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INDUSTRIAL AND PROVIDENT SOCIETIES ACT (NORTHERN IRELAND) 1969 - SECT 40

Provisions as to resolutions relating to appointment and removal of auditors.

40.(1) Subject to subsection (5), a resolution at a general meeting of a
registered society

(a)appointing another person as auditor in place of a retiring qualified
auditor, or

(b)providing expressly that a retiring qualified auditor shall not be
re-appointed,

(2) Where notice of the intention to move any such resolution has been given
under subsection (1) to a society which is required by its rules to give
notice to its members of the meeting at which the resolution is to be moved,
the society shall if it is practicable to do so give them notice of the
resolution at the same time and in the same manner as it gives notice of the
meeting.

(3) Where notice of the intention to move any such resolution has been given
to any society under subsection (1), and that society does not give notice of
the resolution under subsection (2), it shall give notice of the resolution to
its members not less than fourteen days before the meeting at which the
resolution is to be moved, either by advertisement in a newspaper having an
appropriate circulation or in any other way allowed by the rules of the
society.

(4) Where

(a)for any of the reasons mentioned in section 39(1) an intended resolution to
appoint some person or persons in place of a retiring qualified auditor cannot
be proceeded with at the meeting, and

(b)by the rules of the society an auditor can only be appointed by a
resolution passed at a general meeting after notice of the intended resolution
has been given to the society before the meeting,

(5) On receipt by a society of notice given under subsection (1) of an
intended resolution, it shall forthwith send a copy of the notice to the
retiring auditor.

(6) On receipt of a copy of such a notice, the retiring auditor may at any
time before the date of the general meeting make representation in writing to
the society (not exceeding a reasonable length) with respect to the intended
resolution, and, without prejudice to the preceding provision, the retiring
auditor may

(a)notify the society that he intends to make such representations, and

(b)request that notice of his intention, or of any such representations made
by him and received by the society before notice of the intended resolution is
given to its members, shall be given to members of the society.

(7) Subject to subsection (8), a society which receives representations or a
notification of intended representations under subsection (6) before the date
when notice of the intended resolution is required by subsection (2) or
subsection (3) (as the case may be) to be given to its members shall

(a)in any notice of the resolution given to its members, state that it has
received those representations or that notification (as the case may be),

(b)in any such notice, state that any member may receive on demand made before
the date of the general meeting a copy of any representations which have been
or may be received by the society before that date, and

(c)send a copy of any representations received by the society before the date
of the meeting to any member on demand made before that date;

(8) Copies of any such representations need not be sent out, and the
representations need not be read out at the meeting if, on the application
either of the society or of any other person, the High Court is satisfied that
the rights conferred by this section are being abused to secure needless
publicity for defamatory matter; and the Court may order the costs of the
society on an application under this section to be paid, in whole or in part,
by the auditor, notwithstanding that he is not a party to the application.

(9) Any provision in this section which requires notice to be given to the
members of a society or confers any right upon a member (as the case may be)
shall be construed in the case of a meeting of delegates appointed by members
as requiring the notice to be given to the delegates so appointed or
conferring the right upon a delegate (as the case may be).

© 1969 Crown Copyright

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