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Mutual Benefit Organisations Act

MUTUAL BENEFIT ORGAN ISATIONS ACT
(CHAPTER 191)
(Original Enactment: Ordinance 42 of 1960)
REVISED EDITION 1985
(30th March 1987)
An Act for the registration and control of mutual benefit organisations.
[1st August 1960] Short title
1. This Act may be cited as the Mutual Benefit Organisations Act .
Interpretation
2. In this Act, unless the context otherwise requires —
“benefit” means the payment made by a mutual benefit org anisation for the relief or
maintenance of the members or subscribers or on birth or death in accordance with the
rules of the mutual benefit organisation;
“mutual benefit organisation” or “organisation” means any organisation which by its objects
and rule s either as the principal object or as an ancillary object makes provision by
voluntary subscriptions of the members thereof or subscribers thereto with or without the
aid of donations for —
(a)
the relief or maintenance of the members or subscribers, thei r husbands, wives, children,
fathers, mothers, brothers, sisters, nephews, nieces or wards, during sickness or other
infirmity, whether bodily or mental, in old age or in widow -hood or for the relief or
maintenance of the orphan children of members or subs cribers during minority;
(b)
the payment of money on the birth of a member’s or subscriber’s child or on the death of
a member or subscriber or of the child, husband, wife, parent or grandparent of a member
or subscriber or on the death of any other person or for the funeral expenses of the
member or subscriber or of the child, husband or wife of a member or subscriber or of the
widow of a deceased member or subscriber; or
(c)
the relief or maintenance of the members or subscribers when unemployed or when i n
distressed circumstances;
“officer” means the president, the secretary and members of a committee of an organisation
and includes persons holding positions analogous to those of president, secretary or
member of a committee;
“registered organisation” mea ns any organisation for the time being registered under this Act;
“Registrar” means the officer appointed as Registrar of Mutual Benefit Organisations and
includes an Assistant Registrar of Mutual Benefit Organisations;

“subscription” means a subscription paid by a member or subscriber to a mutual benefit
organisation and, where a mutual benefit organisation carries on activities other than
those of a mutual benefit organisation, means the subscription paid by the member or
subscriber for the purpose of obt aining the benefits provided by the rules of the
organisation.
[8/74] Appointment of Registrar and Assistant Registrars
3. The Minister may appoint by name or office an officer to be the Registrar of Mutual
Benefit Organisations and officers to be Assistan t Registrars of Mutual Benefit
Organisations.
Conditions of registration
4.
— (1) Every mutual benefit organisation shall apply for registration under this Act.
(2) The application for registration of the organisation shall be signed by 7 members
and the secretary and shall be sent together with a copy of the rules and a list of the
names of the secretary and of every trustee or other officer intended to be authorised to
sue and be sued on behalf of the organisation to the Registrar.
(3) The rules of the organisation shall contain provisions in respect of the several
matters mentioned in the Schedule .
(4) The list referred to in subsection (2) shall be signed by the secretary and every
trustee and other officer named therein and shall on the registration of the organisation be
evidence that the persons so named have been duly appointed.
Registration and issue of certificate of registration
5.
— (1) Subject to this Act, the Registrar shall, upon an application bein g made therefor
by a mutual benefit organisation and on payment of the prescribed fee, register the
organisation with or without conditions.
(2) Upon registering an organisation under subsection (1) , the Registrar shall issue to
that organisation a certificate of registration.
(3) The certificate of registration referred to in subsection (2) shall be conclusive
evidence that the organisation mentioned therein is duly reg istered, unless it is proved
that the registration of the organisation has been suspended or cancelled.
(4) Where the organisation is registered under subsection (1) subject to conditions, the
organisation shall comply with those conditions.
(5) The Registrar may at any time vary or revoke any of the conditions imposed under
subsection (1) or impose conditions or additional conditions in respect of the registration
of an organisation.
[8/74] Refusal to register mutual benefit organisation
6.
— (1) The Registrar shall refuse to register a mutual benefit organisation if he is
satisfied that —

