22

INTRODUCTION.

37.  The  provisions  restraining  transfer  of  members ­
  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  Societies, ­
  but  to  industrial  Assurance  Companies.
38.  Societies  having  a  custom  of  periodical  division ­
  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  disentitled ­
  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  accumulating ­
  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  nodivide. ­
  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.