Building Societies Act

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REPUBLIC OF ZAMBIA
THE BUILDING SOCIETIES ACT
CHAPTER 412 OF THE LAWS OF ZAMBIA
CHAPTER 412 THE BUILDING SOCIETIES ACT
THE BUILDING SOCIETIES ACT
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
1. Short title
2. Interpretation
PART II
F ORMATION AND REGISTRATION

ACT
THE BUILDING SOCIETIES ACT
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
1. Short title
2. Interpretation
PART II
F ORMATION AND REGISTRATION

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3. Establishment of building society
3A. Establishment of the Zambia National Building Society.
4. Minister may suspend or refuse registration
4A. Cancellation of Registration.
5. Conditions relating to deposit with Bank of Zambia
6. Registration of existing societies
7. Effect of registration
8. Prohibition of unregistered and terminating societies
9. Maintenance of register
10. Name of building society
11. Contents of rules
12. Effect of rules
PART III
M EMBERSHIP AND COMMENCEMENT OF BUSINESS
13. Members who are not shareholders
14. Members under the age of twenty-one
15. Joint shareholders
16. Liability of members
17. Business not to be commenced before registration
18. Building society not to make advances outside Zambia
19. Minimum subscription by founding members
PART IV
M ANAGEMENT

ommenced before registration
18. Building society not to make advances outside Zambia
19. Minimum subscription by founding members
PART IV
M ANAGEMENT

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Section
20. Books and records to be kept by building society
21. Building society to supply copies of rules
Directors and Other Officers
22. Number of directors
23. Remuneration of directors
24. Election of directors
25. Validity of acts of director
26. Persons disqualified from being a director
27. Disclosure of interest by directors
28. Notification of changes in holders of certain offices
29. Officers not to accept commissions in connection with loans
30. Officers to give security and to account
31. Officers not to be exempted from liability
Accounts and Audit
32. Keeping of books of account
33. Annual accounts and balance sheet
34. Contents and form of accounts
35. Supplementary provisions as to offences under sections 32, 33 and 34
36. Signing of balance sheet
37. Account and auditors' report to be annexed to balance sheet
38. Directors' report
39. Right to receive copies of balance sheet and auditors' and directors' reports
40. Appointment of auditors
41. Disqualifications for appointment as auditor
42.

receive copies of balance sheet and auditors' and directors' reports
40. Appointment of auditors
41. Disqualifications for appointment as auditor
42.

Auditor's report and right of access to books and documents and to attend and
be heard
Meetings and Returns
43. Annual general meeting
44. Other meetings
45. Length and manner of notice
46. Persons entitled to notice
47. Proxies
48. Right to demand a poll
49. Special resolutions
50. Notice of members' special resolutions
51. Annual return
52. Additional annual return of certain transactions
53. Auditors' report on annual return
D i i f Di

f members' special resolutions
51. Annual return
52. Additional annual return of certain transactions
53. Auditors' report on annual return
D i i f Di

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PART V
ADVANCES
60. Building society may make advances
61. Ordinary advance
62. Special advance
63. Collective advance
64. Repayment of advances
65. Amount of advances
66. Advances to full value in certain cases
67. Special advance to purchaser of mortgaged property
68. Further advances for certain purposes
69. Restrictions on second and contributory mortgages
70. Advance for single premium life policy
71. Valuation for purposes of advance
72. Record of advances
73. Security taken from third party
74. Offer of advance not to imply warranty
75. Prohibition against balloting for advances
76. Provisions as to sale of mortgaged properties
77. Disposal of surplus when mortgagor cannot be found
78. Discharge of mortgages
PART VI
BORROWING POWERS
79. Power to borrow
80. Limit of repayments to investors and lenders
81. Limit of deposits
82. Liability for borrowing in excess of powers
83. Minimum notice of withdrawal
84. Assistance by one building society to another
85. Depositor under the age of twenty-one
86. Members or depositors dying intestate
87.

f withdrawal
84. Assistance by one building society to another
85. Depositor under the age of twenty-one
86. Members or depositors dying intestate
87.

Trustee status for certain investments in building societies
88. Provisions of Act to be inserted in certain documents

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PART VII
I NVESTMENT AND BANKING OF SURPLUS F UNDS
89. Authorised investments
90. Authorised banks
91. Offences under Part VII
92. General reserve fund
93. Provisions as to liquidity
94. Restriction of payment of dividends
PART VIII
CHANGE OF NAME, ETC.
95. Change of name
96. Notification of change of address
97. Alteration of rules
PART IX
UNIONS OF SOCIETIES AND T RANSFERS OF ENGAGEMENTS
Section
98. Union of building societies
99. Transfer of engagements
100. Registrar may approve union or transfer
100A. Transfer of Engagements by Board of Directors
101. Registration of transfers, etc., to operate as a conveyance
102. Creditors not to be prejudiced by union or transfer
PART X
NOMINATION, POWERS AND CONTROL OF REGISTRAR

ransfers, etc., to operate as a conveyance
102. Creditors not to be prejudiced by union or transfer
PART X
NOMINATION, POWERS AND CONTROL OF REGISTRAR

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103. Nomination of Registrar
104. Indemnity of Registrar and other persons
105. Power to require production of books, etc.
106. Powers of inspection
107. Power to call a meeting
108. Power to suspend borrowing and subscription for shares
109. Power to control advertising
PART XI
W INDING-UP AND DISSOLUTION
110. Dissolution in accordance with rules
111. Dissolution by consent
112. Dissolution on award of Registrar
113. Provisions applicable to dissolution under sections 110 and 111
114. Winding-up by or under the supervision of the High Court
115. Liability of members in winding-up or dissolution
116. Notice of winding-up or dissolution
PART XII
M ISCELLANEOUS AND SUPPLEMENTARY PROVISIONS

t
115. Liability of members in winding-up or dissolution
116. Notice of winding-up or dissolution
PART XII
M ISCELLANEOUS AND SUPPLEMENTARY PROVISIONS

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117. Powers in relation to land
118. Offences in relation to property of building societies
119. False statements in documents
120. Compulsory cancellation or suspension of registration
121. Cancellation of registration at request of building society
122. Effect of cancellation or suspension of registration
123. Obsolete
124. Annual report of Registrar
125. Provisions as to evidence
126. Form in which records may be kept
127. Regulations
128. Registrar to consider representations by building societies
129. Rules of court
130. Financial year of building societies
131. Non-compliance not to invalidate advance
132. Lost or destroyed share certificate, etc. 133. Inspection of documents by public
134. General penalty
135. Repeals
136.

not to invalidate advance
132. Lost or destroyed share certificate, etc. 133. Inspection of documents by public
134. General penalty
135. Repeals
136.

Transitional provisions
F IRST SCHEDULE -Permitted classes of additional security
SECOND SCHEDULE -Form of receipt to be endorsed on mortgage
CHAPTER 412
BUILDING SOCIEITIES 46 of 1968
67 of 1970
6 of 1991
13 of 1994
An Act to provide for the formation, registration, powers and duties, winding-up
and dissolution of building societies; to provide for membership of building
societies; to provide for the conducting of the business and management of
building societies; to make provisions relating to advances, borrowing and
investment by and in building societies; to provide for the union of building
societies and the transfer of engagements by one building society to another;
to provide for the powers of the Registrar of Building Societies; and to provide
for matters connected with or incidental to the foregoing. [2nd December, 1968]

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PART I
PRELIMINARY
1. This Act may be cited as the Building Societies Act. Short title

Ministry of Legal Affairs, Government of the Republic of Zambia
PART I
PRELIMINARY
1. This Act may be cited as the Building Societies Act. Short title

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2.

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2.

(1) In this Act, unless the context otherwise requires-
"additional security", in relation to an advance made by a building society, means
any security for the advance other than a mortgage of freehold or leasehold
estate, whether effected by the person to whom the advance is made or by
any other person;
"advance" means a sum of money advanced by a building society under Part V;
"advertisement", in relation to a building society, means an advertisement in any
medium making known the activities of the society or inviting business for
the society;
"alteration", in relation to the rules of a building society, includes any addition to the
rules, and also includes the rescission of all or any of the rules, with or
without the substitution of one or more new rules for any rules rescinded;
"annual return" has the meaning assigned to it by section fifty-one;
"board of directors", in relation to a building society, means the managing body of
the society by whatever name called;
"borrower" means a person to whom an advance has been made by a building
society under Part V;
"building society" means a society formed for the purpose of raising a stock or fund
from which to make advances upon security either by way of mortgage of
freehold or leasehold estate or in such manner as is permitted by this Act;
"collective advance" has the meaning assigned to it by section sixty-three;
"director", in relation to a building society, includes a member of the managing
body of the society and any other person occupying the position of director
by whatever name called;
"existing society" means any building society which, immediately prior to the
commencement of this Act, is registered under the Building Societies Act,
1874, of the United Kingdom;
"financial year" has the meaning assigned to it by section one hundred and thirty;
"general reserve fund" means a fund established in accordance with the provisions
of section ninety-two;
"leasehold" shall include the title obtained from a District Council under the
Housing (Statutory Improvement Areas) Act;
"liquid funds", in relation to a building society, means the amount by which the
aggregate of-
(a) its cash at the bank and in hand;
(b) the total book value or the total market value of its investments,
whichever is the lesser; and
(c) interest accrued on its investments;
exceeds the aggregate of-
(i) the amount of its liabilities in respect of loans from, and overdrafts
with, its bankers; and
(ii) the total amount shown as "other liabilities" in its balance sheet;
"local authority" means a municipal council, township council or rural council;
"member", in relation to a building society, includes any person who for the time
being holds a share (whether advanced or not) in the society;
"minimum subscription" has the meaning assigned to it by section nineteen;
"officer", in relation to a building society, includes a director, manager or secretary
of a society and, in so far as Part IV so provides, also includes an auditor of
Interpretation
Cap.

society, includes a director, manager or secretary
of a society and, in so far as Part IV so provides, also includes an auditor of
Interpretation
Cap.

194
Cap. 392

194
Cap. 392

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(2) For the purposes of any provision in this Act to the effect that an officer of a
building society who is in default shall be liable to a fine or penalty, "officer who is in
default" means any officer of the society who knowingly and wilfully authorises or permits
the default, refusal or contravention mentioned in the Act. (3) For the purposes of this Act, the value of the assets of a building society shall be
the value at which the assets are taken into account in the latest balance sheet and not
any alternative values shown in that balance sheet. (4) For the purposes of any reference in this Act to a person holding shares in a
building society up to a specified value-
(a) any shares which are fully paid up shall be taken at their nominal value;
(b) any shares which are partly paid up shall be taken at the amount which has
been paid on them respectively;
(c) any share held by a person to whom, as the holder of the share, the society
has made an advance shall be disregarded.

n paid on them respectively;
(c) any share held by a person to whom, as the holder of the share, the society
has made an advance shall be disregarded.

(5) Any reference in this Act to contravention of any provision of this Act, or of any
regulations or directions thereunder, shall include a reference to failure to comply with that
provision. (6) References in this Act to any enactment shall be construed as references to that
enactment as amended by or under any other enactment. (7) References in this Act to the Governor of the Bank of Zambia shall be construed
as including the Deputy Governor while he is acting in place of the Governor. (As amended by Act No. 6 of 1991)
PART II
F ORMATION AND REGISTRATION
3. (1) Any number of persons, not being less than five, may establish a building
society under this Act by-
Establishment of
building society

STRATION
3. (1) Any number of persons, not being less than five, may establish a building
society under this Act by-
Establishment of
building society

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(a) agreeing upon rules for the government of the society, being rules which
comply with the requirements of section eleven; and
(b) sending to the Registrar two copies of the rules, signed by all of those
persons and by the intended secretary or other officer, together with an
application for registration in the prescribed form; and
(c) each of those persons subscribing the minimum subscription referred to in
section nineteen; and
(d) satisfying the Registrar that the total sum subscribed by way of shares or
deposits or negotiated loans, or any combination of these, but excluding the
deposit mentioned in paragraph (e), is not less than two hundred thousand
kwacha 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; and
(e) depositing with the Bank of Zambia cash or securities acceptable to the
Governor of the Bank, or a combination of such cash and securities, to a
total value of one hundred thousand kwacha, and such deposit shall be
subject to the conditions set out in section five.

uch cash and securities, to a
total value of one hundred thousand kwacha, and such deposit shall be
subject to the conditions set out in section five.

(2) Application for registration under the provisions of subsection (1) shall be
accompanied by such fee as may be prescribed. (3) If the Registrar is satisfied that the application and rules comply, with the
requirements of this Act and that the provisions of subsection (1) relating to minimum
subscription, total subscription and deposit have also been complied with, he shall-
(a) enter in the register referred to in section nine the prescribed particulars
relating to the application; and
(b) retain and register one copy of the rules and return the other copy to the
secretary or other officer of the society, together with a certificate of
registration. 3A.

ter one copy of the rules and return the other copy to the
secretary or other officer of the society, together with a certificate of
registration. 3A.

(1) As from the date of the commencement of the Building Societies
(Amendment) Act, 1970, there is hereby established a building society under the name of
the Zambia National Building Society (hereinafter in this section referred to as "the
Society") which shall be deemed to be a building society registered under this Act and the
Registrar shall issue a certificate of registration dated the same day as that on which the
Building Societies (Amendment) Act, 1970, came into force, and from that day it shall,
subject to subsection (6), be subject to the provisions of this Act. Establishment of the
Zambia National
Building Society. Act No. 67 of 1970
Act No. 67 of 1970
(2) The Minister shall appoint-

e provisions of this Act. Establishment of the
Zambia National
Building Society. Act No. 67 of 1970
Act No. 67 of 1970
(2) The Minister shall appoint-

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(a) not less than seven persons to constitute the board of directors of the
Society and shall designate one of them as chairman; and
(b) the secretary or other officer of the Society. (3) The board of directors shall, prior to the 31st day of January, 1971, make rules
for the government of the Society, being rules which comply with the requirements of
section eleven, and submit such rules to the Minister for approval:
Provided that such rules may subsequently be altered in the same manner as the
rules of any other building society are capable of being altered under the provisions of this
Act. (4) The secretary or other officer of the Society shall forthwith after the approval of
such rules, with or without modification by the Minister, lodge two copies thereof with the
Registrar together with particulars of the directors and secretary or other officer.

t modification by the Minister, lodge two copies thereof with the
Registrar together with particulars of the directors and secretary or other officer.

(5) On receipt of such rules and particulars the Registrar shall-
(a) enter in the register referred to in section nine the particulars of the
directors and secretary or other officer and such other particulars as may
be prescribed;
(b) retain and register one copy of the rules and return the other copy to the
secretary or other officer. (6) Save as aforesaid, the provisions of section three shall not apply to the Society. (As amended by Act No. 67 of 1970)
4. Notwithstanding the provisions of section three, the Minister, if he is satisfied
that it is in the public interest so to do, may-
(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 time that such statutory instrument is in force the Registrar shall
not register any new society;
(b) in any particular case direct the Registrar that registration of a proposed
new building society shall be refused. Minister may suspend
or refuse registration
4A.

cular case direct the Registrar that registration of a proposed
new building society shall be refused. Minister may suspend
or refuse registration
4A.

Notwithstanding any other provisions of this Act, the Minister may, if he is of
the opinion that it is in the public interest so to do, cancel the registration of a building
society. (As amended by Act No. 67 of 1970)
Cancellation of
registration

it is in the public interest so to do, cancel the registration of a building
society. (As amended by Act No. 67 of 1970)
Cancellation of
registration

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5.

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5.

The following conditions shall apply to any deposit made with the Bank of
Zambia under the provisions of paragraph (e) of subsection (1) of section three, that is to
say:
(a) if any cash is deposited the Governor of the Bank may invest such cash in
securities in the name of the building society making the deposit and such
securities shall be deemed to be securities deposited by that society;
(b) income from a deposit shall be paid to the building society which made the
deposit;
(c) a building society may, with the approval of the Governor of the Bank,
substitute for any security deposited with the Bank another security of
equivalent value;
(d) a building society shall, be entitled to obtain annually from the Bank a
certificate of the deposit standing in its name;
(e) the deposit shall be returned to the building society which made it on the
production to the Governor of the Bank of a certificate by the Registrar to
the effect that the sum standing at the credit of the society's general
reserve fund satisfies the minimum requirements set out in subsection (5)
of section ninety-two;
(f) in the event of a society being wound up or dissolved, the deposit, on the
authority of a certificate by the Registrar, shall be paid over to the liquidator,
trustee or other person conducting the winding-up or dissolution.

e
authority of a certificate by the Registrar, shall be paid over to the liquidator,
trustee or other person conducting the winding-up or dissolution.

Conditions relating to
deposit with Bank of
Zambia
6. (1) The provisions of section three shall not apply to an existing society. Registration of existing
societies
(2) An existing society, without application, shall be given a certificate of registration
dated the same day as that on which this Act commences; and from that day it shall be
subject to all the other provisions of this Act. (3) If the rules of an existing society do not comply with section eleven, the society
shall take the necessary steps to amend the rules and shall register the amended rules
with the Registrar within a period of twelve months from the date of the society's
registration under this Act. 7. From the date of its registration under this Act a building society shall be a body
corporate by its registered name, having perpetual succession and a common seal. Effect of registration
8. (1) No terminating society shall carry on business in Zambia.

egistered name, having perpetual succession and a common seal. Effect of registration
8. (1) No terminating society shall carry on business in Zambia.

Prohibition of
unregistered and
terminating societies
(2) No person shall carry on business in Zambia as a building society unless
registered under the provisions of this Act and the name or style "building society" shall
not be used except by a building society registered under this Act.

ed under the provisions of this Act and the name or style "building society" shall
not be used except by a building society registered under this Act.

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(3) Any society which, or person who, contravenes the provisions of subsection (1)
or (2) shall be guilty of an offence and liable on conviction to a fine not exceeding fifteen
thousand penalty units and one thousand five hundred penalty units for each day during
which such contravention continues. (As amended by Act No. 13 of 1994)
9. The Registrar shall keep a register of building societies in which he shall record,
in respect of all building societies registered under this Act, such particulars as may be
prescribed. Maintenance of
register
10. (1) No building society shall be registered under this Act by a name which is
identical with that of any other society previously registered, or which so nearly resembles
the name of such other society as to be likely to deceive, unless such other society is in
course of being dissolved and consents to such registration. Name of building
society
(2) The Registrar may refuse to register a building society by a name which, in his
opinion, is undesirable. (3) The name of every building society shall end with the words "building society".

building society by a name which, in his
opinion, is undesirable. (3) The name of every building society shall end with the words "building society".

(4) The common seal of a building society shall bear the registered name of the
society. (5) A building society shall not use any name other than that in which it is registered. (6) If a building society contravenes subsection (5), the society, and every director
of the society who is a party to the contravention, shall be liable to a fine not exceeding
seven hundred and fifty penalty units for every week or part of a week during which the
offence continues. (As amended by Act No. 13 of 1994)

xceeding
seven hundred and fifty penalty units for every week or part of a week during which the
offence continues. (As amended by Act No. 13 of 1994)

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11.

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11.

The rules of every building society shall set out-
(a) the name of the society and the address of its chief office or place of
meeting:
(b) the manner in which the stock or funds of the society is or are to be raised;
(c) the manner in which a person may become a member of the society and
the manner in which he may cease to be a member;
(d) the purposes to which the funds of the society are to be applied;
(e) provision that the society shall not, except with the approval of the Minister,
make advances on the security of freehold or leasehold estate or in respect
of any development, lands or buildings, situated outside the territorial limits
of Zambia;
(f) the classes of shares to be issued and the preferential and other rights and
conditions attached to each class of shares;
(g) the terms and conditions on which deposits are to be accepted and repaid;
(h) provision that the society reserves the right to make all repayments,
whether of shares, deposits, loans or otherwise, in Zambian currency;
(i) the manner in which advances are to be made and repaid and the
conditions on which a borrower can redeem the amount due from him
before the end of the period for which the advance was made;
(j) the manner in which losses are to be ascertained and provided for;
(k) whether the society intends to borrow money, and if so, within what limits,
not exceeding those prescribed by this Act;
(l) the manner of appointing, remunerating and removing the board of
directors and other officers, their powers and duties, and the manner of
remunerating auditors;
(m) the manner of calling and holding meetings, the giving of notice thereof,
form of notice, quorum, voting rights, right to requisition meetings,
procedure to be observed at meetings, the right to demand a poll, and the
manner in which a poll is to be taken;
(n) the manner of settling disputes, subject to the provisions of this Act;
(o) provision for an annual or more frequent audit and the inspection by the
auditors of the titles, mortgage deeds and other securities held by the
society;
(p) provision for the custody of the titles, mortgage deeds and other securities
belonging to or held by the society;
(q) provision for the device, custody and use of the society's common seal;
(r) the fines and forfeitures, if any, to be imposed on members of the society;
(s) the manner in which the society may be dissolved.

y's common seal;
(r) the fines and forfeitures, if any, to be imposed on members of the society;
(s) the manner in which the society may be dissolved.

Contents of rules
12. The rules of a building society are binding upon each of the members and
officers of the society, and on all persons claiming on account of a member or under the
rules; and all such mem-bers, officers and persons shall be deemed to have full notice of
the rules. Effect of rules

account of a member or under the
rules; and all such mem-bers, officers and persons shall be deemed to have full notice of
the rules. Effect of rules

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PART III
M EMBERSHIP AND COMMENCEMENT OF BUSINESS
13. (1) The rules of a building society may allow a person to become a member
without holding a share in the society. Members who are not
shareholders
(2) Such of the rules as concern the making of advances to members need not be
expressed in terms which treat a member to whom an advance is made as being, by
reason of the making of the advance, the holder of a share in the society. 14. A person under the age of twenty-one years, if the rules do not otherwise
provide, may be admitted as a member of a building society, and can give all necessary
receipts, but, while he is under that age, he cannot vote or hold any office in the society. Members under the
age of twenty-one
15.

ive all necessary
receipts, but, while he is under that age, he cannot vote or hold any office in the society. Members under the
age of twenty-one
15.

Two or more persons may jointly own shares in a building society and in
respect of such shares the following provisions shall have effect, that is to say:
(a) except where the rules of the society otherwise provide, any notice or other
document may be given or sent by the society to the joint holders by being
given or sent to that one of the joint holders who is named first in the books
of the society (hereinafter in this section called "the first named holder");
(b) for the purposes of voting rights, shares which are jointly owned shall be
treated as held by the first named holder alone;
(c) for the purposes of any sections of this Act which refer to the consent of the
members, or of a proportion of the members, of a society, shares which are
jointly owned shall be treated as held by the first named holder alone and
the other joint holders shall not be regarded as members of the society for
such purposes;
(d) any references in this Act to total membership of a building society shall be
construed as if the first named holder (but none of the other joint holders) is
a member of the society;
(e) the entry in the register of members to be kept under section twenty of the
name and address of a person who is one of the joint holders (other than
the first named holder) of shares shall indicate that he is a joint holder who
is not the first named holder;
(f) the joint holders of shares shall be entitled to choose the order in which
they are named in the books of the society.

not the first named holder;
(f) the joint holders of shares shall be entitled to choose the order in which
they are named in the books of the society.

Joint shareholders
16. (1) The liability of a member of a building society in respect of a share on which
no advance has been made shall be limited to the amount actually paid, or in arrear, on
the share. Liability of members
(2) The liability of a member of a building society in respect of a share on which an
advance has been made shall be limited to the amount payable thereon under any
mortgage or other security or under the rules of the society.

which an
advance has been made shall be limited to the amount payable thereon under any
mortgage or other security or under the rules of the society.

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(3) The liability of a member of a building society to whom an advance is made
under rules made in pursuance of section thirteen shall be no greater than it would be if
the rules treated him as being, by reason of the making of the advance, the holder of a
share in the society. 17. (1) Except in the case of existing societies no building society, and no persons
representing themselves to be a building society, shall commence business without
having first obtained a certificate of registration under this Act. Business not to be
commenced before
registration
(2) All persons who commence business in contravention of subsection (1) shall be
guilty of an offence and liable on conviction to a fine not exceeding seven hundred and
fifty penalty units for every day on which business is carried on without a certificate of
registration having been obtained. (As amended by Act No. 13 of 1994)
18.

units for every day on which business is carried on without a certificate of
registration having been obtained. (As amended by Act No. 13 of 1994)
18.

Except with the prior approval of the Minister, a building society shall not make
advances on the security of freehold or leasehold estate, or in respect of any
development, lands or buildings, situated outside the territorial limits of Zambia. Building society not to
make advances
outside Zambia
19.

ct of any
development, lands or buildings, situated outside the territorial limits of Zambia. Building society not to
make advances
outside Zambia
19.

(1) The minimum subscription referred to in paragraph (c) of subsection (1) of
section three is a holding of shares in the building society to the value of ten thousand
kwacha for which a sum of ten thousand kwacha has been paid by the holder in cash; and
the shares shall have the following conditions attached to their issue, that is to say:
Minimum subscription
by founding members
(a) the terms regarding rate of interest, participation in profits, contributions to
losses, or rights on a termination or dissolution shall not be more favourable
than for any other shares in the society;
(b) the shares shall not be capable of being transferred from the person to
whom they were issued (except by operation of law) until a period of five
years has elapsed from the date of the society's registration;
(c) the society shall not repay the sum subscribed for the shares, or any part
thereof, until a period of five years has elapsed from the date of the
society's registration, unless the society is dissolved before the end of that
period.

