief or maintenance of tlie members, tlieir husbands, wives, children, fathers, mothers, brothers, or sisters, nephews or nieces, and wards being orphans, during sickness or other infirmity, whether bodily or mental; in old age, being any age after [fifty (r?)] years, and in widowhood ; (b) the relief or maintenance of the orphan children of members during their minority ; (c) in- suring money to be paid on the death of a member, [or for the funeral expenses of the husband, wife, or child of a member or the widow of a deceased member] ; (d) the relief or maintenance of the members when on travel in search of employment or when in distressed circumstances. (2.) Purposes for which the funds shall be applicable.—All moneys received on account of contributions, donations, admissions, fines, or otherwise, shall be applied towards carrying out the above-mentioned objects, according to tlie rules; any officer misapplying the funds shall repay the same and be excluded, without prejudice to his liability to prosecution for such misapplication. (3.) Terms of admission of members.—(e) (4.) Conditions under which members may become en titled to benefits.—(/) No money shall be paid upon the death of a member or other person whose death is or ought to be entered in any register of deaths, not being a death at sea, except upon the production of a certificate of such death under the hand of the registrar of deaths, or other person having the care of the register of deaths in which such death is or ought to be entered, Friendly Societies Act, 1875, s. 14 (2) ; [nor upon the death of a child under ten years of age, except upon the production of such certificate of death as is required by section 28 of the Friendly Societies Act, 1875, and other- wise in conformity with the provisions of the said Act.] (d) Any other age after 50 may be stated. (e) Here should be stated in what manner a candidate for Membership is to be proposed and elected; what entrance fee, if any, be is to pay; what classes of persons, if any, are not to be eligible for membership, &c. {f) Here should be stated, with respect to each benefit, what are the contributions payable to assure it, for how long they must be paid before a member is to be entitled to the benefit, and in what manner a member is to make and prove his claim, &c. 248 MODEL BRANCH RULES. (5.) Fines and forfeitures to be imposed on members.—(a) III.—Contribution to Central Fund, and Control of Central Body. (1.) Contribution to the fund under the control of the central body; Friendly Societies Act, 1875, s. 29 (2).—This branch shall contribute [through the district] the sum of to the fund under the control of the central hotly of the Order. (2.) Control of the central body over this branch; Friendly Societies Act, 1875, s. 4.—In all matters not provided for by the rales of the branch [and of the district], the branch shall be under the control of the central body of the Order, subject to the rules of the Order. IV.—Meetings. Right of Voting. (b) V.—New Rules and Alteration of Rules. No new rule shall be made, nor any of the rules herein contained or hereafter to be made shall be amended, altered or rescinded, unless with the consent of a majority of the members present at a general meeting of the branch specially called for that purpose. (a) Here is to be stated the amount of every fine, the cause for which it is to be inflicted, and the authority empowered to inflict it. A rule which imposes a fine or forfeiture not of a fixed or limited amonnt is not in accordance with the Act. \ (b) Here should be stated how often, when and where, meet- ings are to be held; what notice is to be given of them; by whose authority and how meetings are to be specially called, and upon what requisition: whether any and what number of mem- bers is necessary to constitute a quorum, either generally or in any particular cases; who is to take the chair; what are the qualifications of voters; whether votes may be given by proxy, and how questions on which there is an equality of votes are to be decided. MODEL BRANCH RULES. 240 VI.—Appointment and Removal of Trustees, Committee of Management, Treasurer, and other Officers. This branch shall have [three] trustees, and on the death, resignation in writing, or removal of any of the trustees, others shall he appointed in their stead hy a special meet- ting. There shall also he a committee of management con- sisting of ten persons, a treasurer and secretary [and two ■auditors (c)]. The committee of management, treasurer, and secretary shall continue in office until the general annual meeting of the branch, unless previously removed hy a resolution of the major part of the members present at •any meeting called for that purpose ; and at every annual meeting a committee of management, treasurer, and secre- tary shall he appointed for the ensuing year, or, in failure ■thereof, those last appointed shall be considered as again •appointed ; and in case any member of the committee of management, treasurer, or secretary shall die or he removed prior to such annual meeting, the committee of manage- ment shall appoint a person to fill the vacancy. The trustees shall continue in office during the pleasure of the members, and be removable at a general meeting ; and, in case of a vacancy, another shall be elected by a majority of members at a' meeting called for that purpose. A copy of ■every resolution appointing a trustee shall be sent to the secretary of the Order within [7] days after the date of the meeting at which such resolution was passed. VII.—Powers and Duties of Officers. 1. The committee of management shall meet on every at the hour of . Any (six) of the com- mittee of management duly assembled at any such meeting shall form a quorum, and shall have full power to superin- tend and conduct the business of this branch according to the rules provided for the government thereof, and shall in nil things act for and in the name of this branch; and all acts and orders under the powers delegated to them shall have the like force and effect as the acts and orders of this branch at any general meeting. Every question at such meeting shall be decided by a majority of votes, and if the (e) Auditors need uot be appointed if the accounts are audited by a public auditor. 250 MODEL BRAKCH RULES. votes are equal the chairman shall have a casting vote. Any {two) of the committee of management may call a special meeting thereof, by giving {seven) clear days’ notice in writing to the secretary, hut at such special meeting no- other business than that specified in the notice shall be taken into consideration. The committee of management shall convene all the meetings of the branch, on such requi- sitions as are herein mentioned. 2. The treasurer shall, in the month of in every year, and also when required by a general meeting, or by the trustees or committee of management, upon demand made, or notice in writing given to him or left at his last or usual place of residence, render a just and true account of all moneys received and paid by him on account of the branch ; and shall also, on the like demand or notice, pay over all moneys and deliver all property for the time being in his hands or custody to such persons as a general meet- ing, or the committee of management, or the trustees appoint. He shall he responsible for such sums of money as may from time to time be paid into his hands by the secretary, or by any person on account of this branch; lie shall balance his cash account monthly, and supply the secretary with a duplicate thereof, and shall, if required, attend every general meeting. He shall, before taking upon himself the execution of his office, give security, pur- suant to the Friendly Societies Act, 1875, s. 20 (1). 3. The secretary shall give his attendance at all meetings- of this branch; he shall record correctly the names of the- members of the committee of management or trustees there present, and the minutes of their proceedings, which he shall transcribe into a book to be authenticated by the sig- nature of the chairman as the proceedings of the meeting ; he shall receive proposals for admission, and 'demands for allowances of every description granted by the rules ; he shall keep the accounts, documents, and papers of the branch in such manner and for such purposes as the com- mittee may appoint, and shall prepare all returns and other documents required by the Friendly Societies Act, 1875, or the Treasury regulations, to be sent to the Registrar. The secretary shall, on all occasions, in the execution of his office, act under the superintendence, control, and directions of the committee of management. 4. The trustees shall be admitted to all meetings of the committee of management, and shall be at liberty to take part in the proceedings thereof, and vote on any question under discussion. 5. In case any trustee being removed shall refuse or neg- MODEL BRANCH RULES. 251 lect to assign or transfer any property of the branch as the committee of management shall direct, he shall (if lie be a member) be expelled the branch, and shall cease to have any claim on it on account of any contributions paid by him, without prejudice to any liability to prosecution which he may have incurred. VIII.—Copies of Rules. It shall be the duty of the committee of management to provide the secretary with a sufficient number of copies of the rules, to enable him to deliver to any person on demand a copy of such rules on payment of a sum not exceeding Is. [(«) for non-members, and 6d. for members], and of the secretary to deliver such copies accordingly.—Friendly Societies Act, 1875, s. 13 (5). IX.—Keeping and Auditing of Accounts. (1.) The committee of management shall cause the accounts of the branch to be regularly entered in proper books. (2.) Separate accounts shall be kept of all moneys received or paid on account of every particular fund or benefit assured by the branch, for which a separate table of contributions payable is adopted, distinct from all moneys received and paid on account of any other benefit or fund. (3.) A separate account shall also be kept of the expenses of management of the branch, and of all contributions on account thereof. (4.) The committee of management' shall once at least in every year submit such accounts, together with a general statement of the same and all necessary vouchers up to the 31st December then last, for audit, either to one of the public auditors appointed under the Friendly Societies Act, 1875, or to two or more persons appointed as auditors by the members at a meeting next before each yearly meeting of the branch, and shall lay before every such meeting a balance sheet showing the receipts and expenditure, funds and effects of the branch, together with a statement of tin' (a) If no distinction is intended, the words in brackets may- be omitted. Any other figures not exceeding Is. may be. inserted. 252 MODEL BRANCH RULES. affairs of the branch since the last ordinary meeting, and of their then condition. Such auditors shall have access to all the hooks and accounts of the branch, and shall examine every balance sheet and annual return of the receipts and expenditure, funds and effects of the branch, and shall verify the same with the accounts and vouchers relating thereto, and shall either sign the same as found by them to be cor- rect, duly vouched, and in accordance with law, or shall specially report to the meeting of the branch before which the same is laid in what respects they find it incorrect, unvouched, or not in accordance with law. X.—Annual Returns. 1. Every year before the 1st the committee of management shall cause the secretary of this branch to send to the secretary of the Order an annual return, in the form prescribed by the Chief Registrar of Friendly Societies, of the receipts and expenditure, funds and effects of the branch, and of the number of members of the same, up to the 31st December then last inclusively, as audited and laid before a general meeting, showing separately the expenditure in respect of the several objects ot the branch, together with a copy of the auditor’s report, if any. 2. Such return shall state whether the audit has been conducted by a public auditor appointed under the Friendly Societies Act, 1875, and by whom, and if such audit has been conducted by any persons other than a public auditor, shall state the name, address, and calling or profession of each of such persons, and the manner in which, and the authority under which, they were respectively appointed. XI.—Quinquennial Returns. Within six calendar months after the expiration of every five years succeeding the 31st December, 1880, the com- mittee of management shall cause a return, in the form pre- scribed by the Chief Registrar, of the sickness (a) and mortality experienced by the branch during the five years preceding the 31st December then last past to be sent by the secretary of the branch to the secretary of the -Order. (a) If the branch does not insure against sickness the words ■“ sickness and ” to be left out. MODEL BRANCH RULES. 253 XII.—Valuations. 1. Once at least in the five years next following tlie 'date of the registry of the branch, and so again within six calendar months after the expiration of every five years (b) succeeding the date of the first valuation to be made under fhese rules, the assets and liabilities of the branch (includ- ing the estimated risks and contributions) shall be valued in manner provided by the Friendly Societies Act, 1875, *• 14(1/). 2. It shall be the duty of any valuer appointed by the branch at the cost of the branch, to make a report to be signed by him, and which shall also state his address and calling or profession, on the condition of the branch, and also an abstract of the results of his valuation, in the form prescribed by the Chief Registrar. 3. On receiving such report it shall be the duty of the committee of management to call forthwith a special meet- ing of the branch for the purpose of receiving the same, and to lay such report and the abstract of the results of valua- tion before such meeting ; and to cause the secretary to forward such report and abstract to the Registrar, together with a return containing such information with respect to the benefits assured and contributions receivable by the branch, and to its funds and effects, debts and credits, as the Registrar may from time to time require. XIII.—Inspection of Books, dec. 1. The books and accounts of the branch shall be open to the inspection of any member or person having an interest in the funds of the branch at all reasonable hours, at the place where the branch is established, or at any place where the same are kept, and it shall be the duty of the secretary to produce them. 2. It shall be the duty of the committee of management to keep a copy of the last annual balance sheet of the branch for the time being, together with the report of the auditors, if any, and of the last quinquennial valuation for the time being, always hung up in a conspicuous place at the office ■ of the branch. (b) If the branch has had rules previously registered, substi- tute, for the first three lines of the rule the words “ once at least in every five years.’' 254 MODEL BRANCH RULES. 3. It shall be the duty of the committee of management to provide the secretary with a sufficient number of copies of the annual return, or of some balance sheet or other document duly audited, containing the same particulars as to the receipts and expenditure, funds and effects of the branch, for supplying gratuitously every member or person interested in the funds of the branch, on his application, with a copy of the last annual return, or of such balance sheet or other document as aforesaid for the time being, and it shall be the duty of the secretary to supply such gratuitous copies on application accordingly. XIV.—Investment of Funds, Holding of Land, &c. 1. So much of the funds of the branch as may not be wanted for immediate use, or to meet the usual accruing liabilities, shall, with the consent of the committee of management, or of a majority of the members of the branch present and entitled to vote at a general meeting, be invested by the trustees in such of the following ways as such committee or general meeting shall direct : namely, in any savings bank certified under the Act of 1863, or Post Office Savings Bank, in the public funds, or with the Commissioners for the Reduction of the National Debt, or upon government or real securities in Great Britain or Ireland, (a) or in the purchase of land, or in the erection or alteration of offices or other buildings thereon as after mentioned.— Friendly Societies Act, 1875, s. 16 (1). 2. The committee of management, with the consent of a special meeting of the branch called for the purpose, may purchase or take on lease in the names of the trustees any land in the county where the branch is established (b), anil may sell, exchange, mortgage, lease or build upon the same (with power to alter and pull down buildings and again rebuild), and no purchaser, assignee, mortgagee, or tenant shall be bound to enquire as to the authority for any sale, exchange, mortgage, or lease by the trustees, and the [(a) Any other securities upon which it is proposed the funds should he invested should here be specified.] (Jj) If the extent or value of the land is to he limited add here “ not exceeding acres” (stating quantity) or “ not exceed- ing in value l.” (stating value.) MODEL BRANCH RULES. 255' receipt of the trustees shall he a discharge for all moneys arising from or in connexion with such sale, exchange,- mortgage, or lease.—Friendly Societies Act, 1875, s. 16 (2). XV.—Nomination. 1. The secretary shall keep a book in which he shall register or record all nominations made by members of the branch by writing, signed by them, of any person or persons not being officers or servants of the branch, (except as allowed by 39 & 40 Yict. c. 32, s. 10), to whom any moneys payable by the branch on the death of such members not exceeding 501. shall be paid. 2. The secretary shall in like manner record or register all revocations or variations of such nominations by the nominator, made in writing, and signed as aforesaid. 3. The nominator shall pay 3d. to the management fund for the receiving or registering of every such nomination, revocation, or variation. 4. The secretary neglecting to ask a new member to nominate within three "calendar months of his admission to pay a tine of 3d. 5. All nominations, revocations, or variations to be in the following form :— (1.) Nomination. Branch of the Friendly Society, Registered pur- suant to the Friendly Societies Act, 18 . I hereby nominate , in the county of , to receive the money payable at my death under the rules of the branch and Society above named, not exceeding 50?. Witness. Signature. (2.) Revocation. I hereby revoke the above nomination. Witness. 18 Signature. (3.) Variation. I hereby vary the nomination as follows : I nominate , of , in the county of ■256 MODEL BRANCH RULES. to receive [one-half] of the money payable at my death as -aforesaid in lieu of the above named. Witness. —Friendly Societies Act, 1875, s. 15 (3.) 18 Signature. XYI.—Voluntary Dissolution. Voluntary dissolution of branch.