PART IV

Management of Credit Unions

Directors

53. —(1) A credit union shall have a board of directors which shall have responsibility for the general control, direction and management of the affairs, funds and records of the credit union.

(2) The number of directors of a credit union shall be specified in the registered rules and shall be—

(a) not less than seven;

(b) not more than fifteen; and

(c) an odd number.

(3) The first board of directors of a credit union shall be elected from among the members by secret ballot at the organisation meeting of the credit union and, subject to section 57 (4), subsequent vacancies on the board shall be filled from among the members by secret ballot at an annual general meeting.

(4) The term of office of a director—

(a) shall begin at the conclusion of the general meeting at which he is elected;

(b) shall not extend beyond the third subsequent annual general meeting; and

(c) subject to paragraph (b) and subsection (5), shall be such as is determined in accordance with the registered rules;

but, except where the registered rules otherwise provide, a retiring director shall be eligible for re-election.

(5) At each annual general meeting the number of directors whose term of office expires shall, as near as possible, be the same.

(6) Neither a body corporate nor a person who is under the age of 18 may be a director of a credit union.

54. —(1) The board of directors shall meet as often as may be necessary for the proper discharge of its business provided that—

(a) the board shall endeavour to meet once a month but, as a minimum, shall hold not less than ten meetings in any year; and

(b) the interval between any two meetings of the board shall not be greater than six weeks.

(2) The secretary of a credit union shall keep minutes of all meetings of the board of directors.

(3) Subject to section 53 (6) and subsection (4), the board of directors may at any time and from time to time appoint a member of the credit union (including a former director) to be a director to fill a casual vacancy.

(4) A director appointed under subsection (3) shall hold office from the date of the appointment to the next following annual general meeting of the credit union or, if it is earlier, the next special general meeting at which an election is held for members of the board of directors.

(5) Where the secretary of a credit union becomes aware that all the directors of the credit union intend to resign on the same date, he shall give written notice of their intention to the Registrar and the Supervisory Committee.

(6) If the secretary of a credit union fails to comply with subsection (5), he shall be guilty of an offence.

55. —Without prejudice to the generality of section 53 (1), the board of directors shall have the following functions—

(a) the making of decisions on applications for loans;

(b) the fixing from time to time of the amount of the surety bond required by section 73 in respect of any officer of the credit union who has custody of funds or other property of the credit union;

(c) the fixing from time to time of the rate of interest to be charged on loans to members, and of the rate of interest to be paid on deposits;

(d) the recommendation to members, for approval, of dividends to members;

(e) the fixing from time to time of the maximum numbers of shares in the credit union which may be held by a member and of the maximum amount that a member may deposit with the credit union, such limits to apply equally to all members;

(f) the fixing from time to time of the maximum amount which may be on loan at a particular time to a member in respect of loans, such limits to apply equally to all members;

(g) the making of decisions in respect of the investment of funds of the credit union;

(h) the employment and the terms of employment of such person or persons as the board of directors consider necessary for the purposes of the credit union;

(i) the purchase, sale, renovation, repair and alteration of property for the credit union;

(j) the borrowing of money by the credit union;

(k) the designating of depositories for the funds of the credit union, and signatories to cheques, drafts or similar documents drawn on an account of the credit union;

(l) the removal from office of an officer or committee member, except members of the Supervisory Committee, for failure to perform his duties;

(m) the submitting of the accounts of the credit union for audit;

(n) the making of arrangements for the annual general meetings, meetings of the board of directors and other meetings as deemed necessary from time to time;

(o) the convening of a special general meeting in accordance with section 79 whenever they think fit;

(p) the sanctioning of expense payments whether by way of expense claim or invoice;

(q) the taking, in accordance with the instructions of the members at a general meeting of the credit union, of any lawful action not inconsistent with the registered rules; and

(r) appointing such committees or officers as the board of directors considers desirable or necessary to assist it in the proper discharge of the business of the credit union.

56. —(1) Subject to subsection (2), a credit union may, by resolution of a majority of the members present and voting at a special general meeting called for that purpose, remove a director from office.

(2) The secretary shall, not less than 21 days before the date of the special general meeting at which it is proposed to move a resolution referred to in subsection (1), give written notice of the meeting to the director concerned.

