Building Societies Act, 1989
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PART XII Winding up, etc. | ||
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Winding up. |
109.—(1) Subject to this section, a building society may be wound up in accordance with the Companies Acts and accordingly those Acts shall, subject to any necessary modifications, apply as if the society were a company limited by shares. | |
(2) In the application of the Companies Acts to the winding up of a society— | ||
(a) a reference to “the registrar of companies” in the Act of 1963 shall be construed as a reference to the Central Bank, | ||
(b) a reference to “the articles of association” in the Act of 1963 shall be construed as a reference to the rules of a society, | ||
(c) a reference to “a special resolution” in the Act of 1963 shall be construed as a reference to a special resolution of a society within the meaning of this Act, and | ||
(d) “secretary” in section 224 of the Act of 1963 shall be construed as the chief executive of a society. | ||
(3) A society may be wound up by the Court if— | ||
(a) the society has by special resolution resolved that the society be wound up by the Court, | ||
(b) the number of members is reduced below 10 or the number of directors below 3, | ||
(c) the society, being a society registered as a building society under this Act or the repealed enactments, has not been granted an authorisation and more than one year has expired since it was so registered, | ||
(d) the society is unable to pay its debts, | ||
(e) the society has had its authorisation revoked under section 40 , or | ||
(f) the Court is of opinion that it is just and equitable that the society should be wound up. | ||
(4) (a) A petition for the winding up of a society may, notwithstanding anything in section 215 of the Act of 1963, be presented by the Central Bank. | ||
(b) Sections 213 and 215 (a) and (d) and 296 of the Act of 1963 shall not apply to the winding up of a society. | ||
(5) Notwithstanding anything in sections 217, 234, 256, 280 and 298 of the Act of 1963, an application to the Court under any of those sections may be made by the Central Bank. | ||
(6) The winding up of a society shall not bar the right of the Central Bank to have it wound up by the Court. | ||
(7) Notice of any resolution or application for the winding up of a society shall be given to the Central Bank. | ||
(8) Part X of the Act of 1963 shall not apply to a society and, notwithstanding anything in that or any other Act, a society may not be wound up except in accordance with this section. | ||
(9) Where a society is being wound up, a person to whom a loan has been made by the society under a mortgage or other security shall not be liable to pay the amount payable in respect of the loan except at the time or times and subject (as may be appropriate) to the conditions set out in the mortgage or other security. | ||
(10) The liquidator in the exercise of his powers under section 231 (2) (a) of the Act of 1963 shall not dispose of any of the society's assests secured by mortgage of freehold or leasehold estate or interest on terms as respects the loans other than terms which the Court is satisfied are just and equitable and which the borrowers would have been reasonably entitled to expect if the society had not been wound up. | ||
(11) The Central Bank may appoint one or more officers of the Bank or other representatives who shall be entitled to— | ||
(a) attend any meeting of creditors of a society, and | ||
(b) be a member of any committee of inspection appointed under section 233 or 268 of the Act of 1963. | ||
(12) An officer or representative of the Central Bank appointed to be a member of a committee of inspection shall not be removed from office without the consent of the Bank and shall not be counted in computing any minimum or maximum number of members of such committee specified in any enactment. | ||
(13) Where the winding up of a society commences within one year after the society has changed its name, the former name as well as the existing name shall appear on all notices and advertisements relating to the winding up. |