—The branch may at any time be dissolved by the consent of the central body of the Order and five-sixths in value of the members, including honorary members, if any, testified by their signatures to some instrument of dissolution in form approved of by the ■Chief Registrar pursuant to the Treasury regulations, and also by the written consent of every person for the time being receiving or entitled to receive any relief, annuity, or ■other benefit from the funds of the branch, unless the claim of such person be first duly satisfied, or adequate provision made for satisfying such claim; the value of members to be ascertained by giving one vote to every member, and an additional vote for every five years that he has been a member, but to no one member more than five votes in the whole.—Friendly Societies Act, 1875, s. 25 (1, 3, 7). XVII.—Applications for Inspection, Special Meetings, or Dissolution. It shall be the right of one-fifth of the total number of members, or if the number of members shall at any time ■amount to 1,000, and shall not exceed 10,000, it shall be the right of 100 members, or if the number shall at any time exceed 10,000, it shall be the right of 500 members, but with the consent in all cases of the central body of the Order by an application in writing to the Chief Registrar (a), signed by them in form approved of by the Chief Registrar pursuant to the Treasury regulations :— (a.) To apply for the appointment of one or more inspectors to examine into the affairs of the branch and to report thereon.—Friendly Societies Act, 1875, s. 23 (1) ; (a) If the branch is registered and does business exclusively in Scotland or Ireland, instead of the words “chief registrar” insert the words “assistant registrar for Scotland,” or, “for Ireland,” as the case may be. MODEL BRANCH RULES. 257 (6) To apply for the calling of a special meeting of the branch.—Friendly Societies Act, 1875, s. 23 (2) ; Either such application to he made upon such notice to the branch, and to he supported hy such evidence for the purpose of showing that the applicants have good reason for requiring such inspection to be made or meeting to he called, and that they are not actuated hy malicious motives in their application, as the Chief "Registrar shall direct; (c.) Or to apply for an investigation into the affairs of the branch with a view to the dissolution thereof. Such application as last aforesaid to set forth that the funds of the branch are insufficient to meet the existing •claims thereon, or that the rates of contribution fixed in the rules of the branch are insufficient to cover the benefits assured, and the grounds upon which such insufficiency is alleged.—Friendly Societies Act, 1875, s. 25 (8). XVIII.—Disputes. 1. If any dispute shall arise between a member, or person •claiming through a member, or under the rules of the ■branch, and the branch, or any officer thereof, it shall be referred to arbitration. 2. At the second meeting of the branch after the registry •of the same, five arbitrators shall be elected, none of them being directly or indirectly interested in the funds of the branch; and in each case of dispute the names of the arbi- trators shall be written on pieces of paper and placed in a box or glass, and the three whose names are first drawn out by the complaining party, or by some one appointed by him or her, shall be the arbitrators to decide on the matter in difference. In case of a vacancy, or vacancies, another arbitrator, or other arbitrators, shall be elected at a general •meeting. Or, If any dispute, &c. (as above) it shall be referred to justices pursuant to the Friendly Societies Act, 1875, s. 22 (c). 258 MODEL RULES FOR A BENEVOLENT SOCIETY. MODEL RULES FOR A BENEVOLENT SOCIETY.. The following Form of Rules has been prepared by the' chief registrar for the purpose of assisting benevolent societies in complying with the provisions of the Friendly Societies Act, 1875. It is applicable, with slight modifica- tion, to working men’s clubs and (subject to the special; rules provided in each case) to specially authorized Societies.. The blanks may be filled as the society may think fit. I.—Constitution of Society. The society is a benevolent society, composed of persons over sixteen years of age (a). II.—Name of Society and Place of Registered Office. The society shall be called “ The (b) Its registered office is in England, and is at No. street, , in the county of In the event of any change in the situation of the' registered office, notice of such change shall be sent within fourteen days thereafter to the registrar in the form pre- scribed by the Treasury regulation in that behalf.—Friendly Societies Act, 1875, s. 14 (1 a). III.—Objects and Purposes, Admission of Members, Conditions of Benefit, Sc. 1. Objects for ivliich the society is established.—This society is established for the benevolent or charitable pur- pose of (c) (a) No person under the ago of 16 years may he a member of a society registered after 1st January, 1876, unless it is one con- sisting wholly of members under 16. (4) State the name, which is not to be that of any existing: registered society. (c) State the whole of the objects.  MODEL RULES FOR A BENEVOLENT SOCIETY. 259' 2. Purposes for which the funds shall he applicable.—All moneys received on account of contributions, donations, admissions, fines, or otherwise, shall he applied towards carrying out the objects of the society, according to the rules and tables (if any) thereof. Any officer misapplying the funds shall repay the same and he excluded, without prejudice to his liability to prosecution for such mis- application. 3. Terms of admission of members (d).— 4. Members may become entitled to benefits on the following conditions [state the conditions, or say, “ members shall not he entitled to benefits”], 5. No fine or forfeiture shall be imposed on any member [or as the case may be]. IV.—Meetings. Eight of Voting (e). V.—Neic Rules and Alteration of Rules. No new rule shall be made, nor any of the rules herein contained or hereafter to be made shall be amended, altered, or rescinded, unless with the consent of a majority of the members present at a general meeting of the society specially called for that purpose. VI.—Appointment and. Removal of Committee of Manage- ment, Treasurer, Trustees, and other Officers. At a special meeting of the society to he called as soon ns practicable after the registry of the society there shall be elected by a majority of the members then present a com- mittee of management, consisting of ten persons, a treasurer,. (d) Hero should be stated whether, and in wliat manner, a candidate for membership is to be proposed and elected; what class of persons, if any, are not to be eligible for membership, &c. - (e) Here should be stated how often, when, and where meet- ings are to be held, what notice is to be given of them, by whose authority and how meetings are to be specially called, and upon what requisition, whether any and what number of members is necessary to constitute a quorum, either generally or in any particular cases, who is to take the chair, what are the qualifi- cation of voters, whether votes may be given by proxy, and how questions on which there is an equality of votes are to be decided. 260 MODEL RULES FOR A BENEVOLENT SOCIETY.: secretary, [two auditors (a)], and three trustees. The com- mittee of management, treasurer, and secretary shall con- tinue in office until the general annual meeting of the •society, unless previously removed by a resolution of the major part of the members present at any meeting called for that purpose ; and at every annual meeting a committee of management, treasurer, and secretary shall be appointed for the ensuing year, or, in failure thereof, those last appointed shall be considered as again appointed ; and in case any member of the committee of management, treasurer, •or secretary shall die or be removed prior to such annual meeting, the committee of management shall appoint a person to fill the vacancy. The trustees shall continue in office during the pleasure of the society, and be removable at a general meeting ; and, in case of a vacancy, another shall be elected by a majority of the members at a meeting called for that purpose. A copy of every resolution appoint- ing a trustee shall be sent to the registrar within fourteen days after the date of the meeting at which such resolution was passed, in the form prescribed by the Treasury regu- lation in that behalf. VII.—Powers and Duties of Officers. 1. The committee of management shall meet on every , at the hour of . Any (six) of the committee of management duly assembled at any such meeting shall form a quorum, and shall have full power to superintend and conduct the business of this society accord- ing to the rules provided for the government thereof, and shall in all things act for and in the name of this society; and all acts and orders under the powers delegated to them shall have the like force and effect as the acts and orders of this society at any general meeting. Every question at such meeting shall be decided by a majority of votes, and if the votes are equal, the chairman shall have a casting vote. Any (two) of the committee of management may call a special meeting thereof, by giving (seven) clear days’ notice in writing to the secretary, but at such special meet- ing no other business than that specified in the notice shall be taken into consideration. The committee of manage- ment shall convene all the meetings of the society, on such requisitions as are herein mentioned. (a) Auditors nceduotbe appointed f the accounts are audited by a public auditor. MODEL RULES FOR A BENEVOLENT SOCIETY. 261 2. The treasurer shall in the month of in every year, and also when required by a general meeting, or by the trustees or committee of management, upon demand made, or notice in writing given to him or left at his last or usual place of residence, render a just and true account of all moneys received and paid by him on account of the society ; and shall also, on the like demand or notice, pay over all moneys, and deliver all property for the time being in his hands or custody to such persons as a general meet- ing, or the committee of management, or the trustees,, appoint. He shall be responsible for such sums of money as may from time to time be paid into his hands by the secretary, or by any person on account of this society ; he shall balance his cash accounts monthly, and supply the secretary with a duplicate thereof, and shall, if required, attend every general meeting. He shall, before taking upon himself the execution of his office, give security pur- suant to 38 & 39 Yict. c. 60, s. 20 (1). 3. The secretary shall give his attendance at all meetings of this society ; he shall record correctly the names of the- members of the committee of management or trustees there present, and the minutes of their proceedings, which he shall transcribe into a book to be authenticated by the signature of the chairman as the proceedings of the meet- ing ; he shall receive proposals for admission, and demands- for allowances of every description granted by the rules ; he shall keep the accounts, documents, and papers of the society in such manner and for such purposes as the com- mittee may appoint, and shall prepare and send all returns and other documents required by the said Act, or the Treasury regulations, to be sent to the registrar. The secretary shall, on all occasions, in the execution of His office, act under the superintendence, control, and directions of the committee of management. 4. The trustees shall be admitted to all meetings of the committee of management, and shall be at liberty to take part in the proceedings thereof, and vote on any question under discussion. 5. In case any trustee being removed shall refuse or neglect to assign or transfer any property of the society as the committee of management shall direct, he shall (if he be a member) be expelled the society, and shall cease to. have any claim on the society on account of any contri- bution paid by him, without prejudice to any liability to prosecution which he may have incurred. -.262 .MODEL RULES FOR A BENEVOLENT SOCIETY. VIII.—Copies of Rules. It shall be tlie duty of the committee of management to provide tlie secretary with a sufficient number of copies of the rules, to enable him to deliver to any person on demand -a copy of such rules on payment of a sum not exceeding l.s. ,[(«) for non-members, and 6d. for members], and of the secretary to deliver such copies accordingly. IX.—Keeping and auditing of Accounts. 1. The committee of management shall cause the accounts of the society to be regularly entered in proper books. 2. The committee of management shall once at least in every year submit the accounts, together with a general statement of the same and all necessary vouchers up to the 31st December then last, for audit, either to one of the public auditors appointed under tlie Friendly Societies Act, 1875, or to two or more persons appointed as auditors by the members at the meeting next before each yearly meeting of the society, and shall lay before every such meeting a balance sheet (which either may or may not be identical with the annual return, but must not be in contradiction to the same), showing the receipts and expenditure, funds, and effects of the society, together with a statement of the affairs of the society since the last ordinary meeting, and of their then condition. Such auditors shall have access to all the books and accounts of the society, and shall examine every balance sheet and annual return of the receipts and expenditure, funds and effects of the society, and shall verify the same with the accounts and vouchers relating thereto, and shall either sign the same as found by them to be correct, duly vouched, and in accordance with law, or shall specially report to the meeting of the society before which the same is laid in what respects they find it incorrect, unvouched, or not in accordance with law. X.—Annual Returns. 1. Every year before the 1st June the committee of management shall cause the secretary to send to the regis- trar the annual return, in the form prescribed by the chief registrar of friendly societies, of the receipts and expendi- (a) If no distinction is intended, the words in brackets may be omitted. Any other figures not exceeding Is. may be inserted. - MODEL RULES FOR A BENEVOLENT SOCIETY. 263 lure, funds and effects of the society, and of the number of inembers of the same, np to the 31st December then last inclusively, as audited and laid before a general meeting, showing separately the expenditure in respect of the several objects of the society, together with a copy of the auditor’s report, if any. 2. Such return shall state whether the audit has been con- ducted by a public auditor appointed under the Friendly Societies Act, 1875, and by whom, and if such audit has been conducted by any persons other than a public auditor, shall state the name, address, and calling or profession of each of such persons, and the manner in which, and the au- thority under which, they were respectively appointed. 3. It shall be the duty of the committee of management to provide the secretary with a sufficient number of copies ■of the annual return, or of some balance sheet or other docu- ment duly audited, containing the same particulars as in the annual return as to the receipts and expenditure, funds and effects of the society, for supplying gratuitously every mem- ber or person interested in the funds of the society, on his application, with a copy of the last annual return of the society or of such balance sheet or other document for the time being, and it shall be the duty of the secretary to supply such gratuitous copies on application accordingly. XI.—Inspection of Boohs. 1. The books and accounts of the society shall be open do the inspection of any member or person having an interest in the funds of the society at all reasonable hours, at the registered office of the society, or at any place where the same - are kept, and it shall be the duty of the secretary to pro- • cluce them. 2. It shall be the duty of the committee of management to keep a copy of the last annual balance sheet of the so- • ciety for the time being, together with the report of the auditors, if any, always hung up in a conspicuous place at the registered office of the society. XII.—Investment of Funds, holding of Land, <Ie. 1. So much of the funds of the society as may not be ■wanted for immediate use, or to meet the usual accruing liabilities, shall, with the consent of the committee of management, or of a majority of the members of a society present and entitled to vote at a generel meeting, be invested by the trustees in such of the following ways as such coni- 264 MODEL RULES FOR A BENEVOLENT SOCIETY. mittee or general meeting shall direct; namely, in any savings bank certified under the Act of 1863, or Post Office Savings Bank, in the public funds, or with the Commis- sioners for the Reduction of the National Debt, or upon government or real securities in Great Britain or Ire- land (a) or in the purchase of land as after mentioned, or in the erection or alteration of offices or other buildings thereon. 2. The committee of management, with the consent of a. special meeting of the society called for the purpose, may purchase or take on lease in the names of the trustees any land in the county where the society’s registered office is situate [or in any other county where it has an office] not exceeding one acre in the whole, and may sell, exchange, mortgage, lease, or build upon the same (with power to alter and pull down buildings and again rebuild), and no purchaser, assignee, mortgagee, or tenant shall be bound to inquire as to the authority for any sale, exchange, mort- gage, or lease by the trustees, and the receipt by the trustees shall be a discharge for any moneys arising from or in con- nexion with such sale, exchange, mortgage, or lease. 3. Mortgages or other assurances for securing money to the society may be vacated by a receipt indorsed, signed by the trustees, and countersigned by the secretary, in the form contained in the third schedule to the Friendly Societies Act, 1875 [or if a special form be provided, in the form herein specified, or in the form specified in the schedule to these rules]. XIII.—Disputes. 1. If any dispute shall arise between a member, or person claiming through a member, or under the rules of the so- ciety, and the society, or any officer thereof, it shall be referred to arbitration. 2. At the second meeting of the society after the registry of the same, five arbitrators shall be elected, none of them being directly or indirectly interested in the funds of the society ; and in each case of dispute the names of the arbi- trators shall be written on pieces of paper and placed in a box or glass, and the three whose names are first drawn out (a) [Any other securities upon which it is proposed the funds. should be invested should here he specified.] MODEL RULES FOR A BENEVOLENT SOCIETY. 