Industrial and Provident Societies Act

This document has been provided by the
International Center for Not-for-Profit Law (ICNL).

ICNL is the leading source for information on th e legal environment for civil society and public
participation. Since 1992, ICNL has served as a resource to civil society leaders, government
officials, and the donor community in over 90 countries.

Visit ICNL’s Online Library at
https://www.icnl.org/knowledge/library/index.php
for further resources and research from countries all over the world.

Disclaimers Content. The information provided herein is for general informational and educational purposes only. It is not intended and should not be
construed to constitute legal advice. The information contai ned herein may not be applicable in all situations and may not, after the date of
its presentation, even reflect the most current authority. Noth ing contained herein should be relied or acted upon without the benefit of legal
advice based upon the particular facts and circumstances pres ented, and nothing herein should be construed otherwise.
Translations. Translations by ICNL of any materials into other languages are intended solely as a convenience. Translation accuracy is not
guaranteed nor implied. If any questions arise related to the accuracy of a translation, please refer to the original language official version of
the document. Any discrepancies or differences created in the tr anslation are not binding and have no legal effect for compliance or
enforcement purposes.
Warranty and Limitation of Liability. Although ICNL uses reasonable efforts to include ac curate and up-to-date information herein, ICNL
makes no warranties or representations of any kind as to its a ccuracy, currency or completeness. You agree that access to and u se of this
document and the content thereof is at your own risk. ICNL discl aims all warranties of any kind, express or implied. Neither ICNL nor any
party involved in creating, producing or delivering this document shall be liable for any damages whatsoever arising out of access to, use of
or inability to use this document, or any e rrors or omissions in the content thereof.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – LONG TITLE

AN ACT TO AMEND THE INDUSTRIAL AND PROVIDENT SOCIETIES ACTS, 1893
TO 1971, AND TO PROVIDE FOR OTHER CONNECTED MATTERS.
[15th November, 1978] BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – PART I
– PRELIMINARY AND GENERAL

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 1
Short title, construction and collective citation.

1.—(1) This Act may be cited as the Industrial and Provident
Societies (Amendment) Act, 1978.

(2) The Industrial and Provident Societies Acts, 1893 to 1971, and
this Act shall be construed together as one Act and may be cited
together as the Industrial and Provident Societies Acts, 1893 to
1978.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 2
Interpretation.

2.—(1) In this Act—

“the Act of 1963” means the Companies Act, 1963;

“agents”, in relation to a society, includes the bankers, solicitors
and auditors of the society and past as well as present agents;

“bank” means the holder of a licence under section 9 of the
Central Bank Act, 1971, and cognate words shall be construed
accordingly;

“the Central Bank” means the Central Bank of Ireland.

“the Court” means the High Court;

“the Minister” means the Minister for Industry, Commerce and Energy;

“officers”, in relation to a society, includes past as well as
present officers;

“the Principal Act” means the Industrial and Provident Societies Act,
1893;

“the Registrar” means the registrar of friendly societies;

“society” means a society, including a credit union, registered under
the Industrial and Provident Societies Acts, 1893 to 1978.

(2) In this Act a reference to a section is to a section of this

Act, unless it is indicated that reference to some other enactment
is intended.

(3) In this Act a reference to a subsection, paragraph or
subparagraph is to the subsection, paragraph or subparagraph of the
provision in which the reference occurs, unless it is indicated that
reference to some other provision is intended.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 3
Expenses.

3.—The expenses incurred by the Minister in the administration of
this Act shall, to such extent as may be sanctioned by the
Minister for Finance, be paid out of moneys provided by the
Oireachtas.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – PART II
– INDUSTRIAL AND PROVIDENT SOCIETIES

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 4
Application of Part II.

4.—(1) This Part of this Act applies to a society which is not an
agricultural co-operative society, a fishing co-operative society, a
credit union or a society to which, by virtue of section 3 (4) of
the Credit Union Act, 1966, section 3 (3) of that Act does not
apply.

(2) In this section—

“an agricultural co-operative society” means a society the business
of which is wholly or substantially agricultural and the majority of
the members of which are mainly engaged in farming and derive the
principal part of their livelihood from farming, and in which the
acceptance of deposits and the making of loans constitute an
insubstantial part of the business of or are incidental to, or are
intended to assist the carrying on or the development of, the
society’s principal business;

“a fishing co-operative society” means a society the business of
which is wholly or substantially related to fishing and the majority
of the members of which are engaged in fishing and derive a
substantial part of their livelihood from fishing, and in which the
acceptance of deposits and the making of loans constitute an
insubstantial part of the business of or is incidental to, or are
intended to assist the carrying on or the development of, the
society’s principal business.

(3) Notwithstanding subsection (2), the Registrar may, after
consultation with the Minister for Agriculture, give a certificate to
a society entitling it to be treated, for the purposes of this
section, as an agricultural co-operative society.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 5
Prohibition on acceptance of deposits.

5.—(1) ( a ) This subsection applies to a society which was not

incorporated before the 4th day of October, 1978, or which on that
date was incorporated and either had not accepted deposits or had
accepted and held deposits the aggregate of which on that date did
not exceed £25,000.

( b ) A society to which this subsection applies shall not accept
deposits.

(2) Subject to subsection (3), a society other than a society to
which subsection (1) applies shall not accept or hold deposits after
the end of the period of five years commencing at the passing of
this Act.

