Building Societies (Amendment) Act, 2005
This section gives the Act its short title and lets the Minister set the commencement date by statutory instrument.
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- Jurisdiction
- Zambia
- Instrument
- Act or statute
- Citation
- Act 22 of 2005
- Version
- 7 Oct 2005
- Language
- en
- Official source
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Statute overview
About this statute
This section gives the Act its short title and lets the Minister set the commencement date by statutory instrument. Section 2 updates the Act’s definitions for authorised investment, Bank of Zambia, licence, and Registrar. This section changes the rules for building societies by requiring capital and deposit/loan amounts to meet Bank of Zambia-prescribed levels, to keep certain funds as fixed-term investments for at least five years, to obtain a licence, and to be supervised by the Bank of Zambia. This provision says section 4 of the principal Act is repealed and replaced with new text. The Bank of Zambia may suspend registration of new building societies if it considers it in the public interest, and it may direct the Registrar to refuse registration of a proposed new society.
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Provisions of Building Societies (Amendment) Act, 2005
Showing 52 of 52
- 1 Verify source ↗
(!) This Act may be cited as the Building Societies
AI-assisted research summary: This section gives the Act its short title and lets the Minister set the commencement date by statutory instrument.
1. (!) This Act may be cited as the Building Societies _ (Arnendment)Act, 2005, and shall be read as one with the Building Societies Act, in this Act referred to as the principal Act. Short title and CUlllilWID.tl Cap. 412 (2) This Act shall come into operation on such date as the Minister may, by statutory instrument, appoint. - 2 Verify source ↗
Section two of the principal Act is amended
AI-assisted research summary: Section 2 updates the Act’s definitions for authorised investment, Bank of Zambia, licence, and Registrar.
2. Section two of the principal Act is amended- (a) by the insertion in the appropriate place of the following new definitions: Amendment of section 2 " authorised investment " means an investment prescribed by the Bank of Zambia in accordance with the Banking and Financial Services Act; " Bank of Zambia" means the Bank of Zambia established under the Bank of Zambia Act; and " licence " means a licence to conduct a financial service business issued under the Banking and Financial ServicesAct; (b) by the deletion of the definition " Registrar " and the substitution therefor of the following new definition: " Registrar " means the Registrar of Banks and Financial Institutions appointed under section twenty of the Banking and Financial Services Act; - 3 Verify source ↗
Section three of the principal.Act is amended
AI-assisted research summary: This section changes the rules for building societies by requiring capital and deposit/loan amounts to meet Bank of Zambia-prescribed levels, to keep certain funds as fixed-term investments for at least five years, to obtain a licence, and to be supervised by the Bank of Zambia.
3. - Section three of the principal.Act is amended - '(a/in subsection (l) - (i) by the deletion in paragraph (d}and the substitution therefor of_the following paragraph: (d) sa tisfying the Registrar that the total sum sulJscribed by way of shares ·or deposits or negotiated loans, or-;mycombination of these, Cap. 387 Act No. 43 ofl996 Cap.387 Cap:387 Amendm�nt of section" 3 -· 'Copies of this Act ctin be obtained from the Goveri,ment Printe,; P.O. Box 30136,-10100 Lusaka. Price 1(4000 each: - . . - . - -· 160 No. 22 of 2005) Building Societies(Amendment) but excluding the deposit mentioned in paragraph (e), is not less than an amount to be prescribed by the Banlc of Zambia, by statutory order, and that all the subscriptions comprised in such total sum are to remain as fixed term investments with the society for a period of not less than five years: Provided that every building society shall maintain such capital as the Bank of Zambia may, by: statutory order, prescribe; (ii) by the deletion of paragraph (e) and the substitution therefor of the following new paragraph: (e) depositing with the Banlc of Zambia cash or securities acceptable to the Banlc of Zambia, or a combination of such cash and securities, to a total value of such amount as the Bank of Zambia may, by Gazette notice prescribe and such deposit shall be subject to the conditions set out in section.five; and (iii) by the insertion of the word "and " after paragraph (e); and (iv) by the insertion immediately after paragraph (e) of the following new paragraph: (j) obtaining a licence to conduct a financial service business under the Banking and Financial ServicesAct; and (b) in subsection (3) - (i) by the insertion of the words" and if the Registrar determines to grant the applicants a licence in accc:-dw7.ce tt�th r.h.e Ban.�ng and Finw.cial Services Act ''after the words" have also beeri ·. complied with "; (ii) by the ins.ertion in paragraph /a) of the w�"rds "and the licence "after the words "relating to . the apµlication "; and _::: {cf by the'insertion.immediatel:)'"after subsection (3) ot'the foll,o�rig 11ew subsection: , ( 4) A building society which is registered tinder . ·_· this Acfiihiili hc·acemcd to be a financial insfitufion -- ,. � for pu7oses ?fthc Banking and l'inancial Services: - - .- ···• - .. ' ., .. - . ' ' . - . . . -:- I, •r•��, -�"". ... •: I •,,- ' . ,' ,;, . . \ , r • ; .c• •. '" .. ' ,.,.·, : . ',;. .-. . Building Societies (Amendment) [No. 22 of 2005 161 Act and shall be' subject to the supervisory and regul:J,tOI')'. authority of the Bank ofZambia. - 4 Verify source ↗
The principal Act is amended by the repeal o'f s'ection four
AI-assisted research summary: This provision says section 4 of the principal Act is repealed and replaced with new text.
