Appointment of Administrator

(1) Where the Registrar is of the opinion that in view of– (a) the liquidity levels as required by section 51(1); or (b) the financial position of a credit union as disclosed by examination or investigation under section 60; or 56 Credit Unions Act (c) certain administrative or other problems facing the credit union which may jeopardise the stability of the credit union, it is necessary to appoint an Administrator to protect the equities and interests of the members, the Registrar may, after consultation with the League appoint an Administrator and fix his remuneration which will be paid out of the funds of the credit (2) The Registrar may appoint the League or any other fit and proper person as Administrator of that credit union. (3) An Administrator appointed under sub-section (1), shall have the powers and may perform all or any of the duties of the officers of the credit union, shall be responsible to the Registrar for the conduct of the business of the credit union and shall carry out all orders and directions of the Registrar with respect to the credit union, and may pay the expenses of administration out of the funds of the credit union. (4) Where an Administrator is appointed under sub-section (1), the directors, officers and the manager of the credit union shall not thereafter, during the time that the Administrator remains in charge of the conduct of the business of the credit union, exercise any of the powers conferred upon them by this Act or the by-laws, provided that the Administrator may delegate to the directors, officers or the manager, specific duties as may be necessary to efficiently carry out the business of the credit (5) The Administrator shall take all steps and do all things necessary to protect the equities of the members and the rights of creditors of the credit union, and shall maintain, so far as is practicable, the services of the credit union to its members. Credit Unions Act 57 (6) Directions under this section shall be such as appear to the Registrar to be desirable in the interest of the members and potential members of the credit union whether for the purpose of safeguarding its assets or otherwise, and may, in particular– (a) require the credit union to take certain steps or to refrain from adopting or pursuing a particular course of action or to restrict the scope of its business in a particular way; (b) impose limitations on the acceptance of deposits, the granting of credit or the making of investments; (c) prohibit the credit union from entering into any other transaction or class of transactions; (d) require the removal of any director or officer. (7) For the purposes of this section, the Administrator shall have access to all books, accounts, securities, documents, vouchers and cash of the credit union and any security held by the credit union. (8) Subject to the approval of the Registrar, the Administrator may call a special meeting of members to report to them on the affairs of the credit union and the steps taken by the Administrator to protect their equities; a report may also be given to interested creditors. (9) The Administrator shall conduct the business of the credit union until the Registrar is satisfied to have the management of the credit union’s affairs resumed by its officers or until the credit union is merged with another credit union or is converted into another entity or is dissolved and a Liquidator is appointed to wind up the credit union’s affairs. 58 Credit Unions Act (10) A credit union which fails to comply with any requirement or contravenes any prohibition imposed by any direction or order under this section commits an offence.