(3) ( a ) The Minister, after consultation with the Central Bank,
may, by regulation, extend the period of five years referred to in
subsection (2) for such further period or periods as he considers
appropriate having regard to the public interest.

( b ) Regulations under this subsection may apply to a specified
class or classes of society denoted by reference to such matters as
the Minister thinks fit, and different periods may be specified for
different classes of society.

( c ) Every regulation made under this subsection shall be laid
before each House of the Oireachtas as soon as may be after it is
made and, if a resolution annulling the regulation is passed by
either such House within the next 21 days on which that House has
sat after the regulation is laid before it, the regulation shall be
annulled accordingly, but without prejudice to anything previously
done thereunder.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 6
Prohibition on raising of funds.

6.—(1) Subject to subsection (4), a society shall not raise funds

(otherwise than by way of subscriptions for shares where the
aggregate sum being raised in this manner does not exceed £10,000
in any period of six months) except under and in accordance with
the written permission of the Registrar.

(2) The Registrar shall not give permission under this section
unless he is satisfied that it is in the interests of the public
or of creditors of a society or of the orderly and proper
regulation of the business of the society to do so.

(3) ( a ) A permission under this section may relate to a
specified class or classes of society denoted by reference to such
matters as the Registrar thinks fit, and shall relate to such a
period as is specified in the permission.

( b ) A permission under this section may be given subject to the
condition that the society concerned complies with any direction
given to it by the Registrar relating to the extent and type of
funds that may be raised by the society, denoted by reference to
such matters as the Registrar thinks fit, and where that condition
is imposed it shall be specified in the permission.

(4) This section does not apply to a loan made to a society by a
bank, or to the acceptance of deposits by a society to which, by
virtue of section 9, section 10 applies.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 7
Use of funds by certain societies.

7.—(1) This section applies to a society which was incorporated
before the 4th day of October, 1978, and which had accepted and
held deposits which on that date did not exceed £25,000.

(2) A society to which this section applies shall, as soon as
practicable but not later than three months after the passing of
this Act, submit to the Registrar for his approval a scheme for
the repayment to depositors of moneys deposited by them with the
society.

(3) A society to which this section applies shall not make any
payments which have not been authorised by the Registrar, other than
repayments under subsection (2) in accordance with a scheme approved
by the Registrar for the purposes of that subsection.

(4) A scheme approved by the Registrar under subsection (2) shall
have effect notwithstanding anything in the rules of a society
relating to the repayment of deposits by the society.

(5) Where it appears to the Registrar that a society to which this
section applies is not complying, or has not complied, with
subsection (2) or (3), he may, after giving notice to the society
and considering any representations made by it, make an application
under section 19 to the Court for the winding up of the society.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 8
Prohibition on certain advertising by societies.

8.—(1) A society shall not advertise for the purpose of raising
funds or of accepting deposits except under and in accordance with
the written permission of the Registrar.

(2) A permission under this section may be given if, after
consultation with the Central Bank, the Registrar is satisfied that
it is in the interests of the public or of creditors of the
society to give the permission.

(3) ( a ) A permission under this section may relate to a
specified class or classes of society denoted by reference to such
matters as the Registrar thinks fit, and shall relate to such a
period as is specified in the permission.

( b ) A permission under this section may be given subject to the
condition (specified in the permission) that the society concerned
complies with any direction given to it by the Registrar relating
to the extent, matter and form of advertising by the society,
denoted by reference to such matters as the Registrar thinks fit.

( c ) A direction under this subsection may apply for such period
as may be specified in the direction and, without prejudice to the

generality of paragraph (b), may require a society to take all
practical steps to withdraw any advertisement which, in the opinion
of the Registrar, is not in accordance with a direction under this
subsection previously given by him, and may require that
advertisements in such form as may be specified in the direction
shall include a statement concerning the financial position of the
society or giving any particular information relating to the society.

(4) In this section “advertise” includes publish or display any
matter soliciting deposits or funds, whether by notice, circular,
photograph, film, sound broadcasting, television, personal canvassing
or otherwise.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 9
Application of sections 10 to 18.

9.—Sections 10 to 18 apply to a society which was incorporated
before the 4th day of October, 1978, and which had accepted and
held deposits which on that date exceeded £25,000.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 10
Power of Registrar to regulate certain businesses.

10.—(1) Where the Registrar, after consultation with the Central
Bank, is of the opinion that it is in the interests of the public
or of creditors of a society to do so, he may, in accordance with
this section, regulate the carrying on by the society of the
business of accepting deposits, the business of holding deposits or
the business of making loans.

(2) Without prejudice to the generality of subsection (1), in
exercising a power conferred on him by that subsection the Registrar
may have regard to the competence of the management of the society
concerned, the capital structure of the society or the ability of
the society to meet its obligations to its creditors.

(3) In exercising the power of regulation conferred on him by
subsection (1), the Registrar may give a direction in writing to a
society in relation to all or any of the following matters—

( a ) the acceptance or holding of deposits,

( b ) the making of loans,

( c ) the maintenance of ratios (which may be specified in a
direction) between assets and liabilities,

( d ) any other financial matters he thinks appropriate, including
the maintenance by a society of adequate paid-up share capital.