(3) Where notice is given of such a resolution as is mentioned in subsection (1) and the director concerned makes in relation to it representations in writing to the credit union (not exceeding a reasonable length) and requests their notification to the members of the credit union, the credit union shall, subject to subsection (5), (unless the representations are received by it too late to do so)—

(a) in any notice of the proposed resolution given to members of the credit union, state the fact of the representations having been made; and

(b) send a copy of the representations to every member of the credit union to whom notice of the meeting is sent (whether before or after the credit union receives the representations).

(4) Subject to subsection (5), and whether or not copies of any representations made by him have been sent as mentioned in subsection (3), the director concerned may require that, without prejudice to his right to be heard orally, the representations made by him shall be read out at the special general meeting.

(5) Subsections (3) and (4) shall not apply if, on the application either of the credit union or of any person who claims to be aggrieved, the Registrar is satisfied that compliance with the subsections would diminish substantially public confidence in the credit union or that the rights conferred by them are being, or are likely to be, abused in order to secure needless publicity for defamatory matter.

(6) A vacancy arising from the removal of a director under this section shall be filled in accordance with the provisions of section 54 (3).

57. —(1) A register of directors shall be kept by the secretary of the credit union and signed by all the directors of a credit union each year after the annual general meeting of a credit union or, in the case of a director appointed to fill a casual vacancy, after his appointment.

(2) In the event that the number of directors of a credit union falls to less than half the number specified in the registered rules, the secretary of the credit union shall forthwith notify the Registrar and the Supervisory Committee of the credit union.

(3) The acts of a director of a credit union shall be valid notwithstanding any defect in the appointment of the director which may be subsequently discovered.

(4) Where any of the following events occurs—

(a) the secretary of the credit union has given notice under section 54 (5) that all the directors of the credit union intend to resign on the same date,

(b) all the directors have been removed or suspended in accordance with section 96 (1), or

(c) there is no board of directors,

the Supervisory Committee shall convene a special general meeting of the credit union, within one month of the occurrence of the event in question, to elect a board of directors.

(5) If the special general meeting referred to in subsection (4) is not convened in accordance with the provisions of that subsection, the Registrar may convene such a special general meeting under section 92 (1)(b).

Supervisory Committee

58. —(1) A credit union shall have a Supervisory Committee which shall consist of three or five members and shall have the general duty of overseeing the performance by the directors of their functions.

(2) The first Supervisory Committee of a credit union shall be elected by secret ballot at the organisation meeting and, subject to section 62 (4), subsequent vacancies on the Committee shall be filled by secret ballot at an annual general meeting.

(3) The Supervisory Committee shall appoint one of their number as secretary of the Committee.

(4) The term of office of a member of the Supervisory Committee—

(a) shall begin at the conclusion of the general meeting at which the member is elected;

(b) shall not extend beyond the third subsequent annual general meeting; and

(c) subject to paragraph (b) and subsection (5), shall be such as is determined in accordance with the registered rules;

but, except where the registered rules otherwise provide, a retiring member of the Supervisory Committee shall be eligible for re-election or appointment.

(5) The rules for retirement from the Supervisory Committee shall be as follows:

(a) where the Committee consists of three members, one shall retire at each annual general meeting;

(b) where the Committee consists of five members, two shall retire at each annual general meeting;

(c) subject to paragraph (d), the members to retire at any time shall be those who have served longest since they were last elected; and

(d) as between members who were last elected on the same day, the member (or members) to retire shall be determined by agreement or, in default of agreement, by the drawing of lots.

(6) None of the following shall be a member of a Supervisory Committee of a credit union—

(a) a member of the credit union who is under the age of 18;

(b) a director of the credit union;

(c) an employee of the credit union (full or part-time);

(d) a person who performs any other function in the credit union;

(e) a body corporate.

59. —(1) A Supervisory Committee shall—

(a) hold at least one meeting in each month;

(b) hold, at least four times in a year, a meeting with the board of directors to review the directors' performance of their functions;

(c) submit, in advance of a meeting referred to in paragraph (b), a written report to the board of directors on the directors' performance of their functions.

(2) Members of the Supervisory Committee shall have the right to attend all meetings of the board of directors and all meetings of committees of the credit union.

(3) A Supervisory Committee may notify the Registrar of any concern it may have as to the proper conduct of the credit union following a unanimous vote at a meeting of the Committee called for the purpose of considering such a notification.

