14 & 15 GEORGE 5, CHAPTER 38.

area other than that in which its registered or head office is situate, by reason of the fact that among its members are persons for the time being resident in that other area, but (without prejudice to the right of a person who within one year after ceasing to be a member of a society becomes an employed contributor to be re-admitted as a member of that society) a society shall not admit as a member any person resident at the time of admission in any national area in respect of which the society is not an approved society.

(2) A society which has been approved for more than one national area may relinquish approval for any area other than that in which its registered office, or its head office, as the case may be, is situate, if it satisfies the Joint Committee that it fulfils one or other of the following conditions, that is to say

(a) that no person being a member of the society is resident in the national area in respect of which approval is proposed to be relinquished; or

(b) that any members who are so resident were at the time when they were admitted to membership of the society resident in a national area in which the society will remain an approved society.

For the purposes of this subsection, admission to membership of a society means admission to membership whether for the purposes of this Act or for any other purposes of the society, and in the case of a society which is a separate section of another society includes admission to membership of that other society.

(3) Where any members of a society reside in a national area in respect of which the society is not an approved society, the provisions of this Act relating to payments into and out of the National Health Insurance Funds for Scotland, Northern Ireland and Wales, shall apply as if those members resided in the national area in which the registered or head office of the society is situate, or in the case of a society with branches, in which the registered office of the branch of which they are members is situate:

Provided that the amount to be contributed out of moneys provided by Parliament towards the benefits (including the cost of administration of benefits) of any such members as aforesaid shall, whatever the situation of the registered or head office of the society or the office of the branch, be paid, in the case of such of those members as are actually resident in Northern Ireland out of moneys provided by the Parliament of Northern Ireland, and in the case of such of those persons as are not actually resident in Northern Ireland out of moneys provided by the Parliament of the United Kingdom.

This subsection shall apply as respects the members of a branch of a society resident in a national area other than that in which the office of the branch is situate, notwithstanding that the society is approved for that area, unless the Joint Committee on the application of the society otherwise determine, but no branch to which the said provisions apply shall admit as a member of the branch any person resident at the time of admission in any national area other than that in which the office of the branch is situate.

(4) Where at the commencement of this Act those members of any society, being a society which has among its members persons resident in any two or more national areas, who are resident in a national area other than that in which the registered or head office of the society is situate, are for the purposes of the provisions of this Act relating to valuations, surpluses, deficiencies and transfers, treated as if they formed a separate society, such members of that society as are from time to time resident in that other national area shall continue to be so treated.

31. SPECIAL PROVISIONS AS TO APPROVAL OF EMPLOYERS' PROVIDENT FUNDS, &c.-(1) Where a society consists of persons entitled to rights in a superannuation or other provident fund established for the benefit of persons employed by one or more employers, the society may, subject as hereinafter provided, be approved under this Act, notwithstanding that the employer is entitled to representation on the committee or other body administering the fund, if the employer's representation does not exceed one quarter of the total number of the body and if the employer, in addition to the employer's contributions payable by him under this Act, is responsible

NATIONAL HEALTH INSURANCE ACT, 1924.

for the solvency of the fund or for the benefits payable thereout, or is liable to pay a substantial part of, to make substantial contributions to, or substantially to supplement, the benefits payable out of the fund:

Provided that no such society as aforesaid shall be approved

(a) unless its constitution provides that so far as concerns benefits the society may not refuse to allow a member to transfer to another approved society or to allow a member who is discharged from or leaves the employment of the employer and is unable to obtain admission to another approved society on account of the state of his health to continue a member, and that the election of the members of the committee of management (other than the employer's representatives) shall be by ballot; or (b) if the employer makes membership of the society a condition of employment. (2) Where for the purpose of enabling any such society as aforesaid to become an approved society it is necessary to make any alteration in the existing rules or constitution of the society which it is not competent for the society under its existing constitution to make, a scheme for the purpose may be submitted for the approval of the Minister, and where such a scheme has been approved by the Minister, the Act or deed constituting the society shall have effect subject to the provisions of the scheme, but the Minister shall not approve any such scheme unless he is satisfied that the members of the society have been given an opportunity of voting by ballot thereon and that the scheme makes proper provision for safeguarding existing rights and interests.

32. POWER TO REGISTER UNDER FRIENDLY SOCIETIES ACT, 1896.-Any society for the purpose of carrying on business under this Act, and whether for that purpose alone or for that purpose in conjunction with any purpose mentioned in subsection (1) of section eight of the Friendly Societies Act, 1896 (59 & 60 Vict. c. 25), may be registered as a friendly society under that Act, notwithstanding that the contributions under this Act are not voluntary.

33. APPLICATION OF ACTS OF PARLIAMENT TO APPROVED SOCIETIES AND SECTIONS. -(1) Except in so far as may be inconsistent with this Act, any business transacted under this Act by an approved society shall be treated as part of the ordinary business transacted by societies of the class to which that society belongs, and any enactment applying to the society in relation to the transaction of such ordinary business shall apply accordingly in relation to the business transacted by the society under this Act. (2) This section shall apply to an approved society which is a separate section of another body, subject to the necessary adaptation.