(a)
the rules of the organisation are insufficient to provide for its proper manage ment and
control;
(b)
the organisation is likely to be used for unlawful purposes or for purposes prejudicial to
public peace, welfare or good order in Singapore;
(c)
any officer or person managing or assisting in the management of the organisation is not
of good character;
(d)
the scheme for the relief or maintenance of the members thereof or subscribers thereto as
provided for in the rules and objects of the organisation is undesirable and not in the
interest of the members or subscribers;
(e)
the total n umber of members thereof or subscribers thereto is less than 50;
(f)
the application for registration does not comply with this Act or any rules made
thereunder;
(g)
the rules and objects of the organisation are contrary to the provisions of this Act or any
regulations made thereunder; or
(h)
it would be contrary to the public interest for the organisation to be registered.
(2) The Registrar may refuse to register a mu tual benefit organisation if —
(a)
it appears to him that the name under which the organisation is to be registered is —
(i)
identical with or so nearly resembles that of any other existing organisation as is likely to
deceive the members of the public as to its nature or identity; or
(ii)
likely to mislead members of the public as to the true character and purpose of the
organisation; or
(b)
no satisfactory evidence has been produced of the good character of the officers or
persons managing or assisting in the management of the organisation.
[8/74] Appeal from refusal to register
7. Any person who is aggrieved by a decision of the Registrar under section 5(1) or (5)
or section 6 may, within one month of being notified of the decision of the Registrar,
appeal against his decision to the Minister whose decision shall be final.
[8/74] Annual registers to be published

8. The Registrar shall cause to be published in the Gazette in July of each year a list of
all existing registered organisations.
Registration of amendments of rules
9.
— (1) An amendment of the rules of a registered organisation shall not be valid until
the amendment has been registered un der this Act, for which purpose copies of the
amendment signed by 3 members and the secretary shall be sent to the Registrar.
(2) The Registrar, on being satisfied that the amendment is not contrary to the
provisions of this Act, shall issue to the registe red organisation an acknowledgment of
registration of the amendment and that acknowledgment shall be conclusive evidence that
the amendment is duly registered.
(3) Any person aggrieved by the refusal of the Registrar to register an amendment may
appeal to the Minister whose decision shall be final.
Registered office
10. Every registered organisation shall have a registered office to which all
communications and notices may be addressed, and shall send to the Registrar notice of
the address of that office and of every change therein.
Appointment of trustees
11.
— (1) Every registered organisation shall have one or more trustees.
(2) The trustees shall be appointed at a meeting of the registered organisation and by a
resolution of a majority of the members present and entitled to vote.
(3) The registered organisation shall se nd to the Registrar a copy of every resolution
appointing a trustee signed by the trustee so appointed and by the secretary of the
registered organisation.
(4) The same person shall not be secretary or treasurer of a registered organisation and
a trustee o f that registered organisation.
Persons prohibited from acting as officers of an organisation
12.
— (1) No person shall act as an officer of a mutual benefit organisation or manage or
assist in the management of the organisation if —
(a)
he has been convict ed of any offence involving dishonesty or moral turpitude and has not
received a free pardon; or
(b)
he has been convicted of any other offence and sentenced to a fine of not less than $2,000
or to imprisonment for a term of not less than one year and has not received a free pardon,
unless the written permission of the Minister so to act is first obtained.
(2) Any person who contravenes or fails to comply with any of the provisions of
subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not
exceeding $500 or to imprisonment for a term not exceeding 6 mo nths or to both.

[11A
[8/74] Audit
13.
— (1) Every registered organisation shall once at least in every year submit its
accounts for audit by an auditor approved generally or for any particular audit by the
Registrar.
(2) The auditor shall have access to a ll the books and accounts of the registered
organisation and shall examine the annual return mentioned in this Act and verify the
annual return with the accounts and vouchers relating thereto, and shall either sign the
annual return as found by him to be c orrect, duly vouched and in accordance with law, or
specially report to the registered organisation in what respects he finds it incorrect,
unvouched or not in accordance with law.
[12
Annual returns
14.
— (1) Every registered organisation shall once in ev ery year, not later than 31st May,
send to the Registrar a return (referred to in this Act as the annual return) of the receipts
and expenditure, funds and effects of the registered organisation as audited.
(2) The annual return shall —
(a)
show separately the expenditure in respect of the several objects of the registered
organisation;
(b)
be made out to 31st December then last inclusively; and
(c)
state the name, address and calling or profession of the auditor and the manner in which
and t he authority under which he is appointed.
(3) The registered organisation shall send to the Registrar, together with the annual
return, a copy of any special report of the auditor.
[13
Copy of last balance -sheet
15. Every registered organisation shall keep a copy of the last annual balance -sheet
together with any special report of the auditors always displayed in a conspicuous place
at the registered office of the organisation.
[14
Priority on death, bankruptcy, etc., of officer
16. In the following cases:
(a)
upon the death or bankruptcy of any officer of a registered organisation having in his
possession by virtue of his office any money or property belonging to the organisation; or