265 by the complaining party, or by some one appointed by him ■or her, shall be the arbitrators to decide on the matter in difference. In case of a vacancy, or vacancies, another arbitrator or other arbitrators shall be elected at a general meeting. Or, If any dispute shall arise between a member, or person claiming through a member, or under the rules of the society, and the society, or any officer thereof, it shall be referred to justices pursuant to the Friendly Societies Act, 1875, s. 22 (c). XIV.—Voluntary Dissolution. The society may at any time be dissolved by the consent of three-fourths of the members, testified by their signatures to some instrument of dissolution in the form provided by the Treasury regulations in that behalf. N.B.—It is desirable that all documents issued by a registered Benevolent Society should contain after its name the words “ registered as a Benevolent Society under 38 39 Viet. c. 60.” In using these model rules for a Working Men’s Club, the words “ working men’s club ” would have to be substi- tuted for “benevolent society” in Rule I, and Rule III (1) should be as follows : “ This society is established for pur- poses of social intercourse, mutual helpfulness, mental and moral improvement, and rational recreation.” 266 RULES FOR SPECIALLY AUTHORIZED SOCIETIES. RULES REQUIRED FOR SPECIALLY AUTHORIZED' SOCIETIES. Rule to be inserted in Rules of Societies Registered under Special Authority of May 16, 1876 (Loans- to Members, and Investments for their Benefit). The society is subject to the provisions of the Friendly Societies Act, 1875, except so much thereof as relates to- quinquennial returns and valuations (section 14, sub- section 1, e, /, and part of i); to certificates of death (section 14, sub-section 2, and section 15, sub-section 9); to exemption from stamp duty (section 15, sub-section 2); to priority on the death, bankruptcy, &e, of officers (section 15, sub-section 7); to the membership of minors (section 15, sub-section 8); to copyholds (section 16, sub-section 6); to- investments with the National Debt Commissioners (sec- tion 17); to loans on assurances on the life of members (section 18, sub-section 1); to the dissolution of friendly societies (section 25, sub-section 1, e, and sub-section 7); to militiamen and volunteers (section 26); to the limitation of benefits (section 27); and to payments on the death of children (section 28). Rule to be inserted in Rules of Societies Registered under Special Authority of March 20, 1877 (out of Employment Benefits). The society is subject to the provisions of the Friendly Societies Act, 1875, except so much thereof as relates to annuities (section 11, sub-section 5); appeals from a refusal to register a society, or any amendments of rules (section 11, sub-sections 8 and 9, and section 13, sub-section 3), or from cancelling or suspension of registry (section 12, sub-section 4 and part of sub-section 5); the provisions to be contained in rules (section 13, sub-section 1); quinquennial returns and valuations (section 14, sub-section 1, e,f, and part of schedule II.); certificates of death (section 14, sub-section 2 and section 15, sub-section 9); exemption from stamp RULES FOR SPECIALLY AUTHORIZED SOCIETIES. 267 duty (section 15, sub-section 2); priority on death, bank- ruptcy, &c., of officers (section 15, sub-section 7); copyholds (section 16, sub-section 6); the amalgamation or transfer of engagements or the dissolution of friendly societies (sec- tion 24, part of sub-section 8, and section 25, sub-section 1, e, and sub-section 7, and part of schedule II.); the limi- tation of benefits (section 27); payments on the death of children (section 28); societies receiving contributions by collectors (section 30); cattle insurance and certain other societies (section 31); and keeping separate accounts (part of schedule II.); and also to the provisions of the Friendly Societies Amendment Act, 1876, except so much thereof as relates to Treasury regulations (section 2); the conversion of registered societies into branches (section 3); deaths at sea (section 7); and certificates of births or deaths (sec- tion 8). Rule to be inserted in Rules of Societies Registered under Special Authority of March 23, 1877 (Pro- motion of Agriculture or Horticulture). This society is subject to the provisions of the Friendly Societies Act, 1875, except so much thereof as relates to dividing societies (section 11, sub-section 4); the certifica- tion of annuities (section 11, sub-section 5); appeals from a refusal to register a society or any amendment of the rules thereof (section 11, sub-sections 8 and 9, and section 13, sub-section 3); or from cancelling or suspension of registry (section 12, sub-section 4, and part of sub-section 5); exemption from stamp duty (section 15, sub-section 2); priority on death, &c., of officers (section 15, sub-section 7); limitation of cost of certificates (section 15, sub-section 9); societies receiving contributions by collectors (section 30); and catte insurance and certain other societies (section 31); and to the provisions of the Friendly Societies Amendment Act, 1876, except so much thereof as relates to the conver- sion of registered societies into branches. Rule to be inserted in Rules of Societies Registered under Special Authority of March 23, 1877 (Pro- motion of Temperance and Economy by Taking Small Deposits). This society is subject to the provisions of the Friendly Societies Act, 1875, except so much thereof as relates to the certification of annuities (section 11, sub-section 5); ajipeals 268 RULES FOR SPECIALLY AUTHORIZED SOCIETIES. from a refusal to register a society or any amendment of the rules thereof (section 11, sub-sections 8 and 9, and section 13, sub-section 3), or from cancelling or suspension of registry (section 12, sub-section 4, and part of sub-section 5); quinquennial returns and valuations (section 14, sub- section 1, e,f); certificates of death (section 14, sub-section 2, and section 15, sub-section 9); exemption from stamp duty (section 15, sub-section 2); priority on death, bank- ruptcy, &c., of officers (section 15, sub-section 7); invest- ments with the National Debt Commissioners (section 16, sub-section 1, c, and section 17); copyholds (section 16, sub-section 6); loans to members (section 18); the accumu- lation of surplus of contributions for members’ use (sec- tion 19); the amalgamation, transfer of engagements, and dissolution of friendly societies (section 24, proviso to sub- section 8, and section 25, sub-section 1, c, and sub-section 7); payments on the death of children (section 28); societies receiving contributions by collectors (section 30); cattle insurance and certain other societies (section 31); and the four last heads of schedule II.; and to the provisions of the Friendly Societies Amendment Act, 1876, except so much as relates to conversion of registered societies into branches (section 3); deaths at sea (section 7); and fees on certificates of death (section 8). Rule to be inserted in Rules op Societies Registered under Special Authority op July 3, 1878 (Pro- motion op Literature, Science, and the Fine Arts). This society is subject to the provisions of the Friendly Societies Act, 1875, except so much thereof as relates to dividing societies (section 11, sub-section 4); the certifica- t ion of annuities (section 11, sub-section 5); appeals from a refusal to register a society or any amendment of the rules thereof (section 11, sub-sections 8 and 9, and section 13, sub-section 3), or from cancelling or suspension of registry (section 12, sub-section 4, and part of sub-section 5); quin- quennial returns and valuations (section 14, sub-section 1, e,f); certificates of death (section 14, sub-section 2, and section 15, sub-section 9); exemption from stamp duty ,(section 15, sub-section 2); nomination and distribution .(section 15, sub-sections 3, 4, and 5); priority on death, bankruptcy, &c., of officers (section 15, sub-section 7); ■ copyholds (section 16, sub-section 6); loans to members , (section 18); the accumulation of surplus of contributions RULES FOR SPECIALLY AUTHORIZED SOCIETIES. 269 for 11161111)618’ use (section 19); so much of section 22 as relates to the reference of a dispute to the chief or any other registrar; the amalgamation, transfer of engagements, and dissolution of friendly societies (section 24, proviso to sub-section 8, and section 25, sub-section 1, c, and sub- section 7); militiamen and volunteers (section 26); the limitation of benefits (section 27); payments on the death of children (section 28); societies receiving contributions by collectors (section 30); cattle insurance and certain other societies (section 31); and the four last heads of schedule II.; and to the provisions of the Friendly Societies Amendment Act, 1876, except so much as relates to con- version of registered societies into branches (section 3); deaths at sea (section 7); and fees on certificates of death (section 8). Note. By Treasury regulation 65, it is provided that where a limited application of the provisions of the Act is authorized for any purpose by the Treasury, such limitation shall be stated, whether by way of enumeration or exception, in the rules of every society registered for such purpose ; and by Treasury regulation 68, that a society may be registered for any of the purposes specified in the Act, conjointly with any specially authorized purpose. If the special authority is a limited one, such society shall not, in respect of any of its purposes, be entitled to any of the privileges or exemp- tions of the Act beyond such as are contained in the pro- visions specified in the special authority, but shall, notwith- standing anything in such special authority contained, be subject, in respect of any purposes other than those specially authorized, to the same duties and obligations as if it were not a specially authorized society. 270 MODEL RULES MODEL RULES EOR AN INDUSTRIAL AND PROVIDENT SOCIETY PURSUANT TO THE INDUSTRIAL AND PROVIDENT SOCIETIES ACT, 1876. 1.—Name, Place of Office, and Object of Society. This society shall he called the “ Industrial and Provident Society, Limited,” and the registered office of the society shall be No. , Street in the parish of , and county of . The object of the society is to carry on the labour, trade, or handicraft of both wholesale and retail [and the buying and selling of land]. In the event of any change in the situation of the regis- tered office, notice of such change shall be sent within 14 days thereafter to the registrar in manner and form pro- vided by the Treasury regulation in that behalf.—Indus- trial and Provident Societies Act, 1876, s. 10 (1 a.) 2.—Admission of Members. No person shall be admitted as member of the society except by the committee of management, and every member on election shall take one or more share or shares of £ each. He shall pay as entrance money, and shall have given to him a copy of the rules of the society. A society or company may be admitted a member upon the same terms, and shall be entitled to be represented at general meetings by any person it may appoint under its seal. No member, other than a registered society, shall hold an interest exceeding £ (a) in the shares of the society. 3.—Powers of Society. The society may erect any houses, cottages or other buildings on any lands from time to time held by the society, and may alter or pull down and again rebuild any buildings, whether erected by the society, or otherwise (a) The sum mentioned must not exceed £200. FOR AN INDUSTRIAL AND PROVIDENT SOCIETY. 271 vested in it; and may manage, lay out, lease, and sub- lease (whether at rack rent, on building, mining, quarrying, •or improving leases, or otherwise howsoever, and whether to members of the society or other persons), and may dis- pose of and sell from time to time, whether to members or other persons, any lands or buildings for the time being held by the society; and the purchase-money, rents, and other moneys to be received in respect of any lands or buildings shall be appropriated as the members direct; and the society may advance any moneys to members on the security of real or personal property. Mortgages to the society may be discharged by receipt endorsed thereon in the form in the schedule to these rules. 4.—Mode of holding Meetings.—Voting. The half-yearly meetings of the members shall be held on the first day in the months of and in every year; the meeting held in the month of shall be considered as the general annual meeting. The meetings shall be held at the registered office of the society, or at ■such other place as any half-yearly meeting shall determine ■on. No meeting of the society shall proceed to business unless at least members of the society, entitled to vote thereat, be present within one hour of the time of meeting, otherwise such meeting, if it be the ordinary annual or half-yearly meeting of the society, or a special ;general meeting convened by the committe of management, shall stand adjourned to that day week; but if it be con- vened by notice from the members, shall be absolutely ■dissolved. But any general meeting may adjourn from time to time for any period not exceeding clear •days, and no meeting shall be rendered incapable of trans- acting business by the want of a quorum after the chair has been taken. At every half-yearly meeting of the society a general statement, signed by three of the said committee and the secretary, showing the transactions of the society during the past half-year, its present condition and the state of its affairs generally, and the auditor’s report and balance-sheet, shall be read to the society, and the books and accounts ■and the statement of accounts audited and approved by the auditors, shall be produced for the inspection of the members, and such other business transacted as may be ■deemed proper and expedient. The said committee may of their own authority call a special general meeting at any time, and such meeting shall also be called upon the 272 MODEL RULES requisition in writing of any members sent to the- secretary, stating therein the purpose of such meeting;: and six clear days’ notice in writing shall he sent to the address of each member, specifying the time, place and objects thereof; and at any such meeting no other business can be transacted than the business specified in the notice convening it. Each meeting shall choose a chairman, who- shall be one of the said committee, if any are present, who,, if at any meeting the votes are equal, shall have the cast- ing vote. All questions shall be decided in the first instance by a show of hands, unless five members present demand a ballot, in which case a ballot shall be taken, but no proxies shall be .admissible. Each member shall have, only one vote. 5. —Making or altering Rules. That no new rules shall be made, nor any of the rules herein contained or hereafter to be made shall be amended,, altered, or rescinded, unless with the consent of a majority of the members present at a general meeting of the society specially called for that purpose. 6.—Registration of Shares. A share register book shall be kept by the secretary,, in which shall be entered the following particulars :—The Christian and surname, place of residence, profession or business, and date of entrance of each member of the society, the number of shares held by each member, with the number and value of each share, the date when the member became such, and the date at which he ceased to- be a member in respect of any share. If several persons are registered as joint holders of any share, any one of such persons may give effectual receipts for any profits payable in respect of such share. [All transfers of shares shall be: registered in a similar way.] 7 (a).—Transfer of Shares. Shares shall be transferable [or as the case may he.] Any member may, with the consent of the committee of management, transfer all or any of his [transferable] shares to any other member of the society, or to any other person, upon giving one calendar month’s notice in writing to the secretary, such notice to contain the Christian and surname, (a) This rule is to be adopted only if the shares or some of them are to be transferable. FOB AN INDUSTRIAL AND PROVIDENT SOCIETY. 273 place of abode, and profession or business of tbe proposed transferee, and the numbers of each share to be transferred, and the consideration to be paid for the transfer. All transfers shall be in the form in the schedule to these rules. [No member shall withdraw from the society except by transfer of his shares.] 7 (6).—Withdrawal of Members. No [withdrawable] shares shall be transferable; but any member who has paid up all his subscriptions [on his with- drawable shares] may withdraw from the society on giving months’ notice in writing to the secretary of his intention; and any member may withdraw without paying up all his subscriptions with the consent of the committee of management. Upon the withdrawal of any member lie shall receive payment of the balance then standing to his credit in the books of the society, with all arrears of divi- dend and profits, if any, within months after such withdrawal. Any member having participated in the profits shall, in case of withdrawal, forfeit such sum not exceeding , as the said committee may think proper; such forfeits to go to the funds of the society. Members may withdraw any sum above £ , according to the following scale, of notice :— £ £ £ £ to £ }> on application to the said committee. weeks. 1) ?? £ £ £ to £ weeks. No money is to be withdrawn during the first twelve months except in cases of distress. A member being in distress may withdraw any sum he may have in the funds of the society above £2, at the discretion of the said committee. 8.—Audit of A ccounts. The committee of management shall cause the accounts of all business carried on by the society to be regularly entered in proper books. (b) If tlie shares are not to be transferable, then this rule will have to be adopted instead of 7 (n), but not both rules, except in the case where some of the shares are to be transferable only and the remainder withdrawable only. N 3 274 MODEL BULES The committee of management shall once at least in every year submit the accounts of the society, together with a general statement of the same and all necessary vouchers up to the 31st December then last, for audit, either to one of the public auditors appointed under the Industrial and Provident Societies Act, 1876, or to two or more persons appointed as auditors by the members at the meeting next before each yearly meeting of the society, and shall lay before every such meeting a balance sheet (which either may or may not be identical with the annual return, but must not be in contradiction to the same), showing the receipts and expenditure, funds and effects of the society, together with a statement of the affairs of the society since the last ordinary meeting, and of their then condition. Such auditors shall have access to all the books and accounts of the society, and shall examine every balance sheet and annual return of the receipts and expen- diture, funds and effects of the society, and shall verify the same with the accounts and vouchers relating thereto, and shall either sign the same as found by them to be correct, duly vouched, and in accordance with law, or shall specially report to the meeting of the society, before which the same is laid, in what respects they find it incorrect, unvouched, or not in accordance with law.