(4) If a casual vacancy arises in the membership of a Supervisory Committee, then, within one month of the vacancy arising, the Committee shall appoint a member of the credit union (who may, if the Committee thinks fit, be a former member of the Committee) to fill the vacancy; and the member so appointed shall hold office until the next general meeting at which an election is held for members of the Supervisory Committee.

(5) Where the secretary of the Supervisory Committee becomes aware that all the members of the Supervisory Committee intend to resign on the same date, he shall give written notice of their intention to the Registrar and the board of directors.

(6) If the secretary of the Supervisory Committee fails to comply with subsection (5), he shall be guilty of an offence.

60. —(1) Without prejudice to the generality of section 58 (1), the Supervisory Committee of a credit union shall—

(a) keep minutes of meetings held by it;

(b) make or cause to be made, not less than twice in the period before the next annual general meeting, an examination of the books and documents of the credit union and that examination shall include an inspection of securities, cash accounts and all records relating to loans;

(c) make, or cause to be made, once in the period before the next annual general meeting, a comparison between the pass-book or statement of account of a random sample of at least 10 per cent. of all the members of the credit union and the appropriate records of the credit union;

(d) ascertain that all actions and decisions of the officers relating to the affairs of the credit union are in accordance with law and the registered rules;

(e) furnish a written report on the result of its examinations and enquiries under this section to the next annual general meeting or, if it thinks fit, to a special general meeting.

(2) The Supervisory Committee shall have access, at all times, to the books and documents of the credit union.

61. —(1) Subject to subsection (2), a credit union may, by resolution of a majority of the members present and voting at a special general meeting called for that purpose, remove a member of the Supervisory Committee from office.

(2) The secretary of the credit union shall, not less than 21 days before the date of the special general meeting at which it is proposed to move a resolution referred to in subsection (1), give written notice of the meeting to the member concerned.

(3) Where notice is given of such a resolution as is mentioned in subsection (1) and the member of the Supervisory Committee concerned makes in relation to it representations in writing to the credit union (not exceeding a reasonable length) and requests their notification to the members of the credit union, the credit union shall, subject to subsection (5), (unless the representations are received by it too late to do so)—

(a) in any notice of the proposed resolution given to members of the credit union, state the fact of the representations having been made; and

(b) send a copy of the representations to every member of the credit union to whom notice of the meeting is sent (whether before or after the credit union receives the representations).

(4) Subject to subsection (5), and whether or not copies of any representations made by him have been sent as mentioned in subsection (3), the member of the Supervisory Committee concerned may require that, without prejudice to his right to be heard orally, the representations made by him shall be read out at the special general meeting.

(5) Subsections (3) and (4) shall not apply if, on the application either of the credit union or of any person who claims to be aggrieved, the Registrar is satisfied that compliance with the subsections would diminish substantially public confidence in the credit union or that the rights conferred by them are being, or are likely to be, abused in order to secure needless publicity for defamatory matter.

(6) A vacancy arising from the removal of a member of a Supervisory Committee under this section shall be filled in accordance with the provisions of section 59 (4).

62. —(1) A register of the members of the Supervisory Committee shall be kept by the secretary of the credit union and shall be signed by each member of the Supervisory Committee after an annual general meeting or, in the case of a member appointed to fill a casual vacancy, after his appointment.

(2) In the event that the number of members of the Supervisory Committee falls to less than half the number specified in the registered rules, the secretary of the Supervisory Committee shall forthwith notify the Registrar and the board of directors.

(3) The acts of a member of the Supervisory Committee of a credit union shall be valid notwithstanding any defect in the election or appointment of the member which may subsequently be discovered.

(4) Where any of the following events occurs—

(a) the secretary of the Supervisory Committee has given notice that all the members of the Supervisory Committee intend to resign on the same date;

(b) all the members of the Supervisory Committee have been removed or suspended in accordance with section 96 (1); or

(c) there are no members of the Supervisory Committee,

the board of directors shall convene a special general meeting of the credit union, within one month of the occurrence of the event in question, to elect a Supervisory Committee.

(5) If the special general meeting referred to in subsection (4) is not convened in accordance with the provisions of that subsection, the Registrar may convene such a special general meeting under section 92 (1)(b).