, until a period of five years has elapsed from the date of the
society's registration, unless the society is dissolved before the end of that
period.

(2) If a building society contravenes any of the conditions requiring to be attached to
shares issued by the society in accordance with the provisions of subsection (1), the
society shall be guilty of an offence and liable on conviction to a fine not exceeding fifteen
thousand penalty units; and, in addition, every officer of the society who is in default shall
also be guilty of an offence and liable on conviction to a fine not exceeding seven
thousand five hundred penalty units or to imprisonment for a term not exceeding twelve
months, or to both.

on conviction to a fine not exceeding seven
thousand five hundred penalty units or to imprisonment for a term not exceeding twelve
months, or to both.

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(3) The Registrar may petition the High Court for the winding-up of a building society
which has been convicted of an offence under the provisions of subsection (2). (As amended by Act No. 13 of 1994)
PART IV
M ANAGEMENT
20. Every building society shall keep the following books:
(a) a register of members;
(b) minute books for recording proceedings of general meetings and directors'
meetings;
(c) a record of advances made by the society; and
(d) such books of account as may be necessary to enable the society to
comply with the provisions of section thirty-two. Books and records to
be kept by building
society
21.

nt as may be necessary to enable the society to
comply with the provisions of section thirty-two. Books and records to
be kept by building
society
21.

A building society shall supply to any person who requires it a complete copy of
its rules with a copy of the society's certificate of registration annexed to it and shall be
entitled to charge a sum not exceeding four fee units for each such copy of its rules; and if
a building society fails to comply with this section the society, and every officer of the
society who is in default, shall be guilty of an offence and liable on conviction to a fine not
exceeding seven thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
Building society to
supply copies of rules
Directors and Other Officers
22. (1) A building society shall have a board of directors consisting of not less than
three and not more than ten persons. Number of directors
(2) If an existing society on the commencement of this Act has a board of directors
exceeding ten in number, the society shall be permitted to retain all its directors, but if any
director retires (other than by rotation), or dies, or resigns, or is removed from the board,
another director shall not be appointed in his place if the number of directors remaining on
the board exceeds ten in number. 23.

oved from the board,
another director shall not be appointed in his place if the number of directors remaining on
the board exceeds ten in number. 23.

(1) The remuneration payable to the chairman and directors of a building
society shall be paid only out of the surplus of the society for the financial year to which
the remuneration relates and shall be limited to the following sums or such other sums as
the Minister may from time to time prescribe:
Remuneration of
directors

ation relates and shall be limited to the following sums or such other sums as
the Minister may from time to time prescribe:
Remuneration of
directors

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(a) if the total assets of the society do not exceed ten million kwacha, the
maximum sum payable in any one year to each director shall be one
thousand kwacha and to the chairman of the board of directors one
thousand five hundred kwacha;
(b) if the total assets of the society exceed ten million kwacha but do not
exceed twenty million kwacha, the maximum sum payable in any one year
to each director shall be one thousand five hundred kwacha and to the
chairman of the board of directors two thousand five hundred kwacha;
(c) if the total assets of the society exceed twenty million kwacha, the
maximum sum payable in any one year to each director shall be two
thousand kwacha and to the chairman of the board of directors three
thousand five hundred kwacha.

ayable in any one year to each director shall be two
thousand kwacha and to the chairman of the board of directors three
thousand five hundred kwacha.

(2) In calculating the remuneration paid to a director of a building society, for the
purposes of this section there shall be excluded-
(a) any salary, bonus or other emoluments paid to a director in respect of his
employment as an executive officer of the society; and
(b) the reimbursement to a director by the society of expenses properly
incurred by him while engaged in the business of the society or in attending
its meetings. 24. (1) The directors of a building society shall be elected in such manner and,
subject to subsection (2), shall hold office for such period as may be prescribed by the
society's rules. Election of directors
(2) A building society's rules shall make provision for at least two of the society's
directors to retire annually and they shall be eligible for re-election without nomination. (3) Whenever a casual vacancy occurs a person may be appointed by the remaining
directors to fill the vacancy until the next annual general meeting. (4) Vacancies in the board of directors shall be filled in such manner as may be
prescribed by the society's rules.

l the next annual general meeting. (4) Vacancies in the board of directors shall be filled in such manner as may be
prescribed by the society's rules.

(5) No person shall become a director of a building society until after he has given
his consent in writing to his being elected or appointed as such.

(5) No person shall become a director of a building society until after he has given
his consent in writing to his being elected or appointed as such.

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(6) A director of a building society may, if the rules of the society so permit, appoint
an alternate director to act in his stead during any period or periods when he is unable to
act and may revoke such appointment at any time. The appointment or revocation must
be in writing and be lodged at the society's chief office in the manner prescribed by the
rules. An alternate director shall not be counted in determining the total number of
directors of a building society for the purposes of section twenty-two. 25. The acts of a director of a building society shall be valid notwithstanding any
defect that may afterwards be discovered in his election or appointment or qualification;
but any acts which occur after the date of discovery of such defect shall not be valid. Validity of acts of
director
26.

appointment or qualification;
but any acts which occur after the date of discovery of such defect shall not be valid. Validity of acts of
director
26.

(1) The following persons shall be disqualified from being a director of a
building society:
Persons disqualified
from being a director
(a) a person who is not a member of the society;
(b) 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) a body corporate;
(d) a minor or any other person under legal disability;
(e) any person who at any time has been adjudged bankrupt by a competent
court, whether in Zambia or elsewhere, or who, whether in Zambia or
elsewhere, has made an arrangement or composition with his creditors;
(f) any person who has at any time been convicted, whether in Zambia or
elsewhere, of theft, any offence involving an element of fraud, forgery,
uttering a forged document, perjury, or any offence of a like nature, by
whatever name called, and has been sentenced therefore to a term of
imprisonment or to a fine exceeding one thousand five hundred penalty
units
(g) any person who has been removed by a competent court, whether in
Zambia or elsewhere, from an office of trust on account of misconduct or
breach of that trust;
(h) a person who is not a resident in Zambia.

hether in
Zambia or elsewhere, from an office of trust on account of misconduct or
breach of that trust;
(h) a person who is not a resident in Zambia.

(2) For the purposes of this section, a person shall not be treated as a resident in
Zambia who is in Zambia for some temporary purpose only and not with
any view or intent of establishing his residence therein. (As amended by Act No. 13 of 1994)

is in Zambia for some temporary purpose only and not with
any view or intent of establishing his residence therein. (As amended by Act No. 13 of 1994)

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27. (1) Subject to the provisions of this section, it shall be the duty of a director of a
building society who has an interest, pecuniary or otherwise, direct or indirect, in a
contract or proposed contract with the society or in the granting of an advance by the
society to declare the nature of his interest to the board of directors of the society in
accordance with this section. Disclosure of interest
by directors
(2) In the case of a proposed contract or a proposed advance, the declaration
required by this section to be made by a director shall be made at the meeting of the
directors at which the question of entering into the contract or granting the advance is first
taken into consideration, or, if the director was not at the date of that meeting interested in
the proposed contract or advance, at the next meeting of the directors held after he
becomes so interested.

at the date of that meeting interested in
the proposed contract or advance, at the next meeting of the directors held after he
becomes so interested.

(3) Where a director becomes interested in a contract with the building society after
it is made, the declaration required by this section shall be made at the first meeting of the
directors held after he becomes interested in the contract. (4) For the purposes of this section, a general notice given at a meeting of the
directors of a building society by a director to the effect that he is a member of a specified
company or firm, and is to be regarded as interested in any contract which may, after the
date of the notice, be made with that company or firm, is a sufficient declaration of interest
in relation to any contract made after that date with that company or firm. (5) A director need not make a declaration or give a notice under this section by
attending in person at a meeting of the directors, if he takes reasonable steps to ensure
that the declaration or notice is brought up and read at the meeting. (6) A director who has made a declaration of interest in accordance with the
provisions of this section shall be prohibited from voting on any resolution concerning the
matter in respect of which he has declared his interest.

e
provisions of this section shall be prohibited from voting on any resolution concerning the
matter in respect of which he has declared his interest.

(7) A director who fails to comply with the provisions of this section shall be guilty of
an offence and liable on conviction to a fine not exceeding seven thousand five hundred
penalty units
(As amended by Act No. 13 of 1994)
28. (1) Whenever a person becomes or ceases to be a director or manager or
secretary of a building society, the society shall within one month of its having notice of
the event give notice to the Registrar, stating the full name and address of that person,
particulars of the office which he has taken or relinquished and the date of his
appointment or relinquishment of office. Notification of changes
in holders of certain
offices

which he has taken or relinquished and the date of his
appointment or relinquishment of office. Notification of changes
in holders of certain
offices

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(2) If a building society fails to comply with this section, the society, and every officer
of the society who is in default, shall be guilty of an offence and liable on conviction to a
fine not exceeding seven thousand five hundred penalty units
(As amended by Act No. 13 of 1994)
29. (1) No director, secretary, or other officer of a building society, or surveyor or
solicitor who is an officer of a building society, shall, in addition to the remuneration
prescribed or authorised by the rules of the society, accept from any other person any
commission for or in connection with any loan made by the society.

scribed or authorised by the rules of the society, accept from any other person any
commission for or in connection with any loan made by the society.

Officers not to accept
commissions in
connection with loans
(2) If an officer of a building society accepts a commission in contravention of
subsection (1)-
(a) both he and the person who paid the commission shall each be guilty of an
offence and liable on conviction to a fine not exceeding fifteen thousand
penalty units or to imprisonment for a term not exceeding six months, or to
both; and
(b) the court which convicts the officer in question of an offence under
paragraph (a) shall by order direct the convicted officer to pay over to the
society of which he is an officer the amount or value of the commission
accepted by him for or in connection with the loan made by the society; and
(c) if, having been convicted of an offence under paragraph (a), the convicted
officer failes to pay over to the society the amount or value of the
commission as and when directed to do so by the court which convicted
him, he shall be guilty of an offence under this paragraph and liable on
conviction to imprisonment for a term not exceeding six months.

ich convicted
him, he shall be guilty of an offence under this paragraph and liable on
conviction to imprisonment for a term not exceeding six months.

(3) Where a charge upon a policy of life assurance is given as additional security for
an advance made by a building society, or a building society makes an additional advance
to enable payment to be made of a premium on a policy of insurance, or any policy of
insurance is taken out in order to comply with the terms on which an advance is made by
a building society, and the policy is effected through the building society or the society
nominates a person by whom the policy is to be issued, it shall be unlawful for a director
or other officer of the society, in connection with the effecting of the policy, to receive any
commission from the person by or through whom the policy is issued unless such director
or other officer receives such commission as nominee for and on behalf of the society and
forthwith pays it to the society. (4) A person who pays and a person who accepts commission in contravention of
the provisions of subsection (3) shall be guilty of an offence and liable on conviction to a
fine not exceeding fifteen thousand penalty units or to imprisonment for a term not
exceeding six months, or to both.

ce and liable on conviction to a
fine not exceeding fifteen thousand penalty units or to imprisonment for a term not
exceeding six months, or to both.

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(5) In this section, "commission" includes any gift, bonus or benefit in cash or in
kind. (As amended by Act No. 13 of 1994)
30. (1) Every officer of a building society who has the receipt or charge of any
money belonging to the society shall, before entering upon the execution of his office, give
security in such sum and in such manner as the directors of the society may require,
conditioned for rendering a just and true account of all moneys received and paid by him
on account of the society and for payment of all sums of money due from him to the
society, at such times as the society's rules appoint or as the society may require.

society and for payment of all sums of money due from him to the
society, at such times as the society's rules appoint or as the society may require.

Officers to give
security and to
account
(2) Every such officer of a building society as is mentioned in subsection (1) shall,
on demand, or if required to do so by notice in writing given or left at his last or usual
address, render an account as may be required by the directors of the society, to be
examined and allowed or disallowed by them, and, on like demand, he shall pay over all
the moneys remaining in his hands and deliver all securities and effects, books, papers
and property of the society in his hands or custody to such person as the society may
appoint. (3) The duty imposed by subsection (2) on an officer of a building society shall, after
his death, be taken to be imposed on his personal representatives. (4) In the case of any neglect or refusal to comply with the preceding provisions of
this section, the building society may apply to the High Court to make such order as
appears to it to be just and such order shall be final and conclusive. 31.

ion, the building society may apply to the High Court to make such order as
appears to it to be just and such order shall be final and conclusive. 31.

Any provision, whether contained in the rules of a building society or in any
contract with a building society, or otherwise, for exempting any director or other officer of
a building society, or any person employed by a building society as auditor, from, or
indemnifying him against, any liability which, by virtue of any rule of law, would otherwise
attach to him in respect of any negligence, default, breach of duty or breach of trust of
which he may be guilty in relation to the society, shall be void. Accounts and Audit
Officers not to be
exempted from liability
32. (1) Every building society shall cause to be kept 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 building society and to explain its transactions.

assets and liabilities as are necessary to give a true
and fair view of the state of affairs of the building society and to explain its transactions.

Keeping of books of
account
(2) Every building society shall establish and maintain a system to ensure the safe
custody of all documents of title belonging to the building society, and of the deeds
relating to the property mortgaged to the society; and such system shall require that, on
each occasion on which any document of title or deed is released from the custody of the
officers of the society, the consent is obtained of the board of directors of the society, or of
a person authorised by the board of directors of the society to give such consent.

consent is obtained of the board of directors of the society, or of
a person authorised by the board of directors of the society to give such consent.

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(3) Subject to the following provisions of this Part, any director of a building society
who fails to take all reasonable steps to secure compliance by the society with the
requirements of subsection (1) or (2), or who by his own wilful act is the cause of any
default by the society thereunder, shall in respect of each offence be liable on conviction
to a fine not exceeding seven thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
33. (1) The directors of every building society shall lay before the society at the
annual general meeting an income and expenditure account and a revenue appropriation
account for the last financial year ending before the date of the annual general meeting
and a balance sheet as at the end of that financial year. Annual accounts and
balance sheet
(2) Subject to the following provisions of this Part, if a director of a building society
fails to take all reasonable steps to comply with subsection (1), he shall, in respect of each
offence, be liable on conviction to a fine not exceeding seven thousand five hundred
penalty units.

with subsection (1), he shall, in respect of each
offence, be liable on conviction to a fine not exceeding seven thousand five hundred
penalty units.

(As amended by Act No. 13 of 1994)
34. (1) Every balance sheet of a building society shall give a true and fair view of
the state of affairs of the society as at the end of its financial year and every income and
expenditure account and revenue appropriation account of a building society shall give a
true and fair view of the income and expenditure of the society for the financial year. Contents and form of
accounts
(2) The Registrar shall have power, with the consent of the Minister, to make
regulations as to the form of a building society's balance sheet and income and
expenditure account and revenue appropriation account and the particulars to be included
therein; and such regulations may require the inclusion in the balance sheet and income
and expenditure account and revenue appropriation account of corresponding particulars
for a preceding financial year of the society. (3) The requirements of regulations under subsection (2) shall be without prejudice
to the general requirements of subsection (1) or of any other requirements of this Act.

of regulations under subsection (2) shall be without prejudice
to the general requirements of subsection (1) or of any other requirements of this Act.

(4) Subject to section thirty-five, if, in relation to a balance sheet or income and
expenditure account and revenue appropriation account laid before a building society at
its annual general meeting, a director of the society fails to take all reasonable steps to
secure compliance with the provisions of this section and of any regulations made
thereunder, he shall, in respect of each offence, be liable on conviction to a fine not
exceeding seven thousand five hundred penalty units
(5) The power to make regulations under this section shall be exercisable by
statutory instrument. (As amended by Act No. 13 of 1994)

ed penalty units
(5) The power to make regulations under this section shall be exercisable by
statutory instrument. (As amended by Act No. 13 of 1994)

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35. (1) In any proceedings against a person in respect of- Supplementary
provisions as to
offences under
sections 32, 33 and 34
(a) an offence under section thirty-two consisting of a failure to take reasonable
steps to secure compliance by a building society with the requirements of
that section; or
(b) an offence under section thirty-three or thirty-four;
it shall be a defence to prove that he had reasonable grounds to believe, and did believe,
that a competent and reliable person was charged with the duty of seeing that the relevant
requirements or provisions were complied with and was in a position to discharge that
duty. (2) A person shall not be sentenced to imprisonment for any such offence as is
mentioned in paragraph (a) or (b) of subsection (1) unless, in the opinion of the court
dealing with the case, the offence was committed wilfully.

is
mentioned in paragraph (a) or (b) of subsection (1) unless, in the opinion of the court
dealing with the case, the offence was committed wilfully.

(3) In this section, "the relevant requirements or provisions"-
(a) in relation to section thirty-two, means the requirements of that section;
(b) in relation to section thirty-three, means the provisions of that section; and
(c) in relation to section thirty-four, means the provisions of that section and
any regulations made thereunder. 36. Every balance sheet of a building society shall be signed on behalf of the
board of directors of the society by two of the directors and by the manager or secretary of
the society and, if a balance sheet has not been signed in the manner prescribed by this
section and a copy of it is issued, circulated or published, the building society, and every
officer of the society who is in default, shall be guilty of an offence and liable on conviction
to a fine not exceeding seven thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
Signing of balance
sheet
37. (1) The income and expenditure account and revenue appropriation account
shall be approved by the board of directors of a building society before the balance sheet
is signed on their behalf.

nd revenue appropriation account
shall be approved by the board of directors of a building society before the balance sheet
is signed on their behalf.

Account and auditors'
report to be annexed
to balance sheet
(2) The income and expenditure account and revenue appropriation account shall
be annexed to the balance sheet and the auditors' report shall be attached to it.

come and expenditure account and revenue appropriation account shall
be annexed to the balance sheet and the auditors' report shall be attached to it.

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(3) If any copy of a balance sheet is issued, circulated or published without having
annexed to it a copy of the income and expenditure account and revenue appropriation
account or without having attached to it a copy of the auditors' report, the building society,
and every officer of the society who is in default, shall be guilty of an offence and liable on
conviction to a fine not exceeding seven thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
38.

uilty of an offence and liable on
conviction to a fine not exceeding seven thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
38.

(1) The directors of a building society shall prepare and submit at the annual
general meeting a report on the state of affairs of the society and such report shall include
a statement setting out for the financial year last ending before the annual general
meeting at which the report is submitted-
Directors' report
(a) the total amount advanced by the society during the financial year;
(b) the number and total amount of ordinary advances made by the society
during the financial year;
(c) the number and total amount of special advances made by the society
during the financial year;
(d) the number and total amount of collective advances made by the society
during the financial year;
(e) the total amount of money received during the financial year by way of
investments in and loans to the society from members, depositors and
others;
(f) the total amount of money paid out during the financial year by the society
by way of repayment of shares or repayment of sums lent to the society by
depositors and others.

ney paid out during the financial year by the society
by way of repayment of shares or repayment of sums lent to the society by
depositors and others.

(2) The directors' report shall be attached to the balance sheet and, if any copy of a
balance sheet is issued, circulated or published without having attached to it a copy of the
directors' report, the building society, and every officer of the society who is in default,
shall be guilty of an offence and liable on conviction to a fine not exceeding seven
thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
39. (1) A copy of every balance sheet, including every document required by law to
be annexed to it, which is to be laid before a building society at the annual general
meeting, together with a copy of the auditors' report and the directors' report, shall, not
more than fourteen days after the date of the meeting, be sent to the Registrar. Right to receive copies
of balance sheet and
auditors' and directors'
reports

n fourteen days after the date of the meeting, be sent to the Registrar. Right to receive copies
of balance sheet and
auditors' and directors'
reports

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(2) Any member of, or investor with, a building society shall be entitled, on demand
and without charge, to be furnished with a copy of the last balance sheet of the society,
including every document required by law to be annexed to it, together with a copy of the
auditors' report and of the directors' report. (3) If default is made in complying with subsection (1), or if, when any person makes
a demand for any documents with which he is by virtue of subsection (2) entitled to be
furnished, default is made in complying with the demand within twenty-one days after the
demand is made, the building society, and every officer of the society who is in default,
shall be guilty of an offence and liable on conviction to a fine not exceeding seven
thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
40. (1) Every building society shall at each annual general meeting appoint an
auditor or auditors to hold office from the conclusion of that meeting until the conclusion of
the next annual general meeting.

ral meeting appoint an
auditor or auditors to hold office from the conclusion of that meeting until the conclusion of
the next annual general meeting.

Appointment of
auditors
(2) The auditor or auditors shall be a person or persons approved for that purpose
by the Registrar. (3) 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 or
auditors (if any) may act. (4) A person holding office as auditor of a building society shall, by virtue of holding
that office, be an officer of the society unless the rules of the society otherwise provide. 41. (1) None of the following persons shall be appointed as auditor of a building
society:
Disqualifications for
appointment as auditor
(a) an officer or servant of the society;
(b) a person who is a partner of or who is in the employment of or who employs
an officer or servant of the society;
(c) a body corporate;
(d) a person who is an officer or servant of a body corporate which is an officer
of the society. (2) References in subsection (1) to an officer or servant shall be construed as not
including an auditor.

orporate which is an officer
of the society. (2) References in subsection (1) to an officer or servant shall be construed as not
including an auditor.

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(3) Subsection (1) shall have effect notwithstanding anything in the rules of any
building society. (4) Any person who, or any body corporate which, acts as auditor of a building
society in contravention of the provisions of subsection (1) shall be guilty of an offence
and liable on conviction to a fine not exceeding seven thousand five hundred penalty
units. (As amended by Act No. 13 of 1994)
42. (1) The auditors of a building society shall make a report to the members on the
accounts examined by them, and on every balance sheet and every income and
expenditure account and revenue appropriation account laid before the society at the
annual general meeting during their tenure of office, and the report shall be read at the
annual general meeting and shall be open to inspection by any member.

neral meeting during their tenure of office, and the report shall be read at the
annual general meeting and shall be open to inspection by any member.

Auditors' report and
right of access to
books and documents
and to attend and be
heard
(2) The report shall state whether the balance sheet and income and expenditure
account and revenue appropriation account are properly drawn up in accordance with the
requirements of this Act and any regulations which may be made thereunder and whether,
in the opinion of the auditors, they give a fair and true view of the state of the building
society's affairs as at the end of its financial year and of the income and expenditure of the
society during that year. (3) The auditors of a building societ shall have a right of access at all times to the
books, accounts, records and vouchers of the society and to all other documents relating
to its affairs, including the deeds relating to property mortgaged to the society, and shall
be entitled to require from the officers of the society such information and explanations as
they may think necessary for the proper performance of the duties of the auditors.

om the officers of the society such information and explanations as
they may think necessary for the proper performance of the duties of the auditors.

(4) If the auditors of a building society fail to obtain from the society and its officers
all the information and explanations which, to the best of their knowledge and belief, are
necessary for the purposes of their audit, they shall state that fact in their report. (5) The auditors of a building society shall be entitled to receive notice of and to
attend all general meeting of the society, and to be heard at any such meeting which they
attend on any part of the business of the meeting which concerns them as auditors. Meetings and Returns
43. (1) Every building society shall in the first four months of each financial year
hold a meeting as its annual general meeting in addition to any other meetings held in that
year and the annual general meeting shall be described as such in the notice calling it. Annual general
meeting

ion to any other meetings held in that
year and the annual general meeting shall be described as such in the notice calling it. Annual general
meeting

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(2) If in any financial year a building society defaults in holding an annual general
meeting, the Registrar may call, or direct the calling of, an annual general meeting in that
financial year and give such ancillary or consequential directions as he thinks expedient,
including directions modifying or supplementing the operation of the rules of the society in
relation to the calling, holding and conducting of the meeting. (3) If default is made in holding an annual general meeting of a building society in
accordance with the provisions of subsection (1), or in complying with any directions of the
Registrar given under the provisions of subsection (2), the society, and every officer of the
society who is in default, shall be guilty of an offence and liable on conviction to a fine not
exceeding seven thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
44.

uilty of an offence and liable on conviction to a fine not
exceeding seven thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
44.

The board of directors of a building society shall call such other general
meetings as may be required by the rules of the society, or as they may consider
desirable, and shall notwithstanding anything contained in the rules of the society, call a
general meeting on the application in writing of not less than one-tenth of the total number
of members of the society or of not less than one hundred members in the case of a
society having more than one thousand members. Other meetings
45. (1) Any provision contained in the rules of a building society shall be void in so
far as it provides for the calling of a meeting of the society (other than an adjourned
meeting) by a shorter period of notice than fourteen days. Length and manner of
notice
(2) Except in so far as the rules of a building society make other provision in that
behalf (not being a provision rendered void by the provisions of subsection (1)) a meeting
of a building society (other than an adjourned meeting) may be called by fourteen days'
notice.

ed void by the provisions of subsection (1)) a meeting
of a building society (other than an adjourned meeting) may be called by fourteen days'
notice.