(b)
if any execution, attachment o r other process is issued or action taken against any such
officer or against his property,
his heirs, executors or administrators or the Official Assignee or the Sheriff of the
Supreme Court or other person executing the process or the party taking the ac tion, shall
upon demand in writing of the trustees of the registered organisation or of any two of
them or of any person authorised by the registered organisation to make the demand, pay
the money and deliver over the property to the trustees of the regist ered organisation in
preference to any other debt or claim against the estate of the officer. ** * Section 15 in the 1970 Edition was repealed by Act 58/70.
[16
Membership of minors
17.
— (1) The rules of a registered organisation may provide for the admiss ion of a person
under 21 years of age as a member or subscriber.
(2) Any such member or subscriber may, if he is over 16 years of age, by himself and
if he is under that age by his parent or guardian, execute all instruments and give all
acquittances neces sary to be executed or given under the rules, but shall not be a member
of the committee, or a trustee, secretary, manager or treasurer of the registered
organisation.
Restriction on nominees
18. No member or subscriber of a registered organisation may nom inate as the person
to receive the benefits provided under the rules of the organisation a person other than the
wife, children (including adopted children), grandchildren, mother, father, sons -in -law,
daughters -in -law, brothers or sisters of the whole blo od, brothers or sisters of the half –
blood, children of such brothers and sisters of the whole or half -blood, uncles or aunts of
the whole blood, uncles or aunts of the half -blood or children of those uncles or aunts of
the whole or half -blood of that membe r or subscriber:
Provided that a member or subscriber may nominate any other person in writing
signed by himself in the presence of and attested by a Justice of the Peace or a Magistrate
or the Registrar.
Right to supply of copies of rules
19. Every registered organisation shall deliver to any person on demand and on
payment of a sum not exceeding one dollar, a copy of the rules of the organisation.
Right to supply of copies of annual return
20. Every registered organisation shall supply free of charge to every member or
subscriber or person having an interest in its funds on his application either —
(a)
a copy of the last annual return of the organisation; or
(b)

a balance -sheet or other document duly audited containing the same particulars as t o the
receipt and expenditure, funds and effects of the organisation as are contained in the
annual return.
Inspection of books by members
21. A member or subscriber or person having an interest in the funds of a registered
organisation may inspect the boo ks of the organisation at all reasonable hours at the
registered office of the organisation or at any place where the books are kept.
Subscriptions and benefits
22.
— (1) The amount deducted by a registered organisation for administration or any
other expen se shall not exceed such percentage of the total receipts from subscriptions as
may be prescribed by the Minister by rules made under this Act.
(2) All subscriptions paid by members or subscribers during the period in which, under
the rules of any register ed organisation, the members or subscribers are qualifying for the
benefits provided by the rules of the organisation less a sum not exceeding the prescribed
percentage allowed for administration and any other expense shall be placed on deposit
with a bank which is a member of the Association of Banks in Singapore in the name of
the organisation or be invested in trustee securities and those funds shall constitute the
reserve funds of the organisation.
[37/98 wef 16/11/1998] (3) Subscriptions received from members of or subscribers to a registered organisation
who have qualified for benefits under the rules of the organisation less a sum not
exceeding the prescribed percentage allowed for administration and any other expense
shall be paid into a separate account in the name of the organisation with a bank which is
a member of the Association of Banks in Singapore and the organisation may draw upon
these funds for the purpose of paying the benefits provided in the rules of the
organ isation.
[37/98 wef 16/11/1998] (4) No payment of any sum payable as a result of the death of a person shall be made
by the organisation except upon the production of the original death certificate or a
certified copy thereof issued by a registrar of deaths or, in the case of a person dying
outside Singapore, a death certificate issued by the appropriate authority in the place
where the person died:
Provided that payment may be made to the personal representative of a deceased
member or subscriber where no nomination has been made upon the production of letters
of administration or probate of the will of the deceased member or subscriber.
Utilisation of reserve funds
23. The reserve funds of a mutual benefit organisation referred to in section 22(2) , or
any part thereof, may be utilised for any purpose approved by the Minister.
[22A
[58/70] Power to change name