4. The principal Act is amended by the repeal o'f s'ection four and the substitution therefor of the following: - 4 Verify source ↗
Notwithstandi°'g the provisions ·of section three, the
AI-assisted research summary: The Bank of Zambia may suspend registration of new building societies if it considers it in the public interest, and it may direct the Registrar to refuse registration of a proposed new society.
4. Notwithstandi°'g the provisions ·of section three, the Bank of Zambia may, if it determines that it is in the public interest so to do - (a) by statutory instrument, suspend the registration of new building societies either indefinitely or for the period stated in the statutory instrument and during the period of suspension the Registrar shall not register any new society; or (b} in any particular case direct the Registrar that registration of a proposed new society shall be refused. - 5 Verify source ↗
The principal Act is amended by the repeal of section four A
AI-assisted research summary: This section amends the principal Act by repealing section 4A.
5. The principal Act is amended by the repeal of section four A. - 6 Verify source ↗
Section.five of the principal Act is amended
AI-assisted research summary: Section 5 of the principal Act is amended by replacing references to the Governor of the Bank with the Bank of Zambia in specified paragraphs, and by changing one condition to Bank of Zambia satisfaction.
6. Section.five of the principal Act is amended - •.{a) in paragraph (a) by the deletion of the words" Governor of the Bank "and the substitution therefor of the words "Bank of Zambia "; (b) in paragraph (c) by the deletion of the words" Governor of the Bank " and the substitution therefor of the words Bank of Zambia "; and (c) in paragraph (e) by the deletion of the words " on the production to the Governor of the Bank of a certificate by the Registrar to the effect that " and the substitution therefor of the words" if the Bank of Zambia is satisfied that " - 7 Verify source ↗
Section eight of the principal Act is amended by the deletion
AI-assisted research summary: Only registered and licensed building societies may operate in Zambia or use the name “building society”; the Registrar must maintain and transfer the register as stated.
7. Section eight of the principal Act is amended by the deletion of subsection (2) and the substitution therefor of the following: Repeal and replacement of section 4 Bank of Zambia may suspend registration Repeal of section 4A Amendment of section 5 Arnc!ldment of Section--3 (2) Notwithstanding any other provisions of this Act, a person·shall not carry on business in Zambia as a building s·ociety unless registered under this Act and licensed in accqn:tance. "'ith the provisions of the Baµkingand Financi;il . Services.Act and the.name. or.style "building society " shall ·not be,used except oy a buil<liµg society so registered and. · · ljcensedi . '8. ,The principa!Act is a111��ded)iy the repeal of section nine . .... and ,the su.bstitution th<:refor of the following nevy section: ,. , .. · · . . i .. 9i (1) The ,Regiftrar s.hall,in apci,rdance with section. · .:�_--'n.inet_ee�:.of t�c·�Blli�ni�l� F�nanfiat Servic��-_!,;.ct;·ma}��airi · ._ ...,, "·' .. · .. . .':!e:i:i�;!t·: : -·" of secti9n•9 . ... .. . . · . :- ' . ,;,_- : 162 No. 22 of 2005] Building Societies (Amendment) Register of building societies Insertion of new Part IIA Cap. 387 Amendment of section 17 Cap. 387 Amendment of section 18 a register of all building societies which are registered under this Act and licensed according to that Act. (2) The register of building societies maintained by the Registrar under this Act prior to the commencement of this Act shall be transferred to the Registrar ofBanks and Financial Institutions on the date of the commencement of this Act - 9 Verify source ↗
The principal Act is amended by the insertion immediately
AI-assisted research summary: The principal Act is amended by inserting a new Part after section twelve.
9. The principal Act is amended by the insertion immediately after section twelve of the following new Part. PARTIIA LICENSING 'ciF BUILDING SOCIETIES - 12A Verify source ↗
(1) A building society which is registered under this
AI-assisted research summary: Building societies registered under the Act must apply for a licence to conduct a financial service business, and existing building societies must do so within 12 months of commencement.
12A. (1) A building society which is registered under this Act shall apply for a licence to conduct a financial service business in accordance with the provisions of the Banking and Financial Services Act: · Provided that an existing building society shall apply for a licence within twelve months of the commencement of this Act. (2) An application for a licence made by a building society shall include a copy of the current rules of the building society and such other information as the Registrar may require to determine the application. - 10 Verify source ↗
Section seventeen of the principal Act is amended in
AI-assisted research summary: This section amends subsection (1) to require the words “and a licence under the Banking and Financial Services Act” to be added after “registration under this Act”.
10. Section seventeen of the principal Act is amended in subsection (1) by the insertion after the words "registration under this Act " of the words " and a licence under the Banking and Financial Services Act ". - 11 Verify source ↗
Section eighteen of the principal Act is amended by the
AI-assisted research summary: This provision amends several parts of the principal Act, including replacing references to “Minister” with “Bank of Zambia,” changing one amount-setting formula, changing “three” to “five,” and repealing section 23 and subsection (6).
