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.