Procedure for making good the loss caused to a society

Corporate1960195 sections

Statutory text

(1) Notwithstanding anything contained in this Act or the rules or any by-laws of a society, where the State Government has subscribed to its share capital or has given loans or financial assistance or has guaranteed the repayment of loans, debentures or advances given in any other form or has given any other grant, and if it is found during the course of audit, inquiry, inspection or winding up of a society or otherwise that any such person who has been entrusted with the work of organization or management of such society, or any deceased, past or present President, Secretary, member of the committee, officer or employee of the society has made any payment contrary to the provisions of this Act or the rules made thereunder or the provisions of the by-laws of a society, or caused any loss by gross negligence or misconduct, or has misappropriated any money or other property of such society, or has fraudulently retained such money or other property, then the Registrar may, on his own motion or on receipt of an application from the committee, liquidator or any creditor, inquire into the conduct of such person within two years from the date of the report of audit, inquiry, inspection or winding up, as the case may be, or may, by written order in this regard, direct a person authorized by him to inquire into the conduct of such person within two years from the date of the report of audit, inquiry, inspection or winding up, as the case may be: Provided that...

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