11. Section eighteen of the principal Act is amended by the deletion of the word " Minister " and the substitution therefor of the words "Bank of Zambia". 12,. .,\I, -Section nineteen of the principal-Act is amended in . ... subsection (l} by !hc·deletion of the words '' ten thousand kwacha ': and · · of section 1;9" · tlie ·_substitution tlwr:efor �f fae wor.ds '' ·s,uch'a1'.'ount as the BarLlc (. · of Zambia may, by statutory insirumeilt, prescribe ''., · , ' ", ·• ' , · :•' •· · · · · · · , ,. • . ' ' . ' , , ._ . Am.,endrn�pt • .� . . ., •,, - . - ,,) . -., · ""- ··• ·· Amendn1:_et1t . , ,uf"SCcliOil "22 . 13, •·. Section ;_;ei:ty-two. of the.'. principal 'Act is" [\Ill�nd�d in sul:is,ection (lJ by the deletion of the, word "three" and th�1 \:' './•:(< '- 'imbstit'ution thez:efor'9(the ,vord '; five"; · ·· " , .. · : ' :· . . ..... • ,. ,. ·• · ·· • · ,,, ·. �--�:!:" ��.' • .:-:.� ;.1-.'.,,, · :",::;R�jf�_al .. of , . , � section 23" : '. ··· 1s . . - Section tw��ty-JoJ� �( tl)e princip�lAiii is �mertd,;cJ bf,:', 1 ; ; •. 14,· The .principal Act is amended by·the·r�peai of sec:tioi, · ..·•_._Ill ·_·,n, __ P_-_' _-.·.1.111.·_e_,. e.· .· ... ·· __ ,_._ '.e , · · .. ··•-. ,• __ ,·, · · , .. , _. ' · •' · . · .c:i- r-· • �.,. ... .,,, ·• - .··: � · ·n. >J s'I •· ' •• ,.;'"• ·, • �\ .,:; .-, • ,• '' ',I �. ' ' . ,.,.,.,. ..• .. ,. •·'.;," ,-::,, ',.·:.;,; �1:) i" {,-!'·•. -�-,. ... . •,· · ' -••'-.,;.<·.:;,' .- ,, ... (•··(, ,,*. ·\ ,,, .,_, ,. ' .. , '.,. ',:. ' .. , ' ' Building Societies (Amendment) [No. 22 of 2005 163 the deletion of s ubsection (6). - 16 Verify source ↗
Section twenty�six:ofthe principal Act is amended by the
AI-assisted research summary: A person cannot qualify to be a director of a building society if any listed disqualification applies.
16. Section twenty�six:ofthe principal Act is amended by the deletion of s ubsection ({j' and the substitution therefor_ of the following new subsection: (l) A person shall not be qualified to be 'a director of building society if the person - Amendment of section 24 Amendment of section 26 (a) is not a fit and proper person to hold the relevant office in relation to integrity and professional expertise; (b) is a member who does not hold the minimum share qualification, if any, prescribed in the society's rules as a qualification for holding office as a director; (c) is a body corporate; (d) is not above the age of twenty-one years; (e) is an u ndischarged bankrupt; @ has been convicted of an offence involving dishonesty; (g) has been declared to be physically or mentally incapable to manage affairs; or (h) if the person is under suspension or has been removed from office by order of the Bank of Zambia under the Banking and Financial Services Act. - 17 Verify source ↗
The principal Act is amended by the _repeal of section
AI-assisted research summary: This provision amends the principal Act by repealing section 27.
17. The principal Act is amended by the _repeal of section twenty-seven. - 18 Verify source ↗
Section twenty-eight of the principal Act is amended by
AI-assisted research summary: A building society must notify the Bank of Zambia within one month after it learns that a director, manager, or secretary has ceased to hold office.
18. Section twenty-eight of the principal Act is amended by the deletion of subsection (1) and the substitution therefor of the followi.ng: . (I ) Whenever a person ceases-to be a director, manager or secretary of a building society, the i,ociety shail within one inorith ofit� !,ayingn!)tice of the event give notice to the · ·Bank of Zambii;·stating tl1c foll name and . address of that. person, particulars of the · office which the person has relinqui�hed_and the date_of the person's.relinquishment of office . - Cap. 387 Repeal of section 27 Amendment of section 28 -- - J ' . 164 No. 22 of 2005) Building Societies (Amendm ent) Amendment of section 32 - 19 Verify source ↗
Section 19
AI-assisted research summary: Every building society must keep proper accounting books and other required records, and keep them so the Bank of Zambia can check compliance.
19. Section thirty-two of the principal Act is amended - (a) by the deletion of subsection (1) and the substitution therefor of the following new subsection: (1) Every building society shall cause to be kept - (a) such proper books of account with respect to its transactions and its assets and liabilities as are necessary to give a true and fair view of the state of affairs of the b�ilding society and to explain its transactions; and (b) such other records as are required to be prepared and maintained by or under this Act or the Banking and Financial Services Act, or by order of the Bank of Zambia; and (b) by the insertion immediately after subsection (1) of the following new subsection: ( l A) The books of account referred to in paragraph (a) of subsection (!) shall be kept in such a way as to enable the Bank of Zambia to determine whether the building society has complied with the provisions of this Act and the Banking and Financial Services Act. - 20 Verify source ↗
Section 20
AI-assisted research summary: A building society must prepare its balance sheet, income and expenditure account, and revenue appropriation account in line with internationally accepted accounting principles.
