Co-operative Societies Act 1979 · 2020 Revised Edition · Part 3 · Privileges and Duties of Societies
36. Audit committees
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Every credit society must have an audit committee.
credit society
“credit society” means a society which is registered as a credit society;
The committee of management of a credit society must appoint an audit committee —
committee of management
“committee of management” means the governing body (by whatever name called) of a society which is responsible for the management of the affairs of the society;
which consists of at least 3 individuals (who may but need not be members of the committee of management), each of whom must be independent of the credit society in the manner prescribed; and
with at least one member possessing such qualifications, training or experience as may be prescribed.
If a member of an audit committee resigns, dies or for any other reason ceases to be a member with the result that the number of members is reduced below 3, the committee of management of the credit society must, within 3 months after that event, appoint such number of new members as may be required to make up the minimum number of 3 members.
member
“member” includes an individual person or institution qualifying for membership in a co-operative society, who or which join in the application for the registration of a society, and an individual person or institution admitted to membership after registration in accordance with this Act, the Rules and the by-laws;
The functions of an audit committee are —
audit committee
“audit committee”, in relation to a credit society, means the audit committee of the credit society referred to in section 36;
to review —
with the auditor, the audit plan;
with the auditor, the auditor’s audit report;
the assistance given by the officers of the credit society to the auditor;
the scope and results of the audit procedures; and
the financial statements of the credit society and, if the credit society is a parent society, the consolidated financial statements, submitted to the audit committee by the credit society or the parent society, and thereafter to submit them to the members of the committee of management of the credit society or the parent society; and
to nominate a person or persons as auditor, despite anything contained in the by-laws or section 33(1),together with such other functions as may be agreed to by the audit committee and the committee of management of the credit society.
The auditor has the right to appear and be heard at any meeting of the audit committee and must appear before the audit committee when required to do so by the audit committee.
auditor
“auditor”, in relation to a society, means any person referred to in section 33(1) or 36(4)(b);
Upon the request of the auditor, the chairperson of the audit committee must convene a meeting of the audit committee to consider any matter the auditor believes should be brought to the attention of the members of the committee of management, or the members, of the credit society.
Each audit committee may regulate its own procedure and, in particular, the calling of meetings, the notice to be given of such meetings, the voting and proceedings at such meetings, the keeping of minutes and the custody, production and inspection of such minutes.