(4) A direction under subsection (3) may relate to a specified
class or classes of society denoted by reference to such matters as
the Registrar thinks fit, and may apply for a period specified in
the direction.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 11
Inspection of books and other documents of a society.

11.—(1) In this section “an authorised person” means any person
authorised by the Registrar for the purpose of this section.

(2) An authorised person may, at the request of the Registrar, and
on production of his authorisation to any person concerned, at all
reasonable times inspect and take copies of or extracts from books,
accounts, deeds, records or other documents relating to the business
of a society, and for any of those purposes may enter any premises
at which any such documents are kept.

(3) An authorised person who is carrying out an inspection under
this section in relation to a society may, with the approval of
the Registrar, carry out a similar inspection in relation to any
other society or body corporate which is or has at any relevant
time been associated with the first-mentioned society, and for that
purpose may exercise, in relation to the associated society or body
corporate, a power conferred by subsection (2).

(4) A person who has in his power, possession or procurement any
of the books, accounts, deeds, records or other documents of a
society referred to in subsection (2) or of a society or other
body corporate referred to in subsection (3) shall produce them at
the request of an authorised person, permit the authorised person to
inspect and take copies of or extracts from them, and give him any
information which he may reasonably require regarding any entries in
them.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 12
Furnishing by societies of information and returns to Registrar.

12.—A society shall furnish to the Registrar—

(i) at such times as he may specify from time to time, such
information and returns concerning its business as he may from time
to time specify and which he considers it necessary to have for
the performance of his statutory functions, and

(ii) within such period as he may specify from time to time, any
other information and returns concerning the business of the society
which he requests in writing and considers it necessary to have for
the performance of his statutory functions.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 13
Registrar’s power to investigate society’s affairs.

13.—(1) Whenever it appears to the Registrar to be expedient to do
so in the interests of the public or of creditors of a society or
of the orderly and proper regulation of the business of a society,
the Registrar may appoint one or more than one inspector to
investigate and report to him, in such manner as he may direct, on
the affairs of the society, and for that purpose such an inspector
may require the production of all or any of the accounts, deeds,
books, records and other documents of the society and may examine
on oath its officers, members, agents and servants in relation to
its business, and may administer an oath to any such person.

(2) Where an inspector appointed under this section to investigate
the affairs of a society thinks it necessary for the purpose of
his investigation to investigate also the affairs of any other
society or body corporate which is or has at any relevant time
been associated with the first-mentioned society, he may, with the
approval of the Registrar, do so, and shall report to the Registrar
on the affairs of the associated society or body corporate to such
extent as he thinks the results of his second or further
investigation are relevant to his investigation of the affairs of
the first-mentioned society.

(3) All expenses of or incidental to an investigation under this
section shall be defrayed out of the funds of the society, or by
the members (or former members) or officers of the society, in such
proportions as the Registrar shall direct.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 14
Provisions supplemental to section 13.

14.—(1) An officer, member, agent or servant of a society the
affairs of which are being investigated under section 13 shall
produce to the inspector all books, accounts, deeds, records or
other documents of or relating to the society which are in the
power, possession or procurement of such a person and otherwise give
to the inspector all assistance in connection with the investigation
which such a person is reasonably able to give.

(2) If any person who is an officer, member, agent or servant of
the society refuses to answer any question put to him by the
inspector with respect to the affairs of the society, the person
shall be guilty of an offence under section 28.

(3) Subject to subsection (4), if the inspector thinks it necessary
for the purpose of his investigation that a person whom he has no
power to examine on oath should be so examined, he may apply to
the Court and the Court may, if it thinks fit, order that person
to attend and be examined on oath before it on any matter relevant
to the investigation, and on any such examination—

( a ) the inspector may take part therein by solicitor or counsel;

( b ) the Court may put such questions to the person examined as
it thinks fit;

( c ) the person examined shall answer all such questions as the
Court may put or allow to be put to him, but may at his own
cost employ a solicitor (with or without counsel) who shall be at
liberty to put to him such questions as the Court may think fit
for the purpose of enabling him to explain or qualify any answers
given by him;

and notes of the examination shall be taken down in writing, and
shall be read over to or by, and signed by, the person examined
and may thereafter be used in evidence against him.

(4) Notwithstanding anything in subsection (3) (c), the Court may
allow the person examined such costs as, in its discretion, it may

think fit, and any costs so allowed shall be paid as part of the
expenses of the investigation.

(5) The Registrar shall forward to the Minister and to the
registered office of the society a copy of each report of an
investigation under section 13, and shall also furnish a copy to
the Court where an application under subsection (3) is made to the
Court.

(6) The Registrar may, if he thinks fit, cause the report to be
printed and published.

(7) The Minister may lay the report under subsection (5) before
each House of the Oireachtas and such publication shall be
privileged.

(8) ( a ) Where it appears to the Registrar after consideration of
a report under section 13 that proceedings ought in the public
interest to be brought by a society for damages, in respect of any
fraud, misfeasance or other misconduct in connection with the
promotion or formation of the society or the carrying on of the
business of the society, for the recovery of any property misapplied
or wrongfully retained, he may bring proceedings for that purpose in
the name of the society.

( b ) The Minister may indemnify a society against any costs or
expenses incurred by it in or in connection with any proceedings
brought under paragraph (a).