—Industrial and Provident Societies Act, 1876, s. 10. (1 c.) 9.—Investment of Capital. The committee of management may, if they shall think fit, invest in any company established under the Companies Acts, or incorporated by Act of parliament or by charter, with limited liability, or in any society under the Indus- trial and Provident Societies Act, 1876, or the Building Societies Acts, any part of the capital funds of the society, at such rate of interest and upon such terms as to repay- ment or otherwise as may be agreed upon. [State here any other manner in which the capital may be invested.] 10.—Loans and Deposits. The society may contract loans and may receive money on deposit, from members and others, not exceeding 5s. in one sum, or ,£20 from one depositor, repayable at not less than two day’s notice. [State the conditions, security, and limit of amount.] No payment of withdrawable capital shall be made while any claim in respect of a FOR AN INDUSTRIAL AND PROVIDENT SOCIETY. 275 •deposit remains unsatisfied. [If the society is to carry on the business of banking, it should be so stated in rule 1 and suitable provision made for such business, as well as for the keeping the half-yearly statement required by the Act hung up at all places of business. A society for carry- ing on the business of banking cannot have withdrawable •capital.] 11.—Publication of Name. The name of the society shall be kept painted and affixed on the outside of every office or place in which the business of the society is carried on, in a conspicuous position, in letters easily legible, and shall be engraven in legible characters on its seal, and shall be mentioned in legible characters in all notices, advertisements, and other official publications of the society, and in all bills of ex- change, promissory notes, indorsements, cheques, and orders for money and goods, purporting to be signed by or ■on behalf of the society, and in all bills of parcels, invoices, receipts, and letters of credit of the society.—Industrial •and Provident Societies Act, 1876, s. 10. (1 b.) 12.—Inspection of Books. The books and accounts of the society shall be open to the inspection of any member or person having an interest in the funds of the society, at all reasonable times, at the registered office of the society, or at any place where the same are kept, subject to such regulations as to the time and manner of such inspection as may be made from time to time by the general meetings, and it shall be the duty •of the secretary to produce them [except that no such member or person, unless he be an officer of the society, or be specially authorized by a resolution of the society to do so, shall have the right to inspect the loan or deposit account of any other member without the written consent of such member.]—Industrial and Provident Societies Act. 1876, s. 10. (1 e.) 13.—Application of Profits. The net profits of all business carried on by the society, after paying or providing for the expenses of management, interest on money borrowed, and dividends upon paid up subscriptions, shall, once in eveiy half-year, be applied, in 276 MODEL HULES the first place, in the repayment of moneys borrowed, or- any instalment cine in respect thereof, and subject thereto to any provident purpose in such proportion as may be agreed upon at any half-yearly meeting of the society. [The rule may, if thought fit, state specifically the purpose or purposes to which the profits are to he applied.] 14.—Officers of Society. At the first meeting of the society, after its registry,- there shall be elected by a majority of the members then present persons as a committee of management, a treasurer, secretary, and two auditors, who shall all con- tinue in office until the general annual meeting of the society, unless previously removed by a resolution of the majority of members present at any meeting called for that purpose ; and at every general annual meeting of the said committee shall go out of office in rotation, and others shall be elected in their place ; and at such meeting a treasurer, secretary, and auditors shall be appointed for the ensuing year, or in failure thereof the officers last appointed shall continue to hold office ; and if any such officer dies or is removed previous to such meeting, the said committee shall appoint a person to fill the vacancy. All retiring members of the said committee or other officers of the society shall he immediately re-eligible. The officers of the society shall receive such remuneration for their services as shall be agreed upon at any general annual meeting. Every person appointed to any office touching the receipt, management, or expenditure of money for the purposes of the society shall, before entering upon the duties of his office, give such security as shall be deemed sufficient by the committee of management, 15.—Management. The business and affairs of the society shall be conducted by the committee of management, who shall have the control of all business carried on by or on account of the society, the determination of the persons to be employed therein, the rates of payment to be made for work or ser- vice done on account of the society, and the appointment and removal of the salesmen or other officers necessary for conducting the business, and may assign to any such officers such duties and salaries as they think fit, subject to the approval of the half-yearly meetings. FOR AST INDUSTRIAL AND PROVIDENT SOCIETY. 277 The committee of management shall meet every clay evening at o’clock, and any of the said-’ committee shall form a quorum ; it shall in all things act for and in the society’s name, and all acts and orders under the powers delegated to it shall have the like force and effect as if they were the acts and orders of a majority of the members of the society at a general meeting thereof. Every question at such meeting shall be decided by a majority of votes, and if the votes are equal, the chairman shall have a casting vote. Any of the said com- mittee may call a special meeting thereof by giving one clear day’s notice in writing to the secretary ; but at such special meeting no other business than that specified in the notice shall be taken into consideration. The said com- mittee shall convene all meetings of the society on such- requisitions as are herein mentioned. Any member of the said committee not present at a quarter past the hour of meeting shall be fined , unless he can show a reason for his absence to the satisfaction of the majority of the said committee. The secretary shall keep a record of all members present at each meeting of the said com- mittee. The chairman of each meeting shall sign the minutes of the proceedings and all contracts then entered into. The treasurer shall be responsible for such sums of money as may from time to time be paid into his hands by the secretary, or by any person on account of this society; he shall render his cash account monthly, and supply the secretary with a duplicate thereof, and shall, if required, attend every general meeting. He shall,, before taking upon himself the execution of his office, give such security as the committee of management think necessary. The secretary shall give his attendance at all meetings of the society and committee of management; he shall record correctly the names of the said committee there present, and the minutes of their proceedings, which he shall transcribe into a book, to be authenticated by the signature of the chairman as the proceedings of the meet- ing ; he shall receive proposals for admission and keep the accounts, documents, and papers of the society in such manner and for such purposes as the said committee may appoint, and shall prepare and send the annual and other returns to the registrar ; he shall receive the contributions, fines, and other payments due to the society, and at the close of every meeting pay the same to the treasurer. The secretary shall on all occasions in the execution of his .278 MODEL RULES ■office act under the superintendence, control, and directions -of the said connnittee. 16.—Annual Returns. Every year before the 1st June, the committee of management shall cause the secretary to send to the regis- trar the annual return, in the form prescribed by the chief registrar of friendly societies, required by the Industrial and Provident Societies Act, 1876, of the receipts and •expenditure, funds and effects of the society, and of the number of members of the same up to the 31st December then last inclusively, as audited and laid before a general meeting, showing separately the expenditure in respect of the several objects of the society, together with a copy of •the auditor’s report, if any. Such return shall state whether the audit has been con- ducted by a public auditor appointed under the Industrial and Provident Societies Act, 1876, and by whom ; and if such audit has been conducted by any persons other than a public auditor, shall state the name, address, and calling ■or profession of each of such persons, and the manner in which, and the authority under which, they were respec- tively appointed.—Industrial and Provident Societies Act, 1876, s. 10. (1 A.) 17.—Copies of Rules, It shall be the duty of the committee of management to provide the secretary with a sufficient number of copies of the rules, to enable him to deliver to any person on demand a copy of such rules on payment of a sum not exceeding Is. [(«) for non-members, and 6d. for members], and of the secretary to deliver such copies accordingly.— Industrial and Provident Societies Act, 1876, s. 9. (5.) 18.—Seal. The common seal shall not be affixed to any document ■except by order of the committee, entered upon their minutes ; it shall be applied in the presence of two of (a) If no distinction is intended, the words in brackets may be omitted. Any other figures not exceeding Is. may be in- serted. FOR AN INDUSTRIAL AND PROVIDENT SOCIETY. 279 them, who shall sign their names as witnesses. It shall he in the custody of the secretary. The seal shall hear legibly engraved on it at length the registered name of the society, with the device of a 19.—Coptics of Annual Ret urn. It shall he the duty of the committee of management to provide the secretary with a sufficient number of copies of the annual return for supplying, gratuitously, every member or person interested in the funds of the society, on Ms application, with a copy of the last annual return of the society for the time being ; and it shall be the duty of the secretary to supply such gratuitous copies on application accordingly.—Industrial and Provident Societies Act, 1876, s. 10. (1/.) It shall be the duty of the committee of management to keep a copy of the last annual balance sheet of the society for the time being, together with the report of the auditors, if any, always hung up in a conspicuous place at the regis- tered office of the society.—Industrial and Provident Societies Act, 1876, s. 10. (1 g.) 20.—Death and Bankruptcy of Members. The secretary shall keep a book in wMch he shall register or record all nominations made by members of the society by wilting, signed by them, delivered at, or sent to, the registered office of the society, of any person or persons not being officers or servants of the society, unless such officer or servant be the husband, wife, father, mother, .child, brother, sister, nephew, or niece of the nominator, to whom the shares of such nominator shall be transferred at his decease, provided that the amount credited to him in the books of the society does not exceed £50. The secretary shall in like manner record or register all revocations or variations of such nominations by the nomi- nator, made in writing, and signed and delivered or sent as aforesaid. The nominator shall pay 3d. to the management fund for the recording or registering of every such nomination, revocation, or variation. On receiving satisfactory proof of the death of a nomi- nator, the committee shall, at their option, either transfer the shares in manner directed in such nomination, or pay .to any person entitled thereunder the full value of his 280 MODEL RULES interest, unless the shares to he transferred to any nominee would raise his interest in the society to an amount exceed- ing £200, in which case they shall pay him the full value of such shares, not exceeding the sum aforesaid. An entry of such payment shall he made in the proper hook, and thereupon the shares so paid for shall he extinguished. If any member entitled to an interest in the society not exceeding £50 dies intestate and without having made any nomination which remains unrevoked at his death, such’ interest shall he transferable or payable, without letters of' administration, to or among the persons who appear to a majority of the committee, upon such evidence as they may deem satisfactory, to he entitled by law to receive the- same. If any member entitled to an interest in the society not exceeding £50 dies leaving a will and without having made any nomination which remains unrevoked at his death, or if any member entitled to an interest in the society exceeding £50 dies, such interest shall be transfer- able or payable only to his executors or administrators. If any member becomes bankrupt, his interest in the society shall be transferable or payable to the trustee of his property.—Industrial and Provident Societies Act, 1876- s. 11. (5, 6, 7.) 21.—Application for Inspection. It shall be the right of one-fifth of the total number of' members, or if the number of members shall at any time amount to 1,000, and shall not exceed 10,000, it shall be the right of 100 members, or if the number shall at any time exceed 10,000, it shall be the right of 500 members,, by an application in writing to the chief registrar (a), signed by them in the forms respectively provided by the Treasury regulations in that behalf— (a.) To apply for the appointment of one or more in- spectors to examine into the affairs of the society and to’ report thereon.—Industrial and Provident Societies Act,. 1876, s. 15. (1 a.) (b.) To apply for the calling of a special meeting of the society.--Industrial and Provident Societies Act, 1876,, s. 15. (1 b.) (a) If the society is registered and does business exclusively in Scotland or Ireland, instead of the words “ chief registrar insert the words “assistant registrar for Scotland,” or, “for- Ireland,” as the case may be. FOR AH INDUSTRIAL AND PROVIDENT SOCIETY. 281' Either such application to be made upon such notice to- the society, and to be supported by such evidence for the purpose of showing that the applicants have good reason for requiring such inspection to be made, or meeting to be- called, and that they are not actuated by malicious motives in their application, as the chief registrar shall direct.—• Industrial and Provident Societies Act, 1876, s. 15. (2.) 22.—Dissolution. The society may at any time be dissolved by the consent of three-fourths of the members, testified by their signa- tures to some instrument of dissolution in the form pro- vided by the Treasury regulations in that behalf.—Indus- trial and Provident Societies Act, 1876, s. 17. (1.) [The society may provide by a rule for the settlement of disputes.] [In a schedule to the rules should be given the forms of transfer of shares, and also any necessary forms of convey- ance, mortgage, transfer, agreement, bond, or other instru- ment relating to the society’s dealings in land, and of receipt for moneys secured by mortgage.] [These model rules may be adopted as a complete amend- ment of the rules of an existing society, by adding at thc- liead “the former rules are rescinded,” and omitting the reference to the first meeting after registry in Rule 14.] •282 AUDIT. AUDIT. Conditions under which public auditors will hold their appointments under the Friendly Societies Acts, and the Industrial and Provident Societies Act, 1876. 1. The country will he divided into districts, and public auditors for each district appointed. They will not, how- ever, he ranked as public servants, and will have no salaries, nor any claim to pension or gratuity. Nor are they to assume the title of “ government auditors,” or any similar one ; hut are simply to describe themselves as “ public auditors under the Friendly Societies Acts, and the Indus- trial and Provident Societies Act, 1876.” Public auditors ■are not permitted to make use of the royal arms. 2. The public auditor is bound to accept for audit (except •as hereinafter mentioned) the accounts of any society within his district registered either under the Friendly Societies Acts, or the Industrial and Provident Societies Acts, which applies to him (the term “ society ” to include a branch of a society), for the fees hereafter mentioned, the society complying with the terms of these instructions. But no public auditor can audit the accounts, balance-sheet, or annual return of any society of which he is accountant, or any account, balance- sheet, or annual return which he has himself prepared. 3. A society desirous of submitting its accounts to a public auditor must forward all the necessary materials to his office or place of residence, in order to save travelling ■expenses and loss of time. It will be the duty of the ■auditor, when applied to, to impress this upon the societies. Ileisnot bound to leave hisofficefor tliepurpose of the audit. 4. The society must, at the same time, forward to the ^auditor the annual return or general statement of the receipts and expenditure, funds and effects, of the society, made up in the form for the time being required under the Friendly Societies Act, 1875, or the Industrial and Provi- dent Societies Act, 1876, as the case may be. 5. The auditor is to verify the annual return with the accounts and vouchers relating thereto, and either to sign the same as found by him to be correct, duly vouched, and AUDIT. 283 in accordance with law, or specially to report to the society- in what respects he finds it incorrect, unvouched, or not in accordance with law. 6. The work of the auditor will be strictly confined to auditing, but he has under the Acts a right of access to all the books and accounts of the society. In the event of his discovering errors in the annual return, or the books, accounts, or vouchers submitted to him, they are to be returned (at the cost of the society) for correction, unless the auditor be requested by the society to correct the inaccuracies, in which case he is entitled to claim an additional fee, to be arranged between him and the society. 7. The auditor shall, in all cases, make a report to the society upon the accounts and other documents submitted to him, and, in case he has called for explanations or infor- mation from the directors or committee of management, he shall state whether such explanations or information have been given, and whether they have been satisfactory. 