40Special meeting and inquiry

#### 40 Special meeting and inquiry 40 Special meeting and inquiry > > (1) The Registrar may, on the written application of a majority of the directors, or not less than 10% of the members, of a society or on the Registrar’s own initiative— > > > > > (a) call a special meeting of the society, or > > > > > (b) hold an inquiry into affairs (including the working and financial conditions) of the society. > > > (2) The Registrar may, on the Registrar’s own initiative, hold an inquiry into affairs (including the working and financial conditions) of— > > > > > (a) a body corporate related to a society, or > > > > > (b) a services corporation. > > > (3) An application under subsection (1) must be supported by such evidence as the Registrar directs for the purpose of showing that the applicants have good reason for requiring the meeting or inquiry and that the application is made without malicious motive. > > > (4) Notice of the application must be given to the society if the Registrar directs. > > > (5) Security for the expenses of a meeting or inquiry must be given— > > > > > (a) if the meeting is called or inquiry is held on an application under subsection (1)—by the applicants, or > > > > > (b) in any other case—by such persons and in such way as the Registrar directs. > > > (6) The Registrar may— > > > > > (a) direct the time and place the meeting or inquiry is to be held, and > > > > > (b) direct what matters are to be discussed or determined, and > > > > > (c) despite the rules of the society, give notice to members of the holding of the meeting or inquiry as the Registrar considers appropriate. > > > (7) The Registrar may, by written notice, direct the directors and such other persons as the Registrar requires to attend the meeting or inquiry. > > > (8) A person to whom a direction is given under subsection (7) must not, without reasonable excuse, fail to comply with the direction. > > > > Maximum penalty—100 penalty units or imprisonment for 2 years, or both. > > > (9) A meeting held under this section has all the powers of a meeting called under the rules of a society and has power to appoint a person to preside at the meeting, despite any rule of the society to the contrary. > > > (10) The Registrar, or any person nominated by the Registrar, may attend and address a meeting held under this section. > > > (11) All expenses of and incidental to the meeting or inquiry may be defrayed— > > > > > (a) if the meeting is called or inquiry is held under subsection (1)—by the applicants or out of the funds of the society or by any officer or member, or former officer or member, in such proportions as may be agreed between the Registrar and those persons, or > > > > > (b) if the inquiry is held under subsection (2)— > > > > > > > (i) in the case of a related body corporate—out of the funds of the society to whom the body corporate is related, or > > > > > > > (ii) in the case of a services corporation—out of the funds of the services corporation, or out of the funds of any society that has shares in the services corporation, in such proportions as the Registrar directs, > > > > and may be recovered as a debt in a court having jurisdiction for the recovery of debts up to the amount concerned. > > > (12) In default of agreement under subsection (11) (a), the expenses must be defrayed by such persons, and in such proportions, as the Court, on the application of the Registrar, directs. > > **s 40:** Am 1999 No 2, Sch 4 \[5\] \[6\].