This Bill seeks to amend the New Building Society Act, Cap 36:21, to provide for the licensing and supervision of the Society, by the Bank of Guyana primarily under the Financial Institutions Act 1995, the Bank of Guyana Act 1998 and any other law.
The Bill seeks to amend the New Building Society Act, Cap 36:21, to bring it into conformity with the Financial Institutions Act 1995.
Clause 2 seeks to amend section 2 to include in the interpretation section the definitions of certain terms, to modify the definition of investing share so that only fully paid up shares shall be considered as investing shares and to delete the definition of purchase-tenancy contracts because this type of contract is prohibited under the Financial Institutions Act 1995.
Clause 3 seeks to amend section 3 to limit the power of the Society to acquire, hold and lease land and other property subject to the provision of section 15 (3) of the Financial Institutions Act 1995.
Clause 4 seeks to amend section 4 to limit the power to change the Society’s name subject to the section 12 (1) (e) of the Financial Institutions Act 1995.
Clause 5 seeks to amend section 5 to remove the term purchase-tenancy contracts.
Clause 5 also seeks to amend section 5 to provide for compliance with the provisions of the Financial Institutions Act 1995, the Bank of Guyana Act 1998 and any other applicable law in the conduct of the Society’s operations.
Clause 6 seeks to amend section 7 to confront with sections 14 and 15 of the Financial Institution Act 1995 by prohibiting the Society from making loans to its members upon the security of their investing shares.
Clause 7 seeks to amend the Act by inserting a new section 7A to provide for transitional provision for certain transactions entered into the prior to the commencement of this Act and which violates the provisions of section 14 (1) of the Financial Institutions Act 1995. (Act No.1 of 1995).
Clause 8 seeks to amend section 9 by modifying the definition of member to include only those members holding fully paid up investing shares and excluding persons below the age of eighteen from membership of the Society.
Clause 9 seeks to amend section 11 by clarifying the role of the Board in the management of the Society and expressly delimiting its regulatory or supervisory authority.
Clause 10 seeks to amend section 12 by limiting the requirement for convening of a special general meeting to at least one-tenth of the Society and by increasing the time for convening the meeting thereby providing adequate time for verification and notification.
Clause 11 seeks to amend section 14 to expressly state that the society shall be manage and governed in accordance with the provisions of the Financial Institutions Act 1995 and to empower the Society to make, alter and rescind rules subject to the provisions of the Financial Institutions Act 1995.
Clause 12 seeks to amend section 16 of the Act to include the additional review and reporting requirements which the Society should meet.
Clause 13 seeks to amend section 17 by adjusting the reporting categories and providing for members to uplift copies of statements from the office of the Society. The amendment to section 17 also seeks to delete the term purchase- tenancy contracts.
Clause 14 seeks to repeal section 19 because inspections of the Society shall be covered under the Financial Institutions Act 1995.
Clause 15 seeks to amend section 21 to increase the amount of funds in the Society which can be released upon death without letters of administration.
Clause 16 seeks to amend section 26 (2) to increase the fine to fifty thousand dollars for any person paying or accepting a gift, bonus, commission or benefit for or in connection with any loan made by the Society or the purchase of any shares of the Society.
Clause 17 seeks to amend section 27 to specify that the termination or dissolution of the Society shall be conducted in accordance with the Financial Institutions Act 1995.
Clause 18 seeks to repeal sections 28 to 30 because the dissolution and winding up of the Society Shall be conducted in accordance with Part VIII of the Financial Institutions Act 1995.
Clause 19 seeks to amend section 34 to increase the maximum amount that may be secured by a bond certificate without the consent of the Minister and to increase the value of bond certificate that may be transferred giving the Board unfettered discretion to fix the transfer fee.
Clause 20 seeks to provide that the New Building Society Act as amended by this Act shall be read and construed with all modification, qualifications and adaptations necessary to bring them in conformity with the Financial Institutions Act 1995, the Bank of Guyana Act 1998 and other applicable law and to preserve the tax exempt status of the Society because of its special nature.
Signed by: President on the 4th August 2010
