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Friendly Society

registered, act and societies

FRIENDLY SOCIETY. A society formed for the benefit of its members, during illness, in old age, and for assisting widows of members and orphans, and for other purposes.

A friendly society which conforms to certain requirements, may be registered with the Registrar of Friendly Societies, under the Friendly Societies' Act, 1S96, an Act which consolidated the Acts relating to such societies.

A registered society has power under that Act to mortgage its property, provided there is nothing to the contrary in the rules of the Society.

In dealing with a Friendly Society a banker should make himself conversant with its rules relating to the borrowing of money and mortgaging property, and also as to the manner in which cheques may be drawn.

A receipt indorsed upon a mortgage deed has the effect of a reconveyance.

By the Friendly Societies Act, 1896, Section 33 : "Stamp duty shall not be chargeable upon any of the following documents : " (a) Draft or order or receipt given by or to a registered society in respect of money payable by virtue of its rules or of this Act ; " (b) Letter or power of attorney granted by any person as trustee for the transfer of any money of a registered society or branch invested in his name in the public funds ; " (c) Bond given to or on account of a registered society or branch, or by the treasurer or other officer thereof ; ' (d) Policy of insurance or appointment or revocation of appointment of agent, or other document required or authorised by this Act, or by the rules of a registered society or branch."

By a circular dated November 10, 1894, the Board of Inland Revenue intimated " that they have agreed to regard cheques drawn by, or on behalf of, a duly registered Friendly Society upon its banker as falling within the exemption from stamp duty granted by Section 15 of the Act 33 & 39 Viet. c. 60. In future, therefore, all such cheques may be paid by you, although unstamped."