(1) Subject to this Act, a society or a member society shall not, directly or indirectly, give a loan, guarantee or other means of financial assistance—
(a) to a member, director, officer or employee of the society or member society or an associate of any such person for any purpose; or
(b) to any person for the purpose of or in connection with, the acquisition of membership of the society or the purchase of a share issued or to be issued by the society or member, where there are reasonable grounds to believe that the society is insolvent or would, after giving the financial assistance, be insolvent.