(9) A copy of any report of an inspector appointed under section
13 shall be admissible in any legal proceedings as evidence of the
opinion of the inspector in relation to any matter contained in the
report.

(10) Nothing in this section shall require disclosure to the
Registrar or to an inspector appointed by him—

( a ) by a solicitor of any privileged communication made to him
in that capacity, or

( b ) by bankers of any information as to the affairs of any
customer other than the society or other body corporate the affairs
of which are being investigated.

(11) Where proceedings are instituted under this section, nothing in
this section shall require any person who has acted as solicitor
for a society to disclose any privileged communications made to him
otherwise than as such solicitor.

(12) Where under section 13 the affairs of a society (other than a
society referred to in that section as the first-mentioned society)
or of any body corporate are being investigated, references in this
section to officers, members, agents or servants of a society shall
be construed as references to officers, members, agents or servants
of that society or body corporate.

(13) ( a ) Where it appears to the Registrar that any person has,

in relation to a society the affairs of which have been
investigated under section 13, been guilty of any offence for which
he is criminally liable, the Registrar shall refer the matter to
the Director of Public Prosecutions.

( b ) Where the Director of Public Prosecutions institutes
proceedings consequent on the receipt by him of a report under
paragraph (a), it shall be the duty of all officers, members,
agents and servants of the society (other than a defendant in the
proceedings) to give him all assistance in connection with the
prosecution which they are reasonably able to give.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 15
Registrar’s power to appoint person to society’s management committee.

15.—(1) Where the Registrar is of the opinion, after an inspection
under section 11 or after an investigation under section 13, that
it is necessary to do so in the interest of the orderly and
proper regulation of the business of a society, he may appoint a
person to be a member of the committee of management of the
society.

(2) Without prejudice to the generality of subsection (1), the
Registrar shall, before exercising a power conferred on him by this,
section, have regard to—

( a ) the compliance or otherwise by the society with any
provisions of (or directions of the Registrar under) this Act, and

( b ) any financial transactions which have been undertaken, or are
in the course of being undertaken, by the society and which, in
the Registrar’s opinion, are, or are likely to be, prejudicial to
the interests of the public or of creditors of the society.

(3) A person appointed under this section shall hold office for
such period and on such terms as the Registrar may specify and, on
the expiry of such a period, the Registrar may renew the
appointment for such period or periods as he may specify.

(4) All expenses of and incidental to the appointment of a person
under this section, including the remuneration of such a person,
shall be defrayed out of the funds of the society, or by the
members (or former members) or officers of the society, in such
proportions as the Registrar shall direct.

(5) An officer, member, agent or servant of a society shall at all
times give all information required by a person appointed under this
section for the full and satisfactory performance of his duties.

(6) A person appointed under this section shall report to the
Registrar, in such manner and with such frequency as the Registrar
may direct, on the affairs of the society.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 16
Registrar’s power to direct suspension of acceptance of deposits or
funds and of payments.

16.—(1) Where the Registrar is of the opinion, after consultation
with the Central Bank, that a society has contravened a direction
given by the Registrar under section 10, or that a society is
unable, or is likely to become unable, to meet its obligations to
creditors, or that it is expedient in the interests of the public
(whether or not the society is being investigated under section 13),
he may direct the society in writing to suspend, for such period
not exceeding two months as shall be specified in the direction,
the acceptance of deposits or the raising of funds not authorised
by him or the making of payments not so authorised, or both the
acceptance of such deposits or funds and the making of such
payments.

(2) A direction under this section shall have effect in accordance
with its terms but, notwithstanding such a direction, a society may
borrow money from a bank or from an officer of the society if the
Registrar consents in writing to the borrowing.

(3) The Registrar may apply to the Court for an order confirming a
direction under this section or for an order confirming and
extending the period of operation of such a direction for such time
as the Court may, having regard to all the circumstances, consider
appropriate, and the Court may grant such an order.

(4) The Court may, in addition to or in lieu of making an order
under subsection (3), make such other order in relation to the
matter as may appear to it to be necessary.

(5) Where an order is made under subsection (3) confirming and
extending the period of operation of a direction under this section,
the society shall, for the purpose of Part VI of the Act of 1963
(as applied by section 19), be deemed (to be unable to pay its
debts.

(6) The whole or part of proceedings under this section or of an
appeal in relation thereto may be heard in chambers.

(7) A society to which a direction is given under this section may
apply to the Court for an order setting aside the direction and
the Court may grant such an order.

(8) A direction under this section may be amended or revoked at
any time by the Registrar.

(9) The Registrar may, if he thinks fit, cause to be published in
Iris Oifigi il, or in such other way as appears to him expedient
for informing the public, notice of a direction under this section
and of its amendment or revocation.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 17
Registrar’s powers consequential on section 16.

17.—(1) This section applies in a case where the Registrar has made

a direction under section 16 and the direction has not been
revoked.

(2) It shall be the duty of the society concerned to make

reasonable arrangements for using the funds of the society to meet
applications (duly made in accordance with the rules of the society
by investors in the society) for repayment of moneys deposited or
otherwise invested by them.

(3) Where it appears to the Registrar that the society concerned
has been applying an undue proportion of the funds of the society
in making loans, in preference to making such arrangements as are
mentioned in subsection (2), he may, after giving notice to the
society and affording it an opportunity of making representations,
make an application under section 19 to the Court for the winding
up of the society.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 18
Liability of officers and servants for certain loans, deposits and
funds.

