Financial Intermediaries Act 1996

The registrar may, by written notice given to a society, direct it to transfer its engagements to another society if the board of the transferee society has, by resolution, consented to the proposed transfer.

The registrar must give a copy of the direction to the transferee society.

The direction must state that the transferor society must surrender its certificate of incorporation to the registrar or satisfy the registrar that its certificate has been lost or destroyed.

The registrar may direct a society to transfer its engagements only if—

the registrar considers that—

the society has contravened this Act or the society’s rules and, after being given written notice of the contravention by the registrar, has allowed the contravention to continue or has again contravened this Act or the rules; or

the society is trading unprofitably or has an accumulated deficit in its profit and loss appropriation account; or

the society’s affairs are being conducted in an improper or financially unsound way; or

after making inquiries about 1 or both of the societies that the registrar considers appropriate, the registrar is satisfied that it is in the interest of members or creditors of the society that is to be directed to transfer its engagements; or

the registrar has certified, for the society, that any of the events mentioned in section 183(1)(a), (b) or (f) has happened.