16QAmendment of approved benefit fund rules on initiative of friendly society

16Q Amendment of approved benefit fund rules on initiative of friendly society

(1) A friendly society may apply in writing for approval of a proposed amendment of approved benefit fund rules of the friendly society.

Note: The application may also include an application for approval of consequential amendments of the company’s constitution (see section 16U).

(2) The application must be accompanied by a copy of the amendment and must comply with any applicable requirements in Prudential Rules. (3) APRA must, in writing, approve the amendment if:

(a) application has been made for approval of the amendment in accordance with subsection (2); and

(b) APRA is satisfied that the rules, as proposed to be amended, will satisfy the requirements of paragraph 16L(3)(b); and

(c) APRA is satisfied that the amendment has been adequately adopted.

APRA must give the friendly society written notice of its decision whether to approve the amendment. (4) The friendly society is guilty of an offence if:

(a) APRA has approved the amendment; and

(b) Prudential Rules require the friendly society to notify some or all of its members of the amendment; and

(c) the friendly society does not notify those members of the amendment in accordance with that requirement.

Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.