(1) A society or a branch that is refused registration or exemption or has had its registration or exemption cancelled and the refusal or cancellation-
(a)has not been appealed against within the time limited for appeal under section 5B or 5E; or
(b)has been confirmed on appeal,
shall cease its operation as a society or a branch.
(2) If a society or a branch fails to comply with subsection (1), every office-bearer or person professing or claiming to be an office-bearer of the society or the branch commits an offence and is liable on summary conviction-
(a) for a first conviction for the offence in relation to a particular society, to a fine at level 3; and
(b) for a second or subsequent conviction for the offence in relation to the same society, to a fine at level 4 and to imprisonment for 3 months and in addition to a fine of $300 for each day during which the offence continues, commencing on the date of the first conviction.
(3) It is a defence to a charge under subsection (2) if the defendant establishes to the satisfaction of the court that he has exercised due diligence to ensure the society or the branch complied with subsection (1) and that the failure occurred for reasons beyond his control.