20. Section thirty-four of the principal Act is amended - (a) by the insertion after subsection (!) of the following new subsection: ( I A) Every balance sheet, income and expenditure account and revenue appropriation account of a building society shall be prepared in 2cwrdance with internationally accepted accounting . principles; and subsection (2).- (b) in (i) by the deletion· of ·• Registrar " and the ·· substitution .therefor of " Bank of Zambia.','.'.; � and (ii)· by the deletion of the words " with the consent of the,Minister " .. - 21 Verify source ↗
Settio;lhirty-mize. ofth� principleA.ct is amended .:_
AI-assisted research summary: The amendment requires a summary financial statement, in a form prescribed by the Bank of Zambia, to be sent to building society members at least 21 days before the meeting.
21. : Settio;lhirty-mize. ofth� principleA.ct is amended .:_ . •,� ,, Cap. 387 Cap. 387 Amendment of section 34 -Am.eri?!11ent ofsect10n 39 , •.... - ., ' ' . ;_ Building Societies (Amendment) [No. 22 of 2005 165 (a) in subsection ( 1) bY, the deletion of the words "not wore than fourteen days after the date of the meeting be sent to the Registrar " and the substitution therefor of the words " not later than twenty-one days before. the date of the meeting be sent to the'Bank of Zambia "; and ;'1 ,. (b) by the insertion immediately after subsection (1) of the following new subsection: (lA) A summary fmanqial statement, in such form as the Bank of Zambia may prescribe, shall be sent to the members of a building society not later than twenty-one days before the date of the meeting. - 22 Verify source ↗
The principal Act is amended by the repeal of section Jorry
AI-assisted research summary: This section repeals section Jorry and replaces it with a new section.
22. The principal Act is amended by the repeal of section Jorry and the substitution therefor of the following new section: - 40 Verify source ↗
(1) Every building society shall at each annual
AI-assisted research summary: Every building society must appoint an independent auditor at each annual general meeting, and the auditor must be approved by the Bank of Zambia.
40. (1) Every building society shall at each annual general meeting appoint an independent auditor, approved by � Bank of Zambia, who shall be a member in good standing of a professional association of accountants recognised by the Bank of Zambia. (2) The directors of the building society may fill any casual vacancy in the office of auditor but while any such vacancy continues the surviving or continuing auditor, if any, may act. Repeal and replacement of section 40 Appointment of auditors - 23 Verify source ↗
Section 23
AI-assisted research summary: This section amends section 4 of the principal Act by adding a new paragraph covering a person disqualified under section 63 of the Banking and Financial Services Act.
23. Section Jorry-one of the principal Act is amended in subsection (1) - Amendment of section 4 1 (a) by the deletion of the full stop at the end of paragraph ( d) and the substitution therefor of a semi-colon; and (b) by the insertion after paragraph (d) of the following new paragraph: , (e) a person who is disqualified under section sixty . · three of the.Banking and.Fiuancial Services Act, Cap. 387 · - 24 Verify source ↗
Section forty-two ,of the .principal Act i_s· _amended in Amendment
AI-assisted research summary: This provision amends several sections of the principal Act by changing wording and replacing references to certain officers and the Registrar with specific directors and the Bank of Zambia.
24. Section forty-two ,of the .principal Act i_s· _amended in Amendment · · · ·of"s�ction 42' · · · subsection (3) by the deletion of the words " the officers " after the words "entitled to require from '.' and the substitution therefor . . of the-words ',' the directors, cM;f.executive.officer, chief financial ,, ' of:(icer: managers ai:ci '.1genls · .- · 0 '', , ' ' ' ' . . ·. �-, : . . 25':-'.Section.foriy,tbi-e� oJ\he pr1ncipal A:cf is�ainendeii _:_,· . · ( ci)in stiosectiori'(2)':..:C " . . �i) by,Jhc.delction ofthe.-:vvord " he �-·- after the. )Vords AffiendITierlc . - of s�ction:·43· ·~ - ' . . ,. i • • ·,. : ,: ..... - 166 No. 22 of 2005) Building Societies (Amendment) Amendment of section 51 " consequential directions as " and the substitution therefor of the words " the Bank "; and (ii) by the deletion of the word " Registrar " and the substitution therefor of the words "Bank of Zambia "; and (b) in subsection (3) by the deletion of the word " Registrar and the substitution therefor of the words " Bank of Zambia ". - 26 Verify source ↗
Sectionfifo, -one of the principal Act is amended
AI-assisted research summary: This section amends section 26 and gives the Bank of Zambia power to prescribe the form and contents of the annual return by statutory instrument.
26. Sectionfifo, -one of the principal Act is amended - (a ) in subsection (1) by the deletion of the word "Registra " and the substitution therefor of the words " Bank of Zambia "; (b) by the deletion of subsection (3) and the substitution therefor of the following new subsection: (3) The annual return shall be in such form and shall contain such information as the Bank of Zambia may, by statutory instrument prescribe. Amendment of sections 52 Repeal and replacement of section 60 Advances - 27 Verify source ↗
Section 27
AI-assisted research summary: This section amends subsection (1) of section 52 of the principal Act by replacing the word “Registrar” with “Bank of Zambia.”
