The Sun.
London, England, 1863-08-18 00:00:00

CASE.

Under the Act 18 and 19 Vic., c. 63, s, 9, Friendly So-
cieties may be established for the purpose of raising by
voluntary subscriptions of the members thereof, with or
without the aid of donations, a fund for any of the follow-
ing objects (that is to say) :-
1. For insuring a sum of money to paid on the birth of a
member's child, or on the death of a member, or for the
funeral expenses of the wife or child of a member.
2. For the relief or maintenance of the members, their
husbands, wives, children, brothers or sisters, nephews, or
nieces, in old age, sickness, or widowhood, or the endow-
ment of members or nominees of members at any age.
3. For any purpose which shall be authorised by one of
her Majesty's Principal Secretaries of State, or in Scotland
by the Lord Advocate, as a purpose to which the powers
and facilities of this act ought to be extended.
Provided that no member shall subscribe or contract for
an annuity exceeding £3O per annum, or a sum payable on
death, or on any other contingency, exceeding £2OO.
In addition to the voluntary subscriptions and donations
by which these objects are to be carried out, by the 25th
section it is enacted that contributions shall be made to de-
fray the necessary expenses of management, and a separate
account shall be kept of such contributions and expen see.
By the 24th section of the same act it is enacted that if

any officer, member, or other parson, being or representing
himself to be a member of such society, or the nominee,
executor, administrator, or assignee of a member thereof, or
any person whatsoever, by false representation or imposition,
shall obtain possession of any moneys, securities, books,
papers, or other effects of such society, or having the same
in his possession, shall withhold or misapply the same, or
shall wilfully apply any part of the same to purposes
other than those expressed or directed in the rules of such
society, or any part thereof, it shall be lawful in England
for any justice of the peace acting in the county or
borough in which the place of business of such society
shall be situated, upon complaint made by any person
on' behalf of such society, to summon the person against
whom such complaint is made to appear at a time and
place to be named in such summons ; and any two justices
present at the time and place mentioned in such summons
shall proceed to hear and determine the said complaint,
in manner directed by the act passed in the 11th and 12th
year of her present Majesty, chap. 43; and if the said jus-
tices shall determine the said complaint to be proved
against such person, they shall adjudge and order him to
deliver up all such moneys, securities, books, papers, or
other effects to the society, or to repay the amount of money
applied improperly, and to pay, if they think fit, a further
sum of money not exceeding £2O, together with costs not
exceeding 20s. ; and in default of such delivery of effects,
or repayment of such amount of money, or payment of such
penalty and costs aforesaid, the said justices may order the
said persons so convicted to be imprisoned in the common
gaol or house of correction, with or without hard labour,
for any time not exceeding three months : Provided that no
persons shall be proceeded against by indictment, if a con-
viction shall have been previously obtained for the same
offence under the provisions of this act.

By 23d and 24th Vic., c. 58, s. 9, any application autho-
rised by s. 24 of 18th and 19th Vic., c. 63, to be made by
any person on behalf of the society, may be made by the
registrar.

In addition to rules for the payment of the contributions
for the objects of the society, and necessary expenses of
management, some friendly societies established before
the passing of the 18th and 19th Vic., c. 63, and before
there was any express provision for expenses of manage-
ment, have a rule for making contributions for incidental
expenses.

In several friendly societies the practice prevails of
charging under the term " incidental," every expenditure
incurred that does not fall on the funds raised for sickness,
death, or annuities, and such charges are paid either out of
the general fund or the management, or incidental expense
fund, for example : •

In the case of one society, the following items were
charged :—Liquor at the monthly meeting, £9 ; band at the
anniversary, £6; dinners to persons carrying banners, 6s.
9d.; donation to Lancashire Relief Fund, £5; grant for
procession and dinner on the marriage of his Royal High-
ness the Princess of Wales, £49. Charges for feasting, and
processions at anniversaries,the purchase or hire of banners,
ribbons, aprons, and personal decorations of various kinds,
for bell-ringing, dcc., also occur in the accounts of some
friendly societies.

QUESTIONS.

Your opinion is requested—lst. Whether any of the
funds raised under the authority of the 9th or 25th sections
of the act can he legally applied to any of the items of ex-
penses above mentioned, or to any similar items ?
2d. Whether any of the funds raised under the autho-
rity of a rule for incidental expenses can be legally applied
to any of the items of expense above mentioned, or to any
similar items, and whether incidental expenses must not be
such as are necessary to, or connected with, the purposes
for which the society is established ?

3d. Should the opinion be that neither of the funds can
be legally applied to the expenses referred to, can proceed-
ings be taken under section 24 against the member, or
officer, paying away the funds for such purposes, for wilfully
applying " the funds to purposes other than those expressed
or directed in the rules ? "

4th. Can any member aggrieved at such expenditure
being incurred commence proceedings under section 24, as
being " a person on behalf of such society," or must the
consent of the society be first obtained ; and if that cannot
be obtained, can proceedings be taken except by the regis-
trar, under the 23d and 24th Vic., chap. 58, sec. 9 ?