8. Rates of payment (1) For auditing the accounts of friendly societies and specially authorized societies granting friendly society benefits the scale of payment shall be— £ s. d. For societies consisting of not more than 100 members , - - - - - -110 For societies with over 100 members, but not exceeding 500 members, in respect of each 100 members or part thereof - - 1 1 0 For societies consisting of over 500 members, in respect of the first 500 members - - 5 5 0 With an additional 10s. 6d. in res- pect of each additional 100 members or part thereof. No fee, however, to ex- ceed ,£5210s., unless by special arrange- ment. (2.) For auditing the accounts of all other societies registered under the Friendly Societies Acts, viz., cattle insurance societies, benevolent societies, working men’s clubs, specially authorised societies (except such as grant friendly society benefits), the scale of payment shall be— £ s. d. For societies whose total gross receipts do not exceed £2,000 per annum - - 1 1 0 284 AUDIT. For societies whose total gross receipts ex- ceed ,£2,000 but do not exceed £10,000 per annum, in respect of each £2,000 or fraction thereof - - - - -110. Where the gross receipts exceed £10,000 per annum, the fee to be fixed by private arrangement. (3.) For auditing the accounts of industrial and provident societies the scale of payment shall be— £ s. cL For societies whose total sales do not exceed £2,000 per annum - - - - -110 For societies whose total sales exceed £2,000 but do not exceed £10,000 per annum, in respect of each £2,000 or fraction thereof - 1 1 O For societies whose total sales exceed £10,000 but do not exceed £25,000 per annum, in respect of the first £10,000 - 5 5 0 With an additional 10s. 6d. in respect of each additional £2,000 or fraction thereof. Where the sales exceed £25,000 per annum, the fee to be fixed by special arrangement. The word “ sales,” in the case of societies for the- buying and selling of land, to include instalments in repayment of advances. 9. The scales of fees apply only in cases where the society is located within the district assigned to the auditor employed. If a society employs an auditor appointed for any other district, special terms may be arranged. The auditor may accept audits on terms lower than those of the above scale. 10. Auditors shall hold their appointments from year to year, beginning on the 1st day of January in each year. The treasury reserves to itself entire discretion as to re- appointing them. 11. They shall send in half-yearly to the chief registrar of friendly societies a list containing the names of the societies audited by them during the previous half year, and the fees received from each society, distinguishing societies under AUDIT. 28-5 the Friendly Societies Acts from societies under the Indus- trial and Provident Societies Acts. 12. The scales of fees above laid down will only remain in force from year to year. At the end of any year they may be confirmed or altered in such manner as the Treasury may direct. 13. Auditors are requested to make themselves acquainted with the provisions of the Friendly Societies Acts, and of the Industrial and Provident Societies Act, 1876, which affect the exercise of their functions. Their attention is particularly directed to sections 14 and 32 of the Friendly Societies Act, 1875, and to sections 10 and 18 of the Indus- trial and Provident Societies Act, 1876. 14. [Here follows the arrangement of districts for the year]. 15. Apart from the above arrangement, the auditors of the local government board are authorised to exercise, subject to the sanction of that board previously obtained, the functions of public auditors in their respective districts, but are not bound to accept any accounts for audit. 16. The Treasury reserves to itself the right of appointing additional auditors, if required. [These conditions are subject to yearly revision by the Treasury.] 2S6 VALUATION. VALUATION. Instructions to public valuers appointed under tlie- Friendly Societies Acts 1. A limited number of public valuers, not exceeding for the present 14, will be appointed for England, Scotland, and Ireland respectively. They will not be ranked as public servants, and will have no salaries, nor any claim to pension or gratuity. 2. A public valuer is bound to undertake by himself, or through some other public valuer, every valuation under the Act tendered to him by a society (the term to include a branch of a society) within the country for which he is appointed. 3. The valuer may require that the particulars for valua- tion shall be supplied to him in such form as he may think fit, together with a copy of the rules for the time being of the society, and copies of the annual returns, and also of the annual statements of account of the society, where these are not identical with the annual returns, for at least the five years next preceding the date up to which the valua- tion is to be made. 4. The valuer may ask for such further information as to the affairs of the society as he may deem necessary for the purpose of his valuation. 5. In no valuation of a society’s future sickness liabilities shall the total sickness per annum at each age up to age 70 expected to be experienced be less than that given by “Ratcliffe’s Sickness Experience for the Years 1865-70, of the Manchester Unity of Oddfellows, Rural, Town, and City districts combined.” 6. In the case of societies granting sick allowance beyond the age of 70, the valuer shall call attention in his report to the principles on which he has valued this portion of the sickness liabilities, with special reference to the probable effect of cases of prolonged sickness on the funds of the society. VALUATION. 287" 7. In no valuation of a society’s future sickness liabilities sliall a higher rate of mortality at any age be employed than that given by “ Rateliffe’s Mortality Experience for the Years 1865-70, of the Manchester Unity of Oddfellows,. Rural, Town, and City districts combined.” 8. In the case of societies having members engaged in occupations more than usually hazardous or injurious to- health, or having members residing in localities known to be unhealthy, the valuer shall in his valuation make such allowance or allowances therefor as regards conditions 5 and 6 as he may deem expedient, and shall call special attention thereto in his report, on the valuation. 9. The valuer may, in estimating the value of a society’s- liabilities under its assured benefits, use such a rate or rates- of interest as he may consider expedient; but when such rate or rates shall exceed 3 per cent., he shall, in his report on the valuation, state fully the grounds on which a higher rate of interest is made use of. 10. No allowance is to be made for possible future profits arising from secessions, unless the number of contributing members in the society, and the nature of the society’s business be such as fully to justify an allowance being made, and the valuer shall in all such cases state in his report what allowance has been made, and the grounds on which it is made. 11. The method of valuation must in no case have the effect of treating any of the society’s assurance contracts as- assets; in other words, the liability of the society under its assurance contracts must in no case be treated as having a negative value. 12. The valuation report must in all cases state distinctly what provision is made for future expenses of management, and the valuer shall state whether in his opinion, judging from the experience of the society, such provision is adequate. 13. In making his report on the valuation, the valuer shall in all cases specially call attention to the assumptions on which the valuation is based, particular care being; exercised in this case where the number of members is small. :288 VALUATION. 14. The valuer shall make his valuation and furnish to the society the report and abstract of valuation required by -sect. 14 (1,/) of the “ Friendly Societies Act, 1875,” within three calendar months after the necessary particulars have been supplied to him, unless there be just and sufficient reason for any delay. 15. If in consequence of the large number of valuations under the Act which are submitted to him, a public valuer is unable to complete any such valuation within the time -above specified, he may transfer such valuation to another .public valuer upon the same terms and conditions. 16. When the benefits to be valued do not exceed two -classes of sick allowance and deferred annuities, together with sums payable on the deaths of members and of their wives, the scales of payment to public valuers shall be as ■follows:— £ s. d. For societies— consisting of not more than 75 members - 3 3 0 For societies with over— 75 members and not exceeding lOOmembers 4 4 0 100 V 99 150 99 5 5 0 150 99 99 200 99 6 6 0 200 99 99 300 99 7 7 0 300 99 99 400 99 8 8 0 400 99 99 500 99 9 9 0 500 99 99 600 99 10 10 0 600 99 99 750 99 12 12 0 750 99 99 1,000 99 15 15 0 With a further 51. 5s. for every 500 members, or portion thereof, beyond the total amount of members not exceeding 2,500. Beyond 2,500 members the fee to be a matter of special arrangement, as well as in all cases where the number of benefits exceeds that above mentioned. Valuers may accept valuations on terms lower than those ■of the above scale. Valuers must take such steps as they think fit for obtaining payment of their fees. VALUATION. 289 17. Valuers sliall hold their appointments from year to year, beginning on the 1st January, 1877. The Treasury reserves to itself entire discretion as to re-appointing them. 18. The scale of fees above laid down will remain in force till the end of 1880. At the end of that time it will either be confirmed or altered in such manner as the Treasury may direct. 19. The Treasury reserves to itself the right of appoint- ing additional valuers if required. 20. Valuers are requested to make themselves acquainted with the provisions of the Friendly Societies Acts, and with the Treasury regulations which affect the exercise of their functions. Their attention is particularly directed to sects. 14 and 32 of the Act of 1875. These instructions are subject to yearly revision by the Treasury. The subjoined Forms (pp. 290-298) are those at present prescribed by the chief registrar for— 1. The returns with respect to the benefits assured and contributions receivable by the society, and of its funds and effects, debts and credits, to be made by the secretary of the society (pp. 290-293). 2. The abstract to be made by the valuer, whether one of the public valuers, or a valuer appointed by the society itself, of the results of his valuation (pp. 294-298). They are subject to revision. o FORMS. Fbiendly Societies Act, 1875, s. 14 (/). Valuation of tlie Assets and Liabilities of the as at 18 Rettten to be made by the Secretary of the Society. Register No. of Society. (Add Scotland or Ireland when necessary.) (1.) (a.) In what occupations are the members mostly engaged? (c.) In what localities do they chiefly reside ? (d.) Does the society assure benefits to females ? If so, state what kinds of benefits are assured to them. (2.) Fill in for each of the five years preceding the date of valuation the following particulars, omitting shillings and pence. 290 YALUxVTION'. Total Amount Received on Account of— Sickness Benefits Annuities Commencing Yeal* Ending Total Funds at end of Year. Amount Received as Interest. Ceasing at Age . to .3 o CO to §◄ Ceasing at Age . Through- out Life. Sums at Death. At Age . j At Age . ' l At Age . J Endow- ments. Other Receipts (to be specified). £ 31st Dec., 18 „ 18 „ 18 „ 18 „ 13 £ £ £ £ £ £ £ £ £ £ £ £ Total - to Total Amount Paid on Account of Sickness Benefits. Ceasing at Age Ceasing at Age Ceasing at Age Throughout Life. Yeal* Ending | Full Pay. o lib 3 ©•“< [=<P3 Permanent Reduced Pay (if any). | Full Pay. | Reduced Pay. O • P 5 d Permanent Reduced Pay (if any). & P-i Reduced Pay. Further Reduced Pay. +3_ §.ej?g S a r“l B Ah Full Pay. i 4> . Sb Further Reduced Pay. Permanent Reduced Pay (if any). 31st December, 18 - „ „ 18 .... „ „ 18 .... „ „ 18 .... „ „ 18 .... £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ Total - 1 VALUATION. 291 Total Amount Paid on Account of— Year Ending Sums at Death. Annuities Commencing Endowments. Other Payments (to be specified). At Age At Age At Age 31 December 18 „ 18 - „ 18 - „ 18 - „ 18 - Total - - - £. £. £. £. £. £. (3.) State according to the rules of the Society— (a.) When full pay ceases and reduced pay begins, and what the reduction is; (b.) When such reduced pay is still further reduced, and by how much; 292 VALUATION. (c). Under what circumstances (if any) members become entitled to a permanent reduced sick allowance, and what proportion the same bears to full pay. (4.) (a.) How are the management expenses provided for ? (6.) Fill in for each of the five years preceding the date of valuation, the following particulars, / omitting shillings and pence. { (5.) When was the last valuation made, and by whom ? Year Ending Total Receipts on Account of Management Expenses. Total Payments on Account of Management Expenses. 31 December 18 £. £. „ 18 - „ 18 - „ 18 • 1—* 00 Total - - - Signature of Secretary_________________________ Registered Office______________________________ Date________________________________________18 £65 •XOIIYMVA Abstract op the Valuation. To be made by the Vainer appointed by the Society. Summary of Results of Valuation as at 18 . Nature of Benefits Assured. Number of Benefits. Total Amount Assured. Total Yearly Contributions applicable to Benefits. Present Yalue of Benefits. Contributions applicable to Benefits. Sickness Allowance ceasing at Age » >J if if if a „ „ throughout Life Annuities (Deferred and Immediate) com- mencing at Age - if if a a Sums payable at Death of (a) Members - •i » » (/') » Wives Endowments; with Return of Contributions - Endowments; without Return of Contribu- tions - Other Benefits (to be specified) Total .... £. s, d, * t + T £. s. a. £. £. * The total full sick pay assured per week is to be stated. + The total sum payable per annum is to be stated. J If any portion of this liability is met by special levies the same should be stated. 294 valuation. Valuation Balance Sheet as at______________18 Dr. Cr. To present Value of Benefits assured by the Society, as per Summary - ,, Other Liabilities, viz.:— {Full particulars to be given.) £ By Total Funds as per Secretary’s Return „ Present Value of future Contribu- tions applicable to Benefits „ Other Assets, viz.:— {Full particulars to be given). £. „ Surplus (if any) ..... „ Deficiency (if any) - £. £. (1.) What published Table or Tables and what rate or rates of interest have been used in the valuation of— Description of Table. Kate of Interest. («.) The Sickness Benefits ? (b.) The Annuities ? (c.) The Endowments ? (d.) The Sums payable at Death ? (e.) The other Benefits (if any) (specifying them) P In describing the Tables, the name of the publication^ should, be stated, together toith the edition used and the number of the page ichere the table may be found. The answers to the above questions must give full particulars. VALUATION. 295 oo <r ci oi *>. cc> to Valuation Balance Sheet—continued. (2.) If a Table or Tables have been used which are not published, fill in the particulars as on the other side. Note.—Where suras payable on the death of per- sons under age 20 are assured, the rate of mortality per cent, used in the valuation must be stated helow for every age under 20. Valuation Age. Rate of Mortality per Cent. Valuation Age. Rate of Mortality per Cent. Under 3 months — 9 years — Exceeding 3 months and not exceeding > — 10 „ — 6 months - - -j Ditto 6 ditto 9 ditto — 11 „ — Ditto 9 ditto 12 ditto — 12 „ — 2 years - — 13 „ — 3 „ - - - - — 14 „ -— 4 „ - - - - — 15 „ — 5 „ - — 16 „ — 6 „ - - - — 17 „ — 7 „ - - - - — 18 „ — 8 „ — 19 „ — (3.) Have the Tables used in the valuation, or the results of a valuation by such Tables, been in any way altered to suit special circumstances ? Valuation Age. Average Sickness per Annum in Weeks. Rate of Mortality per Cent. 20 — — 25 — — 30 — — 35 — — 40 — — 45 — — 50 — — 55 — 60 — — 65 — — 70 — — 75 — — 80 — — 296 VALUATION. If they have, state clearly and fully the nature and purpose of such alterations, and their effect on the results shown by the valuation. (4.) Has any allowance been made for any provisions in the rules relating to the reduction of sick pay m cases where sickness lasts beyond the time for which full sick pay runs ? If so, state clearly and fully how such allowance has been calculated, and its effect on the results of the valuation. (5.) How have the valuation ages been computed ? (6.) What average rate of interest has been realised on the funds of the society for each of the five years pre- ceding the date of valuation ? (7.) Has an investigation been made into the mortality or sickness experience of the society ? If so, give the particulars of the observations, and the results deduced therefrom at the various ages. (Where convenient, these particulars and results may be furnished on a separate sheet.) (8.) To what causes may be attributed the surplus or defi- ciency shown by the valuation ? Note.—Where the accounts of any of the various benefit funds are kept distinct, the answer should deal with each fund separately. (9.) Fill in the particulars required in the appended schedule. Year ending Kate of Interest localised 31st December 18 per Cent. „ 18 >» „ „ 18 ” „ „ 18 „ 18 > >> VALUATION. 297 Reserve (or Estimated Net Liability) required according to the Valuation for Sick Benefit of per Week (a) throughout Life. Sum of £ (6) payable at death. Sickness Benefit of per \ Week ceasing - - f . . ( . Deferred Annuity of l at A°e W per Week commencing -) Sum of £ payable at Death. Member’s Age at Entry. Yearly Contri- bution for Benefit. Valuation Age 1 year older. Valuation Age 3 years older. Valuation Age 5 years older. Valuation Age 10 years older. Yearly Contri- bution for Benefit. Valuation Age 1 year older. Valuation Age 3 years older. Valuation Age 5 years older. Valuation Age j 10 years older. Yearly Contri- bution for benefit. Valuation Age 1 year older. Valuation Age 3 years older. Valuation Age 5 years older, j Valuation Age! 10 years older 20 25 30 35 Note.—This part of the schedule is only required to be filled in when contributions for the various benefits are not kept separate. 40 45 (a) The amount of sickness benefit per week should be the maximum per member assurable by the society, and when the society does not grant such benefit throughout life the age at which such benefit ceases must be stated. (b) The amount payable at death should be the maximum per member assurable by the society. (c) State at what age sickness benefit ceases and the annuity begins. The amount of sickness'benefit, deferred annuity, and sum payable at death, shall be the maximum amounts assurable per member by the society. Signature of Valuer--------------------------------------------------- Address_________________________________________________________________ Calling or Profession------------------------------------------------ Date--------—--------—_______________________________________________. 298 VALUATION. INSPECTION. 299> INSPECTION. Insteuctions to inspectors appointed under the Friendly Societies Act, 1875. The inspector’s business is confined to the two following- functions :— 1. Examining into the affairs of the society. 