Financial Intermediaries Act 1996

In this section—

a liquidator or provisional liquidator of the society concerned; or

if the society concerned is under the management of an administrator—the administrator or a member of the society; or

a person authorised by the registrar to apply under subsection (3).

that is being wound-up; or

that is under the management of an administrator; or

the affairs of which are being investigated under part 11; or

for which a receiver or manager has been appointed, whether by the Supreme Court or under the powers contained in an instrument; or

that, within the meaning of subsection (2), has ceased to carry on business or is unable to pay its debts; or

that has entered into a compromise or scheme of arrangement with its creditors.

For subsection (1), a society has ceased to carry on business, or is unable to pay its debts, in the circumstances mentioned in section 217(2).

Subsection (4) applies if, on application by the registrar or a prescribed person, the Supreme Court is satisfied that a person who has taken part in the formation, promotion, administration, management or winding-up of a society to which this section applies—

has misapplied or kept or become liable or accountable for property of the society; or

has been guilty of negligence, default, breach of trust or breach of duty in relation to the society and that the society has suffered, or is likely to suffer, loss or damage as a result.

The Supreme Court may make 1 or both of the following orders—

an order directing the person to pay money or transfer property to the society;

an order directing the person to pay to the society the amount of the loss or damage.

This section applies to the receipt of an amount or property by an officer or former officer of the society, whether by way of salary or otherwise, that appears to the Supreme Court to have been unfair or unjust to the society or its members.

This section applies despite the fact that the person concerned may be criminally liable for the matters for which the order is sought.

If the Supreme Court is satisfied that an application was made under this section without reasonable cause, it may order the whole or a part of the costs incurred by the person against whom the order was sought to be paid by the applicant.