24.
— (1) A registered organisation may, by special resolution, with the approval in
writing of the Registrar, change its name and shall not change its name in any other
manner.
(2) No change of name shall affect any right or obligation of the registered
organisatio n or of any member thereof, and any legal proceeding may be continued by or
against the trustees of the organisation or any officer who may sue or be sued on behalf
of the organisation, notwithstanding such change of name.
[23
Meaning of special resolutio n
25. For the purpose of this Act, “a special resolution” means a resolution that is —
(a)
passed by a majority of not less than three -fourths of such members of a registered
organisation entitled under the rules to vote as may be present at any general me eting of
which notice specifying the intention to propose the resolution has been duly given
according to the rules; and
(b)
confirmed by a majority of such members entitled under the rules to vote as may be
present at a subsequent general meeting of which notice has been duly given, held not
less than 14 days nor more than one month from the day of the meeting at which the
resolution was first passed.
At any meeting mentioned in this section, a declaration by the chairman that the
resolution has been carri ed shall be conclusive evidence of the fact.
[24
Registration of special resolutions
26. A copy of every special resolution signed by the chairman of the meeting and
countersigned by the secretary shall be sent to the Registrar and registered and until th at
copy is registered the special resolution shall not take effect.
[25
Inspectors and special meetings
27.
— (1) Upon the application of one -fifth of the total number of members of a registered
organisation, the Registrar may —
(a)
appoint an inspector or inspectors to examine into and report on the affairs of the
organisation; or
(b)
call a special meeting of the organisation.
(2) An application under this section shall be supported by such evidence for the
purpose of showing that the applicants have good reason for requiring an inspection to be
made or meeting to be called, and that they are not actuated by malicious motives in their

application and such notice thereof shall be given to the registered organisation as the
Registrar may direct.
(3) The Regi strar may, if he thinks fit, require the applicants to give security for the
costs of the proposed inspection or meeting before appointing any inspector or calling a
meeting.
(4) All expenses of and incidental or preliminary to any such inspection or meeti ng
shall be defrayed by the members applying therefor or out of the funds of the
organisation or by the members or officers or former members or officers of the
organisation in such proportions as the Registrar may direct.
(5) An inspector appointed under this section may require the production of all or any
of the books and documents of the organisation and may examine on oath its officers,
members, agents and employees in relation to its business and may administer such oath
accordingly.
(6) The Registrar may direct at what time and place a special meeting under this
section is to be held and what matters are to be discussed and determined at the meeting,
and the meeting shall be deemed to be a meeting called according to the rules of the
organisation and those present and entitled to vote shall in all cases have power to
appoint the chairman, notwithstanding any rule of the organisation to the contrary.
[26
Cancellation and suspension of registration
28.
— (1) The Registrar may cancel the registration of a mutual benefit organisation —
(a)
if he is satisfied that —
(i)
any misrepresentation, whether innocent or otherwise, has been made or there has been a
failure to disclose any fact, at the time of the application for registration of the
organisation, and such misrepresentation or non -disclosure would have influenced th e
decision of the Registrar to register or refuse to register the organisation;
(ii)
the organisation is being used for unlawful purposes or for purposes prejudicial to public
peace, welfare or good order in Singapore;
(iii)
the organisation is being used for purposes incompatible with its objects or rules;
(iv)
the rules of the organisation are or have been inadequate for its proper management and
control and the registered organisation has failed without reasonable excuse to amend its
rules within 3 month s of, and in accordance with, a direction from the Registrar to amend
its rules for those purposes;
(v)

any officer or person managing or assisting in the management of the organisation is not
of good character and the organisation has failed without reaso nable excuse to remove
the officer or person within 3 months of, and in accordance with, a direction from the
Registrar to remove the officer or person from the organisation;
(vi)
the number of members of the organisation is less than 50; or
(vii)
the orga nisation is contravening or has contravened any of the provisions of this Act or
any rules made thereunder;
(b)
at the request of the organisation; or
(c)
if he considers it in the public interest to do so.
(2) The Registrar, in any case in which he might cancel the registration of a registered
organisation, may by writing under his hand suspend the registration for any term not
exceeding 3 months, and may renew the suspension for the like period.
(3) Unless the Registrar has given to a registered organisat ion not less than two months
previous notice in writing specifying briefly the ground of any proposed cancellation or
suspension, the registration of the organisation shall not be cancelled (except at its
request) or suspended.
(4) Where the registration of a registered organisation has been cancelled or suspended,
a notification thereof shall be published in the Gazette .
(5) Where the registration of an organisation has been suspended or cancelled, the
organisation shall from the ti me of the suspension or cancellation (but if suspended only
while the suspension lasts, and subject also to the right of appeal given by this section)
cease to be a registered organisation but without prejudice to any liability actually
incurred by the org anisation and any such liability may be enforced against the
organisation as if the suspension or cancellation had not taken place.
(6) A registered organisation may appeal from the cancellation of its registration or
from any suspension thereof to the Min ister whose decision shall be final.
[27
[8/74] Power to freeze bank accounts
29.
— (1) Where a notice has been given by the Registrar to a mutual benefit organisation
under section 28(3) , the Minister may, where he is satisfied that it is likely that the funds
of the mutual benefit organisation may be misused, by order, direct any bank in
Singapore not to pay any money out and not to pay cheques drawn on the account of that
organisation for a specified period not exceeding 3 months.

(2) A bank and any officer thereof which complies with an order of the Minister under
subsection (1) shall be relieved of any liability to any other person in respect of the
payment prohibi ted by the order.
(3) The manager of any bank which fails to comply with an order of the Minister under
subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not
exceeding $3,000 or to imprisonment for a term not exceeding 3 years or to both.
[27A
[58/70] Power to seize documents
30.
— (1) Where a notic e has been given by the Registrar to a mutual benefit organisation
under section 28 (3) , the Registrar or a police officer authorised in writing by the
Registrar may at any time enter any place which the Registrar has reason to believe is
kept or used by any mutual benefit organisation or any of its members as a place of
meeting or busine ss and seize any account book, document or record of the mutual
benefit organisation.
(2) Any person who obstructs or prevents the Registrar or a police officer authorised in
writing in that behalf by the Registrar from seizing the account books, documents or
records of a mutual benefit organisation shall be guilty of an offence and shall be liable
on conviction to a fine not exceeding $2,000 or to imprisonment for a term not exceeding
3 years or to both.
[27B
[58/70] Consequences upon cancellation of regi stration of organisation
31.
— (1) Upon the cancellation of the registration of any organisation —
(a)
the property of the organisation within Singapore shall forthwith vest either in the
Official Receiver or in such other officer as may be appointed for th e purpose of winding
up by the Minister;
(b)
the Official Receiver or that other officer shall proceed to wind up the affairs of the
organisation and after satisfying and providing for all debts and liabilities of the
organisation and the costs of winding up, shall divide the surplus assets, if any, of the
organisation amongst the members of the organisation according to the rules of the
organisation, if any, or if there are no such rules applicable to such a case, then equally,
but if by reason of the grea t number of members, or the difficulty of ascertaining the
persons entitled to the assets or if from any other cause such a division is, in the opinion
of the Official Receiver or that other officer, impracticable, he shall prepare and submit to
a Judge of the High Court for his approval a scheme for the application of the surplus
assets to purposes for the benefit of that portion of the public to which the members of
the organisation more particularly belonged or of the public generally;
[16/93 wef 01/07/1993 ] [9/2003 wef 16/05/2003] (c)
such a scheme, when submitted for approval, may be amended by the Judge in such a
way as he thinks proper under the circumstances of the case;
(d)
the approval of the Judge of such a scheme or amended scheme shall be denoted by the
endorsement thereon of a memorandum of the approval signed by the Registrar of the
Supreme Court and by the memorandum being sealed with the seal of the Court and upon
this being done, the surplus assets, the subject of the scheme, shall be held and applied by
the Official Receiv er or that other officer upon the terms and to the purposes thereby
prescribed; and
[9/2003 wef 16/05/2003] (e)
for the purpose of winding up the affairs of an organisation the Official Receiver or such
other officer shall have all the powers vested in the Official Receiver under the
Companies Act [Cap. 50] for the purpose of discovery of the property of a debtor, the
realisation thereof and the winding up of a company, and the provisions of those Acts
shall apply mutatis mutandis to the winding up of the affairs of a mutual b enefit
organisation under this Act.
[9/2003 wef 16/05/2003] (2) For the purpose of enabling an organisation to wind up its own affairs, the Minister
may by notification in the Gazette suspend the operation of subsection (1) for such period
as to him seems expedient.
[28
Dissolution of registered organisations
32. A registered organisat ion may terminate or be dissolved in any of the following
ways:
(a)
upon the happening of any event declared by the rules to amount to termination of the
organisation;
(b)
by the consent of three -fourths of the members of the organisation testified by thei r
signatures to an instrument of dissolution; or
(c)
by the Registrar in the cases specified in this Act.
[29
Instrument of dissolution
33. Where a registered organisation is terminated by an instrument of dissolution —
(a)
the instrument shall set forth —
(i)
the liabilities and assets of the registered organisation in detail;

