LIQUI
DATION

Section 41 of the Co-operative Societies Act and section 58 of the Friendly Societies Act empower the Registrar to order dissolution of a society under one of or a combination of several conditions. Under the Co-operative Societies Act, a society may be liquidated after (a) holding an Inquiry, (b) on application of a majority of the Committee aka the ‘Board’, (c) application from no less than three-fourths of the membership or (d) on application of a creditor.

Where the Registrar is satisfied as to any adverse findings of an Inspection or an Inquiry, he may order liquidation of a society’s assets in accordance with section 58 of the Friendly Societies Act. Liquidation may arise by voluntary request, in writing, from no less than three-fourths the membership of the society. It may also arise due to the inability of the society to attract and/or retain competent management (paid and/or volunteered), closure of the sponsor company or purchasers of goods and services, or the society’s inability to mobilize resources through competitive rates on services and marketing of produce/products.

Section 44 of the Co-operative Societies Act and section 61 of the Friendly Societies Act authorizes the Registrar to appoint a Liquidator to undertake the duties and responsibilities of Liquidation. Upon appointment, the Liquidator’s powers in executing the functions are subjected to the direction and control of the Registrar and any limitations imposed by the Registrar.

The Co-operative and Friendly Societies Acts provide for the right to appeal a liquidation order made by the Registrar, which should be executed within the stipulated timeframe. Provided there are no appeals, the Registrar by order will cancel the registration of the society and publish the notice in the Gazette, and at least one daily newspaper printed and circulated in Jamaica.

 

 


 

 

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