PART IV | PROVISIONS RELATING TO CREDIT SOCIETIES |
| Independence of committee of management and audit committee |
7.—(1) For the purposes of sections 36(2) and 59(1)(b) of the Act, a member of the audit committee or the committee of management of a credit society shall be considered to be independent of the credit society if he has no management relationship with the credit society or any of its subsidiaries that could interfere, or be reasonably regarded as interfering, with the exercise of the member’s independent business judgment with regard to the interests of the credit society.| (2) Without prejudice to paragraph (1), a member of the audit committee or the committee of management of a credit society shall not be considered to be independent of the credit society if he, or any member of his immediate family, is employed by the credit society or any of its subsidiaries. |
| (3) In this rule, unless the context otherwise requires, a reference to a member of the immediate family of a member of the audit committee or the committee of management of a credit society means the member’s spouse, child, adopted child, step-child, parent, step-parent, brother, step-brother, sister or step-sister. |
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| Employment and engagement of services of individuals |
7A.—(1) Except with the written approval of the Registrar, no credit society shall employ or engage the services of a person who has been convicted, whether before, on or after 1st February 2011 and whether in Singapore or elsewhere, of any offence involving fraud or dishonesty —| (a) | where the person has been sentenced to imprisonment in respect of the offence, for a period beginning on the date of his conviction and ending on the 15th anniversary of the date of his release from prison; or | | (b) | where the person has not been sentenced to imprisonment in respect of the offence, for a period of 15 years beginning on the date of his conviction. |
| (2) Any credit society which contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 and, in the case of a continuing offence, to a further fine not exceeding $500 for every day or part thereof during which the offence continues after conviction. [S 25/2011 wef 01/02/2011] |
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| Prescribed period for provision of statement of account |
| 7B. For the purposes of section 42A(2) of the Act, the prescribed period after receiving a member’s request, for a credit society to provide to the member a statement of account mentioned in section 42A(2) of the Act, is 10 working days. [S 317/2019 wef 22/04/2019] |
| Restriction on loans and borrowing |
| 8. For the purposes of sections 67(3) and 68(5) of the Act, “immediate family member”, in relation to a member of a credit society, means the member’s spouse, child, adopted child, step-child, parent, step-parent, brother, step-brother, sister or step-sister. |
9.—(1) No person shall advertise, or cause to be advertised, in or using the mass media —| (a) | the address or telephone number of a credit society; or | | (b) | an invitation —| (i) | to apply to be a member of a credit society; | | (ii) | to borrow from or deposit money with a credit society; | | (iii) | to enter into any transaction involving the borrowing of money from, or the provision of any other financial service by, a credit society; or | | (iv) | to apply, in any manner as may be specified, to obtain information or advice on any financial service provided or to be provided by a credit society. |
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| (2) Any person who contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000. |
(3) In this rule, unless the context otherwise requires —“mass media”, in relation to a credit society, means —| (a) | any newspaper, magazine, journal or other periodical that is available to the general public, including an electronic version thereof on the World Wide Web; | | (b) | any poster, notice, signboard, circular, handbill, brochure, pamphlet, book or other document displayed in a public place, other than any public place —| (i) | that is immediately outside the registered address of the credit society; or | | (ii) | that is within the building in which the registered address of the credit society is located; or |
| | (c) | any public broadcasting service or facsimile service, |
| but does not include the Internet website of the credit society or the apex organisation; |
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| “public place” means any place (open to the air or otherwise) to which the general public have access as of right or by virtue of express or implied permission, whether or not on payment of a fee and whether or not access to the place may be restricted at particular times or for particular purposes. |
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