(ii)
the number of members and subscribers and the nature of their interests in the
organisation;
(iii)
the intended appropriation or division of the funds and property of the organisation,
unless the appropriation or division is stated in the instrument of dissolution to be left to
the award of the Registrar;
(b)
a statutory declaration made by one of the t rustees or by 3 members and the secretary of
the organisation that the provisions of this Act have been complied with shall be sent to
the Registrar with the instrument of dissolution;
(c)
the instrument shall not direct or contain any provision for a divi sion or appropriation of
the funds of the organisation or any part thereof, otherwise than for the purpose of
carrying into effect the objects of the organisation as declared in the rules thereof, unless
the claim of every member or person claiming any rel ief, annuity or other benefit from
the funds thereof is first duly satisfied or adequate provision is made for satisfying those
claims;
(d)
the instrument of dissolution shall be registered in the manner provided in this Act for the
registration of amendme nts of rules, and shall be binding upon all members of the
organisation; and
(e)
the Registrar shall cause a notification of the dissolution to be published in the Gazette
and unless within 3 months from the date of the publication of the notification, a m ember
or subscriber or other person interested in or having any claim on the funds of the
organisation commences proceedings to set aside the dissolution of the organisation, and
the dissolution is set aside accordingly, the organisation shall be dissolved from the date
of the publication of the notification in the Gazette and the requisite consents in the
instrument of dissolution shall be considered to have been duly obtained without proof of
the signatures thereto.
[30
Dissolution by Registrar
34.
— (1) Upon the application made in writing under their hands of one -fifth of the total
number of members of a registered organisation, the Registrar may, by himself or by any
Assistant Registrar or by any auditor whom the Registrar appoints in writing, investiga te
the affairs of the organisation, but the Registrar shall give not less than one month’s
previous notice in writing to the organisation whose affairs are to be investigated.
(2) The application shall —
(a)

state that the funds of the organisation are ins ufficient to meet the existing claims thereon
or that the rates of contribution fixed in the rules of the organisation are insufficient to
cover the benefits assured;
(b)
set forth the grounds on which the insufficiency is alleged; and
(c)
request an inves tigation into the affairs of the organisation with a view to its dissolution.
(3) If upon investigation it appears that the funds of the organisation are insufficient to
meet the existing claims thereon or that the rates of contribution fixed in the rules of the
organisation are insufficient to cover the benefits assured to be given by the organisation,
the Registrar may, if he considers it expedient to do so, order that the organisation shall
be dissolved and its affairs wound up and shall direct in what m anner the assets of the
organisation shall be divided or appropriated:
Provided that the Registrar may suspend his order for such period as he may consider
necessary to enable the organisation to make such alteration and adjustment of
contributions and ben efits as will in his judgment remove the necessity for the making of
the order of dissolution.
(4) The Registrar proceeding under this section shall have all the powers and
authorities enforceable by the same penalties as in the case of a dispute referred to him
under this Act.
(5) Every order under this section, whether for dissolution or distribution of funds,
shall be final and conclusive on the organisation in respect of which the order is made
and on all members and subscribers of the organisation and on all persons having any
claim on the funds of the organisation without appeal and shall be enforced in the same
manner as a decision in a dispute under this Act.
(6) The expenses of every investigation and of publishing every notification of
dissolution shall be paid out of the fu nds of the organisation before any other
appropriation thereof is made.
(7) A notification of every order for dissolution shall, within 21 days after the order
has been made, be published in the Gazette and unless, within 3 months from the date of
the publ ication of the notification, a member or subscriber or person interested in or
having any claim on the funds of the organisation commences proceedings to set aside
the dissolution of the organisation consequent upon the order, and the dissolution is set
as ide accordingly, the organisation shall be dissolved from the date of the publication of
the notification and the requisite signatures to the application to the Registrar shall be
considered to have been duly obtained without proof of the signatures theret o.
[31
Notice of proceedings to set aside dissolution
35.
— (1) Where a person takes any proceedings to set aside the dissolution of an
organisation, he shall give notice of the proceeding to the Registrar not less than 7 days
before the proceeding is comm enced.