27. Section fifiy-two of the principal Act is amended in subsection (1) by the deletion of the word " Registrar " and the substitution therefor of the words "Bank of Zambia". - 28 Verify source ↗
The principal Act is amended by the repeal of section six!)!
AI-assisted research summary: This provision repeals section 6 and replaces it with a new section.
28. The principal Act is amended by the repeal of section six!)! and the substitution therefor of the following new section: - 60 Verify source ↗
A building society may make advances out of its
AI-assisted research summary: A building society may make advances from its funds, but those advances must be secured by a mortgage of real estate or another security allowed by the society’s rules.
60. A building society may make advances out of its funds and such advances shall be secured by a mortgage of real estate or such other security as the rules of such building society may prescribe. Repeal of sections 61 to 63 Amendment of section 76 · ·Amendment - 29 Verify source ↗
The principal Act is amended by the repeal of Sections
AI-assisted research summary: This section amends the principal Act by repealing sections 61 to 63 and making further textual substitutions and deletions.
29. The principal Act is amended by the repeal of Sections sixty-one, sixty-two and sixty-three. . 30. the deletion of the proviso to .subsection (I). .. 31._, Section seventy-six of the principal Act is �mended by . · .sectlon eighty q(. the principal Act -is amencJ,cd i.1 •· · " ·"'"of iection' 80 · subseption (!) by 'the d�letit;n of the words " tip to t\vo per ccntum. of its total assets or suc_h amounts as the Minister :inay prescrib� " ,: . ... and the :substitution · therefor of the' words " a· per cenhim of its·;,, ,. · total assets or such amount as the Bank of Zambia may, by statutory .. ,,: ,· . . · · . • · instrument; prescribe ". . . ··' . ");Jiiindiri�rii ·. 32:--- Secii6i1 °eigh(�J,;�; �fth� principal A:�t ;� am;nded b; .... the substitution·theretb, . . of section 84 . the deletion of the word '' Minister •: and ·ofthe ,�ords ."Bank'ofZ�mbia ;,_· · .: , : · · · . ,. · . · .. ·· .: , .. - , . f · ~ • . ' -· •·. " ' -· . - I • · . • ., ' " . •, '. . ; , , , .. .,, . . ' ' .'·.1;-'" , , .. ,:, './ . • ' ,· . , • . • ,- - .... · . . ,, · . ,, ., ' . ··' ... • ► -,, ,:,, r • '·. ,", . • ' ; I ' Building Societies (Amendment) [No. 22 of 2005 167 - 33 Verify source ↗
Section eighty-seven-of the principal Act is amended - Amendment
AI-assisted research summary: This section amends section 87 of the principal Act by replacing references to the Minister and the Governor of the Bank with the Bank of Zambia.
33. Section eighty-seven-of the principal Act is amended - Amendment of section 87 · ' • .- ' 1 • ; · , l (a) in subsection (!)'by the deletion of the word " Minister " wherever it appears and the substitution therefor of the words " Bank of Zambia "; 0 (b) in paragraph (c) of sub�€ction (!) by the deletion of the words " Governor of the Bank " and the substitution therefor of the words " Bank of Zambia "; and (c) in subsection (2) by the deletion of the word " Minister " and the substitution therefor of11:ie words " Bank of Zambia ". - 34 Verify source ↗
The principal Act is amended by the repeal of section
AI-assisted research summary: This section amends the principal Act by repealing section 89 and replacing it with a new section.
34. The principal Act is amended by the repeal of section eighty-nine and the substitution therefor of the following new section: - 89 Verify source ↗
(1) Subject to the provisions of the Banking and
AI-assisted research summary: A building society may invest surplus funds only in the listed types of investments, and it must not invest in other projects.
89. (1) Subject to the provisions of the Banking and Financial Services Act, a building society may invest any of its surplus funds in - Repeal and replacement of section 89 Authorised investment Cap. 387 (a) establishing and managing unit trust schemes; (/;J establishing and managing pension schemes; (c) establishing subsidiary companies; and (d) such other investments as the Bank of Zambia may, by statutory order, prescribe. (2) A building society shall not invest any part of the surplus funds in projects other than those set out in sub-section (1). - 35 Verify source ↗
The principal Act is amended by the repeal of section
AI-assisted research summary: This provision amends the principal Act by repealing section 90.
35. The principal Act is amended by the repeal of section ninety. Repeal of section 90 - 36 Verify source ↗
Section ninety-one of the principal Act is amended by the Amendment
AI-assisted research summary: This section amends section 91 of the principal Act by replacing the reference to “sections eighty-nine and ninety” with “section eighty-nine.”
36.. Section ninety-one of the principal Act is amended by the Amendment of section 91 deletion of the words " sections eighty-nine and ninety " and the substitution therefor of the words " section eighty-nine ". - 37 Verify source ↗
Section ninety-two of the princip!ll Act is am(?nded in Amendment,
AI-assisted research summary: This provision amends sections 92 and 93 so the Bank of Zambia can prescribe certain amounts and assets, and replaces references to the Governor of the Bank and Registrar with Bank of Zambia.
