Section 28
Section 28
(1)
Notwithstanding anything contained in section 27, a registered society shall not sue or be sued in respect of any contract entered into by any branch thereof or by any office-bearer of any such branch unless such contract —
(a)
has been entered into by the branch by virtue of express written approval given to it by the committee or governing body of the registered society; or
(b)
is a contract within a particular class or description of contracts which the branch is authorised by the registered society to enter into.
(2)
The provisions of sections 21(c), (d) and (e) shall be construed accordingly in their application to any suit, proceedings, judgment or application for execution in relation to any contract entered into by a branch of a registered society.
(3)
Without prejudice to subsection (1), where a branch, referred to in this subsection as the “subordinate branch”, is under the control and is responsible to another branch, referred to in this subsection as the “superior branch”, the superior branch may sue or be sued for contracts entered into by the subordinate branch if such contract —
(a)
has been entered into by the subordinate branch by virtue of an express written approval given to it by the superior branch; or
(b)
is a contract within a particular class or description of contracts which the subordinate branch is authorised by the superior branch to enter into:
Provided that a branch shall, in any case, be considered to be under the control of and responsible to another branch if members of the superior branch are nominated, elected or otherwise chosen from the members of the subordinate branch.
Societies 30