(6) A credit union shall meet all such expenses as may be reasonably incurred by its Supervisory Committee in carrying out its function.

Officers

63. —(1) At a meeting of the board of directors of a credit union—

(a) which is held immediately after the organisation meeting, an annual general meeting or special general meeting at which an election is held for members of the board of directors, and

(b) which is chaired by a member of the Supervisory Committee,

the board shall elect by secret ballot directors to fill such of the principal posts in the credit union as are then vacant; and, for the purposes of this section, the principal posts in a credit union are the posts of chairman (or president), vice-chairman (or vice-president), treasurer and secretary.

(2) The registered rules shall ensure that the term of office of the holder of a principal post shall come to an end not later than the third annual general meeting after the meeting at which he is elected to that post; and, unless the registered rules provide otherwise, a person who has been the holder of a principal post shall not be eligible for re-election to that post until after the expiry of one year since he last held it.

(3) In the event of a casual vacancy in a principal post, the board of directors may by secret ballot elect a director to hold that post until the next meeting at which, in accordance with subsection (1), an election should be held to fill any vacancy in the principal posts.

(4) Without prejudice to subsection (3), if a principal post falls vacant or for any other reason there is no holder of a principal post, anything that is required or authorised to be done by the holder of that post may be done by a director authorised in that behalf by the board of directors.

(5) The chairman (or president) or secretary of a credit union shall notify the Registrar in writing of the election, appointment, retirement, removal or resignation from office of a chairman (or president), vice-chairman (or vice-president), director, secretary, treasurer or committee member and the notification shall—

(a) be made within fourteen days of the election, appointment, retirement, removal or resignation; and

(b) state the full name and address of the officer concerned.

(6) The chairman (or president) or secretary of a credit union who fails to make a notification referred to in subsection (5) shall be guilty of an offence.

64. —(1) The treasurer of a credit union shall act as the managing director of the credit union and shall, not later than the last day of each month, submit to the board of directors (in unaudited form and described as such) a financial statement showing—

(a) the income and expenditure of the credit union for the period from the beginning of the current financial year to the end of the preceding month; and

(b) a balance sheet for the same period.

(2) Subject to such limitations and controls as may be imposed by the board of directors, the treasurer of a credit union shall—

(a) ensure that proper systems of internal control are kept by the credit union;

(b) have custody of all funds, securities and documentation relating to the assets of and other assets of the credit union;

(c) provide, or cause to be provided, and maintain full and complete records of all assets, liabilities, income and expenditure of the credit union;

(d) prepare, or cause to be prepared, and submit to the auditor of the credit union such financial reports and returns required by the auditor;

(e) ensure that all cash is deposited in accordance with the instructions of the board of directors;

(f) report to the members of the credit union at the annual general meeting of the credit union; and

(g) in the exercise of his functions, comply with any instruction of the board of directors.

(3) With the approval of the board of directors, the treasurer may at any time delegate any function to a director who, in the opinion of the treasurer, is capable of discharging the function in a proper and competent manner.

(4) A director to whom a function has been delegated in accordance with subsection (3) (in this Part referred to as an “assistant treasurer”), shall comply with any instruction, limitation or control imposed by the treasurer and approved by the board of directors.

(5) Neither the treasurer nor an assistant treasurer shall be eligible for membership of any of the following committees of a credit union—

(a) the credit committee;

(b) the credit control committee;

(c) the membership committee.

(6) Nothing in this section affects the power of a credit union to appoint, in addition to the treasurer, a manager who is not a director and whose functions are defined by the board of directors.

65. —(1) The board of directors may—

(a) appoint a person, other than the treasurer, an assistant treasurer or a member of the credit control committee or a credit control officer, as a credit officer to work under the supervision of the credit committee; and

(b) delegate to the credit officer the power to approve credit—

(i) that is fully secured by the shareholding of the borrowing member or to an amount in excess of that shareholding; or

(ii) that qualifies as emergency credit within such definitions and limitations as to amount, the terms of repayment and security required for emergency credit as may be established in writing by the board of directors;

and the amount of the excess referred to in paragraph (b)(i), shall be determined from time to time by the board of directors.

(2) A record of each application for credit which has or has not been approved shall be furnished by the credit officer to the credit committee within seven days of receipt of the application.

