Chapter VII Chapter VII

(1) Every Cooperative Society shall keep at its registered office the following accounts and records (a) a copy of this Act with amendments made from time to time, (b) the minutes book, (c) registration certificate and a copy of the registered bye-laws and of the amendments registered from time to time with date of amendment, (d) a copy of the authenticated bye-laws of the federation/union of which it is a member and of each of its member Cooperative Societies, (e) account of all sums of money received and expended by the Cooperative Society and their respective purposes, (f) account of all purchases and sales of goods by the Cooperative Society, (g) account of the assets and liabilities of the Cooperative Society (h) a register showing total membership and the memberwise use of various services, (i) a list of members with voting rights for the current year updated within thirty days of closure of the financial year; (j) copies of the board policies, (k) annual report, audit report, special audit report, enquiry report and their compliances, (I) copies of other laws and regulations to which the Cooperative Society is subject, (m) such other documents as are relevant to the functioning of the Society: Provided that where a Cooperative Society has branch offices, accounts and records related to the branch, shall be available at the registered office for any period within twenty five days of the end of the financial year. (2) Copies of this Act, bye-laws, minutes book, voters' list, and such accounts as related to a member shall be made available to any member during business hours at a fee to be decided by the Cooperative Society. (3) The books of accounts of every Cooperative Society together with supporting records and vouchers shall be preserved for such period as may be provided in the bye-laws subject to any other laws for the time being in force.

(1) A Cooperative Society dealing with funds from the Government or other external individual or reinstitution may be subject to a special audit initiated by the Registrar at the request of such creditor, on such specific terms of reference as agreed to by the Registrar. (2) The cost of the special audit under sub-section (1) shall be met by the creditor: Provided that where the special audit reveals serious mismanagement in the Cooperative Society, such costs may be recovered from the Cooperative Society or the persons responsible for the mismanagement. (3) Every special audit shall be completed and the report submitted to the Registrar within one hundred and twenty days of its commencement. (4) The special audit report shall contain a statement of: (a) every payment which appears to the auditor to be contrary to law, (b) the amount of any deficiency, waste or loss which appears to have been caused by the gross negligence or misconduct of any person in the performance of duties, (c) the amount of any sum received which ought to have been accounted for but is not brought into account by any person, and (d) any material impropriety or irregularity which he may observe in the expenditure or in the recovery of money due (5) The Registrar shall, within a period of thirty days from the date of receipt of the special audit report transmit copies of the same to (a) the applicant creditor, (b) the Cooperative Society concerned, and (c) the Cooperative Tribunal where necessary.

Every Cooperative Society within five months of the close of the year shall file the following information with the Registrar: (a) annual report of activities, (b) audited statement of accounts, (c) plan for surplus disposal as approved by the general body, (d) list of names of directors and their terms of office, (e) list of amendments to the bye-laws of the Cooperative Society, (f) declaration regarding date of holding of general body meeting and conduct of elections where due, (g) compliance report relating to audit/special audit/enquiry. 12. In the said Act Section - 35 shall be substituted by the following, namely – “35. Filing Annual statements of Accounts. - Every Co-operative Society shall file annual statement of accounts before the Registrar within six months of the end of financial year which shall include following subjects: (a) Annual report of the activities. (b) Audited statement of accounts. (c) Plan to deal with the surplus as approved by general body. (d) List of the amendments done, if any, in the bye-laws of the Co-operative Society. (e) Declaration regarding date for the conduct of election, if due, and date for the holding of its general body meeting. (f) Any other information, by the Registrar in pursuance of any of the provisions of the act.

(1) The person authorised to conduct special audit under section 34 or enquiry under section 36 shall give the concerned Cooperative Society, not less than fifteen days notice in writing of the date on which he proposes to commence the special audit for enquiry: Provided that for special reasons to be recorded in writing, he may give a shorter notice than fifteen days or commence a special audit or enquiry on the authority of the Registrar without such notice. (2) For the purpose of any special audit or enquiry under this Act, the person conducting such audit or enquiry may: (a) require in writing the chair-person or other authority concerned to produce at the head office of the Cooperative Society such receipts, vouchers, statements, returns, correspondence, notice or any other documents as he may consider necessary for the purpose of special audit or enquiry; (b) require in writing, (i) any employee of the Cooperative Society or other authority accountable for or having the custody or control of such receipts, vouchers, statements, returns, correspondence, notes or other documents, to appear in person; (ii) any person having directly or indirectly any share or interest in any contract with the Cooperative Society to appear in person or by an authorised agent, before him at the head office of the Cooperative Society and answer any question or sign a declaration with respect thereto; (c) in the event of an explanation being required from the chairperson or any other authority concerned invite him in writing specifying the points on which his explanation is required to meet him at the head office of the Cooperative Society; or (d) exercise such other powers as can be reasonably said to be necessary for the purposes of this section. (3) The person conducting special audit or enquiry may fix a reasonable period of not less than seven days for the purpose of compliance of the provisions of sub-section (2), and such compliance shall be mandatory on the persons required to provide information under sub-section (2).

On communication of a special audit report under section 34 or an enquiry report under section 36 to the persons concerned the Registrar may, where the special audit or enquiry report reveal mismanagement on the part of any or all of the office-bearers or directors, without prejudice to any civil on criminal proceedings to which they may be liable: (a) director the board to convene a general body meeting within such reasonable time as he may specify, to enable him to bring to the notice of the general body, either directly or through his nominee, the findings of the special audit or enquiry report, for necessary action; or (b) make a prayer to the Cooperative Tribunal for necessary action.