(3) Where notice of a meeting is given in accordance with the provisions of
subsection (2), the notice shall be taken for the purposes of this Act or any other Act to
have been duly given according to the rules of the building society. (4) Notice of a meeting of a building society shall not be given to members of the
society more than fifty-six days before the date of the meeting. (5) Notice of a meeting shall be given by a building society either-
(a) by sending it by post to the registered address of each member entitled to
notice and by exhibiting a copy of the notice in a conspicuous position at
the chief office of the society and also at all its branch offices; or

d to
notice and by exhibiting a copy of the notice in a conspicuous position at
the chief office of the society and also at all its branch offices; or

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(b) by advertising the notice of the meeting twice in such national newspaper or
newspapers circulating in the district in which the society's chief office is
situated, as may be selected by the board of directors of the society, and by
exhibiting a copy of the notice in a conspicuous position at the chief office
of the society and at all its branch offices. (6) If notice of a meeting is given by advertisement in the manner described in
paragraph (b) of subsection (5), the notice shall be deemed to have been served on the
day on which the last advertisement appears. If notice is given by post, it shall be deemed
to have been served on the day on which the notice would be delivered in the ordinary
course of the post. 46. (1) Notwithstanding the provisions of section forty-five, written notice of any
meeting of a building society which specifies the intention to propose a resolution as a
special resolution at the meeting shall be sent by post to the registered address of every
member qualified to vote on a special resolution at the meeting.

al resolution at the meeting shall be sent by post to the registered address of every
member qualified to vote on a special resolution at the meeting.

Persons entitled to
notice
(2) Subject to the provisions of section forty-five and of subsection (1), notice of any
meeting of a building society shall be given to all members of the society who were
members at the end of the last financial year before the date of the meeting and who at
the end of such financial year held, and at the date of service of the notice continued to
hold, paid-up shares in the society to the value of three thousand penalty units or more. (3) The accidental omission to give notice of a meeting to, or non-receipt of notice
by, any person entitled to receive notice of the meeting shall not invalidate the
proceedings at the meeting. (As amended by Act No. 13 of 1994)
47. (1) Any member of a building society who is entitled to attend and vote at a
meeting of the society shall be entitled to attend and vote at a meeting of the society shall
be entitled to appoint another person (whether a member or not) as his proxy to attend
and (subject to the provisions of subsection (2)) to vote instead of him. Proxies
(2) Unless the rules of the building society otherwise provide, a proxy is not entitled
to vote except on a poll.

(2)) to vote instead of him. Proxies
(2) Unless the rules of the building society otherwise provide, a proxy is not entitled
to vote except on a poll.

(3) In every notice calling a meeting of a building society there shall appear with
reasonable prominence a statement that a member entitled to attend and vote is entitled
to appoint a proxy to attend and vote instead of him, and that a proxy need not also be a
member. (4) If default is made in complying with the provisions of subsection (3) in respect of
any meeting, every officer of the building society who is in default shall be guilty of an
offence and liable on conviction to a fine not exceeding seven thousand five hundred
penalty units.

ng society who is in default shall be guilty of an
offence and liable on conviction to a fine not exceeding seven thousand five hundred
penalty units.

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(5) Any provision in the rules of a building society shall be void in so far as it would
have the effect of requiring the instrument appointing a proxy to be received by the society
or any other person more than forty-eight hours before a meeting or adjourned meeting in
order that the appointment may be effective at the meeting or adjourned meeting. (As amended by Act No. 13 of 1994)
48. (1) Any provision contained in the rules of a building society shall be void in so
far as it would have the effect either-
Right to demand a poll
(a) of excluding the right to demand a poll at a meeting of the society of any
question other than the election of a chairman of the meeting or the
adjournment of the meeting; or
(b) of making ineffective a demand for a poll on any such question which is
made by not less than ten members having the right to vote at the meeting.

(b) of making ineffective a demand for a poll on any such question which is
made by not less than ten members having the right to vote at the meeting.

(2) The instrument appointing a proxy to vote at a meeting of a building society shall
be taken also to confer authority to demand or join in demanding a poll; and, for the
purposes of subsection (1), a demand by a person as proxy of a member shall be the
same as a demand by the member. 49. (1) A resolution of a building society shall be a special resolution when it has
been passed by not less than two-thirds of the number of votes lawfully cast, in person or
by proxy, on a poll on the resolution, at a meeting of the society of which notice specifying
the intention to move the resolution as a special resolution has been duly given. Special resolutions
(2) For the purposes of this section-
(a) notice of a meeting shall be taken to be duly given if the notice is given in
the manner provided by this Act and by the rules of the building society;
(b) a meeting of a building society shall be taken to be duly held if it is held in
the manner provided by the rules of the society.

building society;
(b) a meeting of a building society shall be taken to be duly held if it is held in
the manner provided by the rules of the society.

(3) Notwithstanding anything in the rules of a building society, the business which
may be dealt with at the annual general meeting, or at any other meeting, shall include
any resolution to be passed as a special resolution. 50. (1) If at least five members of a building society apply in writing to the society
and give notice of their intention to move a special resolution at a meeting of the society, it
shall be the duty of the society to include in the notice of the next meeting of the society to
be held more than fifty-six days after receipt of the application a notice specifying the
intention to move that resolution as a special resolution at the meeting. Notice of members'
special resolutions

e application a notice specifying the
intention to move that resolution as a special resolution at the meeting. Notice of members'
special resolutions

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(2) If a building society fails to comply with an application made under subsection
(1), the society, and every officer of the society who is in default, shall be guilty of an
offence and liable on conviction to a fine not exceeding seven thousand five hundred
penalty units. (3) In this section "special resolution" means a resolution which will not be effective
unless it is passed as a special resolution. (As amended by Act No. 13 of 1994)
51. (1) Every building society in each financial year shall make to the Registrar a
return (in this Act referred to as "the annual return") relating to the affairs of the society for
the previous financial year not later than twenty-eight days after the date on which it holds
or ought to hold its annual general meeting in accordance with the provisions of
subsection (1) of section forty-three. Annual return
(2) The annual return shall be signed by two of the directors and by the manager or
secretary of the building society.

tion forty-three. Annual return
(2) The annual return shall be signed by two of the directors and by the manager or
secretary of the building society.

(3) The annual return shall be in such form and shall contain such information as the
Registrar shall prescribe by statutory instrument. (4) If a building society fails to comply with any of the provisions of this section, or of
regulations made thereunder, the society, and every officer of the society who is in default,
shall be guilty of an offence and liable on conviction to a fine not exceeding seven
thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
52. (1) For each financial year for which an annual return is made by a building
society, the society shall cause to be prepared, and sent to the Registrar together with the
annual return, a return with respect to-
Additional annual
return of certain
transactions
(a) every property which, during that financial year, has been sold by the
society in the exercise of its powers as mortgagee; and
(b) every mortgage which has been transferred by the society during that
financial year.

y the
society in the exercise of its powers as mortgagee; and
(b) every mortgage which has been transferred by the society during that
financial year.

(2) If a building society fails to comply with the provisions of subsection (1), the
society, and every officer of the society who is in default, shall be guilty of an offence and
liable on conviction to a fine not exceeding seven thousand five hundred penalty units. (As amended by Act No. 13 of 1994)

be guilty of an offence and
liable on conviction to a fine not exceeding seven thousand five hundred penalty units. (As amended by Act No. 13 of 1994)

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53. The auditors of a building society shall make a report on the annual return,
stating whether the annual return is in agreement with the books of account and records of
the society, and whether, in their opinion, it gives a true and fair view of the matters
contained in it; and the auditors' report shall be annexed to the annual return which is sent
to the Registrar. Determination of Disputes
Auditors' report on
annual return
54. (1) The provisions of sections fifty-five to fifty-nine shall have effect with respect
to any dispute between a building society and a member of the society in his capacity as a
member thereof, or a representative of such a member in his capacity as a member of the
society, in respect of any matter except the construction or effect of a mortgage deed,
loan agreement or of any other contract contained in any document other than the rules of
the society but (except in so far as the rules of a building society otherwise expressly
provide) shall not have effect with respect to any other dispute.

society but (except in so far as the rules of a building society otherwise expressly
provide) shall not have effect with respect to any other dispute.

General provisions as
to disputes
(2) Any reference in the rules of a building society to disputes (except in so far as
the rules otherwise expressly provide) shall be construed as referring only to the disputes
mentioned in subsection (1). (3) Nothing in sections fifty-five to fifty-nine shall prevent a building society, or any
member of, or person claiming through or under a member of, a building society, from
obtaining in the ordinary course of law any remedy in respect of any mortgage deed, loan
agreement, or other contract, other than the rules of the society, to which he or the society
would otherwise be entitled by law. 55. (1) The provisions of this section shall apply where the rules of a building
society direct that disputes are to be referred to arbitration. Determination of
disputes by arbitration
(2) Arbitrators shall be appointed in the manner provided by the rules, or, if the rules
make no such provision, at the first general meeting of the building society. (3) In the case of a dispute, such number of the arbitrators (not being less than
three) as may be prescribed by the rules of the society shall be chosen by ballot to
determine it.

such number of the arbitrators (not being less than
three) as may be prescribed by the rules of the society shall be chosen by ballot to
determine it.

(4) The names of the arbitrators shall be duly entered in the minute book of the
society. (5) If an arbitrator dies, or refuses or neglects to act, the society at a general
meeting shall appoint another to act in his place. (6) The award made by the arbitrators, or by the majority of them, shall determine
the dispute.

ral
meeting shall appoint another to act in his place. (6) The award made by the arbitrators, or by the majority of them, shall determine
the dispute.

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(7) If either party to a dispute refuses or neglects to comply with the award of the
arbitrators within such time as may be limited by the award, a subordinate court presided
over by a senior resident magistrate, on the application of any person concerned, shall
enforce compliance with the award on proof of its having been made and of that party's
refusal or neglect to comply with it. 56. Where the parties to a dispute agree to refer it to the Registrar, or where the
rules of a building society direct disputes to be so referred, the dispute shall be referred
accordingly, and the reference shall be deemed to be a reference to arbitration, the award
of the Registrar having the same effect as that of arbitrators under section fifty-five. Determination of
disputes by Registrar
57.

tration, the award
of the Registrar having the same effect as that of arbitrators under section fifty-five. Determination of
disputes by Registrar
57.

A subordinate court presided over by a senior resident magistrate may hear
and determine a dispute-
Determination of
disputes by court
(a) where the rules of a building society direct disputes to be referred to a
court; or
(b) if it appears to the court, upon the petition of any person concerned, that
application has been made by either party to the dispute to the other party
for the purpose of having the dispute settled by arbitration under the rules
of the building society, and that either such application has not been
complied with within forty days or the arbitrators have refused or neglected
for a period of twenty-one days to make an award. 58. Subject to the provisions of section fifty-nine, every determination of a dispute
by arbitration, or by the Registrar, or by the subordinate court shall be final and conclusive
and binding on all parties, and shall not be subject to appeal; and no proceedings on, or
determination of, any such dispute shall be removed into, or restrained by injunction
granted by, any court, or any other court, as the case may be. Effect of determination
59.

dispute shall be removed into, or restrained by injunction
granted by, any court, or any other court, as the case may be. Effect of determination
59.

The arbitrators, or the Registrar, or the subordinate court, as the case may be,
to whom a dispute is referred under section fifty-five, fifty-six or fifty-seven may, at the
request of either party, state a case for the opinion of the High Court on any question of
law. Statement of case for
High Court
PART V
ADVANCES
60. A building society may make advances out of its funds and such advances
shall be ordinary, special or collective advances as defined in sections sixty-one, sixty-two
and sixty-three. Building society may
make advances

nces
shall be ordinary, special or collective advances as defined in sections sixty-one, sixty-two
and sixty-three. Building society may
make advances

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61. An ordinary advance is an advance of a sum not exceeding one hundred and
twenty thousand kwacha, or such other sum as the Minister may from time to time
prescribe, made by a building society on the security of a mortgage of freehold or
leasehold estate. (As amended by Act No. 6 of 1991)
Ordinary advance
62. (1) A special advance is an advance made by a building society on the security
of a mortgage of freehold or leasehold estate, being an advance of one of the following
descriptions, that is to say:
Special advance
(a) an advance of a sum exceeding one hundred and twenty thousand kwacha,
or such other sum as the Minister may from time to time prescribe; or
(b) an advance of any amount to a person who, after the advance is made to
him, is indebted to the society in an amount exceeding one hundred and
twenty thousand kwacha or such other sum as the Minister may from time
to time prescribe. (2) An advance made jointly to two or more persons shall be deemed to be a special
advance if an advance of the same amount under like conditions to any one of these
persons would be a special advance.

shall be deemed to be a special
advance if an advance of the same amount under like conditions to any one of these
persons would be a special advance.

(3) (a) A building society shall not make a special advance except with the approval
of the Registrar, and every application for approval shall be in the prescribed form and
shall be accompanied by a schedule showing the totals of ordinary, special and collective
advances already made in the financial year in which the application is submitted and the
percentage which the total of balances of special advances remaining outstanding bears
to total mortgage assets at the date of the last published accounts of the society. (b) In this subsection, "mortgage assets" means the total of the sums owing to the
society by its borrowers. (As amended by Acts No. 6 of 1991)
63. (1) A collective advance is an advance which satisfies the following conditions,
that is to say:
Collective advance
(a) it shall be an advance of a sum approved by the Minister made by a
building society to the Government, or to such Government or
quasi-Government body, or to such local authority, corporation, board or
corporate body as the Minister shall approve; and
(b) the advance shall be for the purpose of enabling the borrower to purchase
or build residential accommodation for sale or rental; and

approve; and
(b) the advance shall be for the purpose of enabling the borrower to purchase
or build residential accommodation for sale or rental; and

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(c) the advance shall be evidenced by a loan agreement, which shall contain a
description of the property or development in respect of which the advance
is made and set out the amount of the advance, the rate of interest, the
amount and frequency of the repayments, and such other provisions as the
parties to the agreement may consider appropriate; and
(d) the repayment of the advance, and all interest payable thereon, shall be
guaranteed by the Government. (2) The approval of the Minister to a collective advance shall be signified by a
docket on the loan agreement, signed by or on behalf of the Minister, and any approval
given in such manner shall have the effect, without any further document or process, of
binding the Government in a guarantee of repayment of the advance referred to in the
loan agreement and of all interest payable thereon. (3) (a) The Registrar shall keep in the prescribed form a register of collective
advance loan agreements.

reement and of all interest payable thereon. (3) (a) The Registrar shall keep in the prescribed form a register of collective
advance loan agreements.

(b) A building society which has made a collective advance shall, within fourteen
days after the date of the docket on the loan agreement evidencing the advance, present
to the Registrar for registration a certified true copy of the said agreement and the
Registrar shall enter in the register such particulars thereof as may be prescribed. (c) Upon completion of the repayments provided for in the loan agreement, the
building society shall, in the prescribed form, notify the Registrar of such repayment and
the Registrar shall thereupon cause the registration in respect of such loan agreement to
be cancelled. (d) The registration of a loan agreement under this subsection shall not be deemed
to create or be evidence of any charge upon lands. 64. The terms of every advance made by a building society, except where the
repayment of the advance and the interest thereon is guaranteed by the Government,
shall provide for the repayment of the total capital amount within a period of not more than
thirty years; but a society's board of directors shall have power to extend the repayment
period in any case where it considers such an extension to be desirable or expedient. (As amended by Act No.

shall have power to extend the repayment
period in any case where it considers such an extension to be desirable or expedient. (As amended by Act No.

37 of 1973)
Repayment of
advances
65. (1) Subject to the provisions of sections sixty-six and sixty-seven, an ordinary or
special advance made by a building society, where no additional security is taken by the
society, shall not exceed, in the case of an ordinary advance, a sum equal to eighty per
centum of the value of the lands and buildings included in the mortgage and, in the case
of a special advance, seventy-five per centum of such value:
Amount of advances

e of the lands and buildings included in the mortgage and, in the case
of a special advance, seventy-five per centum of such value:
Amount of advances

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Provided that where a building society exercises its right of foreclosure or its power
of sale in respect of lands or buildings mortgaged to it, the society may make an advance
to the purchaser of such lands or buildings in an amount not exceeding the amount owing
to the society at the date of exercising its right, or eighty per centum of the value of the
lands or buildings, whichever is the greater. (2) A building society, in conjunction with an ordinary or special advance, may make
an additional advance against additional security of the type specified in the First
Schedule, and such additional advance shall not exceed fifteen per centum of the value of
the lands and buildings included in the mortgage or one hundred per centum of the value
of the additional security, whichever is the less. (3) Where a charge upon a policy of life assurance is taken as additional security for
an advance, the value of the policy shall be assessed at an amount not exceeding the
surrender value thereof at the time when the advance is made. 66.

an advance, the value of the policy shall be assessed at an amount not exceeding the
surrender value thereof at the time when the advance is made. 66.

(1) A building society may make a collective advance up to one hundred per
centum of the value of the development, or of the lands and buildings referred to in the
loan agreement evidencing the advance. Advances to full value
in certain cases
(2) A building society may make an ordinary or special advance up to one hundred
per centum of the value of the lands and buildings included in the mortgage securing the
advance if either-
(a) the repayment of the advance, or of the excess advance, and the interest
thereon, is guaranteed by the Government; or
(b) the repayment of the advance, or of the excess advance, and the interest
thereon, is undertaken or guaranteed by a company or commercial bank
whose guarantee is acceptable to the board of directors of the society. (3) In this section, "excess advance" means the amount by which the sum advanced
exceeds the maximum advance permitted by section sixty-five. 67.

ety. (3) In this section, "excess advance" means the amount by which the sum advanced
exceeds the maximum advance permitted by section sixty-five. 67.

(1) If a building society, in the exercise of its powers as mortgagee, proposes to
sell any freehold or leasehold estate mortgaged to the society, and to make to the
purchaser an advance upon the security of that estate which will constitute a special
advance, then provided that the society, on an application to the Registrar, satisfies him-
Special advance to
purchaser of
mortgaged property
(a) that the person or body corporate entitled to redeem the mortgage is
indebted to the society (taking into account the advance secured by the
mortgage and all other debt, of any description whether immediately
repayable or not) in an amount exceeding fifty thousand kwacha or such
other sum as may be prescribed under section sixty-two; and

whether immediately
repayable or not) in an amount exceeding fifty thousand kwacha or such
other sum as may be prescribed under section sixty-two; and

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(b) that the amount of the mortgage debt which, at the time of the application,
has not been repaid to the society, together with any arrears of interest in
respect of the advance secured by the mortgage, exceeds the amount of
the advance which the society proposes to make to the purchaser of the
freehold or leasehold estate;
the Registrar may, if he thinks fit, grant to the society permission in writing to make the
special advance to which the application relates. (2) Any special advance for which permission is granted under this section shall be
left out of account for the purposes of subsection (3) of section sixty-two. 68.

l advance for which permission is granted under this section shall be
left out of account for the purposes of subsection (3) of section sixty-two. 68.

Notwithstanding the provisions of section sixty-five, a building society, for the
purpose of protecting or maintaining the security held by it for the repayment of an
advance, may make further advances in respect of-
(a) premiums on insurance policies designed to provide further security for the
repayment of an advance;
(b) rates, taxes, general insurances and outgoings on the lands and buildings;
(c) the maintenance and repair of the lands and buildings;
and such further advances shall be a charge on the lands and buildings and shall form
part of the moneys secured by the mortgage. Further advances for
certain purposes
69. (1) A building society shall not advance money on the security of a mortgage of
any freehold or leasehold estate which is subject to a prior mortgage unless the prior
mortgage is in favour of the society; nor shall a building society advance money on the
security of a contributory mortgage.

mortgage unless the prior
mortgage is in favour of the society; nor shall a building society advance money on the
security of a contributory mortgage.

Restrictions on second
and contributory
mortgages
(2) The reference in subsection (1) to a prior mortgage shall be construed as not
referring to any charge over land acquired by a local authority under a written law or under
any instrument made under a written law, being a charge which takes effect by virtue of
the written law or instrument. (3) If a building society makes an advance in contravention of this section, the
directors of the society who authorised the advance, knowing it to be an improper
advance, shall be jointly and severally liable for any loss incurred by the society in respect
of the advance. 70. (1) For the purpose of facilitating the repayment to a building society of an
ordinary or special advance, the society shall have power to make to the borrower, by way
of addition to the advance, a further advance of the whole or part of such sum as may be
necessary to enable payment to be made of a single premium payable in respect of an
appropriate policy of life assurance. Advance for single
premium life policy
(2) A policy of life assurance, for the purposes of subsection (1), is an appropriate
policy if-

ife assurance. Advance for single
premium life policy
(2) A policy of life assurance, for the purposes of subsection (1), is an appropriate
policy if-

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(a) it is a policy of life assurance on the life of the borrower or the spouse or
son or daughter of the borrower; and
(b) it provides, in the event of the death, before the advance has been repaid,
of the person on whose life the policy is effected, for payment of a sum not
exceeding the amount sufficient to defray the sums which are, at and after
the time of the death, payable to the society in respect of the advance, as
increased by the additional advance made by the society under the power
conferred by this section. (3) A sum added to an advance in pursuance of the power conferred by this section
shall be treated as not forming part of the advance for the purpose of determining whether
the advance is beyond the powers of the society on the grounds that the amount of the
advance is excessive. 71.

for the purpose of determining whether
the advance is beyond the powers of the society on the grounds that the amount of the
advance is excessive. 71.

(1) The directors of every building society shall have the duty of satisfying
themselves that the arrangements made for assessing the adequacy of the security to be
taken in respect of advances to be made by the society are such as may reasonably be
expected to ensure that-
Valuation for purposes
of advance
(a) the adequacy of any security to be so taken will be assessed either by the
directors of the society or by a director or other officer of the society who is
competent to make the assessment; and
(b) there wil be made available to every person who has to assess the
adequacy of any security to be so taken an appropriate report as to the
value of any freehold or leasehold estate or development comprised in the
security and as to any matter likely to affect the value thereof.

as to the
value of any freehold or leasehold estate or development comprised in the
security and as to any matter likely to affect the value thereof.

(2) The reference in paragraph (b) of subsection (1) to an appropriate report is a
reference to a written report prepared and signed by a competent and prudent person who
is experienced in the matters relevant to the determination of the value of the estate or
development and, for the purposes of that paragraph, is not disqualified by virtue of the
following provisions of this section for reporting on that estate or development. (3) Any person who has a direct pecuniary interest (other than the payment of his
salary or fees for professional services) in the granting of an advance and any director,
manager, secretary or other officer of a building society, except a valuer employed by the
society for the express purpose of making valuations in accordance with the requirements
of this section, shall, for the purposes of paragraph (b) of subsection (1), be disqualified
for reporting on any freehold or leasehold estate or development comprised in security to
be taken by the society in respect of any advance.

qualified
for reporting on any freehold or leasehold estate or development comprised in security to
be taken by the society in respect of any advance.

(4) No person who is disqualified by virtue of the provisions of subsection (3) for
making a valuation shall make such valuation and any society which employs such a
person, and the person so employed, shall each be guilty of an offence and liable on
conviction to a fine not exceeding fifteen thousand penalty units.

erson, and the person so employed, shall each be guilty of an offence and liable on
conviction to a fine not exceeding fifteen thousand penalty units.

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(5) Every valuer shall make a personal inspection of the estate or development
which is offered as security for an advance, and, in the case of uncompleted buildings,
shall also examine the plans and specifications. (6) The valuer shall record his valuation and the date of his inspection on the
prescribed form and shall sign it. (7) If a building society makes an offer of advance on the security of a building or
development to be completed, and such advance is to be paid by instalments during the
progress of construction of the building or development, the valuer shall make a personal
inspection of the building or development prior to the payment of each instalment and the
amount of such instalment shall be related to the appropriate percentage of his valuation
at such inspection. (8) A building society shall, on payment to it of a reasonable fee, supply a copy of
the report referred to in paragraph (b) of subsection (1) to the person to whom the
advance is intended to be made but such copy shall not disclose the name of the valuer
who prepared the report. (As amended by Act No.

son to whom the
advance is intended to be made but such copy shall not disclose the name of the valuer
who prepared the report. (As amended by Act No.

13 of 1994)
72. (1) Every building society shall, in the record of advances to be kept under
section twenty, cause entries to be made showing, with respect to every advance made by
the society from the date of its registration under this Act-
Record of advances
(a) the value placed upon the estate or development in the report thereon
made under the provisions of paragraph (b) of subsection (1) of section
seventy-one and the name of the person by whom the report was made;
and
(b) particulars of any additional security taken by the society. (2) If any building society fails to comply with the provisions of subsection (1), the
society, and every officer of the society who is in default, shall be guilty of an offence and
liable on conviction to a fine not exceeding seven thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
73.

uilty of an offence and
liable on conviction to a fine not exceeding seven thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
73.

