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23 1978

INDUSTRIAL AND PROVIDENT SOCIETIES (AMENDMENT) ACT, 1978

PART III

Credit Unions

Construction of Part III.

20. —References in this Part to a credit union shall include references to a society to which, by virtue of section 3 (4) of the Credit Union Act, 1966 , section 3 (3) of that Act does not apply.

Inspection of books and other documents of a credit union.

21. —(1) In this section “an authorised person” means any person or any body of credit unions authorised by the Registrar for the purpose of this section.

(2) An authorised person may, at the request of the Registrar, and on production of his authorisation to any person concerned, at all reasonable times inspect and take copies of or extracts from accounts, deeds, books, records or other documents relating to the business of a credit union, and for any of those purposes may enter any premises at which any such documents are kept.

(3) An authorised person who is carrying out an inspection under this section in relation to a credit union may, with the approval of the Registrar, carry out a similar inspection in relation to any other society or body corporate which is or has at any relevant time been associated with the credit union, and for that purpose may exercise, in relation to the associated society or body corporate, any power conferred by subsection (2).

(4) A person who has in his power, possession or procurement any of the accounts, deeds, books, records or other documents of a credit union referred to in subsection (2) or a society or other body corporate referred to in subsection (3) shall produce them at the request of an authorised person, permit the authorised person to inspect and take copies of or extracts from them and give him any information which he may reasonably require regarding any entries in them.

(5) Where an inspection is carried out under this section by an authorised person who is a body of credit unions, a report of the inspection shall be made to the Registrar at his request.

Registrar's power to investigate a credit union's affairs.

22. —(1) Whenever it appears to the Registrar to be expedient to do so in the interest of the orderly and proper regulation of the business of a credit union, the Registrar may appoint one or more than one inspector to investigate and report to him, in such manner as he may direct, on the affairs of the credit union, and for that purpose such an inspector may require the production of all or any of the books, accounts, deeds, records or other documents of the credit union and may examine on oath its officers, members and agents in relation to its business, and may administer an oath to any such person.

(2) Where an inspector appointed under this section to investigate the affairs of a credit union thinks it necessary for the purpose of his investigation to investigate also the affairs of any other society or body corporate which is or has at any relevant time been associated with the credit union, he may, with the approval of the Registrar, do so, and shall report to the Registrar on the affairs of the associated society or body corporate to such extent as he thinks the results of his second or further investigation are relevant to his investigation of the affairs of the credit union.

(3) All expenses of or incidental to an investigation under this section shall be defrayed out of the funds of the credit union or by the members (or former members) or officers of the credit union, in such proportions as the Registrar shall direct.

Provisions supplemental to section 22.

23. —(1) An officer, member or agent of a credit union the affairs of which are being investigated under section 22 shall produce to the inspector concerned all books, accounts, deeds, records or other documents of or relating to the society which are in the power, possession or procurement of such a person and otherwise give to the inspector concerned all assistance in connection with the investigation which such a person is reasonably able to give.

(2) If any person who is an officer, member or agent of the credit union refuses to answer any question put to him by the inspector with respect to the affairs of the credit union, the person shall be guilty of an offence under section 28.

(3) Subject to subsection (4), if the inspector thinks it necessary for the purpose of his investigation that a person whom he has no power to examine on oath should be so examined, he may apply to the Court and the Court may, if it thinks fit, order that person to attend and be examined on oath before it on any matter relevant to the investigation, and on any such examination—

(a) the inspector may take part therein by solicitor or counsel;

(b) the Court may put such questions to the person examined as it thinks fit;

(c) the person examined shall answer all such questions as the Court may put or allow to be put to him, but may at his own cost employ a solicitor (with or without counsel) who shall be at liberty to put to him such questions as the Court may think fit for the purpose of enabling him to explain or qualify any answers given by him;

and notes of the examination shall be taken down in writing, and shall be read over to or by, and signed by, the person examined and may thereafter be used in evidence against him.

(4) Notwithstanding anything in subsection (3) (c), the Court may allow the person examined such costs as, in its discretion, it may think fit, and any costs so allowed shall be paid as part of the expenses of the investigation.

(5) The Registrar shall forward to the Minister and to the registered office of the credit union a copy of each report of an investigation under section 22 and shall also furnish a copy to the Court where an application under subsection (3) is made to the Court.

(6) The Registrar may, if he thinks fit, cause the report to be printed and published.

(7) The Minister may lay the report under subsection (5) before each House of the Oireachtas and such publication shall be privileged.

(8) (a) Where it appears to the Registrar after consideration of a report under section 22 that proceedings ought in the public interest to be brought by a credit union for damages, in respect of any fraud, misfeasance or other misconduct in connection with the promotion or formation of the credit union or the carrying on of the business of the credit union, for the recovery of any property misapplied or wrongfully retained, he may bring proceedings for that purpose in the name of the credit union.

(b) The Minister may indemnify a credit union against any costs or expenses incurred by it in or in connection with any proceedings brought under paragraph (a).

(9) A copy of any report of an inspector appointed under section 22 shall be admissible in any legal proceedings as evidence of the opinion of the inspector in relation to any matter contained in the report.

(10) Nothing in this section shall require disclosure to the Registrar or to an inspector appointed by him—

(a) by a solicitor of any privileged communication made to him in that capacity, or

(b) by bankers of any information as to the affairs of any customer other than the credit union or other body corporate the affairs of which are being investigated.

(11) Where proceedings are instituted under this section, nothing in this section shall require any person who has acted as solicitor for a credit union to disclose any privileged communications made to him otherwise than as such solicitor.

