Friendly Societies and Credit Unions Amendment Act 2006

1: Title
This Act is the Friendly Societies and Credit Unions Amendment Act 2006.
2: Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.
3: Principal Act amended
This Act amends the Friendly Societies and Credit Unions Act 1982
4: Society may register as credit union
1: Section 100 paragraph (a)
a: the society has no fewer than 21 members who are—
i: adults; or
ii: charitable entities as defined by the Charities Act 2005
iii: incorporated societies registered under the Incorporated Societies Act 1908 .
2: Section 100 paragraph (d)
d: the rules of the society specify a common bond (as defined in section 102
5: Qualifications for admission to membership of credit union
Section 102 subsections (1) (2)
1: For the purposes of this Act, a credit union has a common bond
a: following a particular occupation or particular occupations:
b: residing in a particular locality or particular localities:
c: being employed in a particular locality or particular localities:
d: being employed by a particular employer or particular employers:
e: being a member of a bona fide organisation or bona fide organisations or being otherwise associated with members of the organisation or organisations for a purpose other than that of forming a society to be registered as a credit union:
f: any other qualification that can be objectively determined:
g: a mixture of any qualifications in paragraphs (a) to (f)
2: For the purposes of subsection (1)
a: includes every person who fulfills the qualification; and
b: is able to be determined by a person who is not a member of the credit union; and
c: does not depend on any person's subjective judgement.
6: Registration and rules of credit union
Section 104(1) paragraph (b)
b: the reference in section 12(1)
i: an adult; or
ii: a charitable entity as defined by the Charities Act 2005
iii: an incorporated society registered under the Incorporated Societies Act 1908 .
7: Effect of rules on members of credit union
Section 105 subsection (4)
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—
a: the amount of the fees, levies, or charges; or
b: the mechanism for charging the fees, levies, or charges.
8: Membership of credit union, voting rights
Section 106 subsections (1) (2)
1: An individual, a charitable entity as defined by the Charities Act 2005 Incorporated Societies Act 1908
a: section 39 Part 2
b: no charitable entity as defined by the Charities Act 2005 Incorporated Societies Act 1908
2: Members need have no more than $10 in fully paid-up shares, although a credit union's rules may allow for a deposit of more or less than $10 in fully paid-up shares.
9: Amalgamation of credit unions and transfer of engagements
Section 135 subsection (4)
4: For the purposes of this section, section 83 Part 2
4A: The Registrar must not register a special resolution under section 82
10: New section 138 substituted
Section 138
138: Registrar may apply to put credit union into liquidation
On the application of the Registrar, the High Court may appoint a liquidator of a credit union for the liquidation of the credit union in accordance with the Companies Act 1993
a: the credit union is unable to pay sums due and payable to its members, or is able to pay such sums only by obtaining further subscriptions for shares or by defaulting in its obligations to creditors; or
b: there has been, in relation to that credit union, failure to comply with any provision of, or any direction given under, this Act; or
c: there is no longer a common bond between the members of the credit union; or
d: 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 subsection (1)
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
b: the credit union exists for an illegal purpose; or
c: the credit union has wilfully, and after notice from the Registrar, breached any of the provisions of this Act; or
d: the credit union has not commenced business within 1 year of registration or has voluntarily suspended business for more than 6 months; or
e: the credit union has fewer than 21 members; or
f: the credit union has ceased to exist; or
g: at the request of the credit union, there is good reason for the cancellation or suspension; or
h: there has been a failure by the credit union to comply with any direction of the Registrar given under this Act.
1A: Subsection (1) Part 2
a: section 92(2) to (9)
b: section 93(1)
c: section 94(1) to (4) and (6)
d: section 95
e: section 96
12: Associations of credit unions to be registered
1: Section 143(3) paragraph (e)
e: to provide any other services specified in subsection (4)
2: Section 143 subsection (4)
4: Specified services for the purposes of subsection (3)(e)
a: receiving deposits or subscriptions (other than subscriptions solely of an annual or periodic nature to be used for the Association's purposes) from its component members 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:
d: levying its component members the amount or amounts for purposes and in the manner specified in its rules:
e: providing, or administering any scheme providing, fidelity insurance, savings insurance, or loan protection insurance:
f: undertaking training or education programmes for its component members or members of credit unions or the public:
g: providing advisory services for its component members:
h: arranging, providing, or co-ordinating data processing or computer services for its component members. Transitional provision
13: Proceedings in relation to
section 135(4)(b) 138(c) 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) 140(1)(c)(ii)