If a building society makes an ordinary advance, a special advance or an
additional advance and takes any security for such advance from a third party, then,
before any contract requiring the borrower to repay the advance is entered into, the
society shall give a notice to the borrower in the prescribed form:
Security taken from
third party
Provided that this section shall not apply to such an advance made to an individual
where the only security taken for the advance from a third party is a guarantee given by an
individual, not being a guarantee secured by a charge on any property.

ly security taken for the advance from a third party is a guarantee given by an
individual, not being a guarantee secured by a charge on any property.

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74. Notwithstanding the duty imposed on directors of a building society by section
seventy-one, no advance or offer of advance made by a society shall be construed as
warranting to the borrower or, in the case of an offer of advance, to the person to whom
the offer is made that the purchase price of the estate or development taken in security, or
proposed to be taken in security, is reasonable. Offer of advance not to
imply warranty
75. A building society shall not cause or permit applicants for advances to ballot for
precedence, or in any way make the granting of an advance depend upon any chance or
lot. Prohibition against
balloting for advances
76.

to ballot for
precedence, or in any way make the granting of an advance depend upon any chance or
lot. Prohibition against
balloting for advances
76.

(1) If a building society becomes absolutely entitled by foreclosure or by release
or other extinguishment of a right of redemption to any freehold or leasehold estate
mortgaged to it, such estate shall, as soon as may be conveniently practicable, be sold
and converted into money:
Provisions as to sale
of mortgaged
properties
Provided that the Registrar, on the application of a building society, may authorise
the society to retain any freehold or leasehold estate which has so fallen into its
possession, and to use such estate for the purposes of its business which, where the rules
of the society permit, shall include the provision of housing accommodation for members
of the society's staff. (2) In exercising its power of sale of any estate mortgaged to it, a building society
shall take reasonable care to ensure that the price at which the estate is sold is the best
price which can reasonably be obtained, and any agreement which relieves or attempts to
relieve the society of the obligations imposed by this subsection shall be of no effect.

be obtained, and any agreement which relieves or attempts to
relieve the society of the obligations imposed by this subsection shall be of no effect.

(3) Within twenty-eight days from the completion of a sale, the building society shall
send by registered post to the mortgagor at his last known address a notice containing
such particulars relating to the sale as may be prescribed. (4) Nothing in subsection (3) shall affect the operation of any rule of law relating to
the duty of a mortgagee to account to a mortgagor. (5) If a building society contravenes the provisions of subsection (2), the society,
and every officer of the society who is in default, shall be guilty of an offence and liable on
conviction to a fine not exceeding fifteen thousand penalty units. (6) A person who purchases an estate from a building society for full value and in
good faith shall not be concerned as to whether or not the society has complied with the
provisions of this section, and any contract of sale entered into between the society and
such purchaser shall not be affected by any failure on the part of the society to comply
with such provisions. (As amended by Act No. 13 of 1994)

and
such purchaser shall not be affected by any failure on the part of the society to comply
with such provisions. (As amended by Act No. 13 of 1994)

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77. (1) Where a building society has sold a freehold or leasehold estate as
mortgagee and, after paying all expenses of the sale and the sum due to the society under
its mortgage, there is a balance payable to the mortgagor and the mortgagor cannot be
found, the society shall place such balance on deposit with the society in the name of the
mortgagor. Disposal of surplus
when mortgagor
cannot be found
(2) If, after a period of three years has elapsed from the date of the sale, the
mortgagor has not claimed the sum deposited in accordance with the provisions of
subsection (1), the society may insert an advertisement in a newspaper circulating in the
district in which the estate which was sold is situated calling on the mortgagor to claim the
sum deposited within three months from the date of the advertisement and stating that
failing his so doing it will be forfeited to the society.

im the
sum deposited within three months from the date of the advertisement and stating that
failing his so doing it will be forfeited to the society.

(3) If, after the expiry of three months from the date of the advertisement referred to
in subsection (2), the mortgagor has not claimed the sum deposited, such sum shall
become part of the general funds of the society and, notwithstanding the provisions of any
law or practice to the contrary, no action shall be brought by the mortgagor to recover
such sum and the mortgagor shall cease to have any right thereto. 78. (1) When all moneys intended to be secured by a mortgage given to a building
society have been fully paid or discharged, the society may endorse on or annex to the
mortgage one or other of the following, that is to say:
Discharge of
mortgages
(a) a receipt under the society's seal in the form set out in the Second
Schedule and countersigned by at least two persons acting under the
authority of the society's board of directors and in accordance with the rules
of the society;
(b) a reconveyance of the mortgaged property to the mortgagor;
(c) a reconveyance of the mortgaged property to such person of full age, and
on such trusts, if any, as the mortgagor may direct.

ty to the mortgagor;
(c) a reconveyance of the mortgaged property to such person of full age, and
on such trusts, if any, as the mortgagor may direct.

(2) Where in pursuance of subsection (1) such a receipt as is therein mentioned is
endorsed on or annexed to a mortgage, the receipt shall operate and be a discharge
within the meaning and for all the purposes of section sixty-seven of the Lands and Deeds
Registry Act. Cap. 185
PART VI
BORROWING POWERS

a discharge
within the meaning and for all the purposes of section sixty-seven of the Lands and Deeds
Registry Act. Cap. 185
PART VI
BORROWING POWERS

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79. Subject to the provisions of this Act, a building society may borrow money and
accordingly may receive deposits or loans, at interest, to be applied for the business of the
society. Power to borrow
80. (1) The maximum amount which a building society may repay to any single
investor or lender in any one month of moneys invested with or borrowed by the society,
whether such moneys are in the form of shares, deposits or loans, other than bank
overdrafts, or in a combination of these, shall be up to two percentum of its total assets or
such amounts as the Minister may prescribe. Limit of repayments to
investors and lenders
(2) In this section, "total assets" means the total of the monetary values placed
against the items appearing as assets in the society's balance sheet at the close of the
last preceding financial year. (As amended by Act No. 6 of 1991)
81.

the items appearing as assets in the society's balance sheet at the close of the
last preceding financial year. (As amended by Act No. 6 of 1991)
81.

(1) The total amount which a building society may receive in deposits, loans
and bank overdrafts, shall not, at any time, exceed the total sum due by the society to
shareholders, after deduction therefrom of the total amount of all other liabilities,
provisions and reserves of the society. Limit of deposits
(2) In this section, the terms "other liabilities", "provisions" and "reserves" have the
same meanings as those which are normally attributed to them when used in the balance
sheet of a building society. 82. If a building society borrows money in excess of the limits prescribed by this
Act, the directors of the society receiving such moneys on its behalf shall be personally
liable, jointly and severally, for the amount of the excess. Liability for borrowing
in excess of powers
83. (1) A building society shall not accept a deposit or loan except on terms
enabling the society to require notice (not being less than one month's notice) before
repayment or withdrawal.

cept a deposit or loan except on terms
enabling the society to require notice (not being less than one month's notice) before
repayment or withdrawal.

Minimum notice of
withdrawal
(2) If a building society contravenes the provisions of subsection (1), the society,
and every director of the society who is a party to the contravention, shall be guilty of an
offence and liable on conviction to a fine not exceeding one thousand five hundred penalty
units. (As amended by Act No. 13 of 1994)
84. Where it appears to the Minister that a building society is in financial difficulties,
he may authorise any building society to lend money to the first mentioned society and the
building society shall have power to do so accordingly. Assistance by one
building society to
another

end money to the first mentioned society and the
building society shall have power to do so accordingly. Assistance by one
building society to
another

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85. Any person under the age of twenty-one years may deposit money in a building
society and shall be capable of giving a full acquittance to the society in respect of the
payment to him of any sum due in respect of the principal of, or interest on, sums lent by
him to the society. Depositor under the
age of twenty-one
86. (1) Where any member of, or depositor with, a building society dies intestate
having a sum of money in the funds of the society and letters of administration to his
estate have not been exhibited to the society within a period of three years from the date
of death, the society may hand over such sum of money to the Administrator-General who
shall hold it upon the trusts upon which an administrator of the estate would have held it
and whose acknowledgment shall be a sufficient discharge to the society for the money so
paid; and the society shall not be concerned with the ultimate disposal of such money by
the Administrator-General.

ge to the society for the money so
paid; and the society shall not be concerned with the ultimate disposal of such money by
the Administrator-General.

Members or
depositors dying
interstate
(2) For the purposes of this section, letters of administration shall include an order
appointing an administrator made under the Local Courts Act. Cap. 29
87.

he purposes of this section, letters of administration shall include an order
appointing an administrator made under the Local Courts Act. Cap. 29
87.

(1) Notwithstanding the provisions of any other law, a trustee may invest any
trust funds in his hands, whether at the time in a state of investment or not, in deposits
with and loans to a building society designated for that purpose by the Minister by
statutory instrument, but the Minister shall not designate a society under this section
unless and until it satisfies the following conditions, that is to say:
Trustee status for
certain investments in
building societies
(a) the total assets of the society are not less than four million kwacha; and
(b) the society (or, in the case of a reconstituted society, or where there has
been a union of societies or a transfer of engagements, its predecessor or
constituents) shall have paid interest and dividends at not less than the
rates at which they have advertised for funds for a period of at least five
years prior to the date of designation; and
(c) the liquid funds of the society are not less than ten per centum, or such
higher percentage, as may by statutory instrument be prescribed from time
to time by the Governor of the Bank of Zambia for the purposes of this
section, of the total amount of the assets of the society, reduced by any
amount by which the total book value of the society's investments exceeds
their total market value; and
(d) the sum standing at the credit of the general reserve fund of the society
shall satisfy the minimum requirements set out in subsection (5) of section
ninety-two.

nding at the credit of the general reserve fund of the society
shall satisfy the minimum requirements set out in subsection (5) of section
ninety-two.

(2) A building society which has been designated under the provisions of this
section and which subsequently ceases to satisfy the conditions set out in subsection (1)
shall not cease to be a designated society unless and until its designation under this
section is revoked by the Minister by statutory instrument.

(1)
shall not cease to be a designated society unless and until its designation under this
section is revoked by the Minister by statutory instrument.

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88. (1) In or upon every deposit book or acknowledgment or security of any kind
which is given by a building society for a deposit or loan, the whole of the following
provisions of this Act shall be set out in writing, that is to say, subsections (1) and (2) of
section sixteen, sections seventy-nine, eighty-one and this subsection; and there shall
also be set out in writing a reference to section eighty. Provisions of Act to be
inserted in certain
documents
(2) If a building society makes default in complying with the provisions of subsection
(1), the person by whom the default is made shall be guilty of an offence and liable on
conviction to a fine not exceeding three hundred penalty units. (As amended by Act No. 13 of 1994)
PART VII
I NVESTMENT AND BANKING OF SURPLUS F UNDS
89. (1) A building society may invest any of its surplus funds in- Authorised investment
(a) establishing and managing unit trust schemes;
(b) establishing and managing pension schemes; and
(c) establishing subsidiary companies.

investment
(a) establishing and managing unit trust schemes;
(b) establishing and managing pension schemes; and
(c) establishing subsidiary companies.

(2) A building society shall not invest any part of the surplus funds in projects other
than those set out in subsection (1) except as authorised by an order made by the minister
under this section. (3) the Minister may vary or revoke an order made under this section provided that a
society which at the time when an order comes into operation, has funds invested in what,
by virtue of such order, has ceased to be an authorised investment, may, with the
approval of the Registrar retain such investment and the Registrar shall give his approval
to such retention for so long as he is satisfied that the realisation of the investment would
not be detrimental to the interest of the society. (4) In this Part, "surplus funds" in relation to a building society, means funds of the
society which are not immediately required for its purposes. (5) The power to make orders under this section shall be exercisable by statutory
instrument. (As amended by Act No. 6 of 1991)

ired for its purposes. (5) The power to make orders under this section shall be exercisable by statutory
instrument. (As amended by Act No. 6 of 1991)

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90. (1) In so far as any surplus funds of a building society are not invested in
accordance with the provisions of section eighty-nine and are not kept in cash in the
custody of officers of the society, the society shall keep them on current account with, or
otherwise on loan to, a bank which is for the time being authorised under this section to
hold funds of building societies. Authorised banks
(2) For the purposes of subsection (1), the Minister shall make an order, designating
the banks with which building societies are authorised to keep money; and the Minister
may vary or revoke an order made under this section, provided that where a bank ceases
to be an authorised bank and any funds of a building society on loan to that bank
thereupon cease to be kept in the manner permitted by subsection (1), the society shall
take all practicable steps to call in and realise the loan within the period of three months
from the time when the bank ceased to be so authorised, or, if that is not possible, as
soon after the end of that period as possible.

of three months
from the time when the bank ceased to be so authorised, or, if that is not possible, as
soon after the end of that period as possible.

(3) The power to make orders under this section shall be exercisable by statutory
instrument. 91. If a building society contravenes any of the provisions of sections eighty-nine
and ninety, the society shall be guilty of an offence and liable on conviction to a fine not
exceeding fifteen thousand penalty units and every officer of the society who is in default
shall also be guilty of an offence and liable to a fine not exceeding fifteen thousand
penalty units or to imprisonment for a term not exceeding two years, or to both. (As amended by Act No. 13 of 1994)
Offences under Part
VII
92. (1) Every building society shall establish a fund to be known as the general
reserve fund, appropriations to which shall be made only out of the realised surpluses of
the society. General reserve fund
(2) No dividend, bonus or donation shall be paid out of the general reserve fund. (3) Moneys standing to the credit of the general reserve fund shall be invested in
authorised investments or in advances. (4) A society may charge against the general reserve fund any net loss remaining to
the society in any year after applying to such loss any undistributed surpluses brought
forward from previous years.

ve fund any net loss remaining to
the society in any year after applying to such loss any undistributed surpluses brought
forward from previous years.

(5) Within a period of five years in the case of an existing society, and ten years in
the case of any other building society, in each case from the date of the society's
registration under this Act, the sum at credit of a building society's general reserve fund,
when added to any provision against depreciation of or losses on investments and
reduced by the aggregate of-

building society's general reserve fund,
when added to any provision against depreciation of or losses on investments and
reduced by the aggregate of-

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(a) any amount by which the total book value of the society's investments
exceeds their total market value; and
(b) any amount recommended by the society's directors for distribution as
interest, dividend or bonus, and not provided for in the society's annual
accounts;
shall not be less than two and one-half per centum of the total amount of the society's
assets reduced by the aggregate of-
(i) any amount by which the total book value of the society's investments
exceeds their total market value; and
(ii) the total amount of any reserves set aside by the society for a particular
purpose, other than any reserve against depreciation of or losses on
investments. (6) In the event of a building society failing to comply with the provisions of
subsection (5) within the period prescribed therein, the Registrar shall have the power to
cancel or suspend the society's registration, or give such other directions to the society as
he may think fit.

the Registrar shall have the power to
cancel or suspend the society's registration, or give such other directions to the society as
he may think fit.

(7) The general reserve fund to be established by a building society under this
section shall be in addition to the liquid funds referred to in section ninety-three. 93. (1) Subject to the provisions of subsection (8), the Governor of the Bank of
Zambia shall by statutory instrument direct, from time to time, the minimum amount of
liquid funds to be maintained by building societies and every building society shall be
bound by such direction, which shall be expressed in terms of a percentage of the total
amount of a society's assets reduced by any amount by which the total book value of the
society's investments exceeds their total market value. Provisions as to
liquidity
(2) Every building society shall make a monthly return in the prescribed form to the
Governor of the Bank of Zambia to enable him to give directions in accordance with the
provisions of subsection (1). (3) A direction given under this section shall specify the date from which it is to take
effect which shall not be earlier than three months from the date of publication of the
Gazette in which it appears. (4) A direction given under this section may be varied or revoked by a subsequent
direction given in like manner.

of the
Gazette in which it appears. (4) A direction given under this section may be varied or revoked by a subsequent
direction given in like manner.

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(5) A direction given under this section shall not increase by more than two and
one-half per centum the percentage of liquid funds to be maintained by building societies
prevailing at the date of publication of the direction. (6) Liquid funds shall be held by building societies in any or all of the following:
(a) notes and coin which are legal tender in Zambia;
(b) balances and money at call with registered discount houses, registered
acceptance houses, or registered commercial banks;
(c) treasury bills issued by the Government;
(d) local registered securities issued or guaranteed by the Government of
which not more than fifty per centum may be in securities of a final maturity
date of more than six years;
(e) such other assets as the Governor of the Bank of Zambia may, with the
consent of the Minister, from time to time prescribe by statutory instrument.

e) such other assets as the Governor of the Bank of Zambia may, with the
consent of the Minister, from time to time prescribe by statutory instrument.

(7) If a building society fails to make the return provided for in subsection (2), or
wilfully and without a valid reason acceptable to the Registrar fails to comply with a
direction given under this section, or wilfully and without a valid reason acceptable to the
Registrar fails to hold its liquid funds as provided in subsection (6), the society, and every
officer of the society who is in default, shall be guilty of an offence and liable on conviction
to a fine not exceeding fifteen thousand penalty units. (8) (a) Subject to subsection (5), the Minister may, after consultation with the
Governor of the Bank of Zambia, give directions to the Governor as to the exercise of the
power conferred upon him by subsection (1) and the Governor shall comply with any such
direction. (b)Any direction given by the Minister under paragraph (a) shall be in writing. (As amended by Act No. 13 of 1994)
94. No building society shall pay any dividend or interest on any of its shares
otherwise than out of surpluses earned by the society during the financial year to which
the dividend or interest relates, and undistributed surpluses. Restriction of payment
of dividends

d by the society during the financial year to which
the dividend or interest relates, and undistributed surpluses. Restriction of payment
of dividends

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PART VIII
CHANGE OF NAME, ETC. 95. (1) A building society may change its name by special resolution. Change of name
(2) Notice of any such change shall be sent to the Registrar within fourteen days
from the passing of the special resolution and shall be registered by him, and he shall give
a certificate of registration:
Provided that a building society shall not be registered under this section in a name
which, in the opinion of the Registrar, is undesirable. (3) A change of name by a building society in accordance with the provisions of this
section shall not affect the rights and obligations of the society or of any of its members or
of any other person concerned. (4) If a building society fails to send to the Registrar a notice which it is required to
send under subsection (2), the society, and every officer of the society who is in default,
shall be guilty of an offence and liable on conviction to a fine not exceeding seven
thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
96.

uilty of an offence and liable on conviction to a fine not exceeding seven
thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
96.

A building society which changes the situation of its registered office or its
postal address shall, within fourteen days after such change, send to the Registrar notice
thereof and the Registrar shall register such change. Notification of change
of address
97. (1) A building society may alter its rules by special resolution. Alteration of rules
(2) Where a building society by special resolution alters its rules, it shall, within
fourteen days from the passing of the special resolution, send to the Registrar two copies
of the alteration (or, in the case of the rescission of a rule, two copies of the resolution)
signed by three members and the secretary, and a statutory declaration by an officer of
the society that the resolution has been passed as a special resolution. (3) Where copies are sent to the Registrar in accordance with subsection (2), and
the Registrar finds that the alteration is in conformity with this Act, he shall return one of
the copies to the secretary or other officer of the society with a certificate of registration
and shall retain and register the other copy.

rn one of
the copies to the secretary or other officer of the society with a certificate of registration
and shall retain and register the other copy.

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(4) Any provision in the rules of a building society that the rules may be altered
without passing a special resolution shall be void. (5) If a building society fails to comply with the provisions of subsection (2), the
society, and every officer of the society who is in default, shall be guilty of an offence and
liable on conviction to a fine not exceeding seven thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
PART IX
UNIONS OF SOCIETIES AND T RANSFERS OF ENGAGEMENTS
98. (1) Two or more building societies may unite and become one society, with or
without a dissolution or division of the funds of any one or more of those societies, if-
Union of building
societies
(a) the terms of the union are approved by a special resolution of each of the
societies; and
(b) the union obtains the consent in writing of the holders of not less than
two-thirds of the whole number of shares in each society, whether they are
present at the meeting or not.

t in writing of the holders of not less than
two-thirds of the whole number of shares in each society, whether they are
present at the meeting or not.

(2) Notice of any union of building societies shall be sent to the Registrar and, upon
completion of the union, the societies united shall be deemed to be dissolved and their
registrations cancelled and the Registrar shall thereupon register the new society. (3) If a building society fails to send to the Registrar the notice referred to in
subsection (2), the society, and every officer of the society who is in default, shall be guilty
of an offence and liable on conviction to a fine not exceeding seven thousand five hundred
penalty units. (As amended by Act No. 13 of 1994)
99. (1) A building society may by special resolution transfer its engagements to
another building society which undertakes to fulfil those engagements; and a building
society may-
Transfer of
engagements
(a) by special resolution; or
(b) with the consent of the Registrar, by resolution of a general meeting or of its
board of directors;
undertake to fulfil the engagements of another building society.

nt of the Registrar, by resolution of a general meeting or of its
board of directors;
undertake to fulfil the engagements of another building society.

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(2) Notice of the transfer shall be sent to the Registrar by the building society
transferring its engagements. (3) A transfer of engagements between building societies under this section shall
not have effect unless-
(a) the holders of not less than two-thirds of the whole number of shares in
each of the societies have consented in writing to the transfer; and
(b) notice of the transfer has been registered. (4) If a building society fails to send to the Registrar the notice referred to in
subsection (2), the society, and every officer of the society who is in default, shall be guilty
of an offence and liable on conviction to a fine not exceeding seven thousand five hundred
penalty units. (As amended by Act No. 13 of 1994)
100.

ilty
of an offence and liable on conviction to a fine not exceeding seven thousand five hundred
penalty units. (As amended by Act No. 13 of 1994)
100.

(1) A building society desiring to unite with another society, or to transfer its
engagements to another society, or to undertake to fulfil the engagements of another
society, and which has not obtained the consent in writing of the holders of two-thirds of
the whole number of the society's shares may make an application to the Registrar to
confirm the union or transfer. Registrar may approve
union or transfer
(2) Where such an application is made the society shall cause notice of the
application to be published as directed by the Registrar, and, after hearing the society
making the application and any other persons whom the Registrar considers entitled to be
heard, the Registrar, notwithstanding the provisions of sections ninety-eight and
ninety-nine, may confirm the union or transfer of engagements accordingly. 100A. (1) Notwithstanding the provisions of sections ninety-nine and one hundred,
a building society may by resolution of its board of directors transfer its engagements to
the Zambia National Building Society. Transfer of
engagements by board
of directors
(2) Notice of such transfer shall be sent to the Registrar who may confirm and
register such transfer.

. Transfer of
engagements by board
of directors
(2) Notice of such transfer shall be sent to the Registrar who may confirm and
register such transfer.

(As amended by Act No. 67 of 1970)

(As amended by Act No. 67 of 1970)

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101. The registration by the Registrar in accordance with the provisions of the
previous sections of this Part of notice of the union or transfer of engagements of a
building society shall operate, by virtue of this section and without further assurance, as
an effectual conveyance, transfer and assignment, as at the date of the registration, of the
funds, property and assets of the uniting societies to the united society, or of the funds,
property and assets of the transferring society to the society undertaking its engagements,
as may be provided by the instrument of union or transfer of engagements, as the case
may be. Registration of
transfers, etc., to
operate as a
conveyance
102. A union of building societies or a transfer of engagements from one society to
another shall not affect the rights of any creditor of any building society concerned in the
union or transfer. Creditors not to be
prejudiced by union or
transfer
PART X
NOMINATION, POWERS AND CONTROL OF REGISTRAR
103.

ociety concerned in the
union or transfer. Creditors not to be
prejudiced by union or
transfer
PART X
NOMINATION, POWERS AND CONTROL OF REGISTRAR
103.

The Minister shall nominate a public officer to be the Registrar of Building
Societies to perform the duties and exercise the powers imposed and conferred upon the
Registrar by this Act. Nomination of
Registrar
104. The Registrar shall not, nor shall any person acting under the authority of the
Registrar, be personally liable for, or in respect of, any act or matter done in good faith in
the exercise of the powers conferred by this Act. Indemnity of Registrar
and other persons
105. (1) The Registrar may, at any time, by notice in writing, require a building
society, or any person who is or has been an officer of a building society, to produce to the
Registrar such books, accounts, deeds and other documents relating to the business of
the society, and to furnish him with such other information relating thereto, as he
considers necessary to enable him properly to discharge the duties imposed and to
exercise the powers conferred upon him by this Act; and any such notice may require that
information to be furnished in accordance with the notice shall be set out in a statutory
declaration. Power to require
production of books,
etc.

that
information to be furnished in accordance with the notice shall be set out in a statutory
declaration. Power to require
production of books,
etc.

