(1) Where the Registrar is of the opinion, after an inspection under section 11 or after an investigation under section 13, that it is necessary to do so in the interest of the orderly and proper regulation of the business of a society, he may appoint a person to be a member of the committee of management of the society.

(2) Without prejudice to the generality of subsection (1), the Registrar shall, before exercising a power conferred on him by this section, have regard to -

(a) the compliance or otherwise by the society with any provisions of (or directions of the Registrar under) this Act, and

(b) any financial transactions which have been undertaken, or are in the course of being undertaken, by the society and which, in the Registrar's opinion, are, or are likely to be, prejudicial to the interests of the public or of creditors of the society.

(3) A person appointed under this section shall hold office for such period and on such terms as the Registrar may specify and, on the expiry of such a period, the Registrar may renew the appointment for such period or periods as he may specify.