(3) Where there has been a delegation of power to approve credit under subsection (1)(b), a credit officer shall inquire into the character and financial circumstances of an applicant for credit and the security offered, if any, in order to—

(a) ascertain the applicant's ability to repay a loan in accordance with its terms, and

(b) determine whether the loan is for a provident or productive purpose.

(4) The board of directors may appoint a person, other than the treasurer, an assistant treasurer, member of the credit committee or a credit officer, as a credit control officer to assist the credit control committee and work under its supervision and control.

66. —(1) If the Supervisory Committee of a credit union considers that an officer who is not an employee has taken any action or decision which, in the opinion of the Committee, is not in accordance with the law or the registered rules, then, after consulting the Registrar, the Committee may either—

(a) suspend the officer by a unanimous vote of all the members of the Committee taken at a meeting of the Committee called for the purpose of considering his suspension; or

(b) convene a special general meeting of the credit union to consider whether to remove the officer in the light of the action or decision taken by him;

but no action shall be taken under this subsection without the officer concerned being given an opportunity to be heard by the members of the Supervisory Committee.

(2) If an officer who has been suspended by the Supervisory Committee in accordance with subsection (1)(a) does not resign within seven days of the vote by the Committee, the Committee shall convene, for a date not more than 21 days after the expiry of those seven days, a special general meeting—

(a) for the purpose of reviewing the suspension; and

(b) to consider whether to remove the officer in the light of the action or decision taken by him.

(3) Without prejudice to the requirements of section 80 , not less than 10 days before—

(a) the date of a meeting of the Supervisory Committee called as mentioned in subsection (1)(a), and

(b) the date of a special general meeting convened as mentioned in subsection (1)(b) or subsection (2),

the Supervisory Committee shall give written notice of the meeting to the Registrar and to the officer concerned.

(4) At a special general meeting held under this section, the members of the credit union, according to the purpose or purposes for which the meeting was convened, may, by secret ballot—

(a) ratify the suspension of the officer concerned and remove him from office;

(b) rescind the suspension of that officer; or

(c) remove that officer from office;

but no officer shall be so removed from office without being given an opportunity to be heard by the members present at the meeting.

(5) Where an officer of a credit union is removed from office at a special general meeting under paragraph (a) or paragraph (c) of subsection (4), the vacancy caused by the removal shall be filled in such manner as may be determined by the meeting.

General provisions

67. —(1) Without prejudice to paragraph (r) of section 55 , the board of directors shall appoint—

(a) a credit committee, which shall decide on applications for credit;

(b) a credit control committee, which shall seek to ensure the repayment of loans by members of the credit union in accordance with their loan agreements; and

(c) a membership committee which shall consider applications for membership of the credit union;

and the provisions of the Third Schedule shall apply to the committees.

(2) The record of applications for credit furnished by a credit officer under section 65 (2) shall be considered by the credit committee at its next following meeting and become part of the records of the credit union.

(3) The membership committee shall—

(a) at least once in every month notify the board of directors of the new members whose applications they have approved; and

(b) where there is a doubt in respect of an applicant's qualification for membership of the credit union, submit the application for membership to the board of directors for a decision.

68. —(1) A credit union shall not pay any remuneration, directly or indirectly, to—

(a) a director of the credit union,

(b) a member of the Supervisory Committee or a principal Committee of the credit union, or

(c) a credit officer or credit control officer,

for any service performed by that person in that capacity.

(2) Nothing in subsection (1) shall be regarded as prohibiting the payment (or reimbursement) of expenses—

(a) which are necessarily incurred by a director or committee member in the course of performing any service on behalf, or for the benefit, of the credit union; and

(b) which are approved by a majority of the directors voting at a meeting of the board.

(3) Nothing in subsection (1) shall be regarded as prohibiting any officer or voluntary assistant of a credit union, acting not as such but in his professional capacity, from tendering for the supply of, and if successful supplying, goods or services to the credit union.

(4) In any year the treasurer of a credit union may be paid such remuneration (whether described as such or as an honorarium or otherwise) as—

(a) may from time to time be approved prior to its payment (or the payment of any part of it) by the members in general meeting; and

(b) does not exceed an amount recommended by the board of directors.