2. Reporting thereon to the chief registrar, or, as the case- may be; the assistant registrar for Scotland or Ireland. The inspector is in no wise an arbitrator, still less a judge, and has no power to decide disputed questions of law or of fact, nor has he to fulfil the duties of auditor or valuer. The inspection primarily concerns only the society and its members ; strangers have no right to be present, and should only be admitted if the inspector thinks it desirable, and with the consent of both parties to the inquiry, viz.,, the applicants and the society. For the due discharge of his functions, however, he is invested with certain important powers :— (1.) He may require the production of all or any of the books and documents of the society. (2.) He may examine on oath any— (a.) Officer, (&.) Member, (c.) Agent, or (d.) Servant of the society in relation to its business, administering the oath himself (sect. 23, sub-sect. 1). The word “ officer,” by the definition in sect. 4, “ ex- tends to any trustee, treasurer, secretary, or member of the committee of management of a society, or person appointed by the society to sue and be sued on its behalf.” In conducting his inquiries the inspector should, in the first instance, put the applicants or their representatives upon the proof of their allegations. Bearing, however, in mind that his task is to examine and report upon the affairs of the society, he is in no wise bound to limit his inquiries to the proof or disproof of the specific allegations made. On the other hand, he should not admit to exami- nation all persons who tender themselves as witnesses irrespective of the matters to be proved. He will at all times use his discretion as to examining 300 INSPECTION. persons upon oath, but where fraud is alleged, or any act carrying penal consequences, he should always do so. The form of oath (to he taken on the Scriptures) may be as follows :— “ The evidence you shall give touching the matters in question shall he the truth, the whole truth, and nothing hut the truth, so help you God.” [An affirmation may he taken instead of an oath in the cases allowed by law.] Having heard the statements made on behalf of the applicants, the inspector will require the trustees of the society, in whom all its property is vested (sect. 16, sub- sect. 3), to produce its hooks and documents, or such of them as he may deem necessary, calling upon them at the same time for any evidence in disproof of the applicant’s allegations. If there is any likelihood that the production of books or documents will be unwilling or incomplete, it will be well for the inspector to make his requisition in writing, as by sect. 39 every document purporting to he signed by an inspector is, in the absence of evidence to the contrary, to he received in evidence without proof of the signature. The same applies to the summoning of witnesses. If the society refuses to produce its books, he should warn it that it commits an offence under sect. 14 (3 a) of the Act, as failing “ to do or allow to be done any act or thing which the society is by this Act required to give, send, do, or allow to be done.” If the society wilfully neglect or refuse to furnish any information which the inspector requires for the purposes of his inspection, he should warn it that it commits an offence under sect. 14 (3 b) of the Act, as wilfully neglect- ing or refusing “ to furnish any information required for the purposes of this Act by the chief or any other registrar or other person authorized by this Act.” If the society wilfully furnishes to him information in any respect false or insufficient, he should warn it that it commits an offence under sect. 14 (3 c) of the Act. [By the term “ society ” must always be understood the trustees.] Under the “ Act to Amend the Law of Evidence, 14 & 15 Viet. c. 99, s. 2,” it would appear that the “parties” to the inquiry are “compellable” to give evidence ; hut the in- spector does not appear to have any power of compelling the attendance of mere witnesses, and he certainly has not any power of committing for contempt of his authority. The general principle that no person is compellable to INSPECTION. 30] answer any question tending to criminate himself, applies of course to the evidence given before him. Nor can he, it would appear, impound any document or require the same to be delivered up to any person or left in his custody, or give any order or direction as to any matter to be done by the society, or by individuals, otherwise than for the purpose of his examination into the affairs of the society, and his report thereon. When the examination, so far as he is able to make it, is completed, the inspector will make his report upon it. Bearing in mind that the chief or assistant registrar will have to direct on whom the burthen of the expenses of the inspection will fall (sect. 23, proviso c.), the inspector will specify in his report as well instances of misconduct or mismanagement on the part of the society or its officers, which may justify the inspection applied for, as any mal- practices on the part of the applicants which may render it equitable to throw upon them all or part of its cost, and all other matters that should be considered. He will more particularly report any acts or defaults coming within sect. 14 (3), sect. 16 (9), sect. 27, sect. 28, sect. 32, and sect. 30 if the society is within that section ; as also when an offence appears to have been committed, whether any particular officer of the society has rendered himself guilty of it within sect. 14 (4), or if not, what members of the committee of management are exempt from liability for such offence under the same sub- section. Should any offence under the Act appear to him to have been committed during the examination, he will give specific details as to the facts, in the event of the chief registrar deeming it advisable that the offenders he prosecuted. It is needless to remind the inspectors that they are to he strictly impartial; never to assume that a violation of the law has been committed until it has been proved, and that they should be prepared to meet with cases of frivolous or vexatious applications for inspection, as well as of real mismanagement or fraud. J. M. Ludlow, Chief Registrar. N.B.—The amount deposited by the applicants is as a rule expected to cover the costs of the inspection. Beyond the inspector’s fees (which must include his subsistence), only costs out of pocket for travelling expenses and hire of' room will generally be allowed. r 302 PROSECUTION. PROSEOUTION.. Form op Statutory Declaration in support of appli- cation to the Central Office for authority to prosecute- under the Friendly Societies Act, 1875. 38 & 39 Viet.. c. 60, s. 16 (9). Name of societj^ . Register No. I, of a member of the above-mentioned society do solemnly and sincerely declare (1) that, as I believe I shall be able to prove, of has («■)• (2) That the society, the trustees, and committee of manage- ment thereof will not make or authorize to be made any complaint in respect of such fraud or misappropriation. And I make this solemn declaration, conscientiously believing the same to be true, and by virtue of the pro- visions of an Act made and passed in the fifth and sixth, years of the reign of his late Majesty King William the Fourth, intituled “ An Act to repeal an Act of the present sessions of Parliament, intituled ‘An Act for the more effectual Abolition of Oaths and Affirmations taken and made in various Departments of the State, and to substitute Declarations in lieu thereof, and for the more entire Sup- pression of voluntary and extra-judicial Oaths and Affidavits, and to make other provisions for the Abolition of unneces- sary Oaths.’” Taken and received before me \ one of Her Majesty’s Jus- I tices of the Peace for the I said County of V at in j the said County, this day of 18 . } («) [Here state the complaint, viz., “obtained possession by false representation or imposition of certain property of the society ” or “ withheld or misapplied property of the society in his possession,” or “ wilfully applied certain property of the society in his possession to purposes other than those required or directed in the rules of the society, and authorized by the above mentioned Act.”] PROSECUTION. 303 Authority by Central Office. Upon a declaration of a member of the that, as he believes he shall be able to prove, has and that the said society, the trustees, and committee of management thereof will not make or authorize to be made any complaint in respect of such alleged fraud or mis- appropriation. The Central Office hereby authorizes the said at his own risk and cost, to make complaint in respect thereof, pursuant to 38 & 39 Viet. c. 60, s. 16 (9). Given under the Seal of the Central Office this day of 18 NOTE. “ It has appeared to the Central Office that by the true construction of the enactment above quoted, its power to authorize prosecutions by members should only be exer- cised where the society and its trustees or committee of management decline to take proceedings ; but that where this is the case, and malpractices within the terms of the section are alleged to have taken place, the authority should issue almost as a matter of course, since the Central Office has no means at its disposal for investigating the allegations made to it. Upon a statutory declaration, therefore, made by a member to the above effect (which would subject the person making it to prosecution, if false), it will give such an authority ; implying no opinion upon the merits of the case, but simply that the person complaining has a locus standi for the purposes of prosecution at his own risk and costs.”—Report of Chief Registrar for 1876, page 26. The forms apply, with slight modification, to proceedings under section 12 (10) of the Industrial and Provident Societies Act, 1876. p 2 INDEX. ABATEMENT, suit, &c., not to abate by death, resignation, removal, or act of officer, 85. ACCOUNTS, rules must provide for keeping separate, of money paid for each benefit, 121. to be rendered by officers, 33, 84, 169. how to be enforced, 84, 169. model forms of, may be prepared by chief registrar, 17. ACCOUNTANT, his certificate required to returns of collecting societies, 21. ACCUMULATION, of surplus contributions, 83. ACKNOWLEDGMENT, of registry, 61, 63, 124, 129,190. ACTION, against society to be in names of trustees or officers, 85. by society in names of trustees or officers, 85. effects of society to be stated as the property of trustee, 77. not to abate by death, resignation, removal, or act of officer, 85. ACTS, repeal of former, 50, 150. See Statutes. ACTUARY, qualification of, 6. societies granting annuities to have tables certified by, 29, 59. to value societies for registrar, 66. ADMINISTRATION, sums under £50 to be paid without, 32. if member dies intestate and without a nominee, 72. stamp duty, when not payable on, 72 (n). mode of obtaining, 72 (n). INDE . ADVERTISEMENT, hi Gazette and local newspaper. required for cancelling or suspension of registry, 62, 151. for dissolution by instrument, 95, 177. award, 98. AFFILIATED SOCIETIES, 18, 103. model rules for branches of, 216. AGENTS, appointment of) exempt from stamp, 70. and also revocation of, 70. AGRICULTURE, form of rules of society for promotion of, 267. ALDERMAN, of London, jurisdiction of, 111. ALTERATION, of rules, 63, 155. the manner of, to be set forth in rules, 120, 186. See Amendment. AMALGAMATION, of societies, 23, 90, 173. AMENDMENT, of rule, 49, 155. not valid until registered, 63, 155, 197. no fee payable on (for certain societies), 114. does not affect members having existing claims, 63. ANIMALS, society may be established for insurance of, 17, 53. contributions recoverable as a debt, 26, 109. ANNUAL RETURNS, and balance-sheets, 65, 67, 68, 157. ANNUITIES, tables to be certified of societies grunting, 29. limit to amount of, to be assured, 24. member of more than one society cannot have a greater amount than £50, p. 24. APPEAL, from refusal to register, 60, 153. from cancelling or suspension of registry, 62, 154. from summary conviction, 110, 112,180. not allowed from decision made according to rules, 86. INDEX. APPLICATION, for registry, 58, 151. of a society with branches, 103. by members to registrar, 88, 122,171. for transfer of stock, 73, 162. for dissolution by award, 96. of Act to specially authorized societies, 54. to Isle of Mac, 116. to Channel Islands, 116, 183. by married women to a society, 135. for authority to prosecute, 302. APPOINTMENT, of agent free from stamp, 70. of trustees, mode of, 64. registry of, 202. ARBITRATION, if rules direct, disputes may be settled by, 86, 169. other jurisdiction then ousted, 217. the decision final, 218. may be enforced by county court, 86. counsel need not be heard on, 217. ASSISTANT REGISTRAR. See Resistbak, Ireland, Scot- land. ASSUMPSIT, may be maintained against a member for money in his hands, 214, ATTORNEY, power of, for transfer of public funds, free from stamp duty, 70. hut not so as to other investments, 204. AUDIT, of accounts, provisions for, 31, 64, 282 AUDITORS, public, 114, 282. report of, 64, 65, 68. AUTHORITIES, special, 28, 266. AWARD. See Abbitkation, of dissolution, 96. for distribution of funds, 9 4. INDEX. BALANCE-SHEET, form of, to be prepared, 55. to be hung up at office, 67. of a collecting society, when to be open for inspection, 21,107. BANK OF ENGLAND (or IRELAND). when stock stands in books of, in name of trustee, who if absent or bankrupt, or removed from office, &e., chief registrar may order funds to be transferred, 72,162. BANKRUPTCY, of officer, debts due to society payable before other debts, 32, 73, 210. BARRISTER, appointed to certify rules, 7. BENEVOLENT SOCIETIES, definition of, 53 (n), 17- may be registered, 26, 53. cannot divide funds, nominate, or hold more than one acre of land, 26. model rules for, 258. BIRTH, society may be established for payment on, 17, 52. BOND, given by officers of society under former Acts, good, 51. officer to give, with surety to the trustees of the society, 83. forms of bond, 122, 188. may be sued upon by trustees for the time being, 84. free from stamp duty, 70. BOOKS, may be inspected by persons interested, 31, 67, 157. to be produced in case of dispute, 87. BRANCHES, definition of, 18, 49. now more under control of central body of society than before, 19. registry of 29, 103. consent of central body of society necessary for dissolu- tion, 98. or for application under special powers of regis- trar, 89. effects of, to be vested in their own trustees, 77. model rules for, 246. INDEX. BUILDINGS, may be purchased as an investments funds of society, 32,165. if directed by rules, 32. vested in trustees, 32. BURIAL, society may be formed for defraying expenses of, 52. CANCELLING, of registry, 29, 153. CASES, court or registrar may state, 87. as to insanity, 192. as to registry, 197. as to trustees, 202. as to stamp duty, 203. as to bankruptcy of officers, 210. as to discharge of mortgages, 231. as to misapplication of funds, 212. as to disputes, 217. under Industrial and Provident Societies Act, 226. CATTLE, society may be established for insurance of, 17, 53. its rules have effect of a covenant, 109. money payable by its members is recoverable as a debt, 109. CENTRAL OFFICE, how constituted, 54. exercises functions of registrar in England, 48, 55. its other functions, 55. CERTIFICATE, of death to be required, 68. to rules, its antiquity, 3 (n). to societies, 11. CHANGE, of name of society, 34, 90,173. of registered office, 64, 156. CHANNEL ISLANDS, Acts extend to, 48, 148. application to, 116, 183. CHARITABLE INSTITUTIONS. See Benevolent Socie- ties. when trustees may subscribe to, 32,75. model rules for, 258. r 3 IXDEX. CHIEF REGISTRAR. Sec Registrar. CHILDREN, limit of amount payable on death of, 24. evidence of cause of death, to be produced, 25. COLLECTOR, definition of, 49. societies having-, 20, 106. COMMENCEMENT, of Act of 1875, p. 47. COMMITTEE, of management to be appointed, 121, 186. COMPANIES, conversion of societies into, 91, 173. COMPLAINT, how to be heard, 111. CONDITIONS, to entitle member to benefits to be set forth in rules, 120. CONTRIBUTIONS, to he voluntary, 52. when to be kept separate, 121. receipt for, free from stamp, 70. surplus of, may be accumulated for members use, 83. COPYHOLDS, trustees to be admitted to, on payment of single fine, 32,77 166. CORRESPONDING SOCIETIES ACTS, do not apply to friendly societies, 31, 69. except on default to give information to jus- tices, 70. COUNTRY, definition of, 48, 149. societies doing business in more than one, 60, 152. COUNTY COURT, definition of, 50, 150. in Isle of Man, 116. in Jersey, 117, 183. in Guernsey, 118, 184. INDES. -COUNTY COURT—oonUnued. may enforce bond given by officer, 84,169. to decide disputes arising by dissolution of society, 96, 177. to settle disputes by consent, 87, 170. or where no decision made, 87, 170. or in a collecting society, 107. to enforce decision of dispute, 86, 169. or award of dissolution, 98. may enforce payment of contributions to cattle insurance society, 109. decides disputes as to married women’s property, 136. has jurisdiction in winding up industrial societies, 175. sheriff court in Scotland to have same jurisdiction as, 50. regulation of proceedings in, 114,181. orders regulating proceedings of, 222. COURT, of summary jurisdiction, 50. how constituted, 111. power of, 85, 87, 97, 98, 108,110. DAMAGE, at sea, may be assured against, 17. DEATH, of officer, not to affect proceedings, 33. priority of claim on, 32, 73. society may be established for payments on, 52. sum, payable not to exceed, £200, pp. 12, 53. sum under £50 payable without administration, 32. certificate of, to be required before payment, 68. of child, as to payments on, 24, of trustee, property vests in his successor, 77. DECLARATION, to be made by member of more than one society, 24. on investing with National Debt Commissioners, 80. penalty, if false, 80. on dissolution, 94,176. on application to prosecute, 302. DEFICIENCY, in funds, trustees not liable, 80. DELEGATES, meeting of, 50, 150. DEPOSIT, funds, society may have, 18. of rules, with registrar, of no effect after 1878, p. 51, benefits of, 13. INDEX. DISPUTES, rules to provide for the settlement of, 31, 86. the decision final, 86. county court to decide in collecting societies, 21. may be referred by consent to chief registrar, 33, 86, 169. powers of chief registrar, 33, 87, 170. jurisdiction of superior courts ousted, 87, 217. decision of arbitrators to be enforced by county court, 87. if no award made, &c., county court or court of summary jurisdiction may decide, 87. arising through member having enrolled in the militia, 98. meaning of word, 220. does not apply to disputes other than as members, 220. DISSOLUTION, of society, how to be carried out, 23, 34, 93, 174. of friendly society by consent of five-sixths, in value of members (including honorary members), 23, 93. and also of all persons receiving or entitled to re- ceive relief, 23, 93. unless claim satisfied, 23, 93. mode of ascertaining votes, 95. of societies other than friendly societies, by consent of three-fourths, 93, 175. intended appropriation or division to be stated, 23, 94. instrument of, to be registered, 94. may be by award of registrar upon application, 23, 96. to be advertized, 23, 95, 98, 177. notice of proceedings to set aside, 