(2) If any building society or person fails to comply with the requirements of a notice
under subsection (1), the society, and every officer of the society who is in default, and
such person, as the case may be, shall be guilty of an offence and liable on conviction to a
fine not exceeding seven thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
106. (1) The Registrar, either on his own initiative or, if he thinks fit, on the
application of any member, shareholder, depositor or creditor of a building society, may
appoint an inspector to look into and report on the affairs of the society. Powers of inspection

der, depositor or creditor of a building society, may
appoint an inspector to look into and report on the affairs of the society. Powers of inspection

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(2) Such inspector shall have power to require production of all or any of the books
of account, records, securities and documents of the society, and may take extracts
therefrom, and may examine on oath its officers, agents and others and, for such
purposes, shall have power to administer an oath. (3) Any person who makes application for an inspection under the provisions of
subsection (1) may be required by the Registrar to give security for the costs of the
inspection. (4) The inspector appointed under the provisions of subsection (1) shall send to the
Registrar a report on the result of his inspection, and the Registrar shall send a copy of
such report to the society and the person (if any) who made the application for the
appointment of the inspector, together with a note of the action (if any) which he intends to
take on the report. (5) The Registrar may make such order as he thinks fit as to recovery of the costs of
the inspection.

(if any) which he intends to
take on the report. (5) The Registrar may make such order as he thinks fit as to recovery of the costs of
the inspection.

(6) Any person who, in the course of an examination into the affairs of a building
society under this section, knowingly gives false testimony under oath touching upon any
matter which is material to such examination, shall be guilty of an offence under this Act,
and, on conviction, liable to a fine not exceeding fifteen thousand penalty units or to
imprisonment for a term not exceeding twelve months, or to both. (As amended by Act No. 13 of 1994)
107. (1) The Registrar, on his own initiative, may call a meeting of a building society
if he thinks that such a meeting is desirable in the interests of the members of, or
depositors in, the society, and he may direct at what time and place the meeting is to be
held and what matters are to be discussed and determined at the meeting. Power to call a
meeting
(2) A meeting called under subsection (1) shall have all the powers of a meeting
called under the rules of the society, and shall have power to appoint its own chairman
notwithstanding any rule to the contrary, and no provision in the rules of the society for a
quorum shall apply to such a meeting. 108.

s own chairman
notwithstanding any rule to the contrary, and no provision in the rules of the society for a
quorum shall apply to such a meeting. 108.

(1) If the Minister, on the advice of the Registrar, considers it expedient in the
interests of investors and depositors to suspend borrowing by, or subscription for shares
in, a building society, he may, by order, prohibit the society-
Power to suspend
borrowing and
subscription for shares
(a) from accepting the deposit of, or otherwise borrowing, any money; or
(b) from accepting any payment representing the whole or any part of the
amount due by way of subscription for a share in the society, other than a
payment which fell due before the making of the order.

e or any part of the
amount due by way of subscription for a share in the society, other than a
payment which fell due before the making of the order.

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(2) Notwithstanding that an order may have been made under this section, a
building society may borrow money from a bank or a finance company or from a director
or other officer of the society provided that the consent of the Registrar has first been
obtained. (3) At least twenty-one days before an order is made under this section, the
Registrar shall give the building society concerned, and each of its directors, written notice
that he proposes to advise the Minister to make such an order; and the notice shall set out
the considerations which have led him to conclude that it is expedient to do so, and,
before advising the Minister, the Registrar shall consider any representations which may
be made to him by the building society within a period of fourteen days after the service of
the notice and, if the society so requests, shall afford it an opportunity of being heard by
him within that period. (4) Any order made by the Minister under this section may be revoked by a
subsequent order.

t an opportunity of being heard by
him within that period. (4) Any order made by the Minister under this section may be revoked by a
subsequent order.

(5) If a building society contravenes the provisions of any order made under this
section, it shall be guilty of an offence and liable on conviction to a fine not exceeding
fifteen thousand penalty units, and every officer of the society who is in default shall also
be guilty of an offence and liable on conviction to a fine not exceeding fifteen thousand
penalty units or to imprisonment for a term not exceeding twelve months, or to both. (6) The power to make orders under this section shall be exercisable by statutory
instrument. (As amended by Act No. 13 of 1994)
109.

ths, or to both. (6) The power to make orders under this section shall be exercisable by statutory
instrument. (As amended by Act No. 13 of 1994)
109.

(1) If the Registrar considers it expedient to do so in the interests of persons
who may invest in, or deposit money with, a building society, he may serve on the society
a written direction requiring the society-
Power to control
advertising
(a) to prohibit the issue by the society of advertisements of all descriptions; or
(b) to prohibit the issue by the society of advertisements of any description
specified in the direction; or
(c) to prohibit the issue by the society of any advertisements which are, or are
substantially repetitions of, an advertisement which has been issued and
which is specified in the direction; or

any advertisements which are, or are
substantially repetitions of, an advertisement which has been issued and
which is specified in the direction; or

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(d) require the society to take all practicable steps to withdraw any
advertisement, or any description of advertisement, specified in the
direction which is on display in any
place;
or the direction may contain two or more such prohibitions or requirements as are
mentioned in this subsection. (2) Before serving a direction under this section, the Registrar shall give the building
society concerned, and each of its directors, written notice that he proposes to make the
direction, and such notice shall set out the considerations which have led him to conclude
that it is expedient to do so, and he shall consider any representations which may be
made to him by the society within seven days from the date of service of the notice; and, if
the society so requests, he shall afford it an opportunity of being heard by him within that
period. (3) Any direction under this section may be varied or revoked at any time by a
subsequent direction thereunder.

being heard by him within that
period. (3) Any direction under this section may be varied or revoked at any time by a
subsequent direction thereunder.

(4) If a building society contravenes a direction under this section, it shall be guilty of
an offence and liable on conviction to a fine not exceeding fifteen thousand penalty units,
and every officer of the society who is in default shall also be guilty of an offence and
liable on conviction to a fine not exceeding fifteen thousand penalty units or to
imprisonment for a term not exceeding six months, or to both. (As amended by Act No. 13 of 1994)
PART XI
W INDING-UP AND DISSOLUTION
110. A building society may be dissolved in the manner prescribed by its rules. Dissolution in
accordance with rules
111. (1) A building society may be dissolved by an instrument of dissolution with the
consent (testified by their signature of that instrument) of the members holding not less
than two-thirds of the number of shares in the society. Dissolution by consent
(2) An instrument of dissolution under this section shall set out-
(a) the liabilities and assets of the society in detail;
(b) the number of members and the amount standing to their credit in the
books of the society;

a) the liabilities and assets of the society in detail;
(b) the number of members and the amount standing to their credit in the
books of the society;

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(c) the claims of depositors and other creditors and the provision to be made
for their payment;
(d) the intended appropriation or division of the funds and property of the
society;
(e) the names of one or more persons to be appointed as trustees for the
purposes of the dissolution, and their remuneration. (3) An instrument of dissolution made with consent given and testified as mentioned
in subsection (1) may be altered with like consent, testified in the like manner. (4) Every instrument of dissolution under this section, and every alteration of such
an instrument, shall be registered in the manner provided by section three for the
registration of the rules of a building society; and every such instrument or alteration shall
be binding upon all members of the building society. 112.

gistration of the rules of a building society; and every such instrument or alteration shall
be binding upon all members of the building society. 112.

(1) On the application in writing of at least one hundred members of a building
society having a total membership of more than one thousand, or, in the case of any other
building society, of one-tenth of the whole number of members of the society, stating that
the society is unable to meet the claims of its members and that it would be for their
benefit that it should be dissolved, and requesting an investigation into the affairs of the
society with a view to its being dissolved, the Registrar may investigate the affairs of the
society. Dissolution on award
of Registrar
(2) Before commencing an investigation under this section, the Registrar shall give
not less than one month's written notice to the building society at its registered chief office
or place of meeting.

section, the Registrar shall give
not less than one month's written notice to the building society at its registered chief office
or place of meeting.

(3) If on such investigation it appears that the building society is unable to meet the
claims of its members and that it would be for their benefit that it should be dissolved, the
Registrar shall so advise the Minister who-
(a) if he considers it expedient to do so, may, by statutory order, direct that the
society be dissolved, and shall in that case direct in what manner the affairs
of the society are to be wound up; or
(b) may suspend such order for such period as he thinks fit to enable the
society to make such alterations of its rules as, in the judgment of the
Minister, will make such an order unnecessary. (4) Where an order for dissolution is made under this section, the Registrar, within
twenty-one days of the making thereof, shall cause notice of the order to be advertised in
one or more newspapers circulating in the place in which the registered office or place of
meeting of the building society is situated.

advertised in
one or more newspapers circulating in the place in which the registered office or place of
meeting of the building society is situated.

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113. (1) When a building society is being dissolved in accordance with the
provisions of section one hundred and ten or one hundred and eleven, the provisions of
this Act shall continue to apply in relation to the society as if the liquidators or other
persons conducting the dissolution of the society, or the trustees appointed under the
instrument of dissolution, as the case may be, were the board of directors of the society.

olution of the society, or the trustees appointed under the
instrument of dissolution, as the case may be, were the board of directors of the society.

Provisions applicable
to dissolution under
sections 110 and 111
(2) Within twenty-eight days from the date of termination of the dissolution the
liquidators, trustees or other persons having the conduct of the dissolution shall send to
the Registrar an account and balance sheet signed and certified by them as correct and
showing the assets and liabilities of the society at the commencement of the dissolution,
and the way in which those assets and liabilities have been applied and discharged; and if
they fail to do so they shall each be guilty of an offence and liable on conviction to a fine
not exceeding three hundred penalty units for every day during which the default
continues. (3) Except with the consent of the Registrar, no resolution, instrument or dissolution
or other proceeding for the dissolution of a building society under section one hundred and
ten or one hundred and eleven, and no alteration of an instrument of dissolution under
section one hundred and eleven, shall be of any effect if the purpose of the proposed
dissolution or alteration is to effect or facilitate the transfer of the society's engagements to
any other society.

ct if the purpose of the proposed
dissolution or alteration is to effect or facilitate the transfer of the society's engagements to
any other society.

(4) Any provision in a resolution or document that members of a building society
proposed to be dissolved shall accept investments in another society (whether in shares,
deposits or any other form) in or towards satisfaction of their rights in the dissolution shall
be conclusive evidence of such a purpose as is mentioned in subsection (3). (As amended by Act No. 13 of 1994)
114. The High Court on the petition of- Winding-up by or
under the supervision
of the High Court
(a) the Registrar in the exercise of any power conferred by this Act; or
(b) any member of a building society authorised by all members present and
voting at a meeting especially called for the purpose to present the same on
behalf of the society; or
(c) any creditor holding an unsatisfied judgment or decree for a sum in excess
of two hundred kwacha;
may order that a building society be dissolved, either voluntarily under the supervision of
the Court, or by the Court, and the provisions of the law for the time being in force in
regard to the winding-up of a company shall apply to the dissolution of a building society
under this section, with such adaptations or modifications as may be ordered by the Court.

ompany shall apply to the dissolution of a building society
under this section, with such adaptations or modifications as may be ordered by the Court.

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115. Where a building society is being wound up or dissolved, a member to whom
an advance has been made under a mortgage or other security, or under the rules of the
society, shall not be liable to pay the amount payable thereunder except at the time or
times and subject to the conditions set out in the mortgage or other security, or in the
rules, as the case may be. Liability of members
on winding-up or
dissolution
116. (1) Notice of the commencement and of the termination of the winding-up or
dissolution of a building society shall be sent to the Registrar and registered by him. Notice of winding-up
or dissolution
(2) If a building society fails to send to the Registrar a notice which it is required to
send to him under subsection (1), the society, and every officer of the society who is in
default, shall be guilty of an offence and liable on conviction to a fine not exceeding seven
thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
PART XII
M ISCELLANEOUS AND SUPPLEMENTARY PROVISIONS
117.

not exceeding seven
thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
PART XII
M ISCELLANEOUS AND SUPPLEMENTARY PROVISIONS
117.

(1) A building society, so far as is necessary for the purpose for which it is
established, shall have power to hold land. Powers in relation to
land
(2) Subject to the provisions of subsection (6), a building society may purchase,
build, hire or take on lease a building for conducting its business and may adapt and
furnish it. (3) Subject to the provisions of subsection (6), a building society may purchase or
hold on lease any land for the purpose only of erecting on it a building for conducting the
business of the society. (4) A building society may sell, exchange or let the whole or part of any such
building or land as is mentioned in subsection (2) or (3). (5) For the purposes of subsections (2) and (3), the business of a building society,
where its rules permit, shall include the provision of housing accommodation for officers of
the society and members of its staff. (6) In exercising the powers conferred by subsections (2) and (3), a building society
shall not, except with the approval of the Registrar, incur an expenditure exceeding one
hundred thousand kwacha in respect of any single transaction.

shall not, except with the approval of the Registrar, incur an expenditure exceeding one
hundred thousand kwacha in respect of any single transaction.

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(7) A building society may from time to time purchase freehold or leasehold land,
develop such land, construct houses thereon and sell such houses:
Provided that-
(i) no land shall be purchased for the purpose of constructing houses thereon,
or development thereof undertaken, by or on behalf of a building society,
unless estimates of costs and comprehensive details of the proposed
development have been submitted by the building society to the Minister,
and the Minister has signified his approval thereto in writing;
(ii) the expenditure incurred by a building society on the purchase and
development of such land shall at no time be in excess of one-third of the
aggregate amount in the building society's general reserve fund and the
unappropriated surplus earned during the year immediately preceding the
financial year in which such land is purchased. (As amended by Act no 31 of 1973 and Act No. 13 of 1994)
118.

uring the year immediately preceding the
financial year in which such land is purchased. (As amended by Act no 31 of 1973 and Act No. 13 of 1994)
118.

(1) Any person who by false representation or imposition obtains possession
of any moneys, securities, books, papers or other effects of a building society or who,
having the same in his possession, withholds or misapplies them, or wilfully applies any
part of them to purposes other than authorised purposes, shall be guilty of an offence and
liable on conviction to a fine not exceeding fifteen thousand penalty units or to
imprisonment for a term not exceeding two years, or to both. Offences in relation to
property of building
societies
(2) The court by or before which a person is convicted of an offence under this
section may order him to deliver up or repay to the building society any moneys,
securities, books, papers or other effects in respect of which he is convicted of that
offence. (3) Proceedings in respect of an offence under this section may be instituted by the
building society, or by the Registrar, or by any person authorised by the society or its
board of directors or by the Registrar. (4) In this section, "authorised purposes", in relation to a building society, means
purposes authorised by this Act or by the rules of the society. (As amended by Act No. 13 of 1994)
119.

ses", in relation to a building society, means
purposes authorised by this Act or by the rules of the society. (As amended by Act No. 13 of 1994)
119.

(1) Any person who wilfully makes, or orders or allows to be made, any false
statement in a document to which this section applies, or by erasure, omission, alteration,
addition or otherwise, wilfully falsifies any such document, shall be guilty of an offence and
liable on conviction to a fine not exceeding fifteen thousand penalty units or to
imprisonment for a term not exceeding two years, or to both. False statements in
documents

o a fine not exceeding fifteen thousand penalty units or to
imprisonment for a term not exceeding two years, or to both. False statements in
documents

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(2) This section applies to any document sent to the Registrar under or in pursuance
of this Act. (As amended by Act No. 13 of 1994)
120. (1) Where the Registrar is satisfied with respect to a building society- Compulsory
cancellation or
suspension of
registration
(a) that a certificate of registration has been obtained for the society by fraud or
mistake; or
(b) that the society exists for an illegal purpose; or
(c) that the society has wilfully, and after notice from the Registrar, violated any
of the provisions of this Act; or
(d) that the society has ceased to conduct business as a building society; or
(e) that the society has made advances on securities situated outside the
territorial limits of Zambia in contravention of the provisions of section
eighteen; or
(f) that the society has ceased to exist;
the Registrar, with the approval of the Minister, may cancel or suspend the registration of
the society. (2) Any cancellation or suspension of registration under this section shall be
effected in writing and signed by the Registrar.

ration of
the society. (2) Any cancellation or suspension of registration under this section shall be
effected in writing and signed by the Registrar.

(3) Where the registration of a building society is suspended under this section, the
period of suspension shall in the first instance be a period not exceeding three months,
but may, with the approval of the Minister, be extended from time to time by not more than
three months at a time. (4) Before cancelling or suspending the registration of a building society under this
section, the Registrar shall give to the society not less than one month's previous notice in
writing, specifying briefly the grounds of the proposed cancellation or suspension. (5) As soon as practicable after the cancellation or suspension of the registration of
a building society under this section takes effect, the Registrar shall cause notice thereof
to be published in the Gazette, and in at least one newspaper circulating in the district in
which the registered chief office or place of meeting of the building society is situated.

nd in at least one newspaper circulating in the district in
which the registered chief office or place of meeting of the building society is situated.

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(6) Where the registration of a building society is cancelled under this section or is
suspended under this section for a period exceeding six months, the society may appeal
to the High Court and, on any such appeal, the High Court, if it thinks it just to do so, may
set aside the cancellation or suspension. 121. Without prejudice to section one hundred and twenty, the Registrar, if he
thinks fit, may cancel the registration of a building society at the society's request,
evidenced in such manner as the Registrar may direct. Cancellation of
registration at request
of building society
122. (1) Where the registration of a building society is cancelled or suspended
under section one hundred and twenty or one hundred and twenty-one, the society from
the time of the cancellation or suspension (but in the case of a suspension, only so long
as the suspension continues) shall cease to enjoy the privileges of a building society.

n or suspension (but in the case of a suspension, only so long
as the suspension continues) shall cease to enjoy the privileges of a building society.

Effect of cancellation
or suspension of
registration
(2) Subsection (1) shall have effect subject to the right of appeal under subsection
(6) of section one hundred and twenty. (3) Subsection (1) shall have effect in relation to a building society without prejudice
to any liability actually incurred by the society; and any such liability may be enforced
against the society as if the cancellation or suspension had not taken place. 123. Obsolete. 124. The Registrar shall cause to be made an abstract and report of the annual
returns of building societies and of the proceedings of his office under this Act and the
Minister shall lay the abstract and report before Parliament. Annual report of
Registrar
125. (1) Any document purporting to have been signed by the Registrar and to be a
certificate of registration or other document relating to a building society shall be received
in evidence and, in the absence of any evidence to the contrary, shall be deemed to have
been signed by the Registrar.

lding society shall be received
in evidence and, in the absence of any evidence to the contrary, shall be deemed to have
been signed by the Registrar.

Provisions as to
evidence
(2) Any printed document purporting to be a copy of the rules of a building society,
and certified by the secretary or other officer of the society to be a true copy of its rules as
registered, shall be received in evidence and, in the absence of any evidence to the
contrary, shall be deemed to be a true copy of its rules. 126. (1) Any register, record or book of account to be kept by a building society
may be kept either by making entries in bound books or by recording the matters in
question in any other manner. Form in which records
may be kept

ety
may be kept either by making entries in bound books or by recording the matters in
question in any other manner. Form in which records
may be kept

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(2) Where any such register, record or book of account is not kept by making entries
in a bound book but by some other means, adequate precautions shall be taken for
guarding against falsification and facilitating its discovery; and where default is made in
complying with this subsection, the building society, and every officer of the society who is
in default, shall be guilty of an offence and liable on conviction to a fine not exceeding
seven thousand five hundred penalty units
(As amended by Act No. 13 of 1994)
127.

uilty of an offence and liable on conviction to a fine not exceeding
seven thousand five hundred penalty units
(As amended by Act No. 13 of 1994)
127.

Except where some other person or authority is so authorised by this Act, the
Minister may, by statutory instrument, make regulations prescribing anything requiring to
be prescribed under this Act and, for the better carrying into effect of the provisions of this
Act but without prejudice to the generality of the foregoing, such regulations may provide
for the procedure in the office of the Registrar, the hours during which that office is to be
open for business, the forms to be used and the fees to be paid in respect of any matter
which is required or permitted to be done under the provisions of this Act. Regulations
128. Before prescribing the form of any return which building societies are required
to make under this Act, the Registrar shall first circulate to all building societies registered
under this Act a draft of the form which he intends to prescribe and he shall give due
consideration to any representations which may be made to him by individual building
societies or by their association within one month of the date of such circulation. Registrar to consider
representations by
building societies
129.

g
societies or by their association within one month of the date of such circulation. Registrar to consider
representations by
building societies
129.

Rules of court may be made under this Act for regulating proceedings before
any court, and applications and appeals thereto, under the provisions of this Act and for
the fees to be paid in respect thereof. Rules of court
130. (1) Subject to the provisions of subsection (2), in this Act, "financial year"
means a period of twelve months ending with the 31st March. Financial year of
building societies
(2) A building society whose financial year does not end with the 31st March shall
alter its financial year by making up its accounts for one period of more than six months
and not more than eighteen months ending with the 31st March , and, in relation to a
building society exercising the power conferred by this subsection, references in this Act
to a financial year of the society shall include references to that period. (3) Where a mortgage deed in favour of a building society provides for the
calculation of interest annually on the outstanding balance owing to the society at the
commencement of each year, the society, notwithstanding anything to the contrary
contained in the mortgage deed, may alter the calculation of interest to coincide with the
financial year of the society.

ing anything to the contrary
contained in the mortgage deed, may alter the calculation of interest to coincide with the
financial year of the society.

(As amended by Act No. 37 of 1973)
131. No advance made by a building society and no security for an advance made
by a building society shall be invalidated by reason only of the fact that the society, or any
officer of the society, has, in connection with such advance, contravened or failed to
comply with any provision of this Act. Non-compliance not to
invalidate advance

ociety, has, in connection with such advance, contravened or failed to
comply with any provision of this Act. Non-compliance not to
invalidate advance

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132. (1) If any share certificate, deposit book, receipt, or any statement, or other
record of payment issued by a building society is lost or destroyed, the society, upon such
evidence and subject to such terms and conditions as the directors think fit, may issue a
certified copy of such certificate, pass book, receipt, statement or record. Lost or destroyed
share certificate, etc. (2) Such certified copy shall thereafter for all purposes take the place of the
certificate, pass book, receipt, statement or record so lost or destroyed and be the sole
evidence thereof. 133. On payment of the prescribed fees, any person may inspect at the office of
the Registrar the documents relating to any building society which are required to be
lodged with the Registrar in terms of this Act or may obtain from the Registrar a copy or
extract of any such document, or part of any such document. Inspection of
documents by public
134.

this Act or may obtain from the Registrar a copy or
extract of any such document, or part of any such document. Inspection of
documents by public
134.

If a building society contravenes or fails to comply with the provisions of any
section of this Act, it shall be guilty of an offence and, where no specific penalty is
provided by the section, the society, and every officer of the society who is in default, shall
be liable on conviction to a fine not exceeding seven thousand five hundred penalty units. (As amended by Act No. 13 of 1994)
General penalty
135. (1) The following Acts of the Parliament of the United Kingdom shall cease to
have effect in the Republic:
Repeals
(a) The Building Societies Act, 1874;
(b) The Building Societies Act, 1875;
(c) The Building Societies Act, 1877;
(d) The Building Societies Act, 1884;
(e) The Building Societies Act, 1894. (2) Paragraph (b) of subsection (1) of section 2 and paragraph (b) of subsection (1)
of section 4 of the Friendly Societies Act, 1896, of the Parliament of the United Kingdom
shall cease to have effect in the Republic. (3) The Building Societies (Disengagement Provisions) Act, Chapter 213 of the
1964 Edition of the Laws, and the Building Societies (Special Provisions) Act, Chapter 215
of the 1962 Edition of the Laws, are repealed.

r 213 of the
1964 Edition of the Laws, and the Building Societies (Special Provisions) Act, Chapter 215
of the 1962 Edition of the Laws, are repealed.

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136. (1) All deposits with and loans to an existing society and all advances made or
agreed to be made by an existing society prior to the commencement of this Act, provided
they are valid under any enactment repealed by this Act, shall not be invalidated because
they do not comply with the provisions of this Act, but the society shall use its best
endeavours to bring all such transactions within the provisions of this Act in so far as it is
practicable to do so at the earliest opportunity. Transitional provisions
(2) Until the forms which the Registrar is to prescribe have been so prescribed and
dates fixed for their being brought into use, a building society may use the forms which are
in use immediately prior to the commencement of this Act.

dates fixed for their being brought into use, a building society may use the forms which are
in use immediately prior to the commencement of this Act.

(3) In so far as any order, regulation, rule, application, decision, reference, appeal or
payment made, consent, approval or direction given, certificate issued, notice or copy
served, register kept, resolution passed, requirement imposed or other thing done under
an enactment repealed by this Act could have been made, given, issued, served, kept,
passed, imposed or done under a corresponding provision of this Act, it shall not be
invalidated by the repeal effected by section one hundred and thirty-five but shall have
effect as if made, given, issued, served, kept, passed, imposed or done under that
corresponding provision. (4) Any reference in an enactment or document (whether expressed or implied) to
an enactment repealed by this Act shall, except where the context otherwise requires, be
construed as, or as including, a reference to the corresponding provisions of this Act. (5) Where a period of time specified in an enactment repealed by this Act is current
at the commencement of this Act, this Act shall have effect as if the corresponding
provision thereof had been in force when the period began to run.

at the commencement of this Act, this Act shall have effect as if the corresponding
provision thereof had been in force when the period began to run.

