§ (1) Every approved society and every branch of an approved society must—
- (a) Keep its books and accounts under this part of this Act separate from
602 all other books and accounts of the society or branch, and in such form as may be prescribed by the Insurance Commissioners, and, when required, submit them to audit by auditors to be appointed by the Treasury; - (b) Submit to have its assets and liabilities under this part of this Act valued in accordance with the provisions of this part of this Act;
- (c) In the event of a surplus or deficiency being shown upon any such valuation, comply with the provisions relating to surpluses and deficiencies hereinafter contained;
- (d) Render such returns as the Insurance Commissioners may prescribe.
§ (2) The provisions of this part of this Act relating to accounts audit, valuation, and returns shall as respects the transactions of any approved society or branch thereof under this part of this Act be substituted for such of the provisions of any Act regulating the constitution of the society or branch as deal with the like matters.
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Amendments made: At the end of paragraph (d), Sub-section (1), insert the following words:—
(2) Regulations made under this section shall provide for a separate account being kept showing the amount expended on administration, and for limiting the amount which may be carried to that account out of the contributions under this part of this Act, and for requiring any deficiency in such account (if not otherwise defrayed) to be met forthwith by a special levy.
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After Sub-section (2) insert the words:—
(3) In the case of a society or branch transacting other business besides that of insurance business under this part of this Act, all funds and credits of the society or branch under this part of this Act shall be as absolutely the security of the members for the purposes of this Act as if they belonged to a society or branch carrying on no other business than such insurance business, and shall not be liable for any contracts of the society or branch for which they would not have been liable had the business of the society or branch been only that of such insurance, and shall not be applied directly or indirectly for any purposes other than those of insurance business under this part of this Act.
603
Where a separate section of a society has been established and such separate section is an approved society under this part of this Act, the expression 'society' in this Sub-section means the society of which the separate section has been established and not the separate section."—[Mr. Lloyd George.]