18.—(1) Where a loan is made by a society in contravention of a
direction given by the Registrar under section 10, the officers or
servants of the society who authorised the loan shall be jointly
and severally liable for any loss on the loan occasioned to the
society.

(2) Where moneys are accepted on deposit by a society in
contravention of a direction given by the Registrar under section
10, or where funds are raised by a society in contravention of
section 6, or of a direction given by the Registrar under that
section, the officers or servants of the society who authorised the
acceptance of those moneys on deposit or the raising of those funds
shall be jointly and severally liable for any loss on the moneys
so deposited or the funds so raised occasioned to the depositor or
investor or depositors or investors concerned.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 19
Winding up of societies.

19.—(1) Subject to this section, a society may be wound up only in
accordance with Part VI of the Act of 1963, and, accordingly, that
Part of that Act shall, subject to any necessary modifications,
apply as if the society were a company.

(2) For the purposes of the application of section 213 of the Act
of 1963, a society may be wound up under this section by the
Court if—

( a ) the society has by special resolution resolved that the
society be wound up by the Court;

( b ) the society is unable to pay its debts;

( c ) the society has, after notice from the Registrar, contravened
a provision of the Industrial and Provident Societies Acts, 1893 to
1978, or a direction or permission given by the Registrar under
those Acts;

( d ) the Court is of opinion that it is just and equitable that
the society should be wound up.

(3) ( a ) Notwithstanding anything in section 215 (as applied by
this section) of the Act of 1963, an application under that section
for the winding up of a society may be made by the Registrar.

( b ) Section 215 (d) of the Act of 1963 shall not apply to the
winding up of a society.

(4) The winding up of a society shall not bar the right of the
Registrar to apply to have it wound up by the Court.

(5) A society may not be dissolved by an instrument of dissolution.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – PART III
– CREDIT UNIONS

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 20
Construction of Part III.

20.—References in this Part to a credit union shall include
references to a society to which, by virtue of section 3 (4) of
the Credit Union Act, 1966, section 3 (3) of that Act does not
apply.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 21
Inspection of books and other documents of a credit union.

21.—(1) In this section “an authorised person” means any person or
any body of credit unions authorised by the Registrar for the
purpose of this section.

(2) An authorised person may, at the request of the Registrar, and
on production of his authorisation to any person concerned, at all
reasonable times inspect and take copies of or extracts from
accounts, deeds, books, records or other documents relating to the
business of a credit union, and for any of those purposes may
enter any premises at which any such documents are kept.

(3) An authorised person who is carrying out an inspection under
this section in relation to a credit union may, with the approval
of the Registrar, carry out a similar inspection in relation to any
other society or body corporate which is or has at any relevant
time been associated with the credit union, and for that purpose
may exercise, in relation to the associated society or body
corporate, any power conferred by subsection (2).

(4) A person who has in his power, possession or procurement any
of the accounts, deeds, books, records or other documents of a
credit union referred to in subsection (2) or a society or other
body corporate referred to in subsection (3) shall produce them at
the request of an authorised person, permit the authorised person to
inspect and take copies of or extracts from them and give him any
information which he may reasonably require regarding any entries in
them.

(5) Where an inspection is carried out under this section by an
authorised person who is a body of credit unions, a report of the

inspection shall be made to the Registrar at his request.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 22
Registrar’s power to investigate a credit union’s affairs.

22.—(1) Whenever it appears to the Registrar to be expedient to do
so in the interest of the orderly and proper regulation of the
business of a credit union, the Registrar may appoint one or more
than one inspector to investigate and report to him, in such manner
as he may direct, on the affairs of the credit union, and for
that purpose such an inspector may require the production of all or
any of the books, accounts, deeds, records or other documents of
the credit union and may examine on oath its officers, members and
agents in relation to its business, and may administer an oath to
any such person.

(2) Where an inspector appointed under this section to investigate
the affairs of a credit union thinks it necessary for the purpose
of his investigation to investigate also the affairs of any other
society or body corporate which is or has at any relevant time
been associated with the credit union, he may, with the approval of
the Registrar, do so, and shall report to the Registrar on the
affairs of the associated society or body corporate to such extent
as he thinks the results of his second or further investigation are
relevant to his investigation of the affairs of the credit union.

(3) All expenses of or incidental to an investigation under this
section shall be defrayed out of the funds of the credit union or
by the members (or former members) or officers of the credit union,
in such proportions as the Registrar shall direct.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 23
Provisions supplemental to section 22.

23.—(1) An officer, member or agent of a credit union the affairs
of which are being investigated under section 22 shall produce to
the inspector concerned all books, accounts, deeds, records or other
documents of or relating to the society which are in the power,
possession or procurement of such a person and otherwise give to
the inspector concerned all assistance in connection with the
investigation which such a person is reasonably able to give.

(2) If any person who is an officer, member or agent of the
credit union refuses to answer any question put to him by the
inspector with respect to the affairs of the credit union, the
person shall be guilty of an offence under section 28.