(6) Without prejudice to subsection (3), any references in this Act (whether
expressed or implied) to a thing done, or falling to be done, or omitted to be done, or to an
event which has occurred, under or for the purpose of or by reference to, a provision of
this Act, shall, except where the context otherwise requires, be construed as including a
reference to the corresponding thing done, or falling to be done, or omitted to be done, or
to the corresponding event which occurred, as the case may be, under or for the purposes
of or by reference to, the corresponding provision of the enactments repealed by this Act. (7) Where an offence for the continuance of which a penalty was provided has been
committed under an enactment repealed by this Act, proceedings may be taken under this
Act in respect of the continuance of the offence after the commencement of this Act in the
same manner as if the offence had been committed under the corresponding provision of
this Act.

the offence after the commencement of this Act in the
same manner as if the offence had been committed under the corresponding provision of
this Act.

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FIRST SCHEDULE
(Section 65)
PERMITTED CLASSES OF ADDITIONAL SECURITY
(1) A charge upon a policy of life assurance.
(2) A charge upon any stocks, shares or securities for the time being authorised by law in Zambia for the investment of
trust moneys.
(3) A charge upon money deposited with the building society or any bank registered under the Banking Act.
(4) A guarantee given by the Government or by a public authority, bank or commercial company whose guarantee is
acceptable to the board of directors of the society.
(5) A guarantee accepted by the building society, with the written consent of the borrower, and supported by a charge
upon money deposited with the society or upon any such investments as are mentioned in paragraph (2).
(6) A guarantee given by an insurance company to which the Insurance Act applies.

iety or upon any such investments as are mentioned in paragraph (2).
(6) A guarantee given by an insurance company to which the Insurance Act applies.

The Laws of Zambia
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SECOND SCHEDULE
(Section 78)
FORM OF RECEIPT TO BE ENDORSED ON MORTGAGE
........................................................................................................................................Building Society hereby acknowledges
to have received all moneys intended to be secured by the within written deed. In witness whereof the seal of the Society is hereto affixed this.............................................................................................. day of .......................................................................................................................... by order of the Board of Directors in the
presence of:
(Signed) A.B. (Designation) SEAL
(Signed) C.D. (Designation)
SUBSIDIARY LEGISLATION
BUILDING SOCIETIES
SECTION 87-THE BUILDING SOCIETIES ACT (DESIGNATION OF T RUSTEE STATUS ) O RDER
Order by the Minister
Statutory Instrument
149 of 1969
1. This Order may be cited as the Building Societies Act (Designation of Trustee
Status) Order. Title
2.

the Minister
Statutory Instrument
149 of 1969
1. This Order may be cited as the Building Societies Act (Designation of Trustee
Status) Order. Title
2.

The registered building societies named in the Schedule have been designated
with effect from the dates shown in the Schedule, as building societies with whom a
trustee may invest any trust funds in his hands, whether at the time in a state of
investment or not, in deposits with and loans to a building society designated for that
purpose by the Minister. Designation of trustee
status

The Laws of Zambia
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SCHEDULE
(Paragraph 2)
BUILDING SOCIETIES DESIGNATED WITH TRUSTEE STATUS
Effective date of
Name of Building Society Registered Address Designation
First Permanent (1962) Building Permanent House 2nd December,
Society. Cairo Road, P.O. 1968.
Box 420, Lusaka.
Security Building Society. Century House, 2nd December,
Edinburgh Square, 1968.
P.O. Box 147,
Lusaka.
Zambia Mutual Building Society. Mutual House, St. 12th December,
David's Road, 1968.
P.O. Box 901,
Ndola.

dinburgh Square, 1968.
P.O. Box 147,
Lusaka.
Zambia Mutual Building Society. Mutual House, St. 12th December,
David's Road, 1968.
P.O. Box 901,
Ndola.

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SECTION 90-THE BUILDING SOCIETIES ACT (AUTHORISED BANKS ) O RDER
Order by the Minister
Statutory Instrument
2 of 1969
141 of 1971
122 of 1982
144 of 1982
1. This Order may be cited as the Building Societies Act (Authorised Banks) Order. Title
2. The Minister has designated the banks shown in the First and Second
Schedules as the banks with which building societies are authorised to keep money.
Designation of
authorised banks

banks shown in the First and Second
Schedules as the banks with which building societies are authorised to keep money.
Designation of
authorised banks

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SCHEDULE
(Paragraph 2)
REGISTERED ACCEPTING HOUSE
1. Merchant Bank (Zambia) Limited
2. Barclays Bank of Zambia Limited
3. Standard Chartered Bank Zambia Limited
4. Zambia National Commercial Bank Limited
5. Grindlays Bank International (Zambia) Limited
SECTION 89-THE BUILDING SOCIETIES (AUTHORISED
I NVESTMENTS ) O RDER
Order by the Minister
Statutory Instrument
33 of 1988
1. This Order may be cited as the Building Societies (Authorised Investments)
Order. Title
2. The Minister has authorised Zambia National Building Society to invest any part
of its surplus funds in Zambia Housing Development Fund Limited. Authorised
investments
SECTION 93-THE BUILDING SOCIETIES (HOLDING OF LIQUID F UNDS ) (ASSETS
PRESCRIPTION) O RDER
Order by the Governor of the Bank of Zambia
Statutory Instrument
211 of 1973
1. This Order may be cited as the Building Societies (Holding of Liquid Funds)
(Assets Prescription) Order. Title
2. It is hereby prescribed, with the consent of the Minister, that liquid funds may be
held by the Zambia National Building Society in the capital stock of the Development Bank
of Zambia.

consent of the Minister, that liquid funds may be
held by the Zambia National Building Society in the capital stock of the Development Bank
of Zambia.

Prescription of assets
in which liquid funds
may be held

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SECTION 80-THE BUILDING SOCIETIES (LIMIT OF REPAYMENTS TO I NVESTORS AND
LENDERS ) O RDER
Order by the Minister
Statutory Instrument
134 of 1972
58 of 1979
1. This Order may be cited as the Building Societies (Limit of Repayments to
Investors and Lenders) Order.
Title
2. The maximum amount which the building society named in the first column of
the Schedule hereto with the address specified in the second column thereof may repay to
any single investor or lender in any one month of moneys invested with or borrowed by the
said society whether such moneys are in the form of shares, deposits or loans (but not
bank overdrafts), or in a combination of these, shall not exceed the amount specified in
the third column of the said Schedule.
Limit of repayments

ot
bank overdrafts), or in a combination of these, shall not exceed the amount specified in
the third column of the said Schedule.
Limit of repayments

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SCHEDULE
Registered Limit of
Name of Building Society Address Repayments
Zambia National Building Society Permanent House K300,000
Cairo Road
P.O. Box 420
Lusaka
(As amended by Statutory Instrument No. 58 of 1979)

epayments
Zambia National Building Society Permanent House K300,000
Cairo Road
P.O. Box 420
Lusaka
(As amended by Statutory Instrument No. 58 of 1979)

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SECTION 93-THE BUILDING SOCIETIES (HOLDING OF LIQUID F UNDS ) (ASSETS
PRESCRIPTION) O RDER
Order by the Governor of the Bank of Zambia.
Statutory Instrument
44 of 1974
1. This Order may be cited as the Building Societies (Holding of Liquid Funds)
(Assets Prescription) Order.
Title
2. It is hereby prescribed, with the consent of the Minister, that liquid funds may be
held by the Zambia National Building Society in the capital stock or shares of the
Development Bank of Zambia.
Prescription of assets
in which liquid funds
may be held
SECTION 89-THE BUILDING SOCIETIES (I NVESTMENT OF SURPLUS F UNDS )
(AUTHORISATION) O RDER
Statutory Instrument
144 of 1974
60 of 1975
161 of 1975
107 of 1979
167 of 1979
1. This Order may be cited as the Building Societies (Investment of Surplus Funds)
(Authorisation) Order.
Title
2. The Zambia National Building Society is hereby authorised to invest any part of
its surplus funds in acquiring the real property specified in the Schedule hereto.
Authorised
investments

y is hereby authorised to invest any part of
its surplus funds in acquiring the real property specified in the Schedule hereto.
Authorised
investments

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SCHEDULE
(Paragraph 2)
1. Plots Nos 3 and 3A, Cairo Road, Lusaka; Plots Nos 20, 21, 22 and R/E of Plot No. 23, Cha Cha Cha Road,
Lusaka. 2. Construction of houses in:
Chipata
Kasama
Mansa
Mongu
Solwezi
SECTION 127-THE BUILDING SOCIETIES REGULATIONS
Regulations by the Minister
Statutory Instrument
331 of 1969
1. These Regulations may be cited as the Building Societies Regulations. Title
2.

LATIONS
Regulations by the Minister
Statutory Instrument
331 of 1969
1. These Regulations may be cited as the Building Societies Regulations. Title
2.

In these Regulations, unless the context otherwise requires- Interpretation
"directors' expenses", where it occurs in the income and expenditure and
appropriation account, includes any sums paid to or for a director in respect
of expenses and the amount or estimated money value, as the case may
be, of any other benefits received by the director and the contributions paid
in respect of him, as a director, under any pension scheme;
"provision" means any amount written off or retained by way of providing for
depreciation, renewals or diminution in value of assets or retained by way of
providing for any known liability the amount of which cannot be determined
with substantial accuracy;
"reserve" does not include any provision, but includes any amount written off or
retained as a provision which, in the opinion of the directors, is in excess of
that which is reasonably necessary for the purpose;
"Zambian citizen" means-
(a) in relation to an individual, an individual who is a citizen of Zambia;
(b) in relation to an unincorporated association of persons, an
association which is composed exclusively of persons who are
citizens of Zambia;

mbia;
(b) in relation to an unincorporated association of persons, an
association which is composed exclusively of persons who are
citizens of Zambia;

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(c) in relation to a body corporate, a body corporate which is
incorporated under the laws of Zambia and-
(i) is certified under the hand of the Minister to be controlled by
the State; or
(ii) whose membership is composed exclusively of persons who
are citizens of Zambia, and all of whose directors are citizens
of Zambia, and which is not controlled, by any means, directly
or indirectly, outside Zambia or by persons who are not citizens
of Zambia or who are associated in the capital structure
thereof with persons who are not citizens of Zambia;
"Zambian controlled", in relation to any association of persons whether or not
incorporated, means an association in which Zambian citizens are
associated with other persons therein, if the Zambian citizens can override
such other persons;
"non-Zambian" means not a Zambian citizen and not Zambian controlled. 3.

her persons therein, if the Zambian citizens can override
such other persons;
"non-Zambian" means not a Zambian citizen and not Zambian controlled. 3.

The notice required to be sent by a building society to a mortgagor under
subsection (3) of section seventy-six of the Act shall set out the following particulars:
(a) the date of the mortgage;
(b) the address or description of the property sold;
(c) the name and address of the purchaser;
(d) the sum for which the property was sold;
(e) whether the sale was by public auction or private treaty;
(f) the date of completion of the sale. Notice of sale of
mortgaged property
4. Except as provided in these Regulations, every certificate issued under the Act
and every application, notice and other document made or sent to the Registrar in
pursuance of the Act such as is referred to in the headings of the forms contained in the
First Schedule shall contain the particulars set out in, and be in the form of, the
appropriate form contained in the said Schedule, which form may be varied as the
circumstances require. Prescribed forms
5.

and be in the form of, the
appropriate form contained in the said Schedule, which form may be varied as the
circumstances require. Prescribed forms
5.

In the annual return (Form BS.4), in the annexure to the annual return (Form
BS.4/A) and in every statement or report annexed thereto-
(a) every form, schedule and other statement shall be typewritten or printed on
paper of foolscap size (approximately 33 centimetres by 20 centimetres);
(b) where appropriate, the word "Nil" shall be inserted against any heading or
against the whole of any section;
(c) the auditors shall not be required to deal with the matters-
Annual return and
annexure to annual
return
(i) on page No. 1 of the annual return;

;
(c) the auditors shall not be required to deal with the matters-
Annual return and
annexure to annual
return
(i) on page No. 1 of the annual return;

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(ii) on schedules No. 4 (b) to 7 inclusive of the annual return. 6. (1) For the purposes of subsection (2) of section thirty-four of the Act, the income
and expenditure and appropriation account and balance sheet of a building society shall
contain the particulars and be in the form set out in the Second Schedule, except that any
heading contained therein may be omitted if the entries in respect of such heading would
be "Nil" and provided that the said account and balance sheet may contain such other
particulars as the building society thinks fit. Annual accounts
(2) There shall be included against every heading-
(a) in the income and expenditure and appropriation account, the
corresponding amount for the immediately preceding financial year;
(b) in the balance sheet, the corresponding amount at the end of the
immediately preceding financial year. 7.

he immediately preceding financial year;
(b) in the balance sheet, the corresponding amount at the end of the
immediately preceding financial year. 7.

(1) There shall, if not otherwise shown, be stated by way of notes to the income
and expenditure and appropriation account, both in the annual accounts and in the annual
return, every material respect in which any items shown therein are affected-
Notes to annual
accounts and return
(a) by transactions of an exceptional or non-recurrent nature; or
(b) by any change in the basis of accounting. (2) There shall, if not otherwise shown, be stated by way of notes to the balance
sheet, both in the annual accounts and in the annual return, details-
(a) of the market value of each class of investment;
(b) of any charges on the building society's assets and of any moneys owing by
the society in respect of deposits, loans and overdrafts which are wholly or
partially secured;
(c) of any contingent liability not provided for, if material;
(d) of any contracts for capital expenditure not provided for, if material;
(e) of any increases or decreases in the reserves or provisions, giving the
sources from which the increases have been derived and how the amounts
of any decreases have been applied;

s in the reserves or provisions, giving the
sources from which the increases have been derived and how the amounts
of any decreases have been applied;

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(f) of commitments for advances not yet made.
8. The fees set out in the Third Schedule shall be payable in advance to the
Registrar.
Prescribed fees
9. The Registrar may dispense with the fee for inspection and copies of documents
in cases where he may consider it in the public interest so to do and may, if he thinks fit,
reduce or dispense with the fee for an award in a dispute.
Power to dispense
with certain fees
10. The Registrar may, on the application of any building society, grant to the
society an extension of time for compliance by it with these Regulations or with any
specified provisions thereof, if he is satisfied that it would be a hardship to the society to
comply therewith.
Extension of time for
compliance

any
specified provisions thereof, if he is satisfied that it would be a hardship to the society to
comply therewith.
Extension of time for
compliance

The Laws of Zambia
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FIRST SCHEDULE
(Regulation 4)
PRESCRIBED FORMS
Building
Societies
Act
Form Title Section
BS.1 Application for a certificate of registration on the establishment of a building society. . . 3
BS.2 Certificate of registration of a building society. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 and 6
BS.3 Notice of change of directors, manager or secretary. . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
BS.4 Annual return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
BS.4/A Annexure to annual return (properties sold, mortgages transferred). . . . . . . . . . . . . . . . 52
BS.5 Submission of a dispute. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
BS.6 Application for approval of a special advance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
BS.7 Certificate of valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . 62
BS.7 Certificate of valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

71
BS.8 Notice to prospective borrower where security is to be
taken from third party. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
BS.9 Monthly return to Bank of Zambia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
BS.10 Notice of change of name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
BS.11 Certificate of registration of change of name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
BS.12 Notice of change of address. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
BS.13 Certificate of registration of change of address. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
BS.14 Application to register an alteration of rules (being a
substitution of an entire set of rules). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
BS.14/A Application to register an alteration of rules (not being a
substitution of an entire set of rules). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

r an alteration of rules (not being a
substitution of an entire set of rules). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

97
BS.14/B Statutory declaration to accompany application to register
an alteration of rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
BS.15 Certificate of registration of alteration of rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
BS.16 Notice of union of societies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
BS.17 Notice of transfer of engagements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
BS.18 Application for confirmation of union or transfer of engagements. . . . . . . . . . . . . . . . . . 100
BS.19 Notice of application for confirmation of union or transfer of engagements. . . . . . . . . . 100
BS.20 Instrument of dissolution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
BS.21 Certificate of registration of instrument of dissolution. . . . . . . . . . . . . . . . . . . . . . . . . . . 111
BS.22 Application for approval to incur expenditure on real
assets exceeding K100,000 in respect of any single
transaction. . . . . . . . . . . . . . . . . . . .

cation for approval to incur expenditure on real
assets exceeding K100,000 in respect of any single
transaction. . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
BS.23 Application for inspection of a building society's
documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

of a building society's
documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

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FORM BS.1
THE BUILDING SOCIETIES ACT
(Section 3)
APPLICATION FOR A CERTIFICATE OF REGISTRATION ON THE
ESTABLISHMENT OF A BUILDING SOCIETY
To: THE REGISTRAR OF BUILDING SOCIETIES
1. We, the undersigned, whose names, addresses and subsecription shares are:
Name Address Subscription
Shares
K
1. 2. 3. 4. 5. Intended
Secretary
hereby apply for a Certificate of Registration to be granted in respect of a society intended
to be established under the Building Societies Act to be called. ................................................................................................ ..........................................................................................................................................................................Building Society. 2. Pursuant to sections 3 (1) (a) and 3 (1) (b) of the said Act, we herewith transmit two printed copies of the rules agreed
upon by us for the government of the society, each copy of which is signed by us and by the intended secretary.

two printed copies of the rules agreed
upon by us for the government of the society, each copy of which is signed by us and by the intended secretary.

The matters required to be provided for in the rules of a building society by section 11 of the said Act are provided for
in the rules transmitted herewith as follows:
Matters required to be provided for
in the Rules
Number
of Rule

tion 11 of the said Act are provided for
in the rules transmitted herewith as follows:
Matters required to be provided for
in the Rules
Number
of Rule

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(a) the name of the society and the address of its chief office or place of meeting;
(b) the manner in which the stock or funds of the society is or are to be raised;
(c) the manner in which a person may become a member of the society and the manner
in which he may cease to be a member;
(d) the purposes to which the funds of the society are to be applied;
(e) provision that the society shall not, except with the approval of the Minister, make
advances on the security of freehold or leasehold estate or in respect of any
development, lands or buildings, situated outside the territorial limits of Zambia;
(f) the classes of shares to be issued and the preferential and other rights and
conditions attached to each class of shares;
(g) the terms and conditions on which deposits are to be accepted and repaid;
(h) provision that the society reserves the right to make all repayments, whether of
shares, deposits, loans or otherwise, in Zambian currency;
(i) the manner in which advances are to be made and repaid and the conditions on
which a borrower can redeem the amount due from him before the end of the period
for which the advance was made;
(j) the manner in which losses are to be ascertained and provided for;
(k) whether the society intends to borrow money and if so, within what limits, not
exceeding those prescribed by the Building Societies Act;
(l) the manner of appointing, remunerating and removing the board of directors and
other officers, their powers and duties, and the manner of remunerating auditors;
(m) the manner of calling and holding meetings, the giving of notice thereof, form of
notice, quorum, voting rights, right to requisition meetings, procedure to be observed
at meetings, the right to demand a poll, and the manner in which a poll is to be taken;
(n) the manner of settling disputes, subject to the provisions of the Building Societies
Act;
(o) provision for an annual or more frequent audit and the inspection by the auditors of
the titles, mortgage deeds and other securities held by the society;
(p) provision for the custody of the titles, mortgage deeds and other securities belonging
to or held by the society;
(q) provision for the device, custody and use of the society's common seal;
(r) the fines and forfeitures, if any, to be imposed on members of the society;
(s) the manner in which the society may be dissolved.

y's common seal;
(r) the fines and forfeitures, if any, to be imposed on members of the society;
(s) the manner in which the society may be dissolved.

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3. Pursuant to section 3 (1) (c) of the said Act, we hereby declare that we have subscribed for the shares
enumerated in paragraph 1 above in the amounts severally shown, and that we have paid fully in cash the said sums into
an account in the name of..................................................................................................................................Building Society
(in formation) with the .............................................................................................................................Bank. On receipt of the
Certificate of Registration, the said shares will be allotted to us and the conditions, as stated in section 19 (1) of the said
Act, shall attach to the issue of those shares. 4. Pursuant to section 3 (1) (d) of the said Act, we hereby declare that the total sum subscribed as fixed-term
investments with the Society for a period of not less than five years by way of
(a) Shares (including the amounts shown in paragraph 1) (K )
(b) Deposits (K )
(c) Negotiated loans (K )
amounts to K...............................

f
(a) Shares (including the amounts shown in paragraph 1) (K )
(b) Deposits (K )
(c) Negotiated loans (K )
amounts to K...............................

(................................................................................................................................kwacha),
and that these amounts, which are in addition to the deposit required to be made to the Bank of Zambia, have been paid
fully in cash into an account in the name of
..........................................................................................................................................................................Building Society
(in formation) with the........................................................................................................................................................Bank. On receipt of the Certificate of Registration, the said shares, deposits and negotiated
loans will be allotted in full.

.........................Bank. On receipt of the Certificate of Registration, the said shares, deposits and negotiated
loans will be allotted in full.

In support we enclose a certificate from the
.............................................................................................................................................................................................Bank
for the amount standing to the credit of....................................................................................................................................... Building Society (in formation) as well as other documentary evidence justifying the difference. 5. Pursuant to section 3 (1) (e) of the said Act, we enclose a certificate from the Governor of the Bank of Zambia
stating that we have deposited with the Bank of Zambia cash and securities acceptable to him to a total value of K100,000
and that such deposit shall on registration of the Society be subject to the conditions set out in section 5 of the said Act. 6. Pursuant to section 3 (2) of the said Act, we enclose cash/cheque amounting to K.................................in respect
of the prescribed fee.

6. Pursuant to section 3 (2) of the said Act, we enclose cash/cheque amounting to K.................................in respect
of the prescribed fee.

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Signatures:
1.
2.
3.
4.
5.
Intended
Secretary
Address for reply .............................................................................................................................................................
..............................................................................................................................................................
..............................................................................................................................................................
Date......................................................................................................................................................

......................................................................................................................................................

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FORM BS.2
THE BUILDING SOCIETIES ACT
(Sections 3 and 6)
CERTIFICATE OF REGISTRATION OF A BUILDING SOCIETY
Registration No.:........................
This is to certify that....................................................................................................................................................................
Building Society, whose Chief Office is situated at......................................................................................................................
....................................................................................................................................................................................................
has this...................................................................................................day of.......................................................,19...... been
registered under the Building Societies Act.
..............................................................................
Registrar of Building Societies

tered under the Building Societies Act.
..............................................................................
Registrar of Building Societies

The Laws of Zambia
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FORM BS.3
THE BUILDING SOCIETIES ACT
(Section 28)
NOTICE OF CHANGE OF DIRECTORS, MANAGER OR SECRETARY
..........................................................................................................................................................................Building Society
Registration No. .....................................................................
To: THE REGISTRAR OF BUILDING SOCIETIES
Notice is hereby given of:
(a) the appointment to office of the undermentioned persons:
Name Office to Date of
(in full) Address which appointed appointment
(b) the relinquishment of office of the undermentioned persons:
Name Office Date of
(in full) Address relinquished relinquishment
...........................................................................................
Date................................................ Secretary

.......................................................................................
Date................................................ Secretary

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FORM BS.4
THE BUILDING SOCIETIES ACT
(Section 51)
ANNUAL RETURN FOR THE YEAR ENDED.............. (To be submitted to the Registrar in duplicate within 28 days of the
Annual General Meeting)
Name of Society:.......................................................................................................................................................................... Registered Office:........................................................................................................................................................................ Date of Incorporation:.................................................................................................................................................................. Date on which the Annual General Meeting was held:............................................................................................................... Number of branch offices staffed by employees of the Society:.................................................................................................

f branch offices staffed by employees of the Society:.................................................................................................