(2) Where an order is made setting aside the dissolution of an organisation, the
organisation shall give notice of the order to the Registrar within 7 days after the order
has been made.
[32
Decision on disputes
36.
— (1) Every dispute between —
(a)
a member or subscriber or person claiming through a member or a subscriber or under the
rules of a registered organisation and the organisation or an officer thereof; and
(b)
any person aggrieved who has ceased to be a member of a registered organisation or any
person claiming through such an aggrieved person, and the organisation or an officer
thereof,
shall be decided in the manner directed by the rules of the registered organisation and the
decision so given shall be binding and conclusive on all partie s without appeal, and shall
not be removable to any court or restrainable by injunction; and application for the
enforcement thereof may be made to a District Court.
(2) The parties to a dispute involving a registered organisation may by consent (unless
th e rules of the organisation expressly forbid it) refer the dispute to the Registrar.
(3) The Registrar to whom a dispute is referred shall, either by himself or by any
Assistant Registrar, hear and determine the dispute and shall have power to order the
ex penses of determining the dispute to be paid either out of funds of the organisation or
by such parties to the dispute as he may think fit, and his determination or order shall
have the same effect and be enforceable in like manner as a decision made in th e manner
directed by the rules of the organisation.
(4) The Registrar or Assistant Registrar to whom a dispute is referred may administer
oaths and may require the attendance of all parties concerned and of witnesses, and the
production of all books and do cuments relating to the matter in question.
[33
Unlawful organisations
37. Every mutual benefit organisation, not being a registered organisation, shall be
deemed to be an unlawful organisation.
[34
Penalties on office -bearer, etc., of an unlawful organi sation
38. Any office -bearer and any person managing or assisting in the management of any
unlawful organisation shall be guilty of an offence and shall be liable on conviction to a
fine not exceeding $3,000 or to imprisonment for a term not exceeding 3 ye ars or to both.
[35
Penalties on member of an unlawful organisation

39. Any person who is or acts as a member of an unlawful organisation or attends a
meeting of an unlawful organisation shall be guilty of an offence and shall be liable on
conviction to a fine not exceeding $1,000 or to imprisonment for a term not exceeding
on e year or to both.
[36
Persons allowing unlawful organisation on premises
40. Any person who knowingly allows a meeting of an unlawful organisation or of
members of an unlawful organisation to be held in any house, building or place belonging
to or occupi ed by him or over which he has control, shall be guilty of an offence and shall
be liable on conviction to a fine not exceeding $1,000 or to imprisonment for a term not
exceeding one year or to both.
[37
Presumptions
41. In any proceedings under this Act —
(a)
it shall not be necessary for the prosecution to prove that a mutual benefit organisation
possesses a name or that it has been constituted or is usually known under a particular
name; and
(b)
where it is alleged that an organisation is an unlawful or ganisation, the burden of proving
that it is a registered organisation shall lie on the person charged.
[38
Offences
42.
— (1) It shall be an offence if —
(a)
a registered organisation or an officer or member thereof or subscriber thereto fails to
give any notice, send any return or document, do or allow to be done anything which the
organisation, officer or person is by this Act required to give, send, do or allow to be
done;
(b)
a registered organisation or an officer or member thereof or subscriber there to wilfully
neglects or refuses to do any act or to furnish any information required for the purposes
of this Act by the Registrar or by any person authorised under this Act, or does anything
forbidden by this Act;
(c)
a registered organisation or an offic er or member thereof or subscriber thereto makes a
return or wilfully furnishes information which is in any respect false or insufficient; or
(d)
where a dispute is referred under this Act to the Registrar, a person refuses to attend or to
produce any docu ment or to give evidence before the Registrar or Assistant Registrar.

