Credit Union Act 1997

Effect of administration.

139

139. (1) For as long as the administrator of a credit union stands appointed under this Act, the following provisions shall have effect—

( a) no proceedings or resolution for the winding up of the credit union shall be commenced or passed without the prior sanction of the Court;

( b) no receiver over any part of the property of the credit union shall be appointed without the prior sanction of the Court;

( c) no attachment, sequestration, distress or execution shall be put into force against any part of the property of the credit union without the prior sanction of the Court;

( d) the words “ under administration” shall be used in relation to the name of the credit union in all circumstances in which the words “ in liquidation” would fall to be used in relation to the name of a company being wound up by the Court;

( e) the functions of the administrator may be performed by him with the assistance of persons appointed or employed by him for that purpose;

( f) all functions which are vested in the directors or in a principal Committee of the credit union (whether by virtue of its rules or by law or otherwise) shall be performable only by the administrator and all such powers of the credit union as are exercisable by a general meeting of the credit union shall be exercisable only by the administrator and that exercise shall be subject to the sanction of the Court;

( g) the administrator may apply to the Court to determine any question arising in the course of the exercise of the administration of the credit union;

( h) the administrator may resign or, upon the application of the F284 [ Bank ], may be removed by the Court for cause shown; and

( i) a vacancy in the office of administrator may be filled by the Court upon the nomination of the F284 [ Bank ].

(2) Except as provided by this section, the business of a credit union in respect of which an administrator has been appointed shall be continued without interruption as a going concern, and no contract (including a contract of employment or service), policy, transaction, bank account or bank mandate, right, title, claim, debt, proceeding or obligation of the credit union or right, claim or proceeding against the credit union shall be avoided, cancelled, stayed or otherwise affected by reason only of the appointment of the administrator or the existence of an administration order.

(3) Where an administrator is appointed in respect of a credit union—

( a) the costs and expenses of the performance of his functions and his remuneration shall be paid, and

( b) he shall be entitled to be indemnified in respect of the costs, expenses and remuneration referred to in paragraph (a) and to retain them from time to time,

out of the revenue of the business of the credit union or the proceeds of the realisation of the assets (including investments) or other funds available to the credit union.

(4) On the application of the administrator of a credit union, the Court shall by order fix the amount, or the basis of calculation of the amount, of the costs, expenses and remuneration of the administrator; and such an order may extend to a period prior to the date of the making of the order.

(5) Within six weeks of each anniversary of his appointment (or at such other times as the Court may direct) the administrator of a credit union shall deliver to the Court a summary of the sums received or retained by him in each year for the costs and expenses of the administration and for his remuneration.

(6) Within four weeks of his appointment, and within four weeks of each anniversary of his appointment, the administrator of a credit union, in exercise of the power of the board of directors under section 79 (1) , shall convene a special general meeting of the credit union at which he shall report to the members on his work and plans as administrator of the credit union.

Annotations:

Amendments:

F284

Substituted (1.05.2003) by Central Bank and Financial Services Authority of Ireland Act 2003 (12/2003), s. 35(1) and sch. 1 pt. 24 item 100, S.I. No. 160 of 2003, subject to transitional provisions in s. 36 and sch. 3 para. 26.