DIRECTORS, MANAGER AND SECRETARY
Name Address Nationality
Directors
Manager
Secretary
{
SHARES ACCOUNT No. 1
Due to shareholders at beginning of year
Add :
Subscriptions
Interest, dividend and bonus
Other credits -
-
-
K K
Deduct::
Withdrawals (including interest, dividend and
bonus paid out)
Other debits -
-
-
Due to shareholders at end of year (Schedule 1)
BS.4 (continued)
DEPOSITS AND LOANS ACCOUNT No. 2
(a) OTHER THAN BANKS

us paid out)
Other debits -
-
-
Due to shareholders at end of year (Schedule 1)
BS.4 (continued)
DEPOSITS AND LOANS ACCOUNT No. 2
(a) OTHER THAN BANKS

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Due to creditors for deposits and loans at beginning of
year
Add :
Receipts from depositors
Interest to depositors
Other credits -
-
-
K K
Deduct:
Withdrawals (including interest paid out)
Other debits -
-
-
Due to creditors for deposits and loans at end of year (Schedule 2)
(b) BANKS
Due to Banks on loans and overdrafts at beginning of year
Add :
Additiions during the year
Interest
Other credits -
-
-
K K
Deduct:
Repayments (including interest paid out)
Other debits -
-
-
Due to Banks on loans and overdrafts at end of year
BS.4 (continued)
INVESTMENTS ACCOUNT No.3
Book value and accrued interest at beginning of year
Add :
Cost of investment made:
Government securities
Local Authority securities
Other quoted securities
Short-term money market deposits
Bank deposits or loans deposits
Other investments
K K
Sub-Total
Surplus on realisation of investments
Interest and dividends receivable
Other debits -
-
-
Deduct::
Proceeds from investments realised:
Government securities
Local Authority securities
Other quoted securities
Short-term money market deposits
Bank deposits or loans
Other investments

ed:
Government securities
Local Authority securities
Other quoted securities
Short-term money market deposits
Bank deposits or loans
Other investments

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Sub-Total
Loss on realisation of investments
Interest and dividends received
Other credits -
-
-
Book value and accrued interest at end of year
Less: Provision for loss on realisation
Net value of investments (Schedule 3)
BS.4 (continued)
ADVANCES ACCOUNT No. 4
Due on advances at beginning of year
Add:
Advances made on mortgages
(Schedule 5)
Collective advances made
Interest charged
Insurance premiums charged
Other debits -
-
-
-
-
K K
Deduct:
Repayments of advances and interest received
Insurance premiums received
Loss on realisation of mortgages
Other credits -
-
-
-
-
Due on advances at end of year
Less: Provision for anticipated loss
Net value of advances (Schedule 4)
BS.4 (continued)
INCOME AND EXPENDITURE AND APPROPRIATION ACCOUNT No. 5
Last Year
K K

rovision for anticipated loss
Net value of advances (Schedule 4)
BS.4 (continued)
INCOME AND EXPENDITURE AND APPROPRIATION ACCOUNT No. 5
Last Year
K K

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INCOME
Interest/Dividends
on advances on mortgages
on collective advances
on Government securities
on other quoted securities
on short-term money market deposits
on bank deposits or loans
on other investments
Valuation fees and expenses
Other fees, commissions and fines
Rents and other income from letting property owned by the
Society
Surplus on realisation of mortgages
Surplus on realisation of investments
Surplus on realisation of assets
Other income -
-
-
TOTAL INCOME
Last Year
K
EXPENDITURE
Management expenses-
Directors' fees
Directors' expenses
Staff costs and expenses
Auditors' fees and expenses
Office accommodation and expenses
Advertising
Commission and agency fees
Other management expenses-
-
-
K
SUB-TOTAL carried forward
BS.4 (continued)
INCOME AND EXPENDITURE AND APPROPRIATION ACCOUNT No.

ssion and agency fees
Other management expenses-
-
-
K
SUB-TOTAL carried forward
BS.4 (continued)
INCOME AND EXPENDITURE AND APPROPRIATION ACCOUNT No.

5
(continued)
Last Year
K SUB-TOTAL brought forward
Valuation fees and expenses
Interest--
on deposits and loans other than Banks
on loans or overdrafts from Banks
Depreciation on land and buildings owned by the
Society
Depreciation on other fixed assets
Loss on realisation of mortgages
Loss on realisation of investments
Loss on realisation of assets
Other expenditure -
-
-
K
TOTAL EXPENDITURE
Last Year
APPROPRIATION
Surplus for the year-excess of income over expenditure
Add :
Unappropriated revenue brought forward
Transfers from Reserves -
-
K

t Year
APPROPRIATION
Surplus for the year-excess of income over expenditure
Add :
Unappropriated revenue brought forward
Transfers from Reserves -
-
K

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Deduct::
Transfers to Reserves -
-
Deduct::
Interest, dividends and bonuses to shareholders for the
period ended................................................................
.....................................................................................
UNAPPROPRIATED REVENUE CARRIED FORWARD
BS.4 (continued)
BALANCE SHEET
Last Year
K
ASSETS
Advances outstanding:
Ordinary (up to K50,000)
Special (over K50,000)
Collective
K K
( ) Less provision for anticipated losses
Investments at cost:
Zambia Government securities
Local Authority securities
Short-term money market deposits
Other investments
( )
Add interest accrued
Less provision for anticipated losses
Cash at Bank and in hand
Sundry Debtors and payments in advance
Land and Buildings:
Balance as at .....
Additions
( ) Disposals
( ) Depreciation
Other fixed assets:
Balance as at .....
Additions
( ) Disposals
( ) Depreciation
Other assets
TOTAL ASSETS
BS.4 (continued)
BALANCE SHEET (continued)
Last Year
K
LIABILITIES
(a) Shareholders' Funds
Shares (by classification)
K K

on
Other assets
TOTAL ASSETS
BS.4 (continued)
BALANCE SHEET (continued)
Last Year
K
LIABILITIES
(a) Shareholders' Funds
Shares (by classification)
K K

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Interest, dividends and bonuses accrued
General Reserve
Other Reserves
Unappropriated revenue
TOTAL SHAREHOLDER'S FUNDS
(b) Other Credit Balances
Deposits and Loans (including interest
accrued)-
Other than Banks
Banks
Sundry Creditors and accrued expenses
Other provisions
TOTAL LIABILITIES
BS.4 (continued)
SCHEDULE No. 1: SHARES ON ISSUE AT END OF YEAR
Classes of Shares
Shares
on
No. of
members
Normal rates of
Interest/Dividend
Issue
K
holding
such
shares
At end
of year
Changes
during year
Add :
Interest, dividends
and bonuses
accrued - - -
TOTAL ACCOUNT
No. 1
Total number of members:
Number of shareholding members:
Number of borrowing members:
BS.4 (continued)
SCHEDULE No. 2: DEPOSITS AND LOANS HELD AT END OF YEAR
(OTHER THAN BANKS)
Initial Terms or Periods of Notice
Interest
Rate
Under
3
months
3 months up
to
6 months
6 months up
to
1 year
1 year
up to
2 years
2 years up
to
3 years
3 years
and
over
Total
Amount
Owing
K K K K K K K
%
%

months
3 months up
to
6 months
6 months up
to
1 year
1 year
up to
2 years
2 years up
to
3 years
3 years
and
over
Total
Amount
Owing
K K K K K K K
%
%

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%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
TOTALS
Interest accrued at end of year
TOTAL ACCOUNT NO. 2 (a)
Number of creditors for deposits and loans, other than Banks ....................................................................................................... Details of changes in interest rates made during year:
Terms
.......................................... .......................................... From %
................................................ ................................................ To %
................................................ ................................................ Operative Date
.............................................. .............................................. BS.4 (continued)
SCHEDULE No.

........... Operative Date
.............................................. .............................................. BS.4 (continued)
SCHEDULE No.

3: INVESTMENTS HELD AT END OF YEAR
Book Value
Nominal Market This Last
Value Value year year
K K K K
(a) Government Securities-
From end of year to final maturity:
Up to 6 years
Over 6 to 15 years
Over 15 years
TOTAL (a)
(b) Local Authority Securities-
From end of year to final maturity:
Up to 6 years
Over 6 to 15 years
Over 15 years
TOTAL (b)
(c) Other quoted securities-
TOTAL (c)
(d) Short-term money market deposits-
Treasury Bills (G.R.Z.)

years
Over 6 to 15 years
Over 15 years
TOTAL (b)
(c) Other quoted securities-
TOTAL (c)
(d) Short-term money market deposits-
Treasury Bills (G.R.Z.)

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Others
TOTAL (d)
(e) Bank deposits and loans-
At call
Others
TOTAL (e)
(f) Other investments-
TOTAL (f)
Total investments (a) to (f)
Add total Interest accrued
Deduct Provision for deficit on realisation
TOTAL ACCOUNT NO. 3
BS.4 (continued)
SCHEDULE No. 4: BALANCES OUTSTANDING ON ADVANCES
AT END OF YEAR
(a) Classification by amounts outstanding:
Number of
Outstanding per
Balance Sheet
Originally
covered
Advances Borrowers Total by a
Govern-
ment
Guarantee
K K
Ordinary advances-
Up to K5,000
K5,001 to K10,000
K10,001 to K15,000
K15,001 to K25,000
K25,001 to K50,000
Special advances-over K50,000
Collective advances
SUB-TOTAL
Deduct: Double countings - - -
Deduct: Provision for anticipated
losses
TOTAL ACCOUNT NO. 4
(b) Classification by initial terms:
This Year Last Year
K K
Advances with initial terms of:
Up to 6 years
Over 6 to 15 years
Over 15 to 20 years
Over 20 years

ification by initial terms:
This Year Last Year
K K
Advances with initial terms of:
Up to 6 years
Over 6 to 15 years
Over 15 to 20 years
Over 20 years

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(c) The balance at end of year includes mortgages on
property:
Number K
(i) of which the Society has been 12 months or more in possession
(ii) of which the Society has not been 12 months in possession, where the
payments are 12 months or more in arrear
(iii) for which Receivers or Managers have acted for 12 months or more
(iv) situated outside the territorial limits of Zambia (give details)

in arrear
(iii) for which Receivers or Managers have acted for 12 months or more
(iv) situated outside the territorial limits of Zambia (give details)

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SCHEDULE No. 5: ADVANCES MADE DURING YEAR ON MORTG
Ordinary
(under K15,000)
Ordinary
(K15,000 to K50,000)
Indi- Indi-
viduals Others viduals Others
No. K No. K No. K No. K
(a) DWELLINGS UNDER CONSTRUCTION:
Borrower to occupy
Zambian citizen. . . . . . . . . . . . . . . . . . . . . . . . . Zambian controlled. . . . . . . . . . . . . . . . . . . . . . non-Zambia. . . . . . . . . . . . . . . . . . . . . . . . . . . . Borrower to let part or all
Zambian citizen. . . . . . . . . . . . . . . . . . . . . . . . . Zambian controlled. . . . . . . . . . . . . . . . . . . . . . non-Zambian. . . . . . . . . . . . . . . . . . . . . . . . . . . Borrower intending to sell
Zambian citizen. . . . . . . . . . . . . . . . . . . . . . . . . Zambian controlled. . . . . . . . . . . . . . . . . . . . . . non-Zambian. . . . . . . . . . . . . . . . . . . . . . . . . . . TOTAL (a) . . . . . . . . . . . . . . . . . . . . . . . . . (b) DWELLINGS-EXISTING:
Borrower to occupy
Zambian citizen. . . . . . . . . . . . . . . . . . . . . . . . . Zambian controlled. . . . . . . . . . . . . . . . . . . . . . non-Zambian. . . . .

py
Zambian citizen. . . . . . . . . . . . . . . . . . . . . . . . . Zambian controlled. . . . . . . . . . . . . . . . . . . . . . non-Zambian. . . . .

. . . . . . . . . . . . . . . . . . . . . . Borrower to let part or all
Zambian citizen. . . . . . . . . . . . . . . . . . . . . . . . . Zambian controlled. . . . . . . . . . . . . . . . . . . . . . non-Zambian. . . . . . . . . . . . . . . . . . . . . . . . . . . Borrower intending to sell
Zambian citizen. . . . . . . . . . . . . . . . . . . . . . . . . Zambian controlled. . . . . . . . . . . . . . . . . . . . . . non-Zambian. . . . . . . . . . . . . . . . . . . . . . . . . . . TOTAL (b) . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . non-Zambian. . . . . . . . . . . . . . . . . . . . . . . . . . . TOTAL (b) . . . . . . . . . . . . . . . . . . . . . . . . .

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SCHEDULE No. 5: ADVANCES MADE DURING YEAR ON MORTGAGES
Ordinary
(under K15,000)
Ordinary
(K15,000 to K50,000)
Indi-
viduals Others
Indi-
viduals Others
No. K No. K No. K No. K
(c) BUSINESS AND OTHER PROPERTIES-UNDER
CON
STRUCTION:
Zambian citizen. . . . . . . . . . . . . . . . . . . . . . . . .
Zambian controlled. . . . . . . . . . . . . . . . . . . . . . .
non-Zambia. . . . . . . . . . . . . . . . . . . . . . . . . . . .
TOTAL (c) . . . . . . . . . . . . . . . . . . . . . . . . .
(d) BUSINESS AND OTHER PROPERTIES-EXISTING:
Zambian citizen. . . . . . . . . . . . . . . . . . . . . . . . .
Zambian controlled. . . . . . . . . . . . . . . . . . . . . . .
non-Zambian. . . . . . . . . . . . . . . . . . . . . . . . . . .
TOTAL (d) . . . . . . . . . . . . . . . . . . . . . . . . .
(e) TOTAL ALL PROPERTIES (a) to (d)
Zambian citizen. . . . . . . . . . . . . . . . . . . . . . . . .
Zambian controlled. . . . . . . . . . . . . . . . . . . . . . .
non-Zambia. . . . . . . . . . . . . . . . . . . . . . . . . . . .
TOTAL (e) . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . .
non-Zambia. . . . . . . . . . . . . . . . . . . . . . . . . . . .
TOTAL (e) . . . . . . . . . . . . . . . . . . . . . . . . .

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BS.4 (continued)
SCHEDULE No. 6: RATES OF INTEREST ON ADVANCES
Normal Parti- Rates during year
Type of Security Rates at culars of
end of year Changes Highest Lowest
Owner-occupied houses
Staff housing
Speculative housing
Flats
Commercial buildings
Industrial buildings
Collective Advances

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SCHEDULE No. 7: COLLECTIVE ADVANCES MADE DURING YEAR
Number K
Government of Zambia
Quasi-governmental bodies
Local Authorities
Statutory Boards
Statutory Corporations
Corporate bodies
TOTAL

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BS.4 (continued)
SCHEDULE No. 8: SPECIAL ADVANCES
Original Advanced
Type Total Valua- Total during
Roll of No. of tion of Amount Present year Notes
No. Pro- Pro- Pro- Ad- Debt (included
perties perties perties vanced in 5)
1 2 3 4 5 6 7 8
TOTALS

ing
Roll of No. of tion of Amount Present year Notes
No. Pro- Pro- Pro- Ad- Debt (included
perties perties perties vanced in 5)
1 2 3 4 5 6 7 8
TOTALS

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Amount outstanding on Special Advances (Column 6) as a percentage of amount outstanding on all
Advances (Account No. 4) = %.
BS.4 (continued)
SIGNATURE OF ANNUAL EVENTS
Signature:
....................................................................................Director
....................................................................................Director
......................................................................................Manager or Secretary
Date:
..........................................................................
..........................................................................
..........................................................................
AUDITORS REPORT
In accordance with section 53 of the Building Societies Act, the Auditor's Report may be annexed here.

...............................
AUDITORS REPORT
In accordance with section 53 of the Building Societies Act, the Auditor's Report may be annexed here.

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THE BUILDING SOCIETIES ACT (Section 52)
ANNEXURE TO ANNUAL RETURN FOR YEAR ENDED.............
.............................................................................................................................
I. PROPERTIES SOLD BY SOCIETY DURING YEAR
Details of original advance
Roll No. Valuation Date of
advance
Amount
advanced
Date of
sale
Name and address of purchaser Debt o
standing
date of s
II. MORTGAGES TRANSFERRED
Details of original advance Debt
Roll No. Valuation
Date of
advance
Amount
advanced
Date of
transfer
Name and address of transferee stan
at da
tran

ED
Details of original advance Debt
Roll No. Valuation
Date of
advance
Amount
advanced
Date of
transfer
Name and address of transferee stan
at da
tran

The Laws of Zambia
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FORM BS.5
THE BUILDING SOCIETIES ACT
(Section 56)
SUBMISSION OF A DISPUTE
Dispute between .................................................................................................................................................................. and
the .................................................................................................................................................................. Building Society. Registration No. .................................................. [The above-named parties agree to submit the dispute between them to the Registrar of Building Societies. Signature of Claimant................................................................ (Seal of the Society) ]*(1)
The said .................................................................................................................................. submits as follows:
(1) That he is a member of the said society (or claims by or through a member or under the rules, as the case may
be).

........... submits as follows:
(1) That he is a member of the said society (or claims by or through a member or under the rules, as the case may
be).

(2) That (give particulars of the claim or contention in this paragraph)
.................................................................................................................................................................................... .................................................................................................................................................................................... .................................................................................................................................................................................... (3) That his case is proposed to be supported by the evidence of the following witnesses and by the production of
the following documents:
(give list of witnesses and documents)....................................................................................................................... ....................................................................................................................................................................................

......................................................................................................................................................

.................................................................................................................................................................................... .................................................................................................................................................................................... Signature .................................................................................................... Address ...................................................................................................... ...................................................................................................... Date .......................................................................................................... The said society submit as follows:
(1) That they dispute the claim (or contention) of the said .....

................................................ The said society submit as follows:
(1) That they dispute the claim (or contention) of the said .....

..................................................................................................on the following grounds: (state grounds of dispute)
.................................................................................................................................................................................... .................................................................................................................................................................................... .................................................................................................................................................................................... (2) That their case is proposed to be supported by the evidence of the following witnesses and the production of the
following documents:
(give list of witnesses and documents)....................................................................................................................... ....................................................................................................................................................................................

......................................................................................................................................................

.................................................................................................................................................................................... Date.................................................. (Seal of the Society)
* The part within brackets is not necessary where the rules direct disputes to be referred to the Registrar.

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e rules direct disputes to be referred to the Registrar.

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The Laws of Zambia
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FORM BS.6
THE BUILDING SOCIETIES ACT
(Section 62)
APPLICATION FOR APPROVAL OF A SPECIAL ADVANCE
..........................................................................................................................................................................Building Society
Registration No. ...................................................... To: THE REGISTRAR OF BUILDING SOCIETIES
The Society proposes to make a special advance of K.................................................................................................... to.................................................................................................................................................................................................. of..................................................................................................................................................................................................

......................................................................................................................................................

(being an advance additional to the balance of K.....................................................................................................of previous
advances owing to the Society).*(2) Such advance is desired for the purchase of the property
situated at .................................................................................................................................................................................. costing K......................................................................................................... and valued at K................................................... The property will be used for the following purposes (give full details):
The proposed mortgage term is ...................................................................................................................... years and the
repayments will be K.................................................................................................................. per month including interest at
........................%.

........................................................................................... per month including interest at
........................%.

The following are the details required by you under the Act:
K
(a) Advances made during year to date:
Ordinary advances .................................................................................... Special advances .................................................................................... Collective advances .................................................................................... __________________________________________
TOTAL __________________________________________
(b) Total balance of special advances outstanding as
at............................................. K__________________________________________
(c) Total "mortgage assets" as at ........................................... K__________________________________________
(d) Percentage of (b) to (c) ................................................................................%
Date.......... ................................................................................................................ Director/Secretary
* Delete if inapplicable.

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........... Director/Secretary
* Delete if inapplicable.

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The Laws of Zambia
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FORM BS.7
THE BUILDING SOCIETIES ACT
(Section 71)
CERTIFICATE OF VALUATION
I, .............................................................................................................................................................................................. of.................................................................................................................................................................................................. .................................................................................................................................................................................................... hereby certify that on the...............................................................................................day of......................................, 19.......,
inspected the property known as................................................................................................................................................

own as................................................................................................................................................

.................................................................................................................................................................................................... .................................................................................................................................................................................................... .................................................................................................................................................................................................... My valuation of the said property as at the said date is K........................................................................................................... (....................................................................................................................................................................................kwacha). Dated at.....................................................................................this.................................day of................................, 19....... ........................................................................

............................day of................................, 19....... ........................................................................

Valuer

Valuer

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
FORM BS.8
THE BUILDING SOCIETIES ACT
(Section 73)
NOTICE TO PROSPECTIVE BORROWER WHERE SECURITY IS TO BE
TAKEN FROM THIRD PARTY
To: ............................................................................................. Address...................................................................................... .................................................................................................. .................................................................................................. WHEREAS the ..............................................................................................................................................Building Society
is prepared to consider making an advance to you of K............................................................................................................. to assist you in defraying the purchase price of...........................................................................................................................

aying the purchase price of...........................................................................................................................

.................................................................................................................................................................................................... .................................................................................................................................................................................................... AND WHEREAS the Society proposes to take a mortgage on the said land as security for the advance:
NOTICE is hereby given that-
(1) The maximum amount that the Society would consider proper to advance on the security of the land if no other
security were taken by the Society is K................................................................................................................... (2) The amount by which the advance exceeds the said amount is K..............................................................................

....... (2) The amount by which the advance exceeds the said amount is K..............................................................................

(3) The Society proposes to take security for the advance from a third party, particulars of which are-
(a) [description of the security]
.............................................................................................................................................................................. .............................................................................................................................................................................. (b) [name and address of the party giving the security]
.............................................................................................................................................................................. .............................................................................................................................................................................. Date....................................................... .................................................................................................... Manager/Secretary

............................... .................................................................................................... Manager/Secretary

The Laws of Zambia
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FORM BS.9
THE BUILDING SOCIETIES ACT
(Section 93)
MONTHLY RETURN TO THE BANK OF ZAMBIA AS AT .......................................................................................................... Name of the Society ..................................................................................................................................................................... I. Assets
(i) Total Assets
(ii) Deduct: Exces of total book vlaue of investments
over total market value
(iii) Net Assets
II.

........................ I. Assets
(i) Total Assets
(ii) Deduct: Exces of total book vlaue of investments
over total market value
(iii) Net Assets
II.

Liquid Funds
(i) Notes and coin (legal tender of Zambia)
(ii) Balances and money at call with:
(a) Registered discount houses
(b) Registered acceptance houses
(c) Registered commercial banks
(iii) Treasury Bills issued by the Government of Zambia
(iv) Local registered securities issued or guaranteed by the Government,
of final maturity date:
(a) Six years or less
(b) More than six years (not to exceed the figure (a) above)
(v) Other prescribed assets
(vi) Interest accrued on investments
SUB-TOTAL
(vii) Deduct (a) Excess of total book value over total market
value of the assets under (iii), (iv) and (v) above
(b) Bank loans or overdrafts
(c) Other liabilities
____________________
(viii) Net Liquid Funds
III. Net Liquid Funds (II, viii) as a percentage of Net Assets
(I, iii) %
Date.............................................................. .................................................................................. Manager or Secretary
Note.-A copy of this return must be sent also to the Registrar of Building Societies.

........................................... Manager or Secretary
Note.-A copy of this return must be sent also to the Registrar of Building Societies.

The Laws of Zambia
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FORM BS.10
THE BUILDING SOCIETIES ACT
(Section 95)
NOTICE OF CHANGE OF NAME
......................................................................................................................................................................... Building Society
(name already registered)
Registration No. ............................................................... To: THE REGISTRAR OF BUILDING SOCIETIES
Notice is hereby given that by a special resolution, as defined in section 49 of the Building
Societies Act, passed at a meeting of the Society held on the.................................................................................................... day of......................................................................................................................................, 19........, it was resolved that the
name of the Society be changed to............................................................................................................................................

changed to............................................................................................................................................

..........................................................................................................................................................................Building Society. Date.......................................................................... .................................................................................... Secretary

....................................................... .................................................................................... Secretary

The Laws of Zambia
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FORM BS.11
THE BUILDING SOCIETIES ACT
(Section 95)
CERTIFICATE OF REGISTRATION OF CHANGE OF NAME
The Registrar of Building Societies hereby certifies that the former........................................................................................... ........................................................................................................................................................................ Building Society,
Registration No....................................................................................................................., is from the date hereof registered
in the name following:
.....................................................................................................................................................................Buidling Society. Dated the..................................................................................................................... day of....................................., 19....... ....................................................................................

.......... day of....................................., 19....... ....................................................................................

Registrar of Building Societies

Registrar of Building Societies

The Laws of Zambia
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FORM BS.12
THE BUILDING SOCIETIES ACT
(Section 96)
NOTICE OF CHANGE OF ADDRESS
..........................................................................................................................................................................Building Society
Registration No. .................................................................... To: THE REGISTRAR OF BUILDING SOCIETIES
Notice is hereby given that the above-named Society on the...................................................................................................... day of....................................................................................................,19.......changed its registered office/postal address*(3)
from ............................................................................................................................................................................................ ....................................................................................................................................................................................................

......................................................................................................................................................

.................................................................................................................................................................................................... to.................................................................................................................................................................................................. .................................................................................................................................................................................................... ..................................................................................................................................................................................................... .................................................................................................................................................................................................... Date.......................................................................................... .................................................................................. Secretary
* Delete as applicable.

................................. .................................................................................. Secretary
* Delete as applicable.

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
FORM BS.13
THE BUILDING SOCIETIES ACT
(Section 96)
CERTIFICATE OF REGISTRATION OF CHANGE OF ADDRESS
The Registrar of Building Societies certifies that the registered office/postal address* (4)of the ........................................
Building Society is from the date hereof the following: ..............................................................................................................
....................................................................................................................................................................................................
....................................................................................................................................................................................................
Date Stamp ....................................................................................................
Registrar of Building Societies
* Delete as applicable.

..............................................................................................
Registrar of Building Societies
* Delete as applicable.

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FORM BS.14
THE BUILDING SOCIETIES ACT
(Section 97)
APPLICATION TO REGISTER AN ALTERATION OF RULES
(being a substitution of an entire set of rules)
.......................................................................................................................................................................... Building Society
Registration No. ................................................................................ Registered Office ....................................................................................................................................................................... ...................................................................................................................................................................... To: The Registrar of Building Societies
1. Application is hereby made for the registration of an alteration of rules
2.

.............................. To: The Registrar of Building Societies
1. Application is hereby made for the registration of an alteration of rules
2.

