1968-HKRS28-8-35_Part02 — Page 44

Winding-up of credit unions.

Application of

Companies

Ordinance.

(Cap. 32)

Credit union

may resolve

To be wound

up by the court.

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(2) The Registrar may, if he is satisfied, from an inquiry into the condition and affairs of a credit union, that any of its funds, securities or other property may have been misappropriated or improperly used or that the books, records or other documents do not show its true financial position, appoint an auditor to make such inquiry and audit of the affairs of the credit union as the Registrar considers necessary.

(3) The Registrar may, after an inquiry under this section, if he is satisfied that the continuance in business of such credit union would not be in the interests of its members or of the public, order the credit union to suspend business for such time as he may decide.

PART IX.

WINDING-UP.

55. No credit union shall be wound up otherwise than in accordance with this Part,

56. (1) Save as is otherwise provided in this Part, the pro- visions of the Companies Ordinance relating to the winding-up of a company shall, to the extent that such provisions are applicable in the case, apply to the winding-up of a credit union.

(2) For the purposes of such winding-up. the term "Regis- trar" in the Companies Ordinance shall have the meaning assigned to it by this Ordinance.

(3) The Colonial Secretary shall appoint a person to dis- charge the duties of Official Receiver in any such winding-up.

57. (1) Subject to this section, a credit union may→→ (a) by instrument in writing signed by three-quarters of its

members qualified to vote at its meetings; or

(b) by resolution passed by three-quarters of its members qualified to vote and voting at a special meeting called for the purpose.

resolve that it be wound up by the court.

(2) Every credit union shall give at least ten days prior notice in writing to the Registrar of its intention to issue any such instru- ment for the signature of its members or to bold any such meeting. as the case may be.

(3) Where a credit union resolves under subsection (1) that it be wound up by the court, a copy of the instrument or a record of the resolution, certified by the president and treasurer of the credit union, shall be delivered forthwith to the Registrar who shall, as soon as practicable thereafter, petition the court for ao order to wind up the credit union.

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58. (1) The Registrar may, if he thinks fit, petition the court for an order to wind up a credit union if he is satisfied that-

(a) the number of members qualified to vote at meetings of the credit union has been reduced to less than fifteen; (b) the registration of the credit union was obtained by fraud

or mistake;

(c) it is not a bona fide credit union:

(d) it exists for an illegal purpose;

(e) it is not carrying on business or is not in operation; or (f) it has wilfully, after notice from the Registrar, con-

travened any of the provisions of this Ordinance.

(2) The Registrar may, if he thinks fit, give notice to a credit union of his intention to petition the court under this section, setting out the grounds therefor and stating that, unless cause is shown to the contrary within a specified period, he will petition the court accordingly.

(3) The Registrar may, if he has given notice under sub- section (2), and unless in his opinion sufficient cause to the contrary is shown by the credit union within the specified period, proceed with the petition.

Petition by Registrar for winding-up in other cases.

59. Rule 22A of the Companies (Winding-up) Rules shall not Application of apply in respect of a petition under section 57 or 58.

60. Notwithstanding anything contained in section 58, a credit

union may be wound up by the court if

(a) the credit union is unable to pay its debts;

(b) the court is of opinion that it is just and equitable that

the credit union should be wound up.

61. In its application to the winding-up of a credit union subsection (1) of section 170 of the Companies Ordinance shall be so construed that a person shall be deemed to have ceased to be a member of the credit union, in respect of any share validly with- drawn or transferred before the commencement of the winding-up. with effect from the date of the receipt by the board of the notice of intention to withdraw or transfer such share.

PART X.

APPEALS.

62. (1) If the Registrar-

(a) refuses to register a credit union under section 5:

rule 22A of Companies (Winding-up) Rules

(Cap. 32. rub, ker.)

Winding-up for insolvency or on equitable grounds.

Qualification

as to contribu- tion in winding-up. (p. 31.)

Appeal against action of Registrar.