(1) A friendly society or registered branch must not make any payment to a member of the committee of management of the society or branch -
(a) by way of compensation for loss of office, or
(b) as consideration for or in connection with the member’s retirement from office,
unless particulars of the proposed payment (including its amount) have been disclosed to members of the society or branch and the proposal has been approved by the society or branch.
(2) Sub-paragraph (1) does not apply to a bona fide payment by way of damages for breach of contract or by way of pension in respect of past services.
"Pension" here includes any superannuation allowance, superannuation gratuity or similar payment.
(1) The following provisions of the Building Societies Act 1986 [1986 c. 53.] -
(a) section 62 (prohibition of tax-free payments to directors);
(b) section 63 (disclosure of interests in contracts and other transactions);
(c) section 64 (substantial property transactions);
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