The matters required to be provided for in the rules of a building society by section 11 of the Building Societies Act
are provided for in the rules, application for which is hereby made, as follows:
Matters required to be provided Number
for in the Rules of Rule
(a) the name of the society and the address of its chief office or place of
meeting;
(b) the manner in which the stock or funds of the society is or are to be
raised;
(c) the manner in which a person may become a member of the society and
the manner in which he may cease to be a member;
(d) the purposes to which the funds of the society are to be applied;
(e) provision that the society shall not, except with the approval of the
Minister, make advances on the security of freehold or leasehold estate
or in respect of any development, lands or buildings, situated outside the
territorial limits of Zambia;
(f) the classes of shares to be issued and the preferential and other rights
and conditions attached to each class of shares;
(g) the terms and conditions on which deposits are to be accepted and
repaid;
(h) provision that the society reserves the right to make all repayments,
whether of shares, deposits, loans or otherwise, in Zambian currency;
(i) the manner in which advances are to be made and repaid and the
conditions on which a borrower can redeem the amount due from him
before the end of the period for which the advance was made;
(j) the manner in which losses are to be ascertained and provided for;
(k) whether the society intends to borrow money and if so, within what limits,
not exceeding those prescribed by the Building Societies Act;
(l) the manner of appointing, remunerating and removing the board of
directors and other officers, their powers and duties, and the manner of
remunerating auditors;
(m) the manner of calling and holding meetings, the giving of notice thereof,
form of notice, quorum, voting rights, right to requisition meetings,
procedure to be observed at meetings, the right to demand a poll, and
the manner in which a poll is to be taken;
(n) the manner of settling disputes, subject to the provisions of the Building
Societies Act;
(o) provision for an annual or more frequent audit and the inspection by the
auditors of the titles, mortgage deeds and other securities held by the
society;
(p) provision for the custody of the titles, mortgage deeds and other
securities belonging to or held by the society;
(q) provision for the device, custody and use of the society's common seal;

, mortgage deeds and other
securities belonging to or held by the society;
(q) provision for the device, custody and use of the society's common seal;

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(r) the fines and forfeitures, if any, to be imposed on members of the society;
(s) the manner in which the society may be dissolved.
3. There accompany this application:
(a) two printed copies of the alteration of rules signed by three members and the secretary, marked "All previous
rules rescinded" and marked to show the date of the passing of the special resolution by which the alteration
was made;
(b) a printed copy of the existing set of rules;
(c) a statutory declaration of an officer of the society in Form BS.14/B stating that the alteration of rules now
submitted for registration was made on the ............. day of .........................................., 19......., by a
special resolution as defined in section 49 of the Building Societies Act.
Date................................................ (Seal of the Society)

special resolution as defined in section 49 of the Building Societies Act.
Date................................................ (Seal of the Society)

The Laws of Zambia
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FORM BS.14/A
THE BUILDING SOCIETIES ACT
(Section 97)
APPLICATION TO REGISTER AN ALTERATION OF RULES
(not being a substitution of an entire set of rules)
.......................................................................................................................................................................... Building Society
Registration No. .......................................................................................................................................................................... Registered Office......................................................................................................................................................................... ........................................................................................................................................................................ To: THE REGISTRAR OF BUILDING SOCIETIES
Application is hereby made for the registration of an alteration of rules.

................................... To: THE REGISTRAR OF BUILDING SOCIETIES
Application is hereby made for the registration of an alteration of rules.

There accompany this application:
(a) two printed copies of the alteration of rules (or, in the case of the rescission of a rule, two copies of the
resolution) signed by three members and the secretary, and stating the date of the passing of the special
resolution by which the alteration was made;
(b) a printed copy of the existing set of rules, marked to show where and in what manner they have been altered;
(c) a statutory declaration by an officer of the society stating that the alteration of rules now submitted for
registration was made on the .........................................day of..............................................., 19........ by a
special resolution as defined in section 49 of the Building Societies Act. Date................................................................................. (Seal of the Society)

section 49 of the Building Societies Act. Date................................................................................. (Seal of the Society)

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FORM BS.14/B
THE BUILDING SOCIETIES ACT
(Section 97)
STATUTORY DECLARATION TO ACCOMPANY APPLICATION TO
REGISTER AN ALTERATION OF RULES
......................................................................................................................................................................... Building Society
Registration No. ......................................................................................................................................................................... Registered Office........................................................................................................................................................................ ......................................................................................................................................................................... I, ................................................................................................................................................................................................

......................................................................................................................................................

of ................................................................................................................................................................................................ an officer of the above-named society, do solemnly and sincerely declare that the alteration of the rules of the said society,
the application for the registration of which this declaration accompanies, was made by a special resolution, as defined in
section 49 of the Building
Societies Act, passed on the..................................................................................................day of............................., 19.......;
AND I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the
Statutory Declarations Act, 1835, of the United Kingdom. Signature of Declarant...................................................................................... Declared at ............................................................................................... ............................................................................ the ......... day of .......... 19.......

............................... ............................................................................ the ......... day of .......... 19.......

before me,
.................................................................................................................. Commissioner for Oaths

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FORM BS.15
THE BUILDING SOCIETIES ACT
(Section 97)
CERTIFICATE OF REGISTRATION OF ALTERATION OF RULES
The Registrar of Building Societies hereby certifies that the alteration of the rules of
the ................................................................................................................................................................... Building Society,
Registration No....................................................................................................................to which this certificate is attached,
is registered under the Building Societies Act, this...............................................................................................................day
of.............................................., 19.......
...............................................................................................
Registrar of Building Societies

..........., 19.......
...............................................................................................
Registrar of Building Societies

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FORM BS.16
THE BUILDING SOCIETIES ACT
(Section 98)
NOTICE OF UNION OF SOCIETIES
(A) ..................................................................................................................................................................... Building Society
Registration No. ....................................................................................................... (B) .................................................................................................................................................................... Building Society
Registration No. ....................................................................................................... To: THE REGISTRAR OF BUILDING SOCIETIES
Notice is hereby given that at a meeting of the (A).................................................................................................................. .....................................................................................................................Building Society held on the....................................

......................................................................................Building Society held on the....................................

day of......................................................................................................................., 19......., a special resolution, as defined in
section 49 of the Building Societies Act, was passed which approved the union of the said
(A).................................................................................................................................................Building Society with the said
(B)........................................................................................................................................Building Society in accordance with
the terms of the instrument of union, a copy of which signed by the Secretary of each Society is annexed to this notice. And that at a meeting of the said (B)....................................................................................................................................... Building Society held on the ..........................................................................................

.............................. Building Society held on the ..........................................................................................

day of ....................., 19......, a special
resolution, as defined in section 49 of the Building Societies Act, was passed which
approved the union of the said (B).............................................................................................................................................. Building Society with the said (A)................................................................................................................................................ Building Society in accordance with the terms of the said instrument of union. The whole number of shares of the (A)................................................................................................................................... Building Society is ........................................................................................... and the concurrence in writing of the holders of
not less than two-thirds of such shares is submitted with this notice.*(5)
The whole number of shares of the (B)...................................................................................................................................

f shares of the (B)...................................................................................................................................

Building Society is.............................................................................................and the concurrence in writing of the holders of
not less than two-thirds of such shares is submitted with this notice.*(6)
Seal of the (A) ............................................................................................................................. Building Society. Seal of the (B) ............................................................................................................................. Building Society. Name and address to which registered copy is to be sent:
..................................................................................................................................................................................................... .....................................................................................................................................................................................................

......................................................................................................................................................

..................................................................................................................................................................................................... Date........................................................................................................... * Omit where confirmation of union is sought without such concurrence pursuant to section 100 of the Building Societies
Act.

......................... * Omit where confirmation of union is sought without such concurrence pursuant to section 100 of the Building Societies
Act.

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FORM BS.17
THE BUILDING SOCIETIES ACT
(Section 99)
NOTICE OF TRNSFER OF ENGAGEMENTS
(A) .................................................................................................................................................................... Building Society
Registration No.......................................................................................................... (B) ..................................................................................................................................................................... Building Society
Registration No. ....................................................................................................... To: THE REGISTRAR OF BUILDING SOCIETIES
Notice is hereby given that at a meeting of the (A)................................................................................................................. .................................................................................................................Building Society, held on the ..........................

..............................................................................................Building Society, held on the ..........................

day of
...................................................................................................., 19......., a special resolution, as defined in section 49 of the
Building Societies Act, was passed that the said Society do transfer its engagements
to the (B) ..................................................................................................................................................................................... Building Society, in accordance with the terms of the instrument of transfer, a copy of which signed by the Secretary of
each Society is annexed to this notice. The whole number of shares of the (A) .................................................................................................................................. ...................................................................................................... Building Society is ..............................

................................................................................................... Building Society is ..............................

and the concurrence
in writing of the holders of not less than two-thirds of such shares is submitted with this notice.*(7)
The (B) ........................................................................................................................................................ Building Society-
†(8) by special resolution as defined in section 49 of the Building Societies Act;
†(9) with the consent of the Registrar of Building Societies by a resolution in a general meeting;
†(10) with the consent of the Registrar of Building Societies by a resolution of its Board
of Directors or Committee of Management;
has undertaken to fulfil the engagement of the (A)..................................................................................................................... ................................................................................................................. Building Society in accordance with the terms of the
said instrument of transfer. The whole number of shares of the (B)...................................................................................................................................

f shares of the (B)...................................................................................................................................

.........................................................................................................................Building Society is ................................ and the
concurrence in writing of the holders of not less than two-thirds of such shares is submitted with this notice.*(11)
Seal of the (A) ............................................................................................................................. Building Society. Seal of the (B) ............................................................................................................................. Building Society. Name and address to which registered copy is to be sent:
..................................................................................................................................................................................................... ..................................................................................................................................................................................................... Date............................................................................................................................

..................... Date............................................................................................................................

* Omit where confirmation of transfer is sought without such concurrence pursuant to section 100 of the Building
Societies Act. † Delete as applicable.

Omit where confirmation of transfer is sought without such concurrence pursuant to section 100 of the Building
Societies Act. † Delete as applicable.

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FORM BS.18
THE BUILDING SOCIETIES ACT
(Section 100)
APPLICATION FOR CONFIRMATION OF UNION OR TRANSFER OF
ENGAGEMENTS
.......................................................................................................................................................................... Building Society
Registration No. ........................................................................................................ To: THE REGISTRAR OF BUILDING SOCIETIES
The above-named society desires to unite with/transfer its engagements to/accept a
transfer of the engagements of*(12) the .................................................................................................................................... ..................................................................................................................Building Society, Registration No. ............................

.......................................................................................Building Society, Registration No. ............................

and hereby applies to the Registrar of Building Societies to confirm the union/transfer* notwithstanding that the written
concurrence of the holders of two-thirds of the whole number of its shares has not been obtained in the manner required
by the Building Societies Act. Date.......................................................................................... (Seal of the Society making the application)
NOTE.-Notice of this application as per Form BS.19 must be advertised in the Government Gazette, and in one or more
newspapers in the country, at least one calendar month before this application can be heard. * Delete as applicable.

nment Gazette, and in one or more
newspapers in the country, at least one calendar month before this application can be heard. * Delete as applicable.

The Laws of Zambia
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FORM BS.19
THE BUILDING SOCIETIES ACT
(Section 100)
NOTICE OF APPLICATION FOR CONFIRMATION OF UNION OR
TRANSFER OF ENGAGEMENTS
Notice is hereby given that the .................................................................................................................................................... Building Society, Registration No.................................................................................................................., whose registered
office is at .................................................................................................................................................................................... .................................................................................................................................................................................................... ....................................................................................................................................................................................................

......................................................................................................................................................

desires to unite with/transfer its engagements to/accept a transfer of the engagements
of* (13)the .........................................................................................................................................................Building Society,
Registration No...................................................................................................................and that the first-named society has
applied to the Registrar of Building Societies to confirm the union/transfer* notwithstanding that the written concurrence of
the holders of two-thirds of the whole number of shares of the said society has not been obtained in the manner required
by the Building Societies Act. The application will be heard on the........................................................................................day of........................., 19....... Any person wishing to be heard on such application should apply by letter to the Registrar of Building Societies, P.O. Box RW.62, Lusaka, at least seven days before the date of the hearing.

application should apply by letter to the Registrar of Building Societies, P.O. Box RW.62, Lusaka, at least seven days before the date of the hearing.

Date Stamp ...............................................................................................Building Society
Secretary/Manager
* Delete as applicable.

............................................................................................Building Society
Secretary/Manager
* Delete as applicable.

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FORM BS.20
THE BUILDING SOCIETIES ACT
(Section 111)
INSTRUMENT OF DISSOLUTION
.......................................................................................................................................................................... Building Society
Registration No ........................................................................................................ Instrument of dissolution of the ............................................................................................................................................ ............................................................................................................................ Building Society, made the ............................ day of ........................................................................................................., 19 ........, and signed by members holding not less
than two-thirds of the number of shares in the said society. It is agreed and declared as follows:
1. The liabilities and assets of the society are the following:
Liabilities K n Assets K n
2.

the said society. It is agreed and declared as follows:
1. The liabilities and assets of the society are the following:
Liabilities K n Assets K n
2.

The number of members is ...................................... the number of shares is.............................................................. and the amount standing to the credit of the members in the books of the society is K ........................................................ 3. The society owes to depositors the sum of K .................................................................................................................. and to other creditors the sum of K .........................................................and such sums shall be paid out of the first moneys
which shall be received by the trustees hereby appointed.*
(14)
4. After payment of the claims of depositors and other creditors, the funds and property of the society shall be
appropriated and divided among the members thereof in the proportion of the amount standing to each member's credit in
the books of the society.*
(15)
5. The following persons are hereby appointed trustees for the purposes of the dissolution:
Full name Address Description
6. The trustees shall be remunerated by the sum of*
(16)
7.

reby appointed trustees for the purposes of the dissolution:
Full name Address Description
6. The trustees shall be remunerated by the sum of*
(16)
7.

(Here insert any other provisions the society desires to make as to the dissolution.)
Signatures of Members Number of Shares held by Members
signing
.......................................................................................... .......................................................................................... .......................................................................................... .......................................................................................... Signatures of Trustees
.......................................................................................... .......................................................................................... Seal of the Society
To be signed and sealed in duplicate. * Or as the case may be.

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signed and sealed in duplicate. * Or as the case may be.

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FORM BS.21
THE BUILDING SOCIETIES ACT
(Section 111)
CERTIFICATE OF REGISTRATION OF INSTRUMENT OF DISSOLUTION
The Registrar of Building Societies hereby certifies that the instrument of dissolution
of the..............................................................................................................................................................................Building
Society, Registration No..........................................................................................................................., dated the.........day of
................................................................................................................, 19....., is registered under the Building Societies Act,
this.................................................................................................................................................................day of..........., 19...
..............................................................................
Registrar of Building Societies

...............day of..........., 19...
..............................................................................
Registrar of Building Societies

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FORM BS.22
THE BUILDING SOCIETIES ACT
(Section 117)
APPLICATION FOR APPROVAL TO INCUR EXPENDITURE ON REAL ASSETS EXCEEDING K100,000 IN RESPECT
OF ANY SINGLE TRANSACTION
.......................................................................................................................................................................... Building Society
Registration No..........................................................................................

........................... Building Society
Registration No..........................................................................................

To: THE REGISTRAR OF BUILDING SOCIETIES
Permission is hereby requested to incur expenditure in respect of the following transaction:
K
(1) Estimated cost of transaction:
(2) Proposed date of transaction:
(3) Name and address of seller:
*(17) (4) Land (section 117 (3)):
(a) Location
(b) Size
(c) Freehold or Leasehold
(d) Terms of Lease
(e) Building to be constructed on this land:
(i) description:
(ii) purpose:
(iii) estimated cost of constructing it:
(iv) estimated cost of furnishing it:
*(18) (5) Building (section 117 (2)):
(a) Location
(b) Size of plot
(c) Freehold or Leasehold
(d) Terms of Lease
(e) Whether built or to be built
(f) Description
(g) Purpose
(h) Estimated cost of constructing/adapting it
(i) Estimated cost of furnishing it. Date.......................................................................................... .................................................................................... Secretary
* Delete as applicable.

............................... .................................................................................... Secretary
* Delete as applicable.

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
FORM BS.23
THE BUILDING SOCIETIES ACT
(Section 133)
APPLICATION FOR INSPECTION OF A BUILDING SOCIETY'S DOCUMENTS
To: THE REGISTRAR OF BUILDING SOCIETIES
I, ............................................................................................................................... of .........................................................,
hereby apply to inspect the following document/s relating to...................................................................................................... ........................................................................................................... Building Society, Registration No..................................... which is/are required to be lodged with you in terms of this Act. No. of Section
No. Document reference or description under Act
1. 2. 3. I would like a copy of such document/s/extract of such document/s as follows:
Ending with
No. From page To page Beginning with words words
1. 2. 3. I enclose K................... in respect of the inspection and copying fees.

s:
Ending with
No. From page To page Beginning with words words
1. 2. 3. I enclose K................... in respect of the inspection and copying fees.

Date.......................................................................... Signature.................................................................................... NOTES: An inspection fee is payable whether or not a copy is required. Inspection fee on same day, 8 fee units. Copying fee per page or part thereof, 8 fee units. (As amended by Act No. 13 of 1994)

not a copy is required. Inspection fee on same day, 8 fee units. Copying fee per page or part thereof, 8 fee units. (As amended by Act No. 13 of 1994)

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
SECOND SCHEDULE
(Regulation 6)
Annual Accounts
.................................................................................................................................................................................................... ..........................................................................................................................................................................Building Society
Registration No.......................................................................................................................................................................... Registered Office........................................................................................................................................................................ INCOME AND EXPENDITURE AND APPROPRIATION ACCOUNT
For Year Ended............................................., 19.......

.............................. INCOME AND EXPENDITURE AND APPROPRIATION ACCOUNT
For Year Ended............................................., 19.......

Last Year
K
INCOME
Interest/Dividends on Advance on mortgages
Interest/Dividends on collective advances
Interest/Dividends on Government securities
Interest/Dividends on other quoted securities
Interest/Dividends on short-term money market deposits
Interest/Dividends on bank deposits or loans
Interest/Dividends on other investments
Valuation fees and expenses
Other fees, commissions and fines
Rents and other income from letting property owned by the Society
Surplus on realisation of mortgages
Surplus on realisation of investments
Surplus on realisation of assets
Other income-
K
TOTAL INCOME
Last Year
K
EXPENDITURE
Management expenses-
Directors' fees
Directors' expenses
Staff costs and expenses
Auditors' fees and expenses
Office accommodation and expenses
Advertising
Commission and agency fees
Other management expenses-
K
SUB-TOTAL carried forward

ors' fees and expenses
Office accommodation and expenses
Advertising
Commission and agency fees
Other management expenses-
K
SUB-TOTAL carried forward

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
Last Year
K
SUB-TOTAL brought forward
Valuation fees and expenses
Interest-
on deposits and loans other than Banks
on loans or overdraft from Banks
Depreciation on land and buildings owned by the Society
Depreciation on other fixed assets
Loss on realisation of mortgages
Loss on realisation of investments
Loss on realisation of assets
Other expenditure-
K
TOTAL EXPENDITURE
Last Year
K
APPROPRIATION
Surplus for the year-excess of income over expenditure
Add:
Unappropriated revenue brought forward
Transfers from Reserves
K
Deduct:
Transfers to Reserves
Deduct:
Interest, dividends and bonuses to
shareholders for period ended.......................................................... UNAPPROPRIATED REVENU CARRIED FORWARD
BALANCE SHEET AS AT ........................................................,19................

................ UNAPPROPRIATED REVENU CARRIED FORWARD
BALANCE SHEET AS AT ........................................................,19................

Last Year
K
ASSETS
Adavances outstanding:
Ordinary (up to K50,000)
Special (over K50,000)
Collective
K K
( ) Less provision for anticipated losses
Investment at cost:
Zambia Government securities
Local Authority securities
Short-term money market deposits
Other investments
( ) Add interest accrued
Less provision for anticipated losses

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
Cash at Bank and in hand
Sundry Debtors and payments in advance
Land and Buildings:
Balance as at ................................
Additions
( ) Disposals
( ) Depreciation
Other fixed assets:
Balance as at ....................................
Additions
( ) Disposals
( ) Depreciation
Other assets
TOTAL ASSETS
Last Year
K
LIABILITIES
(a) Shareholders' Funds
Shares (by classification)
K K
Interest, dividends and bonuses accrued
General Reserve
Other Resrves
Unappropriated Revenue
TOTAL SHAREHOLDERS' FUNDS
(b) Other Credit Balances
Deposits and loans (including interest accrued)-
Other than Banks
Banks
Sundry Creditors and accrued expenses
Other provisions
TOTAL LIABILITIES
Date ..........
On behalf of the Board
Director
Director
Manager or Secretary

Sundry Creditors and accrued expenses
Other provisions
TOTAL LIABILITIES
Date ..........
On behalf of the Board
Director
Director
Manager or Secretary

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
THIRD SCHEDULE
(Regulation 8)
PRESCRIBED FEES
Under
Section No. of the Act Fee units
3 and 6 For the certificate of registration of a Building Society. . . . . . . . . . . . . . . . . . . . 450
5 For the certificate that the General Reserve Fund is
satisfactory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
56 For every award by the Registrar on a dispute. . . . . . . . . . . . . . . . . . . . . . . . . . 150
56 For every hearing of a dispute after the first hearing and for
every adjournment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
62 For every application for approval of a special advance. . . . . . . . . . . . . . . . . . . 75
63 For every application for approval of a collective advance. . . . . . . . . . . . . . . . . 75
87 For an application for designation of trustee status. . . . . . . . . . . . . . . . . . . . . . . 150
95 For the certificate of registration of a change of name. . . . . . . . . . . . . . . . . . . .

tus. . . . . . . . . . . . . . . . . . . . . . . 150
95 For the certificate of registration of a change of name. . . . . . . . . . . . . . . . . . . .

75
96 For the certificate of registration of a change of registered
address. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
97 For the certificate of registration of an alteration of rules. . . . . . . . . . . . . . . . . . 150
98 For receiving notice of a union, to be paid by each uniting
society (including registration). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
99 For receiving notice of a transfer of engagements, to be paid
by each society concerned (including registration). . . . . . . . . . . . . . . . . . . . . 75
100 For receiving an application for confirmation of a union or
transfer of engagement (including confirmation). . . . . . . . . . . . . . . . . . . . . . . 150
106 For receiving an application to appoint an inspector. . . . . . . . . . . . . . . . . . . . . . 150
111 For the certificate of registration of an instrument of
dissolution or of any alteration therein. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
112 For receiving an application for investigation. . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . 150
112 For receiving an application for investigation. . . . . . . . . . . . . . . . . . . . . . . . . . .

150
116 For registration of notice of commencement or termination
of a dissolution or winding-up. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
117 For every application for approval to incur expenditure on
real assets in excess of K100,000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
121 For cancellation of registration at the request of a society. . . . . . . . . . . . . . . . . 150
133 For every inspection on the same day of documents (one or
more) in the custody of the Registrar relating to one
society. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
133 For a copy or extract of any document in the custody of the
Registrar, per page. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
For the signature by the Registrar of any document required
to be so signed (except as otherwise provided). . . . . . . . . . . . . . . . . . . . . . . 15
(As amended by Act No. 13 of 1994)

ny document required
to be so signed (except as otherwise provided). . . . . . . . . . . . . . . . . . . . . . . 15
(As amended by Act No. 13 of 1994)

The Laws of Zambia
Copyright Ministry of Legal Affairs, Government of the Republic of Zambia
Endnotes
1 (Popup - Popup)
The part within brackets is not necessary where the rules direct disputes to be referred to the
Registrar. 2 (Popup - Popup)
Delete if inapplicable. 3 (Popup - Popup)
Delete as applicable. 4 (Popup - Popup)
Delete as applicable
5 (Popup - Popup)
Omit where confirmation of union is sought without such concurrence pursuant to section 100 of the
Building Societies Act. 6 (Popup - Popup)
Omit where confirmation of union is sought without such concurrence pursuant to section 100 of the
Building Societies Act. 7 (Popup - Popup)
Omit where confirmation of transfer is sought without such concurrence pursuant to section 100 of the
Building Societies Act. 8 (Popup - Popup)
Delete as applicable
9 (Popup - Popup)
Delete as applicable
10 (Popup - Popup)
Delete as applicable
11 (Popup - Popup)
Omit where confirmation of transfer is sought without such concurrence pursuant to section 100 of the
Building Societies Act. 12 (Popup - Popup)
Delete as applicable.

rmation of transfer is sought without such concurrence pursuant to section 100 of the
Building Societies Act. 12 (Popup - Popup)
Delete as applicable.

13 (Popup - Popup)
Delete as applicable
14 (Popup - Popup)
Or as the case may be
15 (Popup - Popup)
Or as the case may be
16 (Popup - Popup)
Or as the case may be
17 (Popup - Popup)
Delete as applicable. 18 (Popup - Popup)
Delete as applicable.