34. RULES FOR GOVERNMENT OF APPROVED SOCIETIES.-(1) Every approved society shall, as respects the administration of the affairs of the society under this Act, make proper provision by rules to the satisfaction of the Minister for the government of the society, including, in the case of a society with branches, provision for the following matters

(a) the government of the society and its branches;

(b) the determination of disputes arising between the society and any branch, or between one branch and another;

(c) the administration of benefits by the branches as respects insured persons who are members of those branches;

(d) the keeping of proper books of account by the branches in any case where separate accounts are usually kept by those branches;

(e) depriving of or suspending from the right of administering benefits any branch which is guilty of maladministration of benefits, or is convicted of any offence under any Act, and for providing for the administration of benefits in such a case by the society or otherwise.

(2) Every approved society and every branch thereof shall comply with any regulations as to the place in which meetings are to be held, and regulations may provide for the use for such meetings, with or without payment, of any offices or other buildings under the control of a Government department (including offices or buildings occupied by or in connection with an employment exchange) or belonging

14 & 15 GEORGE 5, CHAPTER 38.

to or under the management of a local authority, but subject to the consent of the Government department or the local authority concerned.

(3) Where under any Act regulating the constitution of an approved society the rules of the society are required to be registered, any rules approved under this section by the Minister shall forthwith be registered, but until so registered shall have effect as if they had been duly registered.

35. SECURITY TO BE GIVEN BY APPROVED SOCIETIES.-(1) Every approved society and every society desirous of becoming an approved society shall give such security as the Minister may consider sufficient to provide against any malversation or misappropriation by officers of the society of any funds coming into the hands of the society under this Act, and in determining the amount of the security to be required the Minister shall have regard to the amount of the funds so coming into the hands of the society:

Provided that no security shall be required from any society which proves to the Minister that the only funds coming into the hands of the society under this Act are such funds as are required for reimbursing to the society sums previously expended by the society under this Act.

(2) In the case of an approved society with branches having insured persons among their members, security shall be given by the society in respect of each branch. (3) The Minister may from time to time vary the amount of security to be required from an approved society as may be thought proper, and where security is given by way of deposit of securities, the society which made the deposit may, with the consent of the Minister, substitute other securities for the securities for the time being deposited.

(4) Any dividends or interest arising from securities deposited by an approved society under this section shall be paid or credited to the society.

36. PROVISIONS AGAINST MALADMINISTRATION.-(1) For the purpose of providing against maladministration by approved societies and their officers, regulations may be made for applying to approved societies and to branches of approved societies, and to officers and members thereof, the provisions of sections thirty-five and fiftyfive of the Friendly Societies Act, 1896, and any of the other provisions of that Act, relating to offences, penalties and legal proceedings, and any such regulations may provide that proceedings for any offence under subsection (3) of section eightyseven of the said Act, as applied by the regulations, may be brought within two years from the date of the commission of the alleged offence.

(2) Any of the said provisions may be applied with or without any adaptation or modification, so, however, that the penalty for offences, other than fraud, false declarations, misappropriation or falsification, shall not be made to exceed a fine of five pounds.

37. DISSOLUTION OF SOCIETIES.-(1) An approved society shall not be dissolved without the sanction of the Minister.

(2) Provision may be made by regulations for the manner and conditions in and upon which the dissolution of approved societies may be carried into effect, and in connection with that purpose for

(a) the valuation of the assets and liabilities of dissolved societies under this Act; and

(b) the reduction (either permanently or temporarily) in the event of a deficiency being disclosed, of the rates of benefits payable to members and the periods during which those benefits or any of them are payable; and

(c) the establishment of a special fund to which contributions of members are to be paid, and out of which benefits are to be paid; and

(d) the application, subject to the prescribed modifications, adaptations and exceptions, to the special fund and the members thereof, of the provisions of this Act relating to approved societies and to membership of and transfer to and from approved societies.

(3) This section shall have effect notwithstanding anything contained in any Act regulating the constitution of the society.

NATIONAL HEALTH INSURANCE ACT, 1924.

38. WITHDRAWAL OF APPROVAL.-(1) Where an approved society fails to comply with any of the provisions or requirements of this Act relating to approved societies, or where such a society or the body of which the society forms a separate section is convicted of an offence under any Act regulating its constitution or under any other Act, the Minister may withdraw approval, and thereupon the society shall cease to be an approved society, and the Minister shall make such provision as he may consider necessary with respect to members of the society who are insured persons. (2) Provision may be made by regulations for authorising, in cases where it appears expedient in the interest of the members of the society to do so, the withdrawal of approval from a society on account of maladministration of its affairs under this Act.

(3) In case of the maladministration of the affairs of any branch of an approved society, whether a branch which is separately registered or a branch which has been recognised by the Minister under this Act, the Minister may declare that the branch shall cease to be a branch for the purposes of this Act.

