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.
[23/2008]
(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.
[23/2008]
(3) Every application made by a non-credit society under subsection (2) shall be accompanied by such fee as may be prescribed.
[23/2008]
(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.
[23/2008]
(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.
[23/2008]
(6) The Registrar may grant his written approval under subsection (1) subject to such terms and conditions as he thinks fit.
[23/2008]
(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.
[23/2008]
(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.
[23/2008]
(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.
[23/2008]
Informal Consolidation | Amended Act 3 of 2018
Conversion from non-credit society to credit society
16A.—(1) A non-credit society shall not provide any financial service.
[23/2008]
[Act 3 of 2018 wef 22/04/2019]
(2) A non‑credit society that intends to provide any financial service must apply to the Registrar, in such manner as may be prescribed, for the Registrar’s written approval to become a credit society.
[Act 3 of 2018 wef 22/04/2019]
(3) Every application made by a non-credit society under subsection (2) shall be accompanied by such fee as may be prescribed.
[23/2008]
(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.
[23/2008]
(5) The Registrar may grant the written approval if the Registrar is satisfied that all of the following requirements will be met upon the conversion of the non‑credit society to a credit society:
(a)
the primary object of the society is to provide any financial service;
(b)
the provision of the financial service is in the interests of the members of the society;
(c)
the by‑laws of the society are, or are amended under section 15 to be, consistent with the criterion in section 39(3A) for membership in the society;
(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;
(f)
there are available officers who, having regard to their qualifications, experience, reputation, character, financial integrity and reliability, are capable of —
(i)
directing and managing the provision of the financial service by the society; and
(ii)
keeping the records and accounts of the society.
[Act 3 of 2018 wef 22/04/2019]
(6) The Registrar may grant the written approval subject to such terms and conditions as he thinks fit.
[23/2008]
[Act 3 of 2018 wef 22/04/2019]
(7) Where the Registrar grants written approval for a non‑credit society to become a credit society, the Registrar must —
(a)
notify the society in writing that it is registered as a credit society to provide the financial service specified in the notice, starting on a date specified in the notice; and
(b)
amend the register of societies to show that the society is registered as a credit society to provide that financial service.
[Act 3 of 2018 wef 22/04/2019]
(7A) A non‑credit society that is granted written approval to become a credit society —
(a)
must not provide any new service other than a financial service, starting on such date as the Registrar may determine (being a date that may be different from the date mentioned in subsection (7)(a)); but
(b)
may continue to provide indefinitely any service (not being a financial service) that was carried on by the society immediately before that date.
[Act 3 of 2018 wef 22/04/2019]
(8) A non‑credit society that is aggrieved by a decision by the Registrar to refuse written approval for the non‑credit society to become a credit society may, within 2 months after the date of the decision, appeal in writing to the Minister, whose decision is final.
[Act 3 of 2018 wef 22/04/2019]
(9) Any non‑credit society that contravenes subsection (1) or (7A)(a) 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 each day or part of a day during which the offence continues after conviction.