Section 38

If upon investigation it appears to the Registrar that the funds of the society are insufficient to meet the existing claims thereon or that the rates of contributions fixed in the rules of the society are insufficient to cover the benefits assured, the Registrar may, if he considers it expedient so to do, order that the society shall be dissolved and its affairs wound up and shall direct in what manner the assets of the society shall be divided or appropriated:

Provided that the Registrar may suspend his order for such period as he may deem necessary to enable the society to make such alteration and adjustment of contributions and benefits as will in his judgment remove the necessity for the making of the order of dissolution.

The Registrar proceeding under this section shall have all the powers and authorities enforceable by the same penalties as in the case of a dispute referred to him under section 40.

Every order under this section, whether for dissolution or distribution of funds, shall be binding on the society in respect of which the order is made and on all members and subscribers of the society and on all persons having any claim on the funds of the society and shall be enforced in the same manner as a decision in a dispute under section 40.

The expenses of the investigation and of publishing the order for dissolution under this section shall be paid out of the funds of the society before any other appropriation thereof is made.

Every order for dissolution shall, within twenty-one days after the order has been made, be published in the Gazette and if within three months from the date of the publication of such order, a member or subscriber or person interested in or having any claim on the funds of the society does not commence any proceedings to set aside the dissolution of the society consequent upon such order, and the dissolution is not thereby set aside, the society shall be deemed to have been dissolved from the date of the publication of the order.