Perpetual Funds (Registration) Act, 1933

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Number 22 of 1933.

PERPETUAL FUNDS (REGISTRATION) ACT, 1933.

ARRANGEMENT OF SECTIONS

SCHEDULE.

Number 22 of 1933.

PERPETUAL FUNDS (REGISTRATION) ACT, 1933.

AN ACT TO AMEND THE LAW RELATING TO PERPETUITIES AND ACCUMULATIONS IN ITS APPLICATION TO CERTAIN BENEFIT FUNDS. [29th July, 1933.]

BE IT ENACTED BY THE OIREACHTAS OF SAORSTAT EIREANN AS FOLLOWS:—

General definitions.

1.—In this Act—

the expression “the Minister” means the Minister for Industry and Commerce;

the expression “the registrar” means the Registrar of Friendly-Societies in Saorstát Eireann;

the word “prescribed” means prescribed by regulations made by the Minister under this Act;

the word “rules” means the instrument creating and regulating the trusts of the fund in relation to which the said word is used;

the word “trust” includes any trust which would have been void if this Act had not been passed;

the expression “appointed day” means the day fixed by the Minister for the commencement of this Act;

the word “auditor” means a person having the prescribed qualifications for an auditor;

the word “actuary” means a person having the prescribed qualifications for an actuary.

Definition of perpetual fund.

2.—In this Act the expression “perpetual fund” means a fund which—

(a) is established in connection with any undertaking or combination of undertakings carried on wholly or partly in Saorstát Eireann;

(b) is established mainly for all or any one or more of the following purposes, that is to say—

(i) the provision of superannuation allowances on retirement for persons employed in the said undertaking or combination of undertakings;

(ii) the provision of pensions during widowhood for widows of persons so employed;

(iii) the provision of periodical allowances to or in respect of children of persons so employed;

(iv) the assurance of capital sums on the death of persons so employed; and

(c) is regulated by rules which comply with the requirements set out in the Schedule to this Act.

Register to be established.

3.—(1) On and after the appointed day the registrar shall establish and keep or cause to be kept a register of perpetual funds to be called and known as the Register of Perpetual Funds (in this Act referred to as the register).

(2) The register shall be in the prescribed form and there shall be entered therein the names and addresses of the trustees of every fund registered therein, the name of the secretary of every such fund, and the address at which communications concerning the fund will be received (in this Act referred to as the address of the fund), and such other particulars (if any) as may be prescribed.

Registration of perpetual funds.

4.—(1) The trustees of a perpetual fund may at any time apply to the registrar in the prescribed form and manner for the registration of such fund in the register.

(2) Whenever the trustees of a perpetual fund apply under this section for the registration of such fund, they shall, at the time of making such application, furnish to the registrar the prescribed particulars and the prescribed documents, which shall include two copies of the rules of such fund.

(3) Upon receipt of an application under this section for the registration of a perpetual fund the registrar shall, if he is satisfied that such fund is a perpetual fund as defined by this Act, register such fund in the register in accordance with this Act.

(4) Whenever the registrar registers a perpetual fund in pursuance of this section he shall issue to the trustees of such fund a certificate stating the fact and date of such registration.

(5) Whenever the registrar registers a perpetual fund in pursuance of this section he shall retain and file a copy of the rules of such fund and shall annex another copy of such rules to his certificate given in pursuance of the next preceding sub-section of this section.

(6) Every perpetual fund which is registered in the register shall be known and is in this Act referred to as a registered perpetual fund.

Power of registrar to delete provisions avoiding the rule against perpetuities.

5.—(1) If the rules of any perpetual fund in respect of which an application for registration is made under this Act contain provisions the sole purpose of which is, in the opinion of the registrar, to avoid the application to the trusts of such fund of the rule of law relating to perpetuities, he may on the application of the trustees of such fund delete such provisions from the rules and make any further amendments therein which are in his opinion proper in consequence of such deletion.

(2) When the rules of any perpetual fund are amended by the registrar under this section, such rules shall, when the fund is registered, have effect subject to the amendments so made.

Rule against perpetuities not to apply to registered perpetual funds.

6.—The rule of law relating to perpetuities shall not apply and shall be deemed never to have applied to the trusts of any registered perpetual fund.

Registration of alterations in rules.

7.—(1) Whenever an alteration is made in the rules of a registered perpetual fund, the trustees of such fund shall, within the prescribed time after the making of such alteration, apply to the registrar in the prescribed form and manner for the registration of such alteration in the register.

(2) Whenever the trustees of a registered perpetual fund apply under this section for the registration of an alteration in the rules of such fund, they shall, at the time of making such application, furnish to the registrar the prescribed particulars and the prescribed documents.

(3) On receipt of an application under this section for the registration of an alteration in the rules of a registered perpetual fund (whether such application is or is not made within the prescribed time after the making of such alteration), the registrar—

(a) shall, if he is satisfied that such rules as so altered comply with the requirements set out in the Schedule to this Act, register such alteration in the register, or

(b) shall, if he is not so satisfied, refuse such application.

(4) No alteration in the rules of a registered perpetual fund shall be valid or have any force or effect unless or until such alteration is registered in the register, and every such alteration which is so registered shall have effect as on and from the date of such registration.

(5) Whenever the registrar registers in pursuance of this section an alteration in the rules of a registered perpetual fund, he shall issue to the trustees of such fund a certificate stating the fact and date of such alteration.

Rectification of the register.

8.—(1) Whenever through the happening of any event the particulars entered in the register in respect of any registered perpetual fund cease to be in accordance with the facts the trustees of such fund shall apply in the prescribed form and manner to the registrar to rectify the register.

(2) Every application under this section shall be made within the prescribed time after the day on which the event occasioning such application takes place, and shall be signed by a trustee or by the secretary of the fund to which such application relates.

(3) On receipt of an application under this section for the rectification of the register (whether such application is or is not made within the prescribed time), the registrar, on being satisfied of the relevant facts, shall rectify the register in accordance with such application.

(4) The registrar may at any time, without any application under this Act, rectify the register for the purpose of correcting an error or removing an ambiguity.

Cancellation of registration on winding-up.

9.—(1) Whenever a registered perpetual fund is wound up, the trustees of such fund shall, within the prescribed time after such winding-up, apply to the registrar to cancel the registration of such fund.

(2) Every application for the cancellation of the registration of a perpetual fund under this section shall be accompanied by such evidence as the registrar may require to show that such fund has been wound up.

(3) On receipt of an application under this section the registrar shall, if he is satisfied that the fund in respect of which the application is made has been wound up, cancel the registration of such fund.

Accounts and reports of registered funds.

10.—(1) The trustees of every registered perpetual fund shall once in every year cause a statement of accounts and balance sheet of the fund to be prepared and to be audited by an auditor, and the said trustees shall also, at least once in every five years, cause an investigation and report to be made by an actuary as to the financial conditions of the fund.

(2) A copy of every statement of accounts and balance sheet and of every report prepared or made under this section, signed by the auditor or actuary (as the case may be) and by the secretary of the fund, shall be sent by such secretary to the registrar within twelve months after the close of the period to which it relates.

Reports of registrar.

11.—(1) The registrar shall in every year make to the Minister a general report of his proceedings under this Act, and every such report shall be laid before each House of the Oireachtas as soon as may be after it is received by the Minister.

(2) No report made under this section shall contain or disclose any information contained in the accounts, balance sheet, or report prepared or made in respect of any particular fund.

Supplementary powers of the registrar.

12.—(1) The registrar may require any trustee or the secretary of any registered perpetual fund or of any perpetual fund for the registration of which application has been made under this Act to furnish, either by statutory declaration or otherwise, any information or explanation which may be necessary for the proper exercise and performance of the powers and duties of the registrar under this Act.

(2) In the event of any breach of trust being committed by the trustees of a registered perpetual fund by reason of their making any unauthorised investment or by reason of their committing a breach of any rule of such fund which complies with the requirements set out in the Schedule to this Act, the registrar shall have the like remedies in all respects for such breach of trust as he would have if he were a person beneficially interested in such fund.

Certificates of the registrar.

13.—Every certificate issued by the registrar in pursuance of this Act shall be sealed with his official seal, and every document purporting to be so sealed and to be a certificate so issued shall be received in evidence and be deemed, until the contrary is shown, to be so sealed and issued, and (unless it is shown not to have been so sealed and issued) shall be conclusive evidence of the facts stated therein in pursuance of this Act.

Offences.

14.—(1) If, in respect of any registered perpetual fund, default is made in complying with any of the requirements of this Act relating to any of the following matters, that is to say:—

(a) accounts and reports;

(b) the making of applications for the registration of alterations in the rules;

(c) the making of applications for the amendment of the register;

(d) the sending to the registrar notice of winding-up;

every trustee of such fund and also the secretary of such fund shall be guilty of an offence under this sub-section.

(2) If any person, required under this Act by the registrar to furnish any information or explanation which could with reasonable diligence be furnished by him, makes default in complying with such requirement within fourteen days after written notice thereof has been delivered to him, he shall be guilty of an offence under this sub-section.

(3) Any person guilty of an offence under either of the foregoing sub-sections of this section shall be liable on summary conviction thereof to a fine not exceeding five pounds, and, in the case of a continuing offence, to a further fine not exceeding five pounds for every week in which the offence is continued.

(4) It shall be a good defence to any proceedings against any person under sub-section (1) of this section to prove that the default in respect of which such proceedings are brought occurred without the consent or connivance of such person and was not facilitated by any neglect on his part.

Regulations.

15.—(1) The Minister may by order make regulations prescribing any matter or thing referred to in this Act as prescribed or to be prescribed.

(2) The Minister may by order make regulations prescribing, with the consent of the Minister for Finance, the fees (if any) to be paid to the registrar in respect of all or any of the following matters, that is to say:—

(a) the registration of perpetual funds;

(b) the registration of alterations in the rules of registered perpetual funds;

(c) rectifications of the register on the application of the trustees of registered perpetual funds;

(d) cancellations of the registration of registered perpetual funds;

(e) the issue of certificates by the registrar;

and there shall be paid to the registrar in respect of every such matter such fees as shall be so prescribed.

(3) All fees received under this Act by the registrar shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister for Finance may direct.

Short title and commencement.

16.—(1) This Act may be cited as the Perpetual Funds (Registration) Act, 1933.

(2) This Act shall come into operation on such day as shall be fixed for that purpose by an order of the Minister.

SCHEDULE.

Requirements of this Act as to the Rules regulating perpetual funds.

The rules of a perpetual fund shall contain a full statement of the objects for which the fund is established, and shall also make provision for all the following matters, that is to say:—

1. The appointment and removal of trustees of the fund.

2. The appointment and removal of a secretary of the fund.

3. The vesting in the trustees of the fund of all property belonging to the fund.

4. The investment in the names of the trustees of the fund of all capital moneys belonging to the fund.

5. The investments (if any) in addition to those authorised by law in which capital moneys belonging to the fund may be invested.

6. When the trustees of the fund are authorised by the rules of the fund to invest capital moneys belonging to the fund by depositing such moneys with the employer of persons employed in the undertaking or combination of undertakings in connection with which the fund is established, that such moneys shall not be so deposited unless:—

(a) the employer is a body corporate, and

(b) has paid in each of the ten years last past before the year in which such deposit is made a dividend or interest of not less than three per cent, on its ordinary stock or shares, and

(c) such deposit is secured by a charge on the whole or part of the assets of such employer.

7. The making of contributions to the fund by the employer of persons employed in the undertaking or combination of undertakings in connection with which the fund is established.

8. The contributions payable to the fund and the rates of benefits or the method of calculating benefits payable out of the fund.

9. The conditions on which persons may become and may cease to be respectively contributors to and entitled to benefits from the fund.

10. The circumstances in which the fund may be wound up and the manner in which the assets thereof are in that event to be applied.

11. The making, altering, amending and rescinding of rules.

12. The preparation of all statements of accounts, balance sheets, and reports required by this Act to be prepared or made in respect of the fund.

13. The supply on demand to every person who—

(a) is at the time of such demand entitled to any benefit from the fund, and

(b) is at the time of such demand or was previously employed in the undertaking or combination of undertakings in connection with which the fund is established,

of a copy of the rules of the fund and of all amendments thereof, and a copy of the latest statement of accounts, balance sheet, and report prepared in respect of the fund in pursuance of this Act.