CO-OPERATIVE HOUSING SOCIETIES ACT 1958 - SECT 49A Appointment of administrator

CO-OPERATIVE HOUSING SOCIETIES ACT 1958 - SECT 49A

    (1)     The registrar, with the approval of the Minister, may appoint an administrator to conduct the affairs of a society as provided in this section.

    (2)     The registrar must not appoint an administrator unless—

        (a)     the registrar has certified that any one or more of the events specified in subsection (17) has occurred; or

        (b)     the registrar is satisfied that it is in the interests of the public or of members or creditors of the society that the affairs of the society should be conducted by an administrator.

    (3)     The registrar must not certify under subsection (2) unless the ground or matter to be certified has been proved to his or her satisfaction.

    (4)     Upon the appointment of an administrator of a society—

        (a)     the directors of the society cease to hold office; and

        (b)     all contracts of employment with, or for the provision of secretarial or administrative services to, the society are voidable by the administrator.

    (5)     An administrator of a society—

        (a)     has the powers, authorities, duties and functions of the board of directors of the society including, without limiting the generality of the foregoing, the board of directors' powers of delegation; and

        (b)     must observe any relevant law, regulation or industrial award in respect of the giving of notice and the provision of termination or other entitlements to employees.

    (6)     Except as provided by subsection (10), no appointment or election of a director of the society may be made while the administrator is in office.

    (7)     An administrator holds office until his or her appointment is revoked.

    (8)     Upon revocation of his or her appointment, an administrator must prepare and submit forthwith a report to the registrar showing how the administration was conducted and, for that purpose, an administrator has access to the records and documents of the society.

    (9)     Upon completion of the report and accounting fully in respect of the administration to the satisfaction of the registrar, the administrator is released from any further liability to account in respect of the administration, other than on account of fraud or dishonesty.

    (10)     Before revoking the appointment of an administrator of a society, the registrar must—

        (a)     appoint another administrator; or

        (b)     ensure that directors of the society have been elected in accordance with the rules, at a meeting convened by the administrator in accordance with those rules; or

        (c)     appoint directors of the society; or

        (d)     appoint a liquidator of the society.

    (11)     Directors elected under subsection (10)(b) or appointed under subsection (10)(c)—

        (a)     take office upon revocation of the appointment of the administrator; and

        (b)     in the case of appointed directors, hold office until the annual general meeting of the society that next succeeds revocation of that appointment.

    (12)     The expenses of and incidental to the conduct of the affairs of a society by an administrator are payable from the funds of the society.

    (13)     The remuneration of an administrator who is not a servant of the Crown is an expense referred to in subsection (12) and is to be fixed by the registrar.

    (14)     If an administrator appointed under this section is a servant of the Crown, the reimbursement of the Crown in an amount certified by the registrar in respect of the remuneration of its servant is an expense referred to in subsection (12) and is recoverable as a debt due to the Crown.

    (15)     Without prejudice to his or her ability to account under subsection (9), an administrator of a society is not liable for any loss sustained by the society or by any other person during his or her term of office in respect of any act or omission by him or her in the management of the society or otherwise in relation to the society unless the loss was due to his or her—

        (a)     misconduct or gross negligence; or

        (b)     his or her failure to comply with this Act or the rules to the extent the rules are not inconsistent with this Act.

    (16)     The registrar is not liable for any loss sustained by a society or by any other person during the term of office of an administrator, in respect of any act or omission of the administrator in the management of the society or otherwise in relation to his or her conduct as administrator, whether or not the administrator is so liable.

    (17)     The events referred to in subsection (2)(a) are as follows:

        (a)     That the number of members of a society is reduced to less than 3;

        (b)     That the society has not commenced business within a year of registration or has suspended business for a period of more than six months;

        (c)     That the period, if any, fixed for the duration of the society by its rules has expired;

        (d)     That an event to be specified in the certificate has occurred upon the occurrence of which the regulations or the rules provide that the society is to be wound up;

        (e)     That the society has, after notice by the registrar of any breach of, or non-compliance with, this Act or the rules failed, within the time specified in the notice, to remedy the breach or has committed any breach of a kind specified in the notice;

        (f)     That there are, and have been for a period of one month immediately before the date of the certificate, insufficient directors of the society to constitute a quorum as provided by the rules.

No. 6138 s. 50.