37.. Section ninety-two of the princip!ll Act is am(?nded in Amendment, of section 92 paragraph (h) of subsection (5) by the insertion of the words " or such oth�r amount as the Bank of Zambia may prescribe " after .the words " amount of the society's assets ". · 38. · Section ninety�three of the principal Act is amended - . . Amendment of section 93 · (a) in subsections (1) arid (2) by the deletion "of the words ."Governor of the Bank"· and the. substitution therefor of · " the words "Bank of Zambia". · (b) in subsection (5) by the deletion of the words "two .and On'l;' . . · . ,halfp,erctjitu'm''. aria the suristitution !hereforofthe words . " such per centum, as the_ 13a� �f Zambia)nay prescribe , · · · · • ·ot "; ·ana·· _ .. · · ·· - � · . . . " -✓ • r •• •! 168 No. 22 of 2005] Building Societies (Amendment) (c) in subsection ( 6) by the deletion of paragraph (e) and the substitution therefor of the following new paragraph: (e) such other assets as the Bank of Zambia may, by Gazettenotice, prescnbe; (d) in subsection (7) by the deletion of the words " Registrar " wherever it appears and the substitution therefor of the words " Bank of Zambia "; and (e) by the deletion of subsection (8). - 39 Verify source ↗
Section ninety-five <if the principal Act is amended in the
AI-assisted research summary: This section amends section 95 of the principal Act by adding a phrase after “is undesirable” in subsection (2).
39. Section ninety-five <if the principal Act is amended in the proviso to subsection (2) by the insertion of the words " or does not comply with section one hundred and eighteen of the Banking and Financial Services Act "after the words " is undesirable ". - 40 Verify source ↗
Section 40
AI-assisted research summary: If the Registrar finds an alteration is not compliant, the Registrar must not register it and must notify the building society. A building society’s rule alteration only takes effect when registered.
40. Section ninety-seven of the principal Act is amended by · the insertion after subsection (3) of the following new subsections: (3A) If the Registrar finds that the alteration is not in conformity with the Act and any applicable regulations the Registrar shall not register the alteration and shall notify the building society of the decision. (3B) Any alteration of rules by a building society shall only become affective upon registration . - 41 Verify source ↗
Section 41
AI-assisted research summary: This section amends section 98 about building society unions, including notice to the Bank of Zambia, the Bank’s consent, and registration of the new society.
41. Section ninety-eight of the principal Act is amended- ( a) in subsection (!) by the insertion ofa comma and the words " with the consentofthe Bank of Zambia " after the words " inay unite "; (b) by the deletion of subsection (2) and the substitution therefor of the following new subsection: (2) Notice of any proposed union ofbuilding societies shall be sent to the Bank of Zambia, and if the Bank of Zambia con�enls lo.the union, t11� Registrar shall, upon ., i:=ompleti{m of th�.union, register t11e nev..• society.; ( c) by th� ins�nior, af..cr subs�ction (2) of the following new . subsection: , (2A)Where 'a new society is-registered. tinder\ , subsection (2), the societies UJ1ified shall be deemed \1 to be dissolve·ci and their registrations cancellcd:;·and':· · · (dj in. subse_ction (3)by the deletion of the ,vord " Regi;trar " ·and· the substitution therefor of the words " B.ank o( . Amendment of section 95 Cap. 387 Amendment of se�tion· 97 Amendment of section 98 . -� · .. · •� •"' :, Building Societies (Amendment) [No. 22 of 2005 169 - 42 Verify source ↗
Section ninety-nine of the principal Act is amended
AI-assisted research summary: This section amends section 99 so that a building society must send notice of a proposed transfer to the Bank of Zambia, and the Registrar must register the transfer notice if the Bank consents.
42. Section ninety-nine of the principal Act is amended (a) in subsection ( l )', !Jy the insertion of a comma and·.the words" with the consent of the Bank of Zambia " after the words "A b uilding society may"; (b) in paragraph (b) of subsection (1) by the deletion of the words " with the consent of the Registrar "; (c) by the deletion of subsection (2) and the substitution therefor of the following new sub�ection: (2) Notice of any proposed transfer shall be sent to the Bank of Zambia by the building society transferring its engagements and if the Bank of Zambia consents to the transfer, the Registrar shall register the notice of the transfer.; and (d) in subsection (4) by the deletion of the word " Registrar " and the substitution therefor of the words " Bank of Zambia " . - 43 Verify source ↗
Section one hundred of the principal Act is amended in
AI-assisted research summary: This section amends section 100 by replacing references to the "Registrar" with "Bank of Zambia" in subsections (1) and (2).
43. Section one hundred of the principal Act is amended in subsections (1) and (2) by the deletion of the word " Registrar " wherever it appears and the substitution therefor of the words "Bank of Zambia". Amendment of section 99 Amendment of section 100 - 44 Verify source ↗
The principal Act is amended by the repeal of sections
AI-assisted research summary: This provision repeals sections 100A, 103, 104, 105, and 106 of the principal Act.
