Conversion into a credit union

(1) A company registered under the Companies Act or a friendly society registered under the Friendly Societies Act, may, by special resolution determine to convert itself into a (2) Any such resolution for conversion into a credit union shall, appoint ten persons, who are directors, shareholders or members of the company or friendly society, as the case may be, who, together with the secretary, shall sign the by-laws and who may by the resolution, be given such powers to act on behalf of the company, or friendly society, as may be specified in such resolution. (3) A conversion under this section shall be deemed to be effective when the Registrar has issued a certificate of registration under this Act, and thereupon the registration of the company, or friendly society shall become void, and shall be cancelled by the proper officer, but the registration of any such body as a credit union shall not affect any right or claim for the time being subsisting against such body or any penalty incurred, and any such right or claim or penalty may be enforced against such body by proceedings taken in the same manner as if it had not become a credit union; every such right or claim, and the liability for every such penalty shall have priority as against the property of such credit union over all other rights or claims against, or liabilities of the credit union. 62 Credit Unions Act