Conversion from credit society to non-credit society on application
16BA.—(1)  A credit society that intends to stop providing every financial service carried on by the society, and does not intend to provide any new financial service, must apply to the Registrar, in such manner as may be prescribed, for the Registrar’s written approval to become a non‑credit society.
(2)  An application under subsection (1) must be accompanied —
(a)by the prescribed application fee (if any); and
(b)by such documents and information as the Registrar requires in relation to the application.
(3)  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 credit society to a non-credit society:
(a)the object of the society is to provide any service other than any financial service;
(b)the provision of the service mentioned in paragraph (a) is in the interests of the members of the society;
(c)there is available sufficient capital for the provision of the service mentioned in paragraph (a) by the society;
(d)there are available officers who are capable of —
(i)directing and managing the provision of the service mentioned in paragraph (a) by the society; and
(ii)keeping the records and accounts of the society.
(4)  The Registrar must not grant the written approval unless a resolution for the conversion of the credit society to a non‑credit society has been passed at a general meeting of the credit society by not less than 75% of the members of the society present and voting.
(5)  The Registrar may grant the written approval subject to such terms and conditions as the Registrar thinks fit.
(6)  Where the Registrar grants written approval for a credit society to become a non‑credit society, the Registrar must notify the society in writing that its registration as a credit society is cancelled, starting on a date specified in the notice.
(7)  A credit society that is granted written approval to become a non-credit society —
(a)must stop doing all of the following things, starting on such date as the Registrar may determine (being a date that may be different from the date mentioned in subsection (6)):
(i)make any new loan to any person;
(ii)allow any new credit to any person;
(iii)receive any new deposit from any person; and
(b)must return, to every person from whom the society had received a deposit in accordance with section 68(2) while the society was a credit society, the deposit made by the person (including any interest accrued on the deposit) within 12 months after the date on which the registration of the society as a credit society is cancelled, or such shorter or longer period as the Registrar may determine in any particular case.
(8)  A society that becomes a non-credit society may continue to receive repayments of existing loans made and credit allowed in accordance with section 67 while the society was a credit society.
(9)  A credit society that is aggrieved by a decision by the Registrar to refuse written approval for the credit society to become a non-credit society may, within 2 months after the date of the decision, appeal in writing to the Minister, whose decision is final.
(10)  Any society that contravenes subsection (7) 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.
[Act 3 of 2018 wef 22/04/2019]