BUILDING SOCIETIES ACT, 1989 (1989_act_17) | IE

ISB Act 1989-07-12

Schedule 1 BUILDING SOCIETIES ACT, 1989 Open official source

FIRST SCHEDULE Enactments Repealed

Enactments Repealed

Section 6.

Number and Year

Short Title

Extent of Repeal

(1)

(2)

(3)

No. 38 of 1976

Building Societies Act, 1976

The whole Act

No. 27 of 1979

Housing (Miscellaneous Provisions) Act, 1979

Section 20

No. 31 of 1980

Building Societies (Amendment) Act, 1980

The whole Act

No. 25 of 1983

Building Societies (Amendment) Act, 1983

The whole Act

No. 24 of 1984

Land Act, 1984

Section 4 (2)

No. 36 of 1986

Building Societies (Amendment) Act, 1986

The whole Act

ISB Act 1989-07-12

Schedule 2 BUILDING SOCIETIES ACT, 1989 Open official source

SECOND SCHEDULE Provisions applicable as respects the memorandum and rules

Provisions applicable as respects the memorandum and rules

Section 10.

Part I The Memorandum

Part I

The Memorandum

1. The memorandum of a building society shall specify—

(a) the name of the society;

(b) the objects of the society;

(c) the adoptable powers (if any) and any restrictions thereon which the society has adopted in accordance with section 36; and

(d) the restrictions (if any) which the society has assumed on the extent of any of its other powers under this Act.

2. In order to comply with paragraph 1 (c) and (d) the terms of each adoptable power and of each restriction on the extent of any power must be set out in the memorandum.

3. For compliance with paragraph 1 (c) as respects the powers referred to in section 28 the memorandum shall state the fact that the powers of investment and support have been adopted in the case of bodies corporate or approved housing bodies and the purpose of the investment or support.

4. Where any power that a society has adopted under this Act ceases to be exercisable by a society the society shall annex to its memorandum a note of that fact and the date from which it has so ceased and shall send a copy of the note to the Central Bank which shall keep the copy in the public file of the society.

Part II The Rules

Part II

The Rules

5. The rules of a building society shall provide for the following—

(a) the name of the society;

(b) the manner in which the society may change its chief office;

(c) the manner of determination of the terms on which shares are to be issued and repaid, and the manner in which shareholders are to be informed of changes in the terms on which their shares are held;

(d) whether any preferential or deferred shares are to be issued and, if so, within what limits and on what terms;

(e) the manner in which housing loans are to be made and repaid, and the conditions on which such a borrower can redeem the amount due from him before the end of the period for which such a loan was made;

(f) the arrangements for the custody of the mortgage deeds and other securities belonging to the society;

(g) the manner in which losses are to be ascertained and provided for;

(h) the powers and duties of the board of directors;

(i) the manner of appointing, remunerating (including pensions) and removing directors (including the filling of casual vacancies) and, where it is not to be fixed by resolution at the annual general meeting, the maximum amount of remuneration to be paid to directors;

(j) the manner of remunerating auditors;

(k) the form, and arrangements for the custody and use, of the seal of the society;

(l) the right of members to requisition meetings;

(m) the form of notice for the convening of a meeting and the manner of service of the notice;

(n) the right of members to move resolutions at meetings;

(o) the manner in which notice of any resolution (including a special resolution or a conversion resolution) to be moved at meetings is to be given to members;

(p) the procedure to be observed at meetings;

(q) the voting rights of members, the right of a member to demand a poll and the manner in which a poll is to be taken;

(r) the right of a member to appoint a proxy;

(s) whether disputes between the society and any of its members, or any person claiming by or through any member or under the rules, shall be settled by reference to the Circuit Court, arbitration or the Central Bank;

(t) the manner in which membership of the society is to cease;

(u) the right of members to participate in the distribution of any surplus assets after payments to creditors on the winding up or dissolution of the society; and

(v) the manner of appointing an independent person or persons, not being an officer or employee of the society, to supervise the conduct of a poll for the election of a director.

6. Nothing in this Schedule shall be taken to authorise any provision to be made in the memorandum or rules of a society which is inconsistent with this Act or regulations made thereunder or requirements of the Central Bank in the exercise of its functions under this Act or to affect the operation of any provision of this Act making rules void to any specified extent.

ISB Act 1989-07-12

Schedule 3 BUILDING SOCIETIES ACT, 1989 Open official source

THIRD SCHEDULE Supplementary provisions in relation to authorisation

Supplementary provisions in relation to authorisation

Section 17.

Applications

1. (1) An application for authorisation—

(a) shall be made in such manner as the Central Bank may specify, either generally or in any particular case; and

(b) shall be accompanied by such information as the Central Bank may require, either generally or in any particular case, in order to decide whether or not to grant authorisation and whether with or without conditions.

(2) If required to do so by notice from the Central Bank given at any time after an application for authorisation has been made and before a decision has been reached on the application, the applicant shall furnish to the Central Bank such additional information as it may require in order to decide on the application.