177. DISTRESS, society may be established for payment in, 17, 52. DISTRIBUTION, of sums not exceeding £50 at death, 72,162. statutes of, 207. DIVISION, of funds may be provided for, 22. in case of dissolution, 23, 176. DOCUMENTS, recording of, 69, 152. evidence of, 115, 182. DONATIONS, may be received by society, 52. INDEX. DRAFTS, of society, exempt from duty, 70. DUBLIN, court of summary jurisdiction in, 111. EMBEZZLEMENT, liow punishable in an unregistered society, 140. EMPLOYMENT, society may be established for payments to seekers of, 17, 52. form of rule for society granting benefits out of, 266. ENDOWMENTS, society may be established for assurance of, 52. ENGLAND, assistant registrars for, 17, 54. qualification of, 54. includes Channel Islands and Isle of Man 48. Summary Jurisdiction Act in, 50. appeal from refusal to register in, 60. transfer of stock in Bank of, 73. bankruptcy or insolvency in, 74. j urisdiction of supreme court in, 87. summary procedure in, 110. court of summary jurisdiction in, 111. appeals in, 112. form of bond in, 122, 188. extent of unregistered societies in, 143. EVIDENCE, acknowledgment of registry is, 63, 153. documents signed by registrar or sealed receivable in, 115,'182. EXECUTORS, of deceased officers to pay money due to societies before other debts, 73. and deliver over, on demand, property belonging to society, 73. before satisfying other claims, 74. EXPULSION, member not liable to, by reason of entering the militia, naval reserve, volunteers, or yeomanry, 23. FALSE REPRESENTATION, obtaining property by, 79, 168. INDEX. FALSIFICATION, of documents, 35, 110,177. penalty, 110, 178. of rules, 63, 156. FEES, to be determined by Treasury, 114, 182. for audit, 283. for valuation, 288. FINES, may be imposed by rules on members, 120. FIRE, society may be established for insurance of tools against, 17, 52. FORMS, of account, &e., may be prepared, 55. of return to be as prescribed, 69, 159. FRAUD, officer, &e., guilty of, may be summarily convicted, 79, 168. as for obtaining possession of property of society by false representation, 79, 168. court may order the sum obtained or withheld to be repaid or the property to be delivered up to society, 79, 168. and a further sum of £20 to be paid, 79, 168. with costs, 79,168. if order not obeyed person to be committed to gaol, 79, 168. with or without hard labour, for three calendar months, 79, 168. this remedy not to prevent proceedings by indict- ment, 79, 168. except a previous conviction has been obtained, 79, 168. member belonging to two societies making false declaration to be guilty of misdemeanor, 100. chief registrar may institute proceedings for, 79, 108. FRIENDLY SOCIETY, usefulness of, 2. for relief or maintenance of the members, their husbands, wives, children, brothers, or sisters, nephews, or nieces, &c., in sickness, old age, or widowhood, 52. may assure against mental infirmity, 52, 192. for assuring money to be paid on birth of member’s child, 52. on death of member 52. INDEX. FRIENDLY SOCIETY—continued. for funeral expense of Husband, wife, child, or widow of* member, 52. for endowment of members or nominees of members at any age, 52. for other purposes, 52. no annuity to be contracted for exceeding £50 per annum, nor a gross sum exceeding £200, 53. rules of, to be transmitted to registrar, 58. functions of registrar, 55. minors above sixteen may be members of, 74<. not to hold certain offices, 74. may consist wholly of members under sixteen, 74. may impose fines, 120. funds of, to be invested in names of trustees, 64, 75, 77. upon, what securities, 75. premises may be taken for purposes of, 76. is exempt from income tax, 131. general statement of funds to be sent annually to registrar, 65. within what time to be sent, 65. penalty for omission, 110. quinquennial returns of sickness and mortality; and valua- tions, 65. Corresponding Societies Acts, when not to apply to, 69. disputes in, to be settled as directed by rules, 86. if no direction, then by court, 87. treasurers, &c., to render accounts when required, 84. how to be dissolved, 93. with what consents, 95. may be amalgamated with another, 90, 92. or transfer its engagements, 91, 92. or convert itself into a company, 91, 92. with what consents, 92. investing with National Debt Commissioners to furnish returns, 81. may change name, 90. not registered, 137. FRIENDLY SOCIETIES ACT, 1875, pp. 47-125. commencement of, 47. extent of, 47. Amendment Act, 1876, pp. 125-129. Declaratory Act, 1879, p. 129. FUNDS, of societies, 42. application of, to be set forth in rules, 120. to be invested by trustees of society, 75. upon what securities, 75, 76. investments of, to be provided for in rules, 121, 187. INDEX, FUNDS—continued. misapplication of, 79,168, 212. may be invested with National Debt Commissioners, 76, 80. of former societies may be invested with the commis- sioners, 81. on account of assurances made before 1850, p. 81. sums withdrawn cannot he re-deposited with commissioners, except by consent, 81. power of attorney for transfer of public, free from stamp duty, 70. may be applied in purchase of land, 76, 165. may be raised for lending to members, 76, 83. vested in trustees for time being, 77. and stated to be their property in any legal pro- ceedings, 77. statement of, to he sent annually to registrar, 65. free from income tax, 131. may be deposited in a savings bank to any amount, 75. FUNERAL, expenses of husband, wife, child, or widow may be assured,52. sum insured not to exceed £6 if child under five, 100. nor £10 if under ten, 100. and only payable on certificate, 101. ■GAZETTE, meaning of, 50. notice of cancelling of registry to be published in, 62, 154. voluntary dissolution to be published in, 95, 177. at expense of society, 95, 177. dissolution by award to be published in, 98. ■GENERAL STATEMENT, of funds to be sent to registrar, 65, 157. penalty for omission, 68, 159. See Return. GUARANTEE SOCIETY, security of, may be taken, 84 HONORARY MEMBERS, consent of, how far necessary for dissolution of society, 93. HOSPITAL, funds may be subscribed to an, 32, 75. if members, &c., eligible for benefits, 75. IMPOSITION. See Fraud INDEX. INCOME TAX, funds of society not granting assurances above limits of Act, free from, 35, 131. as to its funds under Sclied. (C.), and profits under Sched. (D.), 35, 131. exemption how to be claimed by officers of society, 132. •abatement of, in respect of assurance on life, 132. industrial ahd provident societies exempt from, 161. but not their members, 161. nor such societies as limit their shares and deal with the public, 191. INCORPORATION, of industrial and provident societies, 38. INDEMNITY, trustees to be indemnified out of funds, 80. to trustees for payment to next of kin, 72. INDUSTRIAL ASSURANCE COMPANY, definition of, 49. payment by, on death of child, 102. collecting contributions more than ten miles from office, 105. INDUSTRIAL AND PROVIDENT SOCIETIES, Act of 1876, 37, 144-190. cases decided thereunder, 226-231. other cases applicable to, 197, 212, 217, 231. rules for, 270. INFANTS. See Mixons. INFIRMARY. See Hospital. INFIRMITY, society may be established for relief in, 17. INFORMATION, how to be circulated, 55. INSANITY, of member, 192. INSOLVENCY, of officer, priority of claim on, 32, 73, 210. meaning of, 74. of a society, 97. INSPECTION, of books by persons interested, 31, 67,157. INDEX. INSPECTORS, when registrar may appoint, 19, 33, 34, 88, 171. instructions to, 299. INSURANCE, society may be established for assuring money on death, 52. but not above the sum of £200, p. 53. or for defraying funeral expenses of husband, wife, child, or widow, 52. limit of amount of, for funeral of child, 24. certificate of registrar of deaths necessary, 68. penalty for paying without certificate, 110. INTEREST, rates of, payable by National Debt Commissioners, 81. INTESTACY, payment may be made of sums under £50, in cases of, 32, 72, 161. to persons entitled by law, 72, 162. if no nominee appointed, 72, 162. all payments valid as against funds of society, 72, 162. INVESTMENT, mode of investing funds to be stated in rules, 30, 121, 187. trustees to invest funds of society, 75. with consent of committee or members, 75. in any savings bank, to any extent, 32, 75. or public funds, 32, 75. or on loan to any member upon his policy of assurance, 82. or out of separate loan fund, 82. or with National Debt Commissioners, 32, 76, 80-82. or in purchase of land, 32, 76. or on other security directed by the rules, 32, 76. declaration to be made on investing with commissioners, 80. with a bank not permitted, 71 (n). by societies or companies with an industrial society, 166,186. IRELAND, assistant registrar for, 54. his qualification, 54. his functions, 57. to record rules registered in England, 58. appeal from his refusal to register, 60. may cancel registry, 61. may settle disputes, 86. may appoint inspectors or call meetings, 88. may approve change of name, 90. INDEX. IRELAND—continued. jurisdiction of justices of tlie peace in, 111. of registrar-general of births, &c., in, 75. of superior courts of common law in, 88. definition of insolvency in, 74. discharge of mortgage in, 79. investment with National Debt Commissioners in, 80. summary procedure in, 110. appeals in, 112. proceedings in county courts in, 114. JEWISH SOCIETIES, may insure against confined mourning, 53. JUSTICES OF THE PEACE, Corresponding Societies Acts to apply to societies in default of giving information to, 69. constitute court of summary jurisdiction, 111, 179. LAND, definition of, 48, 149. may be purchased, 76, 165. registered society may hold, 76, 165. buying and selling of, a trade that may be carried on by an industrial and provident society, 151. LARCENY, punishable in an unregistered society, 140. LEGAL PROCEEDINGS, 84. LIABILITY, trustee not liable for deficiency in society’s fund, 33, 80. except for money actually received, 80. LIMITATION, of amount to be assured to any member, 100. of responsibility of trustee, 80. of sum to be insured for funeral expenses of a child, 24, 100. of cost of certificates of birth or death, 75. of liability in an industrial and provident society, 152, 175. of interest of members, 151, 187. LITERATURE, form of rule for society for promotion of, 268. LOAN FUND, may be raised, 33, 82. must be separate, 82. LOANS, to members, 82. form of rule, 266. INDEX. LONDON, Lord Mayor of, jurisdiction of, 111, 179. aldermen of, jurisdiction of, 111, 179. LUNACY, may be provided for as sickness, 52, 192. LUNATIC, mode of proceeding if trustee become, 73. MAGISTRATE, stipendiary, jurisdiction of, 111. MAN, ISLE OF, Friendly Societies Act extends to, 40. application of Act to, 116. MARRIED WOMEN, their property in a society, 36,135. MEDICAL OFFICER, to be duly registered, 35. MEETING, definition of, 50. to be held by a collecting society, 21. when registrar may call, 19, 33, 85, 171. MEMBER, limit of amount to he assured to, 53. a limited sum may be lent to, on security of policy and per- sonal sureties, 82, or out of separate loan fund, 82. surplus of contributions may be accumulated for use of, 83. may inspect books, 121, 157. disputes between society and, to be settled as directed by rules, 86. disputes between society and, when to be settled by court, 87, 99, 107. uninor above sixteen may be, 74. but cannot hold certain offices in society, 74. societies may be formed wholly for members under sixteen, 74. belonging to more than one society cannot be entitled to more than certain amount of benefit, 100. and may be required to make a declaration before claiming any benefit, 24. if same untrue, liable to be punished for misde- meanor, 100. INDEX. MEMBER—continued. payment of sums not exceeding £50, on deatli of, intestate, 72, 161,162. consent of, for dissolution of society, 93, 175. may apply to registrar to appoint inspectors or call a meet- ing, 88,171. in a collecting society, entitled to copies of rules and poli- cies, 105. of a cattle insurance society hound by its rules, 109. and tlieir subscriptions recoverable as debt, 109. in an industrial society, liability of, 175. limitation of interest of, 151,187. MILITIA, member not to lose any interest in society by reason of' enrolment or serving in the, 98. disputes arising on account thereof, to he decided by court of summary jurisdiction, 99. extra contribution may be demanded hy old society of a member in, 99. if serving abroad, 99. or his claim suspended while abroad, 99. but to be restored on his return, 99. MINORS, above sixteen, may be members, 32, 74-, 163. may not hold certain offices, 74, 163. may execute all instruments, 74, 163. and give necessary acquittances, 74, 163. societies consisting wholly of, may be registered, 74. existing rule or practice for admission of, is valid, 74. MISAPPROPRIATION, of funds, punishment of, 79,168, 212. MISDEMEANOR, member making false declaration guilty of, 100. giving untrue rules, 63, 157- at common law, to disobey a statute, 141. MORTALITY. See Return. return to be sent of rate of sickness and, 65. MORTGAGE, not exempt from stamp duty, 203. may be discharged by a mere receipt, 32, 78,167, 231. and certificate of satisfaction obtained, 32, 78, 167. NAME, like that of existing society or calculated to deceive, not to he registered, 59, 152. INDEX. NAME—conlimed. society may cliange its, 90, 173. change not to affect proceedings, 90, 173. limited to he last word of (in an industrial society), 152. publication of, 156. penalty for not using, 178. NATIONAL DEBT, societies may invest with commissioners of, 76, 80. at what rate of interest, 81. at usual rate of interest, on account of past assur- ances, if already investors, 81, 82. declaration to be made, on investing with, 80. sums not to he re-deposited with, without con- sent, 81. depositing with commissioners of, to furnish re- turns, 81. actuary to, may certify tables of annuities, 59. NAVAL COAST VOLUNTEERS, member not to lose any interest in society by reason of entering or serving in, 23, 99. disputes arising on account thereof, to be settled by court of summary jurisdiction, 99. NOMINEES, sums not exceeding £50 may he paid to, 32, 72, 161. if no nominee then to person entitled by law, 72. to any sum allowed in certain societies established before 1850, p. 57. are persons claiming through a member, 49. OBJECTS, societies may he established for relief, Ac., in old age, sick- ness, widowhood, &c., 52. for assuring money on birth or death, 52. for defraying burial expenses, 52. for other purposes, 52. assurances must not exceed £200, or annuity of £50, p. 53. to be provided for by rules, 120, 186. OFFENCE, what constitutes an, 31, 68, 159. penalty for, 110, 178. by collecting society, 108. description of, 112. by society also an offence by officer, 68, 159. OFFICE, of society to be registered, 31, 156. notice of change to be sent within fourteen days, 64 (n). INDEX. OFFICER, definition of, 49, 150. in receipt or charge of money, 83, 168. to render accounts, 84, 169. when required by society, 84, 169. or trustees or committee, 84. in default, society may sue upon bond, 84, 169. executors or trustees of, to pay debts due to society, 73. and deliver up goods of society in their pos- session, 73. before other debts due from him, 74. offence by, 68, 159. OLD AGE, means any age after fifty, 52. society may be established for relief, &c., in, 52. but annuity payable must not exceed-£50 per annum, 53. ORPHANHOOD, society may be established for relief in, 15, 52. PARLIAMENT, chief registrar to lay report of proceedings of registrars- before, 56. and particulars of valuations, 56. PAYMENT, to persons apparently entitled, valid, 72, 162. of salaries and expenses of registry, 114. on death of child, 100. priority of, if officer die or become bankrupt, 73. for every purpose to be kept distinct, 65. PENALTY, for falsification, 110,177. for making false declaration on investing, 79. for not making returns, 69. for ordinary offences, 110, 178. recovery of, 35,110, 178. POLICY, to be furnished by a collecting society, 20. exempt from stamp, 70. not to be forfeitable without notice, 20. PRIORITY, of payment of debts due from officers, 32, 73. debts must be due from them officially, 211. not on notes carrying interest, 211 INDEX. PRIORITY—continued nor due from a person not an officer, 211. nor by a banker appointed to remit funds to in-, vest, 211. PRIVILEGES, of registered societies, 31, 69, 160. PROBATE, Stamp duty, when not payable on, 71 (u). mode of obtaining, 72 (n). PROCEEDINGS, how taken, 33, 84, 110. in county courts, 113. PROPERTY, definition of, 48. vested in trustees for the time being, 77. in legal proceeding, in whom to be laid, 77. PROPERTY TAX. See Income Tax. PROSECUTION, by authority of central office, 302. PROVIDENT INSTITUTION, funds of friendly societies may be subscribed to, 32, 75. if members eligible for benefits, 75. PUNISHMENT, of fraud or misappropriation, 79, 168. PURPOSES, for which a society may be established, 52, 53, 151. RECEIPT, for contribution free from duty, 70. on mortgage, operates as a discharge, 78,167. form of, 124, 190. RECORDING, of documents, 58, 69. of rules registered in another country, 60, 152. RECOVERY, of penalties, 110. REGISTERED OFFICE, 64, 156. REGISTRAR of Fbiendly Societies :— first appointment of, 10, 48. INDEX. REGISTRAR—■continued. duties of, 11,15, 183. commission of inquiry into duties of, 16. functions of, now exercised by central office in England, 55. Chief Registbae : bis appointment and duties, 17, 33, 44, 54. his powers, 25, 29, 33, 35, 58, 59, 61, 66, 69, 72, &c. remarks on Act, 27. qualification of, 54. report of, 56. appeal from, 60. Assistant Registbabs : their appointment and duties, 17, 54. their powers, 29, 33, 48, 61, 86, &e. their qualification, 55. their functions, 57. appeals from, 60. special powers of, 88. copies of rules, &c., to be sent to, 58. not to register society granting annuities unless tables certified by actuary, 59. form of acknowledgment to be given by, 124. resolution appointing trustee to be sent to, 64. under the hand of the trustee and secretary, 64. general annual statement of funds, &c., of society to be sent to, 65. returns of sickness, &c., experienced by society to be sent to, 65. valuation report to be sent to, 66, 290. penalty for not sending same, 68. documents signed by, to be received in evidence without proof of signature, 115. may institute proceedings, 110. REGISTRY, of societies, 58,151. application for, 58, 151. of dividing societies, 59. of societies in more than one country, 60, 152. acknowledgment of, 60, 152. forms for, 124, 129, 190. appeals from refusal of, 60, 153. effect of, 61, 153. cancelling or suspension of, 61,153. of amendments of rules, 63, 155. of members or shares, 163. of receipt on mortgage, 78, 167. of special resolutions, 91,174. of instrument of dissolution, 95, 176. Q INDEX. REGISTRY OFFICE, how constituted, 54. central office, its functions, 55, 302. REGULATIONS, made by Treasury 48, 115, and notes passim REMOVAL, if trustees removed from office, registrar may transfer stock, 72, 162. of committee and officers to be provided for in rules, 121,186. REPEAL, former Acts repealed, 50,150. except as to past operations, 51, 150. or things done or proceedings taken, &c., 51, 150. but societies established thereunder to continue, 