(3) Subject to subsection (4), if the inspector thinks it necessary
for the purpose of his investigation that a person whom he has no
power to examine on oath should be so examined, he may apply to
the Court and the Court may, if it thinks fit, order that person
to attend and be examined on oath before it on any matter relevant
to the investigation, and on any such examination—

( a ) the inspector may take part therein by solicitor or counsel;

( b ) the Court may put such questions to the person examined as

it thinks fit;

( c ) the person examined shall answer all such questions as the
Court may put or allow to be put to him, but may at his own
cost employ a solicitor (with or without counsel) who shall be at
liberty to put to him such questions as the Court may think fit
for the purpose of enabling him to explain or qualify any answers
given by him;

and notes of the examination shall be taken down in writing, and
shall be read over to or by, and signed by, the person examined
and may thereafter be used in evidence against him.

(4) Notwithstanding anything in subsection (3) (c), the Court may
allow the person examined such costs as, in its discretion, it may
think fit, and any costs so allowed shall be paid as part of the
expenses of the investigation.

(5) The Registrar shall forward to the Minister and to the
registered office of the credit union a copy of each report of an
investigation under section 22 and shall also furnish a copy to the
Court where an application under subsection (3) is made to the
Court.

(6) The Registrar may, if he thinks fit, cause the report to be
printed and published.

(7) The Minister may lay the report under subsection (5) before
each House of the Oireachtas and such publication shall be
privileged.

(8) ( a ) Where it appears to the Registrar after consideration of
a report under section 22 that proceedings ought in the public
interest to be brought by a credit union for damages, in respect
of any fraud, misfeasance or other misconduct in connection with the
promotion or formation of the credit union or the carrying on of
the business of the credit union, for the recovery of any property
misapplied or wrongfully retained, he may bring proceedings for that
purpose in the name of the credit union.

( b ) The Minister may indemnify a credit union against any costs
or expenses incurred by it in or in connection with any proceedings
brought under paragraph (a).

(9) A copy of any report of an inspector appointed under section
22 shall be admissible in any legal proceedings as evidence of the
opinion of the inspector in relation to any matter contained in the
report.

(10) Nothing in this section shall require disclosure to the
Registrar or to an inspector appointed by him—

( a ) by a solicitor of any privileged communication made to him
in that capacity, or

( b ) by bankers of any information as to the affairs of any
customer other than the credit union or other body corporate the

affairs of which are being investigated.

(11) Where proceedings are instituted under this section, nothing in
this section shall require any person who has acted as solicitor
for a credit union to disclose any privileged communications made to
him otherwise than as such solicitor.

(12) Where under section 22 the affairs of a society (other than
the credit union mentioned in that section) or of any body
corporate are being investigated, references in this section to
officers, members or agents of a credit union shall be construed as
references to officers, members or agents of that society or body
corporate.

(13) ( a ) Where it appears to the Registrar that any person has,
in relation to a credit union the affairs of which have been
investigated under section 22, been guilty of any offence for which
he is criminally liable, the Registrar shall refer the matter to
the Director of Public Prosecutions.

( b ) Where the Director of Public Prosecutions institutes
proceedings consequent on the receipt by him of a report under
paragraph (a), it shall be the duty of all officers, members and
agents of the credit union (other than a defendant in the
proceedings) to give him all assistance in connection with the
prosecution which they are reasonably able to give.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 24
Registrar’s power to call special meeting of a credit union.

24.—(1) Whenever, after an inspection under section 21 or after an
investigation under section 22, the Registrar is of the opinion that
it is necessary to do so in the interest of the orderly and
proper regulation of the business of a credit union, he may cause
a special meeting of the credit union to be held.

(2) A meeting under this section shall have all the powers of a
special meeting called in accordance with the rules of the credit
union concerned.

(3) All expenses of or incidental to the meeting shall be defrayed
out of the funds of the credit union, or by the members (or
former members) or officers of the credit union, in such proportions
as the Registrar shall direct.

(4) ( a ) The Registrar may give such directions as he thinks fit
in relation to the calling, holding and conduct of a meeting held
under this section (including the time and place of the meeting and
what matters are to be discussed and determined at the meeting).

( b ) The Registrar may appoint a person to be chairman at a
meeting held under this section.

( c ) The power of a meeting held under this section to appoint
its own chairman shall be exercisable in default of such an
appointment by the Registrar.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 25
Registrar’s power to appoint person as director of a credit union.

25.—(1) Where the Registrar is of the opinion, after an inspection
under section 21 or after an investigation under section 22, that
it is necessary to do so in the interest of the orderly and
proper regulation of the business of a credit union, he may appoint
a person to be a member of the board of directors of the credit
union.

(2) Without prejudice to the generality of subsection (1), the
Registrar shall, before exercising a power conferred on him by this
section, have regard to any financial transactions which have been
undertaken, or are in the course of being undertaken, by the credit
union and which, in the Registrar’s opinion, are likely to be
prejudicial to the interest of the orderly and proper regulation of
the business of the credit union.

(3) A person appointed under this section shall hold office for
such period and on such terms as the Registrar may specify and, on
the expiry of such a period, the Registrar may renew the
appointment for such period or periods as he may specify.

(4) All expenses of and incidental to the appointment of a person
under this section, including the remuneration of such a person,
shall be defrayed out of the funds of the credit union, or by the
members (or former members) or officers of the credit union, in
such proportions as the Registrar shall direct.

(5) An officer, member or agent of a credit union shall at all
times give all information required by a person appointed under this
section for the full and satisfactory performance of his duties.

