Section 4Part 3 — Rules and Certification
Rules
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It shall be lawful for the several shareholders of a society from time to time to assemble together, and by majorities of those present to make, ordain and constitute such proper and wholesome rules for the government and guidance of the same, as to the major part of the shareholders of the society so assembled together shall seem meet, so as such rules shall not be repugnant to the express provisions of this Law and the general laws of the Islands; and to inflict and impose such reasonable fines, penalties and forfeitures upon the several shareholders of the society as shall offend against any such rules, as the shareholders, by such majority present at any such meeting, may think fit; which fines, penalties and forfeitures shall be paid to and for the benefit of the general funds of the society; and also, from time to time, in the manner, and by the majorities required by this Law, or by the rules of such society for the time being, to alter and amend such rules as occasion shall require or render desirable, or annul, rescind or repeal the same, and to make new and other rules for the furtherance of the objects of the society.
The rules of every society shall set forth —
the name of the society and the chief office or place of meeting for the business of the society;
the purposes to which the funds of the society are to be applied, and the manner in which they are to be invested;
the manner of altering and rescinding the rules of the society, and of making additional rules;
the manner of appointing, remunerating and removing the board of directors or committee of management, auditors and other officers;
that the directors and senior officers are required to be fit and proper persons;
the manner of calling general and special meetings of the members;
provision for an annual or more frequent audit of accounts and inspection by the auditors of the mortgages and other securities belonging to the society;
whether disputes between the society and any of its members or any person claiming by or through any member or under the rules, shall be settled by reference to the Court, or to arbitration;
provision for the device, custody and use of the seal of the society, which shall in all cases bear the registered name thereof;
provision for the custody of the mortgage deeds and other securities belonging to the society;
the powers and duties of the board of directors or committee of management and other officers;
the fines and forfeitures to be imposed on members of the society;
the manner in which the society shall be terminated or dissolved;
the manner in which the stock or funds of the society is or are to be raised;
the terms upon which unadvanced subscription shares are to be issued, the manner in which contributions are to be paid to the society and withdrawn by the members, with tables, where applicable in the opinion of the Attorney General, showing the amount due by the society for principal and interest respectively;
the terms upon which paid-up shares, if any, are to be issued and withdrawn, with tables, where applicable in the opinion of the Attorney General, showing the amount due by the society for principal and interest respectively;
whether preferential shares are to be issued, and if so, within what limits;
the manner in which advances are to be made and repaid, the deductions, if any, for fire or life insurance premiums, and the conditions upon which a borrower can redeem the amount due from themselves before the expiration of the period for which the advance was made, with tables, where applicable in the opinion of the Attorney General, showing the amount due from the borrower, after each stipulated payment;
the manner in which losses are to be ascertained and provided for;
the manner in which membership is to cease; and
whether the society intends to borrow money, and if so, within what limits, not exceeding those prescribed by this Law.