Disqualified to be elected in managing committee

Committee members not completing audit in time not eligible for next election

disqualified to be elected in managing committee: We have been getting quite a number of queries from readers specifying that their Managing Committee has not completed the audit of the Co-operative Society. They have also enquired the remedy for it and if any punishment could be imposed on the delinquent members of the managing committee. We would like to clarify certain matters for the information of all.

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WHO IS RESPONSIBLE TO COMPLETE THE ACCOUNTS & APPLY FOR AN AUDITOR

All the members of Managing Committee are jointly and severally responsible to COMPLETE THE ACCOUNTS on or before 30th April each year i.e. Accounts are to be written up from 1st April to 31st March of the next year and by accounting for the expenses payable, reversal of prepaid expenses, accounting depreciation, verification of inventory, equipments, furniture & fixture and fixed deposits and interests on deposits & members etc. and there after approach the Registrar of Co-operative Societies to select a Auditor from the panel prepared by the Registrar and request the Registrar for appointment of the Auditor.

WHO IS RESPONSIBLE TO HAND OVER THE ACCOUNTS TO AUDITOR IN TIME

It is the prime responsibility of all members of Managing Committee to ensure that entire accounts of the co-operative society are handed over to the Auditor of the Society by the Treasurer / Secretary. It is the managing committee who are ensure that they remove all shortcomings found by the Auditors and reply to his / her queries immediately.

BLAME GAME AMONG THE MEMBERS OF MANAGING COMMITTEE

The members of the Managing Committee either blame each other or they blame the Auditor for not completing the audit in time and such a case, responsibility is to be fixed by the Registrar in case of any Inspection or Enquiry conducted on complaint by a member or as per rules.

IS MANAGING COMMITTEE RESPONSIBLE TO HAND OVER ACCOUNT ONLY

Our opinion is NO. The Managing Committee is responsible to ensure that the Audit is completed on time and that time is statutorily fixed as 120 days from the date the society was to complete their accounts i.e. 30.04. Therefore, every co-operative society is to complete their audit on or before 28 August each year. If Auditor report is dated after this date, the managing committee & the society is at default.

WHAT ACTION OR PENALTY CAN BE IMPOSED ON MANAGING COMMITTEE

Every member of the Managing Committee during the period of responsibility is liable to be punished that he /she is disqualified for the next “election term” of the managing committee of the society. In other words he / she is not eligible to be elected for 3 years.

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5 Comments

  • Dr V. C. Bhutani says:

    Sah-Vikas CGHS Ltd., 68 Patparganj, Delhi 110092. The Managing Committee completed its term on 15 Dec 2015. The MC held its meetings and a regular General Body Meeting after that date – the last one on 31 Jan 2016. An Election Officer appointed by MC in late Dec/early Jan received only five nominations for members and none for office bearers. The agenda papers of the last meeting of 31 Jan 2016 show that accounts have not been audited from 2007 onward. How can ordinary members deal with this situation? V. C. Bhutani, member, Flat No. XB5.

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  • sir, i want a case law so that the managing comitee will not be penalised for the act of not doing the audit

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  • Sebastian M R says:

    I have given a letter to the Secretary of society asking for the copy of bye laws the society is following & also the copy of general body meeting minutes held last year. The said letter has given to the Secretary & he is not responding to the letter. What should be my next step.

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  • J.J.Yadav says:

    I had borrowed loan from a employees credit society and balance loan is 3 lacs whereas my saving in society is 4 lacs.Now I want to resign from credit society .society is asking me to pay my loan balance of Rs 3 lacs then they will accept my resignation and return my savings of Rs 4 lacs after 3 months as per their by laws .This appears me undemocratic and against natural law .As my savings is already with credit societies is Rs 4 lacs they should deduct my loan of Rs 3 lacs from my saving instead of asking to deposit first 3 lacs then they will return my 4 lacs. my contention is that society should accept my resignation and deduct my loan of balance 3 lacs from my savings of 4 lacs and return my balance 1 lacs. They say their by law does not permit such transaction. It seems me illegal and authoritative. Can I get relief from this. Whom should I approach .

    J.J.Yadav

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  • Advocateji says:

    Dear Yadav, you have to abide by bye laws of the society.

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