44. The principal Act is amended by the repeal of sections one hundred A, one hundred and three, one hundred and four, one hundred and five and one hundred and six. Repeal of sectionslOOA, 1 03,104,105, and 106 - 45 Verify source ↗
Section one hundred and eight of the principal Act is
AI-assisted research summary: The Bank of Zambia must give the affected building society and its directors written notice at least 21 days before making an order, and it must consider any representations made within 14 days; if the society asks, it must also be heard.
45. Section one hundred and eight of the principal Act is amended- (a) in subsection (1) b y the deletion of the words " Minister, on the advice of the Registrar " and the substitution therefor of the words " Bank of Zambia "; (b) in subsection (2) by the deletion of the word " Registrar " and the substitution therefor or the words " Bank of Zamb.ia i,; . (c) _by the deletion of subsection (3) and the substitution Amendment of section t08 " ' .'. . ,· ,, , ,,. ·., .. . therefor of the following new sub�ection: ·. ". :.· ,. ; (3) At least twenty-one days pefore an order 1s .made under this section, the Bank of Zambia shall · ._give the building soci�ty 9oncemed, and each of its · directors; written.notice that'it proposes to 'make such . an order and the riorice shall'set out the considerations . which-have Jed to the �nclusion that it-is expedient .. . io do·so:. · . . ·· -- ---··· 170 No. 22 of 2005] Building Societies (Amendment) Provided that before issuing an order the Banlc of Zambia shall consideranyrepresentations whlch may be made by the building society within a period of fowieen days after the service of the notice and, if the society so requests, shall afford it an opportunity to be heard within that period.; and ( d) in subsection ( 4) by the deletion of the word " Minister " and the substitution therefor of the words " Banlc of Zambia ". Amendment of section 109 - 46 Verify source ↗
Section one· hundred and nine of the principal Act is
AI-assisted research summary: Before the Bank of Zambia serves a direction, it must notify the building society and each director in writing and explain its reasons.
46. Section one· hundred and nine of the principal Act is •. amended - (a) in subsection (!) by the deletion of the word " Registrar " and the substitution therefor of the words " Bank of Zambia "; and (b) by the deletion of subsection (2) and the substitution therefor of the following new subsection: (2) Before serving a direction under this section, the Bank of Zambia shall give the building society concerned, and each of its directors, written notice that the Bank proposes to make the direction, and such notice shall set out the considerations which have led to the conclusion that it is expedient to do so, and the Bank shall consider any representations which may be made by the society within seven days from the date of service of the notice; and if the society so requests, the Bank shall afford it an opportunity to be heard within that period. Amendment of section 110 - 47 Verify source ↗
Section 47
AI-assisted research summary: This section amends the principal Act so that a building society may act only with the approval of the Bank of Zambia.
47. Section one hundred and ten of the principal Act is amended by the insertion of a comma and the words "with the approval of the Banlc of Zambia" after the words "A building society may". - 48 Verify source ↗
Section 48
AI-assisted research summary: This provision amends section 112 of the principal Act by replacing references to the Registrar with the Bank of Zambia.
48. amended - Section one hundred and twelve of the principal Act is in subsections (I) ai:id (2) by the dc:,Jetiorl of the worcl '' R.:gistrar "an<l !he substitutiori therefor of the words '.'. B:mk · · · · ofl.imbia ": · • (a) ! therefor of the· words '.' Bank of Zambia "; (b) in subsection (3) by the deletion.of the worqs '.' Registrar . · · · · · shall on.the ad,>ise of the Minister " and the substitutiol) · .{ ·:- , (c) in paragraph (a) of subsectio_n {3) by the deletion-'of tl1e word·" he " and the substitution thei:efor of the y,01:ds. " _th� B.ank "; '. - . . Amendment of section · 1 1 2 ' ' ,._ '·' . -.: .,,, ··:·-- .� .......... .. ... , ... �- -· ..... Building Societies (Amendment) [No. 22 of 2005 171 (d) in paragraph (b) of subsection (3) - (i) by the deletion of the word " he '.' and the substitution therefor of the words " .the·Bank "; and ,. · : " • · ' (ii) by the deletion of the word " Minister " and the substitution. therefor of the words "Bank of Zambia; and•,' '.•. (e) in subsection ( 4) by the deletion of the word " Registrar " and the substitution therefor of the word s " Bank of Zambia " . ' - 49 Verify source ↗
Section one hundred and thirteen of the principal Act is
AI-assisted research summary: This section amends section 113(3) of the principal Act by replacing “Registrar” with “Bank of Zambia.”
49. Section one hundred and thirteen of the principal Act is amended in subsection (3) by the deletion of the word " Registrar "and the substitution therefor of the words " Bank of Zambia . " - 50 Verify source ↗
The principal Act is amended by the repeal of section one
AI-assisted research summary: If a building society becomes insolvent, the Bank of Zambia may dissolve and liquidate it under the Banking and Financial Services Act.
50. The principal Act is amended by the repeal of section one hundred andfourte en and the substitution therefor of the following new section: 1 14 (I) In the event of a building society becoming insolvent the Bank of Zambia may, in accordance with Chapter Vil of the Banking and Financial Services Act, disllolve and liquidate the building society. (2) In subsection ( I) insolvency has the meaning assigned to it by section eighty-six of the Banking and Financial Services Act .
