Friendly Societies Act 1992

Section 7.

SCHEDULE 6Making of Contracts and Execution of Documents by Incorporated Friendly Societies

England and Wales and Northern Ireland

1Under the law of England and Wales and Northern Ireland a contract may be made—

(a)by an incorporated friendly society, by writing under its common seal; or

(b)on behalf of an incorporated friendly society, by any person acting under its authority, express or implied;

and any formalities required by law in the case of a contract made by an individual also apply, unless a contrary intention appears, to a contract made by or on behalf of an incorporated friendly society.

2(1)The following provisions have effect with respect to the execution of documents by an incorporated friendly society under the law of England and Wales and of Northern Ireland.

(2)A document is executed by an incorporated friendly society by the affixing of its common seal.

(3)An incorporated friendly society need not have a common seal, however, and the following sub-paragraphs apply whether it does or not.

(4)A document signed by a member of the committee of management and the secretary of an incorporated friendly society, or by 2 members of the committee of management, and expressed (in whatever form of words) to be executed by the society has the same effect as if executed under the common seal of the society.

(5)A document executed by an incorporated friendly society which makes it clear on its face that it is intended by the person or persons making it to be a deed has effect, upon delivery, as a deed; and it shall be presumed, unless a contrary intention is proved, to be delivered upon its being so executed.

(6)In favour of a purchaser a document shall be deemed to have been duly executed by an incorporated friendly society if it purports to be signed by a member of the committee of management and the secretary of the society, or by 2 members of the committee of management, and, where it makes it clear on its face that it is intended by the person or persons making it to be a deed, to have been delivered upon its being executed.

(7)In sub-paragraph (6) above a “purchaser” means a purchaser in good faith for valuable consideration and includes a lessee, mortgagee or other person who for valuable consideration acquires an interest in property.

Scotland

3(1)The following provisions have effect with respect to the execution of documents by an incorporated friendly society under the law of Scotland.

(2)For any purpose other than those mentioned in sub-paragraph (3) below, a document is validly executed by an incorporated friendly society if it is signed on behalf of the society by a member of the committee of management or by the secretary of the society or by a person authorised to sign the document on its behalf.

(3)For the purposes of any enactment or rule of law relating to the authentication of documents under the law of Scotland, a document is validly executed by an incorporated friendly society if it is subscribed on behalf of the society by—

(a)2 members of the committee of management of the society;

(b)a member of that committee and the secretary of the society; or

(c)2 persons authorised to subscribe the document on behalf of the society,

notwithstanding that such subscription is not attested by witnesses and the document is not sealed with the society’s common seal.

(4)A document which bears to be executed by an incorporated friendly society in accordance with sub-paragraph (3) above is, in relation to such execution, a probative document.

(5)Notwithstanding any other provision of this paragraph, an incorporated friendly society need not have a common seal.

(6)For the purposes of any enactment providing for a document to be executed by an incorporated friendly society by affixing its common seal or referring (in whatever terms) to a document so executed, a document signed or subscribed on behalf of the society by—

(a)2 members of the committee of management of the society;

(b)a member of the committee and the secretary of the society; or

(c)2 persons authorised to subscribe the document on behalf of the society,

shall have effect as if executed under the common seal of the society.

(7)In this paragraph “enactment” includes an enactment contained in a statutory instrument.

(8)Sub-paragraphs (2) and (3) above are—

(a)without prejudice to any other method of execution of documents by incorporated friendly societies permitted by any enactment or rule of law; and

(b)subject to any other enactment making express provision, in relation to incorporated friendly societies, as to the execution of a particular type of document.