Inspection of books of a co-operative society

Inspection of books of a co-operative society. It is proposed to amend Section 65 to enable a copy of the inspection report to the cooperative society and the society shall report the action taken thereon within three months to the Registrar. (1) The Registrar may of his own motion, or on the application of a creditor of a co-operative society, inspect or direct any person authorized by him by order in writing in this behalf, to inspect the books of the society: Provided that no such inspection shall be made on the application of a creditor unless the applicant,— (a) satisfies the Registrar that the debt is a sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and (b) deposits with the Registrar such sum as security for the costs of the proposed inspection as the Registrar may require. (2) The Registrar shall send a copy of the inspection report and communicate the result of any such inspection to the Director of Co-operative Audit and,— (a) where the inspection is made of his own motion to the society; and (b) where the inspection is made on the application of a creditor, to the creditor and the society. (2A) On receipt of the inspection report and the result of the inspection from the Registrar, it shall be the responsibility of the board to initiate necessary action for rectification of defects, if any, therein and place the report before the annual general meeting or a special general meeting convened for the purpose at the earliest. Provided that the general body of the cooperative society shall not be competent to pass a resolution negativing the findings of the inspection. (3) If the result of the inspection held under sub-section (1) discloses any defects in the working of the society, the society shall within forty five days from the date of the receipt of the inspection report and communication of the result of the inspection explain to the Registrar the defects or the irregularities pointed out in the inspection and take steps to rectify the defects and remedy the irregularities and report to the Registrar the action taken by it thereon. The Registrar may also make an order directing the society or its office bearers to take such action, as may be specified in the order to remedy the defects within the time specified therein.