39. AMALGAMATION, TRANSFER OF ENGAGEMENTS, &C. OF SOCIETIES.-Provision may be made by regulations as to the manner in and the conditions on which the following matters may be carried into effect :

(a) The amalgamation for the purposes of this Act of any two or more approved societies, or of an approved society with a society which is not an approved society, or of any two or more branches of an approved society:

(b) The transfer by an approved society of its engagements under this Act, or of such of those engagements as relate to members resident in any particular national area or as relate to men only or women only, to any other approved society or to any two or more other approved societies which may undertake to fulfil those engagements:

(c) The transfer of the engagements of a branch of an approved society or of such of those engagements as relate to men only or to women only, to any other branch or to any two or more other branches, of that society or of any other society, or to that society or to any other society or to any two or more other societies:

(d) The financial adjustments to be made on any such amalgamation or transfer. 40. SECESSIONS, EXPULSIONS, AND ESTABLISHMENT AND DISSOLUTION BRANCHES. (1) Provision may be made by regulations

OF

(a) With respect to the manner and conditions in and upon which the secession, expulsion or dissolution of a branch of an approved society in respect of its business under this Act may be carried into effect, and for the financial adjustments to be made on any such secession, expulsion or dissolution: (b) For enabling or requiring an approved society with branches to establish, subject to prescribed conditions and in the prescribed manner, a central fund for the purpose of administering the benefits of any of the members of any branch which may secede or be dissolved or expelled or cease to be a branch for the purposes of this Act, and with respect to payments into and out of any fund so established and with respect to the transfer of any persons for whose benefits the fund is liable to any other branch of the society:

(c) For enabling an approved society, not being an approved society with. branches, to establish branches, and to apportion among the branches, subject to the prescribed conditions, all or any of the funds of the society. (2) This section shall have effect notwithstanding anything contained in any Act regulating the constitution of the society.

Membership of Approved Societies.

41. ADMISSION OF INSURED PERSONS TO MEMBERSHIP IN APPROVED SOCIETIES. (1) Subject to the provisions of this Act, any insured person and any person entitled to become an insured person may apply to an approved society for membership.

14 & 15 GEORGE 5, CHAPTER 38.

(2) An approved society shall be entitled, in accordance with its rules, to admit or reject any person so applying for membership, or to expel any of its members being insured persons:

Provided that no such application shall be refused solely on the ground of the age of the applicant.

(3) If any approved society, to whom or to whose duly appointed agent, being a person receiving applications for admission to the society, any person not being a member of any approved society delivers an application in proper form for admission to the society, does not within a period of three months after the date on which the application is so delivered deliver or send by post to that person a notification that his application has been rejected, that person shall be deemed to have been admitted a member of the society as on the date of delivery of the application.

42. PROHIBITION AGAINST DOUBLE INSURANCE.-A person shall not be, or attempt to become, a member for the purposes of this Act of more than one approved society at the same time, or, being a deposit contributor, to become at the same time a member for the purposes of this Act of an approved society, but nothing in this Act shall prevent any person who is a member of an approved society under this Act becoming a member of the same or any other society independently of this Act, or prevent a deposit contributor becoming a member of any society independently of this Act, or affect the right of an approved society to reject or expel from membership any person not being an insured person, or the rights or liabilities of an approved society or of any member thereof arising otherwise than under this Act; and, subject to the provisions of this Act, all rules made by a society which becomes an approved society or any branch thereof shall remain and be of the same force and effect as though this Act had not been passed.

43. TERMINATION OF MEMBERSHIP OF APPROVED SOCIETIES.-(1) Subject to the provisions of this Act, a member of an approved society shall be entitled, on giving the prescribed notice and on complying with the prescribed conditions, to terminate his membership of the society and become a member of another society or a deposit contributor:

Provided that

(a) A member of an approved society shall not be entitled to terminate his membership except as at the prescribed times, and the prescribed times shall be so fixed as to give opportunities for terminating membership at intervals not greater than twenty-seven weeks:

(b) If an approved society, within thirty days after receiving notice from a member that he desires to terminate his membership, gives notice to the Minister and to the member that it objects to his so doing and proves to the satisfaction of the Minister that the society would be prejudiced in its administration by the retirement of the member, the Minister may, if in the circumstances of the case and having regard to the interests of the insured person he thinks it proper so to do, declare the notice cancelled, and in such case the member shall remain a member of the society as if no notice had been given:

(c) Subject to the consent of the Minister an approved society may, during any period not exceeding one year from the date on which the result of a valuation is declared, suspend, except in any specified circumstances, the right of insured persons who are members of the society to terminate their membership:

(d) If it appears to the Minister at any time as regards an approved society that, having regard to the interests of the society as a whole, it is not desirable that individual members of the society should be allowed to terminate their membership and that the circumstances are such that the engagements of the society ought to be transferred to another society, he may declare the right of termination of membership to be suspended, and while any such declaration is in force no person shall, except with the consent of the Minister, terminate his membership of that society: