Conversion from non-credit society to credit society
16A.—(1) A non-credit society shall not provide any financial service without the written approval of the Registrar.
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(2) A non-credit society shall apply to the Registrar for his written approval under subsection (1) in such form and manner as may be prescribed.
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(3) Every application made by a non-credit society under subsection (2) shall be accompanied by such fee as may be prescribed.
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(4) The Registrar may require a non-credit society to furnish him with such information or documents as he considers necessary in relation to the application.
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(5) The Registrar may refuse to grant his written approval under subsection (1) to a non-credit society to provide any financial service if he is not satisfied that —
(a)
the provision of the financial service is in the interests of its members;
(b)
the primary object of the society is to provide the financial service;
(c)
the by-laws of the society are, or are amended under section 15 to be, consistent with the criterion for membership in the society prescribed in section 39(3A);
(d)
there is available sufficient capital for the provision of the financial service by the society;
(e)
the society is able to meet such minimum financial or prudential requirements or such other requirements as may be prescribed, either generally or specifically; or
(f)
there are available officers capable of directing and managing the provision of the financial service by the society and keeping the records and accounts of the society, having regard to the reputation, character, financial integrity and reliability of the officers or proposed officers.
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(6) The Registrar may grant his written approval under subsection (1) subject to such terms and conditions as he thinks fit.
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(7) Where the Registrar has granted his written approval to a non-credit society to provide any financial service, he shall amend the register of societies to show that, and issue to the society a notice of registration stating that, the society is registered as a credit society to provide the financial service on and from a date specified in the notice.
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(8) A non-credit society that is aggrieved by the refusal of the Registrar to grant his written approval for the non-credit society to provide any financial service may, within 2 months from the date of the refusal, appeal to the Minister whose decision shall be final.
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(9) Any non-credit society which provides any financial service in contravention of subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part thereof during which the offence continues after conviction.