69. —(1) An officer of a credit union shall not, in any manner, directly or indirectly, participate in the consideration or determination of any matter in which he, or a body with which he is connected, has a pecuniary interest and, accordingly, an officer shall withdraw from any meeting at which such a matter is to be considered or determined.

(2) If, apart from this subsection, the withdrawal of an officer from a meeting in pursuance of subsection (1) would cause the meeting to become inquorate, the remaining members shall be treated as constituting a quorum while the matter in question is being considered or determined.

(3) An officer of a credit union who is or becomes interested, directly or indirectly, in a contract made or proposed to be made by a credit union shall declare the nature of his interest in writing to the board of directors as soon as possible after the contract is made or proposed or, as the case may be, after he becomes so interested.

(4) A declaration under subsection (3) shall be made—

(a) in person at a meeting of the board of directors at which the contract is to be considered; or

(b) if the contract is not likely to be considered at such a meeting, by a notice in writing addressed to the board of directors and served on the secretary;

and where a notice is served as mentioned in paragraph (b), the secretary shall read the notice at the next meeting of the board of directors.

(5) Subject to subsection (6), for the purposes of this section, a general notice in writing which is given by an officer of a credit union to the board of directors and is to the effect that—

(a) the officer is connected (whether as member, director, employee or otherwise) with a specified body and is to be regarded as interested in any contract which, after the date of the notice, may be made with that body, or

(b) the officer is to be regarded as interested in any contract which, after the date of the notice, may be made with a specified person who is connected with him,

shall be deemed to be a sufficient declaration of interest in relation to any such contract.

(6) A notice under subsection (5) shall be of no effect unless and until—

(a) it is given in writing in person at a meeting of the board of directors; or

(b) it is given in writing addressed to the board of directors and served on the secretary;

and where a notice is given as mentioned in paragraph (b), the secretary shall read the notice at the next meeting of the board of directors.

(7) The provisions of this section shall apply in relation to a transaction or arrangement as they apply in relation to a contract; and, for the purposes of this section, an officer of a credit union shall be regarded as connected with a particular body if he has an interest in the body, whether directly or indirectly and whether as member, director, employee, shareholder or otherwise.

(8) Within three days (excluding a Saturday, Sunday or public holiday) after a declaration or notice under this section is made or given, the secretary of the credit union concerned shall cause a copy of the declaration or notice to be entered in a register kept for the purpose; and that register—

(a) shall be open for inspection without charge by any officer, auditor or member of the credit union; and

(b) shall be available at every general meeting of the credit union and, if adequate notice in advance is given to the secretary by any director, at any meeting of the board of directors.

70. —(1) None of the documents specified in subsection (2) shall be effective in law to bind a credit union unless signed by at least two officers of the credit union, one of whom shall be a member of the board of directors.

(2) The documents to which subsection (1) applies are any of the following, so far as not required by law to be under the seal of a credit union—

(a) a conveyance or transfer of property of any description by a credit union; and

(b) any other document which does not fall within section 55 (k) but by which a credit union enters into an obligation of any description.

(3) If the rules of a credit union make provision as to the officers by whom documents to which subsection (1) applies are to be signed, a document which purports to be signed as required by that subsection shall not be invalid by reason of any failure to comply with any such provision of the rules.

(4) The provisions of this section are without prejudice to any additional provisions as to signatures imposed by the Registrar by way of condition under section 49 .

71. —(1) Subject to subsection (2), during his term of office or at any time thereafter, an officer or voluntary assistant of a credit union shall not disclose or permit to be disclosed any information which concerns an account or transaction of a member with, or any other business of, the credit union.

(2) Subsection (1) does not apply to a disclosure of information—

(a) if or to the extent that it is necessary for the proper conduct of the business of the credit union; or

(b) which is required by a court in connection with any proceedings; or

(c) which is made with the consent of the person to whom the information relates and, where not the same person, of the person from whom the information was obtained; or

(d) which, in a case where the credit union is acting or has acted as agent for a person, is made to that person in respect of that capacity; or

(e) where the information is in the form of a summary or collection of information and is so framed as not to enable information relating to a particular member to be ascertained from it; or

(f) which, in the opinion of the Registrar, is necessary for the protection of the funds of shareholders in or depositors with the credit union or to safeguard the interests of the credit union; or

(g) which is made to the Registrar for the purposes of his functions in relation to credit unions.

