Co-operative Societies (Amendment)

(1) Every registered the society shall cause proper accounts of the income and expenditure, assets and liabilities and of all other transactions of the society to be kept.

(2) Every registered society shall prepare an annual statement of accounts and statistics relating to the activities of the society, as may be required by the Registrar or any person authorized by him. Such statement of accounts shall be submitted to the Registrar or other person authorized by him within three months of the close of the financial year to which it relates.

(3) Where a registered society fails to comply with any of the provisions of this section every member of the Committee of such society shall be guilty of an offence, and shall on conviction after summary trial before a Magistrate be liable to a fine not exceeding two thousand rupees:

(1) Every registered society shall prepare a budget in respect of every financial year,. setting out projections of revenue, expenditure both recurrent and capital, financial and cash resources, investments of funds, budgeted profit and loss accounts, income and expenditure accounts and balance sheets pertaining to that year.

(2) Such budget shall be presented to the general body of the society for its approval not later than two months prior to the commencement of the financial year to which it relates.

(3) A copy of such budget shall be transmitted to the Registrar one month prior to the commencement of the financial year to which it relates.

(4) The form and manner in which the budget shall be prepared and the minimum information that it should contain, shall be as determined by the Registrar.

(5) The Minister may where he considers it expedient to do so having regard to the membership of a registered society and its income and expenditure by special or general order exempt any society from the requirements of this section.”.

“(4) The Registrar or any person authorized by general or special order in writing in that behalf by the Registrar, shall at all times have access to and be entitled to examine all books, documents, accounts and papers, securities and cash in hand of a registered society and every person in charge of or maintaining or having possession of the aforesaid shall produce them to the Registrar or such authorized person or furnish such information in regard to the transactions and working of the society as the Registrar or the authorized person making such inspection or audit may require. “;

(a) in paragraph (a) thereof, by the substitution for the words ” or the rules made under this Law”, of the words, ” or the rules made under this Law or any other law, rules or regulations relating to Co-operative Societies or financial procedure approved by the Registrar or any general directions issued by the Registrar or the Co-operative Employees’ Commission,”;

(b) by the repeal of paragraph (c) thereof, and the substitution therefor, of the following paragraph:”

(c) by the repeal of paragraph (d) thereof.

(a) to summon any past or present officer, agent, servant or member of a society or any other person who in the opinion of the Registrar or the person authorized by him, to inquire, can give material information about any transaction of the society or management of its affairs;

(b) to require the production of any book or document relating to the affairs of the society by any past or present officer, agent, servant or member of the society or other person in possession of or having the custody of such book, document, cash, security or other property;

(c) to summon a general meeting of the members of the society at such time and place as may be specified by him, to determine such matters as may be directed by him; and

(d) to take into custody books of accounts or the documents of the society where he has reason to believe that there is a fraud, or irregularity in the course of such inspection or investigation.”.

“(1) If the Registrar is of the opinion after an inquiry under section 46, or an inspection or investigation under section 47, that the committee of any registered society is not performing its duties in a proper manner, he may, after giving the committee an opportunity to state its objections, if any, to its dissolution, and after considering such objections at a general meeting of the society summoned by him, by order in writing”

“(b) shall have and may exercise all the powers, rights and privileges of the duly constituted committee of the society and where it becomes necessary to do so in the interest of the efficient management of the affairs of such society, such of the powers of the general body as are necessary in such interest, to the exclusion of such general body. “; and

“(10) Before the completion of an inquiry under section 46 or an inspection or investigation under section 47, if the Registrar is of opinion that a prima facie case has been established against the committee, the Registrar shall have the power to suspend such committee for a period of six months and appoint an interim board to manage and administer the affairs of a society. The Registrar shall complete such inquiry or investigation within six months from the date of suspension of such committee and take a final decision regarding the dissolution of such committee under subsection (1). “.

(1) If the Registrar is of the opinion after an inquiry under section 46, or an inspection or investigation under section 47, that any officer or employee of any registered society is not performing his duties in a proper manner, or is unfit or otherwise unable to discharge his duties efficiently, he may notwithstanding anything to the contrary in this law, the Co-operative Employees Commission Act, No. 12 of 1972 or any other law after giving such officer or employee, an opportunity to state their objection by order in writing suspend or interdict as the case may be such officer or employee pending such inquiry as may be necessary and after such inquiry remove such officer or employee from office:

Provided that any employee aggrieved by an order of removal made under this subsection, may appeal there from to the Co-operative Employees’ Commission established under that Act, No. 12 of 1972 within a period of thirty days, and the decision of such Commission shall be final.

(2) Where any officer or employee is removed under subsection (1) and where such order for removal has been affirmed by the Co-operative Employees’ Commission or no appeal against such Order has been preferred within thirty days, another officer or employee may be elected or appointed as the case may be in accordance with the provisions applicable in respect to such election or appointment. “.

(a) by the substitution for the words ” by the society “, of the words ” by the Registrar”; and

(b) by the substitution for the words and figures ” and the provisions of section 312 (except paragraphs (a) and (c) of subsection (1) of that section) of the Criminal Procedure Code”, of the words and figures ” and the provisions of section 291 (except paragraphs (a) and (d) of subsection (1) of that section) of the Code of Criminal Procedure Act, No. 15 of 1979″.