(6) A person appointed under this section shall report to the
Registrar, in such manner and with such frequency as the Registrar
may direct, on the affairs of the credit union.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 26
Registrar’s power to direct suspension of acceptance of deposits,
loans or shares and of payments.

26.—(1) Where the Registrar is of the opinion that a credit union
is unable, or is likely to become unable, to meet its obligations
to creditors, or that it is expedient in the interest of the
orderly and proper regulation of the business of a credit union, he
may direct the credit union in writing to, suspend, for such period
not exceeding two months as shall be specified in the direction,
the acceptance of any subscriptions for shares or of any deposits
or loans not authorised by him or the making of payments not so
authorised or both the acceptance of such subscriptions, deposits or
loans and the making of such payments.

(2) A direction under this section shall have effect in accordance
with its terms but, notwithstanding such a direction, a credit union
may borrow money from a bank or from an officer of the credit
union if the Registrar consents in writing to the borrowing.

(3) The Registrar may apply to the Court for an order confirming a
direction under this section or for an order confirming and
extending the period of operation of such a direction for such time
as the Court may, having regard to all the circumstances, consider
appropriate, and the Court may grant such an order.

(4) The Court may, in addition to or in lieu of making an order
under subsection (3), make such other order in relation to the
matter as may appear to it to be necessary.

(5) Where an order is made under subsection (3) confirming and
extending the period of operation of a direction under this section,
the credit union shall, for the purpose of section 33 of the
Credit Union Act, 1966, be deemed to be unable to pay its debts.

(6) The whole or part of proceedings under this section or of an
appeal in relation thereto may be heard in chambers.

(7) A credit union to Much a direction is given under this section
may apply to the Court for an order setting aside the direction
and the Court may grant such an order.

(8) A direction under this section may be amended or revoked at
any time by the Registrar.

(9) The Registrar may, if he thinks fit, cause to be published in
Iris Oifigi il, or in such other way as appears to him expedient
for informing the public, notice of a direction under this section
and of its amendment or revocation.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 27
Registrar’s powers consequential on section 26.

27.—(1) This section applies in a case where the Registrar has made

a direction under section 26 and the direction has not been
revoked.

(2) It shall be the duty of the credit union concerned to make
reasonable arrangements for using the funds of the credit union to
meet applications (duly made in accordance with the rules of the
credit union by depositors or shareholders in the credit union) for
repayment of moneys deposited or subscribed by them.

(3) Where it appears to the Registrar that the credit union
concerned has been applying an undue proportion of the funds of the
credit union in making loans, in preference to making such
arrangements as are mentioned in subsection (2) he may, after giving
notice to the credit union and affording it an opportunity of
making representations, make an application under section 33 of the
Credit Union Act, 1966, for the winding up of the credit union.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – PART IV
– MISCELLANEOUS

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 28
Offences.

28.—(1) A person or a society shall be guilty of an offence if he
or it—

( a ) contravenes section 5 (1), 5 (2), 6 (1), 7 (2), 7 (3),
8
(1), 12, 14 (2), 14 (13) (b), 17 (2), 23 (2), 23 (13) (b)
, 27
(2), 29 (1), 29 (3), 29 (4), 30 (1), 30 (2), 30 (3), 30 (
4),
31, 32 or 36,

( b ) contravenes or fails to comply with a direction or condition
under this Act,

( c ) fails or refuses to supply the books, accounts, deeds,
records or other documents of a society or other body corporate, to
give information reasonably required regarding any entries in the
books, accounts, deeds, records or other documents to, or otherwise
obstructs, an authorised person (within the meaning of section 11 or
21) who is exercising a power conferred on him by that section,

( d ) fails or refuses to supply the books, accounts, deeds,
records or other documents of a society or other body corporate to
an inspector appointed under section 13 or 22, to give to such
inspector all assistance reasonably required in connection with the
investigation or to take an oath where required to do so by such
an inspector, or

( e ) fails to give all information required by a person appointed
under section 15 or 25 for the full and satisfactory performance of
his duties.

(2) A person who is guilty of an offence under this section shall
be liable—

(i) on summary conviction, to a fine not exceeding £500 on or, at
he discretion of the court, to imprisonment for a term not
exceeding six months, or to both, or

(ii) on conviction on indictment, to a fine not exceeding £5,000,
or, at the discretion of the court, to imprisonment for a term not
exceeding three years, or to both, and if the contravention or
failure in respect of which he was convicted is continued after the
conviction, he shall be guilty of a further offence and shall be
liable on conviction on indictment to a fine not exceeding £250 for
each day on which the contravention or failure was so continued.

(3) Where an offence under this Act is committed by a body
corporate or by a person purporting to act on behalf of a body
corporate and is proved to have been so committed with the consent
or approval of, or to have been facilitated by any wilful neglect
on the part of, any person who is an officer of the body
corporate, that person shall also be guilty of the offence.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 29
Keeping or books of account, etc by societies.

29.—(1) Every society shall cause to be kept proper books of
account relating to all sums of money received and expended by it
the matters in respect of which income and expenditure take place

and all assets and liabilities of the society.

(2) For the purposes of subsection (1), proper books of account
shall be deemed to be kept, in relation to the matters mentioned
in that subsection, only if there are kept such books as are
necessary to give a true and fair view of he gate of he society’s
affairs and to explain its transactions.