(3) As soon as practicable after the beginning of his term of office or, in the case of any person whose term of office began before the commencement of this section, after that commencement, every officer or voluntary assistant of a credit union shall, in such manner as the Registrar may determine—

(a) be informed by the credit union of his obligations under this section; and

(b) in writing acknowledge that he has been so informed and understands his obligations.

(4) Any reference in the preceding provisions of this section to a term of office means—

(a) in relation to an officer who is an employee, the period of his employment; and

(b) in relation to a voluntary assistant, the period during which he is engaged in the operation of the credit union.

(5) A person who contravenes subsection (1) shall be guilty of an offence.

(6) In any proceedings for an offence under this section, the onus of proving that any of the paragraphs of subsection (2) excludes a disclosure from subsection (1) shall lie on the person who made or permitted the disclosure.

72. —(1) A person who has been adjudicated bankrupt and whose bankruptcy still subsists or who has been convicted of an offence in relation to a credit union or an offence involving fraud or dishonesty shall not—

(a) sign an application form for the registration of a society as a credit union;

(b) be qualified to be appointed or to act as a director, member of the Supervisory Committee, member of a principal Committee, voluntary assistant, auditor, receiver or liquidator of a credit union; or

(c) directly or indirectly take part in or be concerned in the management or operation of a credit union; or

(d) permit his name to be put forward for election or appointment to any of the positions referred to in paragraph (b).

(2) If a person who is a member of the board of directors or of the Supervisory Committee or of a principal Committee of a credit union is adjudicated bankrupt or convicted of such an offence as is referred to in subsection (1), he shall forthwith cease to hold his office and the vacancy thereby created shall be deemed to be a casual vacancy and be filled accordingly.

(3) A decision of the board of directors of a credit union shall not be affected by the presence at a meeting of the board of a person who, by virtue of this section, is disqualified from being a director; but any vote which such a person purports to cast shall be disregarded.

(4) Any person who, in relation to a credit union, purports to act in a manner or capacity which, by virtue of his being disqualified under this section, he is prohibited from doing shall be guilty of an offence.

73. —(1) Before taking up office, every officer or voluntary assistant of a credit union who will have the receipt or charge of money shall give security in such sum as the board of directors may direct conditioned—

(a) for his rendering at all due times a just and true account of all money received and paid by him on account of the credit union; and

(b) for the payment by him of all sums due from him to the credit union in his capacity as an officer or voluntary assistant.

(2) In subsection (1)(a), “at all due times” means at such times as may be specified in the rules or as the credit union or its board of directors may require.

(3) An officer or voluntary assistant of a credit union shall give security for the purposes of this section either—

(a) by becoming bound, either with or without a surety as the board of directors may require, in a bond in such form and amount as the board may approve; or

(b) in such cases as may be approved by the Registrar, by giving such other security as the board of directors may direct.

(4) In relation to a voluntary assistant, the reference in subsection (1) to taking up office is a reference to his becoming engaged in any way in the operation of the credit union.

74. —(1) Whenever required to do so in accordance with subsection (2), every officer or voluntary assistant of a credit union who has the receipt or charge of money on behalf of the credit union shall—

(a) render such an account as may be required by the credit union or its board of directors;

(b) pay over all such money and deliver all such property of the credit union for the time being under his custody or control to such person as the credit union or its board of directors may appoint.

(2) Either or both of the requirements in subsection (1) shall arise—

(a) on demand; or

(b) on the service on the officer or voluntary assistant of a notice in writing imposing the requirement or, as the case may be, both of the requirements;

and the requirement in paragraph (a) of that subsection shall also arise at such times as may be determined under the rules of the credit union.

(3) After the death of an officer or voluntary assistant of a credit union, references in subsections (1) and (2) to the officer or voluntary assistant shall be taken to include references to his personal representatives.

(4) Without prejudice to the right of a credit union to sue on any bond or other security given under section 73 , if any person fails to comply with a requirement under subsection (1), the Circuit Court, on the application of the credit union, may make an order requiring that person to comply with the requirement.

(5) The jurisdiction of the Circuit Court under subsection (4) shall be exercised by the judge for the time being assigned to the circuit in which the registered office of the credit union is situated.