Part
Chapter Vil of the Banking and Financial Services Act,
- 51 Verify source ↗
Section one hundred and sevente en of the principal Act is
AI-assisted research summary: This provision amends section 117 of the principal Act by replacing some references with “Bank of Zambia” and allowing the Bank of Zambia to prescribe other amounts in specified places.
51. Section one hundred and sevente en of the principal Act is amended - (a) in subsection (6) - (i) by the deletion of the word " Registrar " and the substitution therefor of the words "Bank of Zambia "; and (ii) bytheinsertion ofthewords"or suchother amountsas the Bank of Zambiamayprescnbe "afterthewords " one hundred thousand kwacha "; and Amendment of section 113 Repeal and replacement of section 114 I n s o l v e n t b u i l d i n g society Cap. 387 Cap. 387 Amendment of section I 17 (b) In the proviso to subsection (7) - (i) bythedeletioninparagraph (i)nftheword '· Minister" whereever it �ppcars and Ll:ie substitution therefor of the words "Bank of Zambia "; and (ii) by .the ins_ertion in para·graph (ii) of the words " or such other amounr as the Bank of Zambia · -- mayprescrMe' "·after.the words •··1n whichsucl\' . land is purchased ". 52; Section one hundr_ed- and eighteen. of the principal Act is Amcndm�nt . . . ainep9_ed in .. �ubsection (3) by the deletion <if the word " Re!c,•istriu:" · · ofsection · 1 1 s . wherever it appears 'and the substitutio_n therefor of the words ''. :qank.ofZamb_ia» . . •. : " .. � -� .... ··-· . _ ... _. , . . ' . " > i - 172 No. 22 of2005] Building Societies (Amendment) Amendment of section 1 1 9 - 53 Verify source ↗
Section one hundred and ninete en of the principal Act is
AI-assisted research summary: This section amends section 119(2) of the principal Act by adding “or the Bank of Zambia” after “the Registrar.”
53. Section one hundred and ninete en of the principal Act is amended in subsection (2) by the insertion of the words "or the Bank of Zambia " after the words " the Registrar ". .Amendment of section 120 Repeal of section 124 Repeal and replacement of sectiori 127 Regulations Amendment of section 128 - 54 Verify source ↗
Section one hundred and twenty of the principal Act is
AI-assisted research summary: This provision amends section 120 of the principal Act by removing the words “with the approval of the Minister” from two places.
54. Section one hundred and twenty of the principal Act is amended - (a) in paragraph (j) of subsection (!) by the deletion of the words " with the approval of the Minister "; and (b) in subsection (3) by the deletion of the words " with the approval of the Minister ". - 55 Verify source ↗
The principal Act is amended by the repeal of section
AI-assisted research summary: This section repeals section 120:4 of the principal Act.
55. The principal Act is amended by the repeal of section one hundred and twenty:four. - 56 Verify source ↗
The principal Act is amended by the repeal of section one
AI-assisted research summary: This section amends the principal Act by repealing section 127 and replacing it with a new section.
56. The principal Act is amended by the repeal of section one hundred and twenty-seven and the substitution therefor of the following new section: •" - 127 Verify source ↗
The Minister may, on the recommendation of the
AI-assisted research summary: The Minister may make regulations by statutory instrument, on the Bank of Zambia’s recommendation, for matters needing prescription under the Act, except matters the Bank is meant to prescribe.
127. The Minister may, on the recommendation of the Bank of Zambia, by statutory instrument, make regulations prescribing anything requiring to be prescribed under this Act, other than a matter required or permitted to be prescribed by the Bank of Zambia, and for the better carrying into effect of the provisions of this Act . - 57 Verify source ↗
Section one hundred and twenty-eight of the principal Act
AI-assisted research summary: This provision amends section 128 of the principal Act and adds section 134A, which exempts building societies from several listed provisions of the Banking and Financial-Services Act.
57. Section one hundred and twenty-eight of the principal Act is amended - (a) by the deletion of the word " Registrar " and the substitution therefor of the words "Bank of Zambia "; (b) by the deletion of the word " he " after the words " the form which " and the substitution therefor of the words " the Bank "; (c) by the deletion of the word " he" after the words " intends · to prescribe and ": and (d) by the deletion of the word " him' " aiter the words " may be made to " and me su):,stitution therefor of the words " the Bank ". · 58. · The principal Act is ainended by the insertion immediately ' . , . after section. one },undred and thirty:four oi the following.new _,J,·. · section: · ' · • • • • ;h '• • ' ,, .. ·- . . . ·.- .· .... ·rn·:��r·don of' ·. new ·section 134A· ·; . . " ' , 1 ' .. .. Building Societies (Amendment) [No. 22 of 2005 173 134 A . Notwithstanding subsection ( 4) of section three, section fifty-one, srtosedtions (I) and (2) of section''sixty one, subsection (!) of section sixty-two, section sixty-four, section seventy and subsection (7) of section seventy-three of the Banking and Financial-Services Act shall not apply to a building society. Buildings societies exempt from certain provisions of Banking and Financial Services Act 387 174 •
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Building Societies (Amendment) Act, 2005
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