Financial Intermediaries Act 1996

The registrar may, by written notice given to a society, place it under direction if the registrar considers that—

the society has contravened this Act 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 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.

The registrar may, by written notice given to the society, revoke the notice.

While the society is under direction, the registrar may do all things the registrar considers necessary to do under this Act.

Without limiting subsection (3), the registrar may—

order an audit of the society’s affairs at the society’s expense by an auditor chosen by the registrar; or

direct the society to change a practice the registrar considers is undesirable or unsound; or

direct the society to cease or limit the raising or lending of funds or the exercise of other powers; or

remove a director, or all the directors, of the society from office and appoint another director or other directors; or

remove an auditor of the society from office and appoint another auditor; or

give other directions about how the society’s affairs are, or are not, to be conducted.

A director or auditor appointed under this section holds office for the term directed by the registrar.

A society and any officer of the society who is in default each commit an offence if the society—

fails to comply with a direction given, or requirement made, under this section to the extent the society is capable of doing so, unless the society has a reasonable excuse; or

obstructs, hinders or resists the exercise of the registrar’s powers under this section, unless the society has a reasonable excuse.