Friendly Societies Act 1992

Winding up by the courtU.K.

18U.K.In sections 117 (High Court and county court jurisdiction) and 120 (Court of Session and sheriff court jurisdiction) of the Act, each reference to a company’s share capital paid up or credited as paid up shall have effect as a reference to the amount of the contribution or subscription income of an incorporated friendly society as shown by the latest balance sheet.

19U.K.Section 122 (circumstances in which company may be wound up by the court) of the Act does not apply.

20U.K.Section 124 (application for winding up) of the Act does not apply.

21(1)In section 125 (powers of court on hearing of petition) of the Act, subsection (1) applies with the omission of the words from “but the court" to the end of the subsection.U.K.

(2)The conditions which the court may impose under section 125 of the Act include conditions for securing—

(a)that the incorporated friendly society be dissolved by consent of its members under section 20 above; or

(b)that the society amalgamates with, or transfers all or any of its engagements to, another friendly society under section 85 or 86 above, or

(c)that the society converts itself into a company under section 91 above,

and may also include conditions for securing that any default which occasioned the petition be made good and that the costs, or in Scotland the expenses, of the proceedings on that petition be defrayed by the person or persons responsible for the default.

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[F223U.K.If, before the presentation of a petition for the winding up by the court of an incorporated friendly society, an instrument of dissolution under section 20 above is placed in the society’s public file, section 129(1) (commencement of winding up by the court) of the Act shall also apply in relation to the date on which the notice is so placed and to any proceedings in the course of the dissolution as it applies to the commencement date for, and proceedings in, a voluntary winding up.]

24(1)Section 130 of the Act (consequences of winding-up order) shall have effect with the following modifications.U.K.

(2)Subsections (1) and (3) shall be omitted.

(3)An incorporated friendly society shall, within 15 days of a winding-up order being made in respect of it, give notice of the order to the [F3FCA and, if the society is a PRA-authorised person, the PRA]; and the [F4FCA] shall keep the notice in the public file of the society.

(4)If an incorporated friendly society fails to comply with sub-paragraph (3) above, it shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

25U.K.Section 140 (appointment of liquidator by court in certain circumstances) of the Act does not apply.

26U.K.In the application of sections 141(1) and 142(1) (liquidation committees), of the Act to incorporated friendly societies, the references to functions conferred on a liquidation committee by or under that Act shall have effect as references to its functions by or under that Act as so applied.

27U.K.The conditions which the court may impose under section 147 (power to stay or sist winding up) of the Act shall include those specified in paragraph 21(2) above.

28U.K.Section 154 (adjustment of rights of contributories) of the Act shall have effect with the modification that any surplus is to be distributed in accordance with the rules of the society.

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