75. —(1) Every credit union shall keep at its registered office a register in which shall be entered—

(a) the membership numbers, names and addresses of its members;

(b) a statement of the number of shares and amount of deposits held by each member and, if the shares are distinguished by numbers, the numbers of the shares so held;

(c) a statement of other property in the credit union, whether in loans or otherwise, held by each member;

(d) the date at which the name of any person was entered in the register as a member;

(e) the date at which any person ceased to be a member; and

(f) the membership numbers, names and addresses of the officers of the credit union (excluding any person who is an officer solely by virtue of being an employee), with the offices held by them respectively, the dates on which they assumed office and, where applicable, on which they ceased to hold office.

(2) The register may be kept either by making entries in bound books or by recording the matters in question in any other manner; but, where the register is not kept by making entries in a bound book but by some other means, adequate precautions shall be taken for guarding against, and facilitating the discovery of, any falsification.

(3) Every credit union shall either—

(a) keep at its registered office, for the purposes of inspection under section 76 , an abbreviated register, containing the particulars in the register kept under subsection (1), excluding those entered under paragraph (b) or paragraph (c) of that subsection; or

(b) so construct the register kept under subsection (1) that it is possible to open to inspection the particulars in the register, excluding those entered under paragraph (b) or paragraph (c) of that subsection and without exposing the particulars so entered.

(4) Where a credit union keeps a register pursuant to subsection (1) by recording the matters in question in any manner other than by making entries in bound books, the credit union shall keep at a place other than its registered office a duplicate register containing the particulars in the register kept under subsection (1).

(5) The Registrar or a person acting on his behalf or a person or persons duly authorised by the committee of, or other body administering, a savings protection scheme in which the credit union participates may at all reasonable hours inspect any particulars in any register or duplicate register kept under this section.

(6) A credit union's register or duplicate register kept under this section, or any other register or list of members or shares kept by the credit union shall be prima facie evidence of any of the following particulars entered therein, that is to say—

(a) the membership numbers, names and addresses of members;

(b) the number of shares and the amount of deposits respectively held by the members, and the distinguishing numbers of those shares if they are distinguished by numbers;

(c) the date at which the name of any person was entered in the register as a member; and

(d) the date at which any person ceased to be a member.

(7) A credit union shall ensure that a register or duplicate register kept under this section is up to date and, in particular, shall ensure that, if an event occurs which gives rise to the need for the making of an entry in, a change to or a deletion from, the register, that entry, change or deletion is made within 28 days of the event in question.

(8) A credit union which contravenes any provision of this section shall be guilty of an offence.

76. —(1) Notwithstanding anything in the rules of a credit union, except as provided by this Act or any other enactment, no-one (whether a member of the credit union or not) shall have the right to inspect the books of a credit union.

(2) Any member of a credit union or any other person having an interest in the funds of a credit union may, at any reasonable hour, inspect at the registered office of the credit union or at any other place where they may be kept—

(a) the register kept under section 75 , excluding the particulars entered therein under paragraph (b) or paragraph (c) of subsection (1) of that section; and

(b) his own account with the credit union;

but the right of inspection conferred by this subsection shall be exercisable subject to such conditions as to time and manner as may from time to time be determined by the board of directors.

(3) The rules of a credit union may make provision for the disclosure of its books and documents for the purpose of enabling it to enter into contracts for the benefit of the credit union.

(4) Subject to subsection (5), on the application of thirty members of a credit union, the Registrar may appoint an accountant to inspect and report on the books and documents of the credit union.

(5) An application under subsection (4) shall contain such particulars as the Registrar may require and shall not be valid unless—

(a) each of the members making the application has been a member throughout the whole of the twelve months immediately preceding the date of the application; and

(b) the members making the application deposit with the Registrar as security for the costs of the proposed inspection such sum as the Registrar may reasonably require.

(6) An accountant appointed under subsection (4) may make copies of, and take extracts from, any books or documents of the credit union at all reasonable hours at the credit union's registered office or at any other place where those books or documents are kept.

(7) All expenses of and incidental to an inspection by an accountant appointed under subsection (4) shall be defrayed in such proportions as the Registrar may direct—

(a) by the members making the application;

(b) out of the funds of the credit union; and

(c) by the members or officers, or former members or officers, of the credit union.

(8) The Registrar shall make known the results of an inspection by an accountant appointed under subsection (4) to the members who made the application and to the credit union.