51,151. REPORT, chief registrar to make, 56. RESOLUTION, special, how passed, 34, 89, 172. for what purposes necessary, 34, 90, 91, 173. how registered, 91. RESPONSIBILITY, of trustees limited, 80. to moneys actually received, 80. RETURN, general statement of the funds, &c., of society to be annually prepared, 65,157. and sent to registrar every year, 31, 65, 157. to be in prescribed form, 69, 159. copy to be supplied gratuitously to persons interested, 31, 67, 158. to be kept hung up at registered office, 67, 158. of the rate of sickness, &c., experienced by society within preceding five years, 9, 65. to be sent to registrar within six months after five years, 65. in the form furnished by registrar, 69. penalty for not sending same, 68. when to bo dispensed with, 69. abstract of quinquennial, to be laid before parliament, 66. societies depositing with National Debt Commissioners to furnish, 81. INDEX. ■RIFLE CORFS, joining no ground for expulsion, 99. disputes on account thereof, how decided, 99. RULES, definition of, 49,149. amendment of, 49,149. rules to be made, 2, 61, 155. to be registered, 58,155. must state name and place of office of society, 30,120, 18G. the objects and purposes thereof, 30,120, 186. the conditions under which member may bo entitled to benefits, 120. the manner of altering, &c., rules, 30, 120, 186. of appointing committee and officers, 30,121,186. mode of investing the funds, 30, 121, 187. must provide for annual returns and inspection of books, 30, 121. the manner of settling disputes, 31,121. meeting claims before division, 121. keping separate accounts, 121. quinquennial returns and valuations, 122. rights of members, 122. in a collecting society, provisions of sect. 30, p. 108. copies of, to be sent to registrar, 58, 155. and also all alterations of, 63, 155. amendments not valid until registered, 63, 155. registrar to give acknowledgment of registry, GO, 155, form of acknowledgment, 125, 129, 190. appeal from his refusal, 60,153 to be delivered to any person for Is., 63, 155. to be furnished by collecting societies to members for Id., 20, 105. delivery of untrue, a misdemeanor, 63, 156. of former societies, continue in force, so far as not contrary to Act, 51, 151. deposit of, effectual only for a time, 51. for branches, recording of, 104. of cattle societies, to have effect of covenant, 109. form of, for a friendly society, 232. for a branch, 246. for a benevolent society, 258. for a specially authorized society, 2G6. for an industrial and provident society, 270. SAVINGS BANK, any amount may be deposited in, 75. Q 2 INDEX. SAVINGS BANK—continued. certain clauses in Act relating to, applicable to moneys in- vested with National Debt Commissioners, 80. functions of barrister to certify, where now exercised by central office, 55. SCOTLAND, assistant registrar for, 54. his qualification, 55. his functions, 57. to record rules registered in England, 58. appeal from his refusal to register, 60. may cancel registry, 61. court of summary jurisdiction in, 111. appeals in, 113. SEAMEN, may insure against damage at sea, 17. serving in volunteer force no ground for expulsion, 23. SECURITY. to be given by officers, 33, 83, 168. given to society before registry, 84 (n). form of bond to be taken as, 122, 188. free from stamp duty, 70. upon which funds may be invested, 76. SERVICE of summons or other proceedings, 85. of notices, 108 SHIPWRECK, society may be established for payments on, 17, 52. SICKNESS, society may be established for relief in, 17. returns of, &c., to be sent to registrar, 165. meaning of, 192. SOCIETIES, Undeb Feiendly Societies Acts : number of, 4,39,41, 42. under repealed Acts to be deemed to be registered, 51. and their rules to continue in force, if not con- trary to Act, 51. classes of, which may be registered, 52. objects for which societies may be established, 52. to consist of seven persons at least, 58. acknowledgment of registry of, 124. INDEX. SOCIETIES—continued. minors above sixteen may be members, 74. but not hold certain offices, 74, are to adopt rules, 58. may impose fines, 120. to make provision for certain matters in rules, 120. are to appoint a committee, 121. amendments of rules of, to be registered, 63. granting annuities to have certificate of actuary, 59. doing business in more than one country, 60. funds of, to be vested in trustees of, 77. upon what securities to be invested, 75. may hold land, 76, general statement of funds of, to be sent annually to regis- trar, 65. also returns of sickness experienced by, every five years, 65. and valuations, 66, 286. penalty for not so doing, 68, 110. duties and obligations of, 64. ■offences by, 68. privilege of, when registered, 69. the Corresponding Societies Acts do not apply to, 69. except in default of giving information when re- quired to justices, 70. payment by, on death of children, 100. not to be made without inquiry, 102. Include “ industrial assurance companies,” 102. disputes of, to be settled as directed by rules, 86. if no direction then by court, 87. punishment of fraud against, 79. officers to render accounts when required, 84. and give up property of, 84. in default, society may sue upon bond, 84. may divide funds, if rules provide, 59. may be dissolved, 93. with consent of members, 95. when consent of central body also necessary, 98. dissolution by registrar, 94, 97. may change name, 90. change not to affect proceedings, 90. may amalgamate, 90. or transfer their engagements, 91. may be converted into companies, 91. when registry will be void, 91. consents necessary for amalgamation, &c., 92. may invest with National Debt Commissioners, 76, 80. with branches, may be registered as single societies, 103. receiving contributions by collectors, 105. for cattle insurance, 53, 109, 232. Q 3 INDEX. SOCIETIES—continued. Specially Authorized, 17, 27, 28, 53,109, 258. application of Act may be limited iu tlieir case, 54. forms of rule, 266. Unregistered, 22, 137 Industrial and Provident, 39,144. increase of, 40. model rules for, 270. SPECIAL RESOLUTION, proceedings which may be taken on, 90, 172. registration of, 91, 174. STAMP DUTIES, exemption from power, warrant, or letter of attorney granted by trustee for transfer of share in public funds, 70. but not on account of other investments, 70 (n), 203. receipt for money deposited in the funds of society, 70. or received therefrom, 70. bond given on account of society, 70. or by treasurer or other officer, 70. draft or order, or form of policy, 70. appointment of agent, or revocation of appointment, 70. other document required or authorized by Act, or rules, 70. not extended to industrial and provident societies, 38. when payable, 70 (n). STATEMENTS. See Return. of funds and effects to be annually sent, 65, 157. in what form, 69, 159. STATUTES :— 22 & 23 Car. 2, c. 10, p. 207. 29 Car. 2, c. 30, p. 207. 1 Jac. 2, c. 17, p. 208. 20 Geo. 2, c. 43, p. 113. 31 Geo. 2, c. 42, p. 113. 14 Geo. 3, c. 48, pp. 25, 102. 33 Geo. 3, c. 54, pp. 2, 70, 197. 35 Geo. 3, c. Ill, p. 4. 39 Geo. 3, c. 79, p. 70. 49 Geo. 3, c. 125, p. 4. 52 Geo. 3, e. 38, pp. 99, 119. 52 Geo. 3, c. 68, pp. 99, 119. 57 Geo. 3, c. 19, p. 70. 59 Geo. 3, c. 128, p. 4. INDEX. STATUTES—continued. 9 Geo. 4, c. 92, p. 48. 10 Geo. 4, c. 56, pp. 7, 48, 55, 66, 71, 194. 4 & 5 Will. 4, c. 40, pp. 9, 55, 198. 6 & 7 Will. 4, c. 32, pp. 10, 42, 55, 78. 3 & 4 Viet. c. 73, p. 10. 3 & 4 Viet. c. 110, pp. 55, 58. 5 & 6 Viet. c. 35, pp. 35, 131. 6 & 7 Viet. e. 32, p. 55. 9 & 10 Viet. c. 27, pp. 11, 38, 48, 53. 11 & 12 Viet. c. 43, p. 50. 13 & 14 Viet. c. 97, p. 203. 13 & 14 Viet. c. 115, pp. 11, 66, 198. 15 & 16 Viet. c. 31, pp. 12, 226. 16 & 17 Viet, c, 34, pp. 131, 133- 16 & 17 Viet. c. 59, p. 203. 16 & 17 Viet. c. 123, p. 12. 17 & 18 Viet. c. 25, pp. 148, 226. 17 & 18 Viet. c. 56, pp. 12, 51. 17 & 18 Viet. c. 105, pp. 99, 119. ] 17 & 18 Viet. c. 106, p. 119. 17 & 18 Viet. c. 107, pp. 99,119. 18 & 19 Viet. e. 35, p. 132. 18 & 19 Viet. c. 63, pp. 12, 22, 27, 48, 50, 51, 53-60, &c. 19 & 20 Viet. sess. 1, c. 40, pp. 148, 226. 20 & 21 Viet. c. 43, p. 129. 21 & 22 Viet. c. 20, p. 71. 21 & 22 Viet. c. 90, pp. 35, 134. 21 & 22 Viet. c. 101, pp. 14, 90, 100, 119. 22 & 23 Viet. c. 40, pp. 99, 119. 23 & 24 Viet. c. 13, pp. 99, 119. 23 & 24 Viet. c. 58, pp. 15, 68, 79, 94, 97, 98, 99, 120. 25 & 26 Viet. e. 87, pp. 55, 148, 158. 25 & 26 Viet. c. 89, pp. 34, 58,158. 26 & 27 Viet. c. 65, pp. 99, 120. 27 & 28 Viet. c. 56, p. 71. 28 & 29 Viet. c. 96, p. 203. 29 & 30 Viet. c. 34, pp. 15,109, 120. 30 & 31 Viet. c. 117, pp. 55,120, 148. 31 & 32 Viet. c. 116, pp. 137-143. 32 & 33 Viet. c. 71, p. 210. 33 & 34 Viet. c. 61, p. 142. 33 & 34 Viet. c. 93, pp. 135,136. 34 & 35 Viet. c. 31, pp. 58, 59, 67, 76, 113, 121. 34 & 35 Viet. c. 80, pp. 55, 78, 149. 36 & 37 Viet. c. 52, p. 72. 36 & 37 Viet. c. 77, pp. 99, 120. 37 & 38 Viet. c. 42, pp. 42, 44, 51, 55, 58, 67, 72, 76, &c. 38 & 39 Viet. c. 27, p. 72. 38 & 39 Viet. c. 41, p. 72. INDEX. 'STATUTES—continued. 38 & 39 Viet. c. 60, pp. 1, 16, 28, 34, 37, 42, 43, 47, &c. 39 & 40 Viet. c. 32, pp. 1, 29, 48, 60, 61. 39 & 40 Viet. c. 45, pp. 1, 37, 38, 39, 40, 58. 42 & 43 Viet. c. 9, p. 1, 105, 129. 42 & 43 Viet. c. 12, p. 130. 42 & 43 Viet. c. 49, pp. 39, 50, 110, 111, 112. 43 & 44 Viet. e. 14, p. 191. STIPENDIARY MAGISTRATE, jurisdiction of, 111. STOCK, registrar may order transfer of, at bank, 72, 162. where trustee is removed or absent, 72, 162. SUMMARY JURISDICTION ACTS, definition of, 50. SUMMARY PROCEEDINGS, 110. SUMMONS, against officers, service of, 85. SURETY, bond by treasurer to be given with, 84. SURPLUS, of contributions may be accumulated, 83. TABLES, may be constructed, 56. TEMPERANCE, form of rule for society for promotion of, 267- TERMINATION, of society, 34. TRADES-UNIONS, their legal position, 138. TRANSFER, one society may, its engagements to another, 23, 90, 173. of stock from trustee, 31, 72, 162. of members, restrictions upon, 20,106. of withdrawable shares not allowed, 187. TREASURER, See Offices. manner of appointing, to be set forth in rules, 121. and also of removal, 121. banking company cannot be, 71 (n). INDEX. TREASURY, definition of, 48. may grant special authorities, 53. may limit application of Act, 54. appoint the registrars, 54. approve of the circulation of model forms, &c., 55, 58. approve of actuaries to certify tables, 59. approve of cancelling or renewed suspension of registry, 62, 154. approve of dispensing with quinquennial return, 69. consent to registrar hearing dispute, 86, 170. consent to appointment of inspectors or calling special meetings, 88, 171. direct remuneration of county court officers, 114. may appoint public auditors and valuer, 114. may determine scale of fees, 114. pay salaries and expenses, 114. may make regulations, 115, 182. TRUSTEES, rules to provide for appointing, 121. and for removing, 121. to be appointed at some meeting, 64. resolution appointing, to be sent to registrar, 64. to pay sums on death of member, 72. for the time being may sue upon bond of officer, 84. to invest the funds of the society, 75. with the consent of committee or members, 75. upon what securities, 75, 76. may purchase or lease land, 76. and sell, exchange, mortgage, or lease the same, 76. property of society vested in the, for the time being, 77. for the use of the society and its members, 77. and shall vest in succeeding, without any con- veyance, &c., 77. and shall in all actions, &c., be stated to be the property of the, in their proper names, 77. may be admitted tenants of copyholds, 77. may discharge mortgage by receipt endorsed, 78. may make complaint of fraud or misappropriation, 79. shall bring and defend all actions, &c., as to property of society, 85. may sue and be sued in their proper names as such, 85. suit not to abate by death, &c., of any trustee, 85. not liable for deficiency in society’s funds, 80. except for money actually received, 80. are to make declaration on investment with National Debt Commissioners, 80. JNDEX. TRUSTEES—continued. stock at tlie Bank of England in the name of, removed from office, 72, 162. or a bankrupt or lunatic, 73, 162. or if not known whether living or dead, 73, 162. may be transferred by order of registrar into the names of the new, 73, 162. or into the names of, or to the new trustees jointly with the old trustees, 73, 162. may require officer to render accounts, 84. and give up property of society in his possession, 84. appointment of, 202. UNREGISTERED SOCIETIES, their legal status, 136, application of Act to, 100, 105. members of, in militia or volunteers, 99. payments on death of children by, 100. receiving contribution’by collectors, 105. having deposited rules, 51. VALUATIONS, to be made once every five years, 25, 66. purposes of, 5 (n). principles of, 44. returns of, 43. instructions for, 286. forms for, 290. VOLUNTEER CORPS, no forfeiture by joining, 99. disputes by reason thereof, how decided, 99. WIDOWHOOD, society may be established for relief in, 17, 52. WORKING MEN’S CLUB, definition of, 53. may be registered, 17, 53. YEOMANRY CORPS, no forfeiture by joining, 99. disputes by reason thereof, liow decided, 99. London; Shaw & Sons, Fetter Lane and Crane Court, E.C. Friendly Societies’ Books, &c,—contd. No. 6. Treasurer’s Ledger ... 7. Annual Account Book 8. Members’ Ledg-er 8«. Minute Book 9. Tables for the Certificate of the Actuary. Friendly Societies Rules : Estimates for tbe Print- ing of any Quantity forwarded on application to the Publishers. 10. 1 ’roposal f rom a person to become a Member, per 100 11. Declaration of Enrolments, in books ... per 250 12. Demand for full pay... ... ... per 100 13. Demand for half pay ... ... ,, 14. Notice from the Party of his being able to resume his Labour ... ... „ 15. Certificates of Admission of Members ... „ Hi. Lists for entering the names of Sick Members „ 17. Members’ Cards of Deposits and Repayments per doz. 18. Bills for distribution, showing tbe benefits arising from becoming Members ... ... per 1000 19. Assurer’s Certificate of Health ... per 100 20. Medical Certificate of Health... ... per 250 21. Instructions to Medical Men ... ... per 100 22. Collector’s Receipt ... ... ..: „ 23. Policy of Assurance... ... ... per doz. 24. Health Certificate for the Benefit Branch, per 100 25. Agreement on entering tile Society ... „ 26. Agreement on entering the Medical Branch 27. Nomination of a Relation of the Benefit Branch to the Weekly Pension after a Member’s Death per 100 28. Sick Letter ... ... ... „ 29. Demand for Sick Allowance (Benefit Branch) „ 30. Agreement on entering the Benefit Branch „ 31. Deposit Books, pasted Covers/ruled sufiicient to hold the entries of 8 years ... per 250 32. Surgeon’s Certificate for higher premium „ 33. Demand for Sick Allowance ... ... per 100 s. a. 8 0 8 0 15 0 15 0 4 0 6 « 1 6 1 6 1 6 Hi 0 3 6 2 0 15 0 2 0 5 6 6 0 5 0 6 0 1 6 4 0 3 0 2 0 5 0 .4 0 5 6 50 0 5 6 4 0 SHAW & SONS, Fetter Lane, London. List of Books & Forms—continued. No. . s. 34. Trustees’ Order to pay money into the National Debt Office ... ... ... per 100 4 35. Secretary, application to Clergyman for Certificate of Baptism ... ... ... per 100 4 36. Members’ Cards of Deposits ... ... „ 10 37. lleceipt Books for One Year’s Subscription ... 3 38. Register Book of Sickness and Mortality, bound in rough calf and lettered on the side . .. 15 39. Friendly Society Bonds ... ... each 0 Quinquennial Returns of the names of the Members and of the Sickness and Mortality experienced in the Society for that period : For a Two Sheet Return, sufficient for 90 names ... ... ... ... 0 For a Six Sheet Return, sufficient for 330 names ... ... ... ... 1 And for every extra Sheet, or 60 names heyond 330, and under One Quire, an additional ... ... ... 0 One Quire ... ... ... ... 3 Per Ream (20 Quires) ... ... 40 41. Declaration of a Friendly Society on investing money in a Savings Bank, in books... each 9 42. Members’ Book of Payments... ... „ 0 43. Manager’s Check Book ... ... ... 2 44. Weekly Contribution Book ... ... ... 7 45. Sick Pay Book ... ... ... ... 7 ■16. . Form of the Order of the Trustees to make Pay- ments into Bank of England ... per quire 4 47. Ditto, ditto, under 10 Geo. 4, c. 5 ... „ 4 Norman’s System of Accounts for Benefit Societies 1 Form K.—Notice of Change of Registered Office. No. 50. Form L.—Notice of Resolution Appointing Trustees ... ... ... each 0 ,, 51. Forms B, C; C, D.—Application and Declara- tion upon making Alterations and Amend- ments in Friendly Society Rules, under 38 & 39 Viet. c. 60 ... ... each 0 „ 52. Nomination to receive Burial Money in book of 250 4 a. 0 0 0 0 0 4 7 3 0 0 6 6 0 0 0 0 0 0 1 1 0 SHAW & SONS, Fetter Lane, London. ESTABLISHED CIR. 1750. OOO Shaw & Sons, PRINTERS, PUBLISHERS, AND GENERAL Publishers by Authority to Her Majesty's Stationery Office-, FETTER LANE & CRANE COURT, LONDON, E.C. OO the scale towarc APPENDIX OP CASES. 219 1 S; l :~"t the directors and a portion of the shareholders :: concurred in the acts complained of. The plaintiffs x-; d that, being dissatisfied with the management, they j; n pursuance of the provisions of their deed of associ- : - given a month’s notice of their intention to withdraw r ■ ;lie society, and that the directors had denied their so to withdraw. The plaintiffs thereupon filed their o recover their subscriptions, and by the present :_u sought to restrain the directors from transferring or : priating the funds of the society at the bankers. The -; lants contended that the proper course for the plain- :; f dissatisfied with the conduct of the directors, was, s ling to the rules of the society, to appeal to arbitrators - - elected at a meeting for that purpose, and if that step produce a satisfactory result, they were then em- .'od to apply to two justices of the peace, whose on would be final. Cranworth, V.-C., said that the :--ras one in which the regulations of the society, and :: tovisions of the legislature with regard to such associ- »:; permitted the members, in the event of a dispute g, to bring the case before the directors for their : - 011 j and if that should be unsatisfactory, to appeal to ators, and ultimately to carry the case before two :; trates for their determination. The plaintiffs, how- ’; had thought proper to apply to the court to put a : _ ruction on their rules, instead of adopting those means *:-Tress which were clearly pointed out by the rules : selves. He was of opinion that there was no necessity :! ie interference of the court, and refused the motion |i; costs. Grinhamv. Card, 7 Excli. 883, a dispute arose between f the members of the committee of a friendly society s:; lie trustees touching the distribution of a fund in the :-„ s_of the latter, and by one of the rules it was ordered :j Jisputes were to be referred to such members of the pttee as should not he personally interested in the, .. t ; and it was held that the judge of the county court :: lo jurisdiction in such case according to the rule of the f: iy> which provided for the reference to the committee, ;hen to private arbitration, of all disputes, and the :; ion now raised was, whether this particular dispute - ■ me which could have been the subject of a suit in y. The court restrained the judge of the county court k hearing the cause, on the ground that the dispute :: ^ne which ought to have been referred under the f: i rule. *: l 2 i: