Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698837766051.pdf (New Zealand)
Friendly Societies and Credit Unions Amendment Act 2006 Public Act Date of assent 2006 No 65 21 November 2006 Contents Title Commencement Principal Act amended Society may register as credit union Qualiﬁcations for admission to membership of credit union Registration and rules of credit union Effect of rules on members of credit union Membership of credit union, voting rights Amalgamation of credit unions and transfer of engagements New section 138 substituted 138 Registrar may apply to put credit union into liquidation Cancellation or suspension of registration, and dissolution of credit union Associations of credit unions to be registered Transitional provision Proceedings in relation to section 135(4)(b), 138(c), or 140(1)(c)(ii) Page 2 2 2 2 2 3 3 4 4 4 4 5 6 6 1 s 1 Friendly Societies and Credit Unions Amendment Act 2006 2006 No 65 The Parliament of New Zealand enacts as follows: 1 2 3 4 (1) “(a) (2) “(d) 5 Title This Act is the Friendly Societies and Credit Unions Amend­ ment Act 2006.
Commencement This Act comes into force on the day after the date on which it receives the Royal assent.

Principal Act amended This Act amends the Friendly Societies and Credit Unions Act 1982.
Society may register as credit union Section 100 is amended by repealing paragraph (a) and substi­ tuting the following paragraph: the society has no fewer than 21 members who are— “(i) “(ii) adults; or charitable entities as deﬁned by the Charities Act 2005; or “(iii) incorporated societies registered under the Incorporated Societies Act 1908; and”.
Section 100 is amended by repealing paragraph (d) and sub­ stituting the following paragraph: the rules of the society specify a common bond (as deﬁned in section 102).” Qualiﬁcations for admission to membership of credit union Section 102 is amended by repealing subsections (1) and (2) and substituting the following subsections: “(1) For the purposes of this Act, a credit union has a common bond if the qualiﬁcation for membership is— “(a) following a particular occupation or particular occupa­ tions: residing in a particular locality or particular localities: “(b) 2 2006 No 65 Friendly Societies and Credit Unions Amendment Act 2006 s 7 “(c) being employed in a particular locality or particular lo­ calities: “(d) being employed by a particular employer or particular “(e) employers: being a member of a bona ﬁde organisation or bona ﬁde organisations or being otherwise associated with mem­ bers of the organisation or organisations for a purpose other than that of forming a society to be registered as a credit union: any other qualiﬁcation that can be objectively deter­ mined: a mixture of any qualiﬁcations in paragraphs (a) to (f).
“(2) For the purposes of subsection (1), a qualiﬁcation can be ob­ “(g) “(f) jectively determined if it— “(a) “(b) includes every person who fulﬁlls the qualiﬁcation; and is able to be determined by a person who is not a mem­ ber of the credit union; and does not depend on any person’s subjective judgement.” “(c) 6 “(b) Registration and rules of credit union Section 104(1) is amended by repealing paragraph (b) and sub­ stituting the following paragraph: the reference in section 12(1) to 7 adult members were a ref­ erence to 21 members and each of the 21 members is— “(i) “(ii) an adult; or a charitable entity as deﬁned by the Charities Act 2005; or “(iii) an incorporated society registered under the Incorpor­ ated Societies Act 1908; and”.
7 Effect of rules on members of credit union Section 105 is amended by repealing subsection (4) and sub­ stituting the following subsection: “(4) Fees for admission to membership, or levies, or charges for management or other services are payable by a member to a credit union only if the rules of the credit union set out— the amount of the fees, levies, or charges; or “(a) the mechanism for charging the fees, “(b) charges.” levies, or 3 s 8 8 Friendly Societies and Credit Unions Amendment Act 2006 2006 No 65 Membership of credit union, voting rights Section 106 is amended by repealing subsections (1) and (2) and substituting the following subsections: “(1) An individual, a charitable entity as deﬁned by the Charities Act 2005, or an incorporated society registered under the In­ corporated Societies Act 1908 can be a member of a credit union, except that— “(a) section 39 (which relates to the membership of minors) applies to any credit union as if it were a society regis­ tered under Part 2; and “(b) no charitable entity as deﬁned by the Charities Act 2005 or incorporated society registered under the Incorpor­ ated Societies Act 1908 can be an ofﬁcer of a credit union.
“(2) Members need have no more than $10 in fully paid­up shares, although a credit union’s rules may allow for a deposit of more or less than $10 in fully paid­up shares.” 9 Amalgamation of credit unions and transfer of engagements Section 135 is amended by repealing subsection (4) and sub­ stituting the following subsections: “(4) For the purposes of this section, section 83, as far as it is applic­ able and with any necessary modiﬁcation, applies in respect of a credit union as if it were a society registered under Part 2.
“(4A) The Registrar must not register a special resolution under sec­ tion 82 if the proposed amalgamation or transfer of engage­ ments would result in a breach of any provision of this Act.” 10 New section 138 substituted Section 138 is repealed and the following section substituted: “138 Registrar may apply to put credit union into liquidation On the application of the Registrar, the High Court may ap­ point a liquidator of a credit union for the liquidation of the credit union in accordance with the Companies Act 1993 if— the credit union is unable to pay sums due and payable “(a) to its members, or is able to pay such sums only by ob­ taining further subscriptions for shares or by defaulting in its obligations to creditors; or 4 2006 No 65 Friendly Societies and Credit Unions Amendment Act 2006 s 11 “(b) “(c) “(d) there has been, in relation to that credit union, failure to comply with any provision of, or any direction given under, this Act; or there is no longer a common bond between the members of the credit union; or the liquidation of the credit union is in the public interest or is just and equitable having regard to the interests of all members of the credit union.” 11 Cancellation or suspension of registration, and dissolution of credit union Section 140 is amended by repealing subsection (1) and sub­ stituting the following subsections: “(d) “(b) “(c) “(1) The Registrar may suspend a credit union’s registration for any term not exceeding 3 months, and may from time to time renew the suspension for
 any term not exceeding 3 months, or may cancel a credit union’s registration if there is no longer a common bond between the credit union’s members or the Registrar is satisﬁed that— “(a) registration has been obtained for the credit union by fraud or mistake; or the credit union exists for an illegal purpose; or the credit union has wilfully, and after notice from the Registrar, breached any of the provisions of this Act; or the credit union has not commenced business within 1 year of registration or has voluntarily suspended busi­ ness for more than 6 months; or the credit union has fewer than 21 members; or the credit union has ceased to exist; or at the request of the credit union, there is good reason for the cancellation or suspension; or there has been a failure by the credit union to comply with any direction of the Registrar given under this Act.
“(1A) Subsection (1) is subject to the following provisions (as far as they are applicable and with any modiﬁcations necessary so that they apply to a credit union as if it were a society registered under Part 2): “(a) “(b) section 92(2) to (9): section 93(1): “(e) “(f) “(g) “(h) 5 s 12 Friendly Societies and Credit Unions Amendment Act 2006 2006 No 65 “(c) “(d) “(e) section 94(1) to (4) and (6): section 95: section 96.” 12 (1) “(e) (2) Associations of credit unions to be registered Section 143(3) is amended by repealing paragraph (e) and sub­ stituting the following paragraph: to provide any other services speciﬁed in subsection (4).” Section 143 is amended by repealing subsection (4) and sub­ stituting the following subsection: “(a) “(4) Speciﬁed services for the purposes of subsection (3)(e) are— receiving deposits or subscriptions (other than subscrip­ tions solely of an annual or periodic nature to be used for the Association’s purposes) from its component mem­ bers for purposes speciﬁed in its rules: “(b) making loans to its component members: “(c) establishing and maintaining a central funding scheme for the beneﬁt of its component members: levying its component members the amount or amounts for purposes and in the manner speciﬁed in its rules: providing, or administering any scheme providing, ﬁ­ delity insurance, savings insurance, or loan protection insurance: undertaking training or education programmes for its component members or members of credit unions or the public: “(d) “(e) “(f) “(g) providing
 advisory services for its component mem­ “(h) bers: arranging, providing, or co­ordinating data processing or computer services for its component members.” Transitional provision Proceedings in relation to section 135(4)(b), 138(c), or 140(1)(c)(ii) Every application, investigation, proceeding, action, or other matter concerning a common bond that was commenced under section 135(4)(b), 138(c), or 140(1)(c)(ii) before the 13 6 2006 No 65 Friendly Societies and Credit Unions Amendment Act 2006 commencement of this Act may continue as if this Act had not been passed.
Legislative history 14 November 2006 15 November 2006 Divided from Business Law Reform Bill (Bill 64­2) as Bill 64­3D Third reading 7