Clause 13

A credit society that intends to stop providing every financial service carried on by the society, and does not intend to provide any new financial service, must apply to the Registrar, in such manner as may be prescribed, for the Registrar’s written approval to become a non‑credit society.(2) An application under subsection (1) must be accompanied —

by the prescribed application fee (if any); and

by such documents and information as the Registrar requires in relation to the application.(3) The Registrar may grant the written approval if the Registrar is satisfied that all of the following requirements will be met upon the conversion of the credit society to a non‑credit society:

the object of the society is to provide any service other than any financial service;

the provision of the service mentioned in paragraph (a) is in the interests of the members of the society;

there is available sufficient capital for the provision of the service mentioned in paragraph (a) by the society;

there are available officers who are capable of —

directing and managing the provision of the service mentioned in paragraph (a) by the society; and

keeping the records and accounts of the society.(4) The Registrar must not grant the written approval unless a resolution for the conversion of the credit society to a non‑credit society has been passed at a general meeting of the credit society by not less than 75% of the members of the society present and voting.(5) The Registrar may grant the written approval subject to such terms and conditions as the Registrar thinks fit.(6) Where the Registrar grants written approval for a credit society to become a non‑credit society, the Registrar must notify the society in writing that its registration as a credit society is cancelled, starting on a date specified in the notice.(7) A credit society that is granted written approval to become a non‑credit society —

must stop doing all of the following things, starting on such date as the Registrar may determine (being a date that may be different from the date mentioned in subsection (6)):

make any new loan to any person;

allow any new credit to any person;

receive any new deposit from any person; and

must return, to every person from whom the society had received a deposit in accordance with section 68(2) while the society was a credit society, the deposit made by the person (including any interest accrued on the deposit) within 12 months after the date on which the registration of the society as a credit society is cancelled, or such shorter or longer period as the Registrar may determine in any particular case.(8) A society that becomes a non‑credit society may continue to receive repayments of existing loans made and credit allowed in accordance with section 67 while the society was a credit society.(9) A credit society that is aggrieved by a decision by the Registrar to refuse written approval for the credit society to become a non‑credit society may, within 2 months after the date of the decision, appeal in writing to the Minister, whose decision is final.(10) Any society that contravenes subsection (7) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for each day or part of a day during which the offence continues after conviction.Modifying of terms and conditions of written approval16BB.—

The Registrar may modify the terms and conditions of a written approval under section 16A(5) or 16BA(3).(2) The Registrar must, before modifying the terms and conditions of a written approval under section 16A(5) or 16BA(3), give to the society concerned —

notice in writing of the Registrar’s intention to do so; and

an opportunity to make written representations, within the time specified in the notice (being at least 14 days after the date the notice is served on the society), as to why the term or condition should not be modified.(3) The Registrar must notify the society in writing of the Registrar’s decision whether to modify the terms and conditions of a written approval under section 16A(5) or 16BA(3).(4) Where the Registrar decides to modify the terms and conditions of a written approval under section 16A(5) or 16BA(3), the written notice in subsection (3) must specify a date (at least 14 days after the date of the notice) when the modification is to take effect.(5) A society that is aggrieved by the Registrar’s decision to modify the terms and conditions of a written approval under section 16A(5) or 16BA(3) may, within 14 days after the decision or such longer period as the Minister may allow in any particular case, appeal in writing to the Minister, whose decision is final.(6) If the society appeals to the Minister under subsection (5), the decision appealed against does not take effect unless the decision is confirmed by the Minister, or the appeal is withdrawn or is for any reason dismissed by the Minister.(7) In this section, “modify”, in relation to the terms and conditions of a written approval under section 16A(5) or 16BA(3), includes deleting or varying and substituting such a term or condition, and adding a term or condition of such a written approval.”.