(12) Where under section 22 the affairs of a society (other than the credit union mentioned in that section) or of any body corporate are being investigated, references in this section to officers, members or agents of a credit union shall be construed as references to officers, members or agents of that society or body corporate.

(13) (a) Where it appears to the Registrar that any person has, in relation to a credit union the affairs of which have been investigated under section 22, been guilty of any offence for which he is criminally liable, the Registrar shall refer the matter to the Director of Public Prosecutions.

(b) Where the Director of Public Prosecutions institutes proceedings consequent on the receipt by him of a report under paragraph (a), it shall be the duty of all officers, members and agents of the credit union (other than a defendant in the proceedings) to give him all assistance in connection with the prosecution which they are reasonably able to give.

Registrar's power to call special meeting of a credit union.

24. —(1) Whenever, after an inspection under section 21 or after an investigation under section 22, the Registrar is of the opinion that it is necessary to do so in the interest of the orderly and proper regulation of the business of a credit union, he may cause a special meeting of the credit union to be held.

(2) A meeting under this section shall have all the powers of a special meeting called in accordance with the rules of the credit union concerned.

(3) All expenses of or incidental to the meeting shall be defrayed out of the funds of the credit union, or by the members (or former members) or officers of the credit union, in such proportions as the Registrar shall direct.

(4) (a) The Registrar may give such directions as he thinks fit in relation to the calling, holding and conduct of a meeting held under this section (including the time and place of the meeting and what matters are to be discussed and determined at the meeting).

(b) The Registrar may appoint a person to be chairman at a meeting held under this section.

(c) The power of a meeting held under this section to appoint its own chairman shall be exercisable in default of such an appointment by the Registrar.

Registrar's power to appoint person as director of a credit union.

25. —(1) Where the Registrar is of the opinion, after an inspection under section 21 or after an investigation under section 22, that it is necessary to do so in the interest of the orderly and proper regulation of the business of a credit union, he may appoint a person to be a member of the board of directors of the credit union.

(2) Without prejudice to the generality of subsection (1), the Registrar shall, before exercising a power conferred on him by this section, have regard to any financial transactions which have been undertaken, or are in the course of being undertaken, by the credit union and which, in the Registrar's opinion, are likely to be prejudicial to the interest of the orderly and proper regulation of the business of the credit union.

(3) A person appointed under this section shall hold office for such period and on such terms as the Registrar may specify and, on the expiry of such a period, the Registrar may renew the appointment for such period or periods as he may specify.

(4) All expenses of and incidental to the appointment of a person under this section, including the remuneration of such a person, shall be defrayed out of the funds of the credit union, or by the members (or former members) or officers of the credit union, in such proportions as the Registrar shall direct.

(5) An officer, member or agent of a credit union shall at all times give all information required by a person appointed under this section for the full and satisfactory performance of his duties.

(6) A person appointed under this section shall report to the Registrar, in such manner and with such frequency as the Registrar may direct, on the affairs of the credit union.

Registrar's power to direct suspension of acceptance of deposits, loans or shares and of payments.

26. —(1) Where the Registrar is of the opinion that a credit union is unable, or is likely to become unable, to meet its obligations to creditors, or that it is expedient in the interest of the orderly and proper regulation of the business of a credit union, he may direct the credit union in writing to suspend, for such period not exceeding two months as shall be specified in the direction, the acceptance of any subscriptions for shares or of any deposits or loans not authorised by him or the making of payments not so authorised or both the acceptance of such subscriptions, deposits or loans and the making of such payments.

(2) A direction under this section shall have effect in accordance with its terms but, notwithstanding such a direction, a credit union may borrow money from a bank or from an officer of the credit union if the Registrar consents in writing to the borrowing.

(3) The Registrar may apply to the Court for an order confirming a direction under this section or for an order confirming and extending the period of operation of such a direction for such time as the Court may, having regard to all the circumstances, consider appropriate, and the Court may grant such an order.

(4) The Court may, in addition to or in lieu of making an order under subsection (3), make such other order in relation to the matter as may appear to it to be necessary.

(5) Where an order is made under subsection (3) confirming and extending the period of operation of a direction under this section, the credit union shall, for the purpose of section 33 of the Credit Union Act, 1966 , be deemed to be unable to pay its debts.

(6) The whole or part of proceedings under this section or of an appeal in relation thereto may be heard in chambers.

(7) A credit union to which a direction is given under this section may apply to the Court for an order setting aside the direction and the Court may grant such an order.

(8) A direction under this section may be amended or revoked at any time by the Registrar.

(9) The Registrar may, if he thinks fit, cause to be published in Iris Oifigiúil, or in such other way as appears to him expedient for informing the public, notice of a direction under this section and of its amendment or revocation.

Registrar's powers consequential on section 26.

27. —(1) This section applies in a case where the Registrar has made a direction under section 26 and the direction has not been revoked.

(2) It shall be the duty of the credit union concerned to make reasonable arrangements for using the funds of the credit union to meet applications (duly made in accordance with the rules of the credit union by depositors or shareholders in the credit union) for repayment of moneys deposited or subscribed by them.

(3) Where it appears to the Registrar that the credit union concerned has been applying an undue proportion of the funds of the credit union in making loans, in preference to making such arrangements as are mentioned in subsection (2) he may, after giving notice to the credit union and affording it an opportunity of making representations, make an application under section 33 of the Credit Union Act, 1966 , for the winding up of the credit union.