(3) If the Central Bank proposes to refuse to grant authorisation it shall serve a notice on the applicant stating—

(a) that it proposes to refuse to grant authorisation,

(b) the grounds for the proposed refusal, and

(c) that the applicant may make representations in writing to the Central Bank with respect to the proposed refusal within such period, not being less than 21 days after service of the notice, as is specified in the notice.

(4) If the grounds for the proposed refusal include the ground that any officer of the society is not a fit and proper person to hold office in the society, the Central Bank shall serve notice of that ground on that officer giving him the right to make representations with respect to his fitness and propriety for office within such period, not being less than 21 days after service of the notice, as is specified in the notice.

(5) The Central Bank shall, before reaching a decision on the application, consider any representations made to it under subparagraph (3) or (4).

(6) If, on an application for authorisation, the Central Bank refuses to grant authorisation, it shall serve on the society and on every officer of the society a notice stating the Central Bank's decision and the grounds for it and, subject to subparagraph (7), shall do so before the expiry of the period of 6 months beginning on the date on which the application was received.

(7) In any case where the Central Bank requires additional information with respect to an application, the latest time for the giving of a notice under subparagraph (6) with respect to the application shall be the expiry of whichever of the following periods first expires, namely—

(a) the period of 6 months beginning with the date on which the additional information is furnished to the Central Bank; or

(b) the period of 12 months beginning with the date on which the application was received by the Central Bank.

Imposing or amending conditions.

2. (1) If the Central Bank proposes to impose conditions on an authorisation or to amend or add to the conditions of an authorisation in a manner that would make them more onerous, it shall serve on the society and on every officer of the society, a notice stating—

(a) that the Central Bank proposes to impose conditions or to amend or add to the conditions of an authorisation;

(b) the proposed conditions, amendments or additions;

(c) the grounds for the proposal; and

(d) that the society may make representations in writing to the Central Bank with respect to the proposed imposition, amendment or addition within such period, not being less than 21 days after service of the notice, as may be specified in the notice.

(2) If any condition proposed to be imposed, amended or added includes a requirement for the removal from office of any officer of the society, the Central Bank shall serve notice of that proposal on that officer giving him the right to make representations with respect to the proposal within such period, not being less than 21 days after service of the notice, as is specified in the notice.

(3) The Central Bank shall, before reaching a decision on whether to impose, amend or add to conditions, consider any representations made to it under subparagraph (1) or (2).

(4) If the Central Bank decides to impose, amend or add to conditions it shall serve on the society and every officer of the society a notice stating—

(a) the conditions, and

(b) the grounds for its decision.

(5) Where the Central Bank, after considering any representations made to it under subparagraph (1) or (2), decides on an imposition, amendment or addition, as the case may be, that differs from that specified in the notice under subparagraph (1), it shall not be necessary to give a new notice under this paragraph if the difference results in the condition or conditions being no more onerous than would be the case if the Central Bank had proceeded in accordance with the original notice.

ISB Act 1989-07-12

Schedule 4 BUILDING SOCIETIES ACT, 1989 Open official source

FOURTH SCHEDULE Supplementary provisions in relation to revocation of an authorisation

Supplementary provisions in relation to revocation of an authorisation

Section 40.

Revocation of authorisation.

1. (1) If the Bank proposes to revoke an authorisation (other than in pursuance of a request by the holder) it shall serve on the building society and on every officer a notice stating—

(a) that it proposes to revoke the authorisation,

(b) its grounds for the proposed revocation, and

(c) that the society may, within 21 days after the date of the giving of the notice, make representations in writing to the Central Bank in relation to the proposed revocation.

(2) If the grounds for the proposed revocation include the ground that any officer of the society is not a fit and proper person to hold office in the society, the Central Bank shall also serve notice of that ground on the officer concerned giving him the right to make representations with respect to his fitness and propriety for office within such period, not being less than 21 days after service of the notice, as is specified in the notice.

(3) The Central Bank shall, before deciding whether or not to revoke the authorisation, consider any representations made to it under subparagraph (1) or (2) in relation to the proposed revocation and shall serve on the society and on every officer a notice stating its decision and the grounds for it and the society may, within one month of receipt of the Bank's decision, appeal to the Court against it.

Provisions consequent on revocation.

2. (1) Where an authorisation is revoked and the society is not being wound up—

(a) the society shall continue to be subject to the duties and obligations imposed on it by or under this Act until all its liabilities in respect of shares and deposits have been discharged to the satisfaction of the Central Bank;

(b) the society shall, as soon as may be, notify all persons holding shares in or deposits with it and the Central Bank of the measures it is taking to discharge in full and without undue delay all its liabilities in respect of such shares and deposits; and

(c) the Central Bank may, if the society fails to notify it within a reasonable time in accordance with subparagraph (1) (b) or if it considers that the measures taken or proposed to be taken by the society to discharge its liabilities to shareholders and depositors are not satisfactory, give a direction prohibiting the society for such period, not exceeding 6 months, as may be specified in the direction, from—

(i) dealing with or disposing of any of its assets, or specified assets, in any manner,

(ii) engaging in any transaction or class of transaction or specified transaction, or

(iii) making payments,

without the prior authorisation of the Central Bank and may require it to prepare and submit to the Bank within 2 months of the direction, for its approval, a scheme for the orderly discharge in full of its liabilities to its shareholders and depositors.