(3) The books of account of a society shall be kept at the
registered office of the society or at such other place as the
committee of management think fit and shall at all reasonable times
be open to inspection by the members of the said committee.

(4) Every record required to be kept under this section shall be
preserved by the society for a period of not less than six years
after the date to which it relates.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 30
Annual accounts or societies.

30.—(1) The committee of management of a society shall cause to be
laid before the annual general meeting of the society an income and
expenditure account for the period, in the case of the first
account, since the incorporation of the society and, in any other
case, since the preceding account, made up in every case to the
end of the preceding financial year.

(2) The committee of management of a society shall cause to be
prepared and laid before the annual general meeting of the society
a balance sheet as at the end of the preceding financial year.

(3) Every income and expenditure account of a society shall give a
true and fair view of the income and expenditure of the society
for the relevant period, and every balance sheet shall give a true
and fair view of the state of affairs of the society as at the
end of the relevant period.

(4) ( a ) The income and expenditure account and balance sheet of
a society shall be in such form and shall contain such particulars
as the Minister may specify by regulations, either generally or with
respect to a specified class or classes of societies, denoted by
reference to such matters as the Minister thinks fit.

( b ) Unless the Minister otherwise specifies in the regulations
aforesaid, the income and expenditure account and the balance sheet
of a society for any financial year shall include corresponding
particulars for the preceding financial year.

(5) References in this section to an income and expenditure account
shall include references to a profit and loss account.

(6) Every regulation made under this section shall be laid before
each House of the Oireachtas as soon as may be after it is made
and, if a resolution annulling the regulation is passed by either
such House within the next 21 days on which that House has sat
after the regulation is laid before it, the regulation shall be
annulled accordingly, but without prejudice to anything previously

done thereunder.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 31
Prohibition on bankrupts and other persons.

31.—(1) A person who is a bankrupt and whose bankruptcy still
subsists or who has been convicted on indictment of any offences
involving fraud or dishonesty shall not—

( a ) be a person establishing a society,

( b ) act as a member of the committee of management of a
society,

( c ) directly or indirectly take part in or bee concerned in the
management of a society, or

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

(2) Whenever a person holding an office referred to in subsection
(1) (b) or (1) (c) becomes ineligible by virtue of that subsecti
on
to hold office, he shall forthwith cease to hold that office and
the vacancy shall be deemed to be a casual vacancy and may be
filled in the manner provided for such a vacancy in the rules of
the society.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 32
Prohibition on withdrawable shares.

32.—A society which is not a credit union or which is not a
society to which, by virtue of section 3 (4) of the Credit Union
Act, 1966 section 3 (3) of that Act does not apply, shall not
issue withdrawable shares.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 33
Alteration of financial limits in Principal Act.

33.—(1) Regulations made by the Minister under section 35 (1) (i
)
of the Credit Union Act, 1966, altering the financial limits
prescribed by Part I of the Schedule to that Act, may apply to a
specified class or classes of society denoted by reference to such
matters as the Minister thinks fit, and different financial limits
may be fixed for different classes of society.

(2) The provision in section 35 (1) of the Credit Union Act, 1966,
requiring the Minister to consult with the Credit Union Advisory
Committee, shall apply only in relation to regulations under that
section relating to credit unions.

(3) Every regulation made by the Minister pursuant to this section
shall be laid before each House of the Oireachtas as soon as may
be after it is made and, if a resolution annulling the regulation
is passed by either such House within the next 21 days on which
that House has sat after the regulation is laid before it, the
regulation shall be annulled accordingly, but without prejudice to
anything previously done thereunder.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 34
Cancellation of registry of society.

34.—Section 9 (1) of the Principal Act, which specifies the cases
in which the Registrar may cancel the registry of a society, is
hereby amended by the insertion after paragraph (b) of the
following—

“(bb) the society has been wound up by the High Court under the
Industrial and Provident Societies Acts, 1893 to 1978;

(bc) where the society has ceased to function or where it has
suspended its business for a period of not less than six months.”.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 35
Amendment of rules of societies.

35.—(1) Notwithstanding anything in the rules of a society, the
committee of management shall, by resolution passed not later than
six months after the passing of this Act, make such amendments to
those rules as may be necessary as a consequence of this Act.

(2) A society which fails to comply with subsection (1) shall be
guilty of an offence and shall be liable on summary conviction to
a fine not exceeding £500.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 36
Prohibition on acceptance of deposits by investment trust companies.

36.—(1) An investment trust company shall not accept or hold
deposits.

(2) Notwithstanding subsection (1), an investment trust company
incorporated before the 4th day of October, 1978, and which on or
before that date had accepted or held deposits shall not hold
deposits after the end of the period of two years commencing at
the passing of this Act.

(3) In this section “investment trust company” has the same meaning
as in the Central Bank Act, 1971.

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT 1978 – SECT 37
Amendment of money 6 of Money-lenders Act, 1900.

37.—Section 6 of the Money-lenders Act, 1900, is hereby amended by
the insertion after paragraph (e) of the following:

“or

( f ) any class or classes of industrial and provident society in
respect of which the Minister for Industry, Commerce and Energy, by
order made from time to time declares that, from such date as he
may specify in such an order, this Act does not apply.”.