(2) A registered organisation and an officer or member of or subscriber to a registered
organisation or other person guilty of an offence under this section shall be liable on
conviction to a fine not exceeding $200.
[39
[58/70] Offences by organisation to be also offences by officers, etc.
43. Where a registered organisation is guilty of an offence, every officer of the
organisation bound by the rules thereof to fulfil any duty whereof the offence is a breach,
or if there is no such officer then every member of the committee, unless that member is
proved to have been ignorant of or to have attempted to prevent the commission of the
offence, shall be liable to the same penalty as if he had committed the offence.
[40
Continuing offence
44. Every default under this Act constituting an offence, if c ontinued, shall constitute a
new offence in every week during which the default continues.
[41
Punishment of fraud, false declaration and misappropriation
45.
— (1) Any person who with intent to mislead or defraud gives to any person a copy of
any rules, la ws, regulations or other documents, other than the rules of a registered
organisation, on the pretence that they are the existing rules of that organisation or that
there are no other rules of the organisation or gives to any person a copy of any rules on
the pretence that those rules are the rules of a registered organisation when the
organisation is not registered, shall be guilty of an offence and shall be liable on
conviction to a fine not exceeding $500 or to imprisonment for a term not exceeding 6
mon ths or to both.
(2) Any person who obtains possession by false representation of any property of a
registered organisation or withholds or misapplies any such property in his possession or
wilfully applies any part thereof to purposes other than those expr essed or directed in the
rules of the organisation and authorised by this Act, shall be guilty of an offence and shall
be liable on conviction to a fine not exceeding $500 or to imprisonment for a term not
exceeding 6 months or to both and to be ordered to deliver up all such property or to
repay all sums of money applied improperly.
[42
Falsification
46. Any person who wilfully makes, orders or allows to be made any entry, erasure in
or omission from a balance -sheet of a registered organisation or a retur n or document
required to be sent, produced or delivered for the purposes of this Act, with intent to
falsify it or to evade the provisions of this Act, shall be guilty of an offence and shall be
liable on conviction to a fine not exceeding $500 or to impr isonment for a term not
exceeding 6 months or to both.

[43
Legal proceedings
47.
— (1) Every registered organisation may sue and be sued in the name in which it is
registered under this Act.
(2) A writ of summons or other legal process may be served on a r egistered
organisation by serving it on an officer of the organisation or by leaving it at, or sending
it by registered post to, the registered address of the organisation.
(3) The judgment in any suit against a registered organisation shall not be execute d
against the person or property of any officer or member of the organisation but only
against the property of the organisation.
[44
Exemption
48.
— (1) Nothing in this Act shall apply to any person, body or organisation to which the
Insurance Act (Cap. 142) applies or which is registered under the Co -operative Societies
Act (Cap. 62) or the Trade Unions Act (Cap. 333) .
(2) The Minister may exempt any organisation, person or class of persons from all or
any of the provisions of this Act.
[45
[8/74] Rules
49.
— (1) The Minister may make rules for any of the following purposes:
(a)
prescribing the manner of registration of mutual benefit organisations under this Act;
(b)
regulating or restricting changes of the name or objects of registered organisations;
(c)
regulati ng or restricting changes of the place of business or place of meetings of
registered organisations;
(d)
prescribing the forms which may be used for carrying out the provisions of this Act;
(e)
prescribing the information to be furnished to the Registrar;
(f)
prescribing the fees which may be levied under this Act;
(g)
prescribing the percentage of the total receipts from subscriptions that may be deducted
by a registered organisation for administration and other expenses; and
(h)

generally for carrying int o effect the provisions of this Act in relation to any matters,
whether similar or not to those in this subsection mentioned, as to which he may consider
it expedient to make rules.
(2) The Minister in making a rule under this section may direct that a per son guilty of
a contravention of any rule shall be guilty of an offence and shall be liable on conviction
to a fine not exceeding $500 and where the contravention is a continuing one to a fine not
exceeding $50 for every day after the first day during whic h the contravention continues.
(3) All rules made under this section shall be published in the Gazette and shall be
presented to Parliament as soon as possible after publication and if a resolution is passed
pursuant to a motion notice whereof has been giv en for a sitting day not later than the
first available sitting day of Parliament next after the expiry of 3 months from the date
when the rules are so presented annulling the rules or any part thereof as from a specified
date, the rules or such part there of, as the case may be, shall thereupon become void as
from that date but without prejudice to the validity of anything previously done
thereunder or to the making of new rules.
[47

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