(2) Where a direction to which subparagraph (1) relates is given the provisions of the Fifth Schedule shall apply with any necessary modifications.

(3) Subject to subparagraph (4), any obligation to make a payment to the society, which by virtue of section 17, the society is prohibited from accepting, shall be wholly rescinded.

(4) If, when a society's authorisation is revoked, a member is under an obligation to make payments to the society which represent instalments of the amount due by way of subscription for a share in the society and which, by virtue of section 17, the society is prohibited from accepting, the obligation shall (subject to anything in the rules of the society and any agreement between the society and the member) be suspended in respect of each instalment for the period during which no authorisation is in force; and accordingly if the society is subsequently granted authorisation the sum due shall again become payable by instalments.

(5) It shall be the duty of the society to make reasonable arrangements for using the funds of the society to meet applications by depositors with and shareholders in the society (being applications made in accordance with the rules of the society) for repayment of the money deposited or subscribed by them.

(6) A society whose authorisation has been revoked may apply to the Central Bank for a new authorisation in accordance with section 17.

(7) The Central Bank shall note the revocation of the society's authorisation and the date it takes effect in the public file of the society and, as soon as may be after the revocation of an authorisation, publish notice of the revocation in such manner as it thinks fit.

(8) Where a society's authorisation is revoked and the society is being wound up, the liquidator, notwithstanding the revocation, may continue to carry on the business of the society and to hold himself out as a building society (with all the rights and obligations attached thereto) to such extent as the Central Bank (or the Court if the society is being wound up under the supervision of the Court) may consider necessary to enable him to discharge his functions.

ISB Act 1989-07-12

Schedule 5 BUILDING SOCIETIES ACT, 1989 Open official source

FIFTH SCHEDULE Supplementary provisions in relation to a direction by the Central Bank under

Supplementary provisions in relation to a direction by the Central Bank under

Section 40.

Direction by Central Bank.

1. The Central Bank may revoke a direction given under section 40 (2) unless an order under paragraph 3 has been made by the Court in respect of the direction.

2. A building society to whom a direction has been given under section 40 (2) may apply to the Court for, and the Court may grant, an order setting aside the direction.

3. The Central Bank may apply to the Court for, and the Court may grant, an order confirming a direction or confirming it and, subject to paragraph 5, extending the period of its operation for such time, not exceeding the period of 12 months from the date the direction commenced to have effect, as the Court may, having regard to all the circumstances, consider appropriate.

4. In addition to or in lieu of an order under paragraph 3 the Court may make such other order in the case as may appear to it to be necessary, including an order directing any person who holds money or other assets for or on behalf of the society, or a specified person, not to dispose of any of those assets except on such conditions and in such circumstances as are specified in the order.

5. A direction which has been confirmed by the Court shall terminate—

(a) at the end of the period of operation specified by the Court,

(b) on the making by the Court of an order for termination on the application of the Central Bank,

(c) on the making of a winding up order in respect of the society, or

(d) on the making by the Court of an order for termination where the Court considers that the circumstances that gave rise to the direction have ceased to exist and that it would be unjust and inequitable not to make the order,

whichever first occurs.

6. If the Central Bank forms the opinion that the society to whom the direction was given is able to meet its obligations to its shareholders and creditors but the circumstances which gave rise to the direction are unlikely to be rectified, it shall forthwith apply to the Court for and the Court may grant an order directing the said society to prepare, in consultation with the Bank, a scheme for the orderly termination of its business and the discharge of its liabilities to its shareholders and depositors under the supervision of the Bank and to submit it to the Court within 2 months for approval.

7. The Court shall not approve the terms of a scheme under paragraph 6 without hearing the Central Bank and, in the event of dispute about terms of the scheme, the Bank or the society may apply to the Court to adjudicate on the matter.

8. If the society fails to comply with an order of the Court under paragraph 6 or fails to adhere to the scheme approved by the Court, the Central Bank may apply to the Court for and the Court may make such further order as it considers appropriate including an order of committal or for the winding up of the society on the ground that it is just and equitable that it be wound up.

9. The Court may by order revoke or amend an order (except an order under paragraph 5) made by it under this Schedule.

10. Where a direction is given by the Central Bank in accordance with section 40—

(a) the society to whom the direction has been given shall take all necessary steps to secure that its assets wherever held, are not depleted without the prior authorisation of the Bank; and

(b) the Bank may direct a bank or any institution exempt under section 7 of the Act of 1971, which holds an account of the society to which the direction has been given, to suspend the making of payments from the account without the prior authorisation of the Bank.

BUILDING SOCIETIES ACT, 1989

Statutory Text (5 Articles)

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