AUDIT, ENQUIRY, INSPECTION AND SURCHARGECentral

Section 76 of The Multi-State Co-operative Societies Act, 2002

All notices of, and other communications relating to, any general meeting of a multi-State co-operative society, which any member of the multi-State cooperative society is entitled to have sent to him, shall also be forwarded to the auditor of the multi-State co-operative society; and the auditor shall be entitled to attend any general meeting and to be heard at any general meeting which he attends on any part of the business which concerns him as auditor.

Summary

The auditor of a multi-State co-operative society must receive all notices and communications of any general meeting that a member is entitled to receive.
The auditor has the legal right to attend any general meeting of the multi-State co-operative society.
The auditor has the right to be heard at any general meeting on any part of the business that concerns them as an auditor.

Practical examples

1Priya, the appointed auditor for the Shivalik Dairy Co-operative, is sent a notice for the upcoming annual general meeting in Jaipur. Even though she is not a shareholder, the co-operative must send her the exact same notice and meeting materials that it sends to its regular members.

2During the general meeting of the Yamuna Co-operative, a member questions the valuation of stock listed in the balance sheet. Vinay, the auditor attending the meeting, stands up and explains the auditing methodology used, exercising his right to be heard on audit matters under Section 76.

FAQ

1. Is the auditor of a society entitled to receive notices of general meetings under Section 76 of the Multi-State Co-operative Societies Act, 2002?

Yes, Section 76 of the Multi-State Co-operative Societies Act, 2002 states that all notices of, and other communications relating to, any general meeting must be forwarded to the auditor.

2. Can an auditor speak at a general meeting under Section 76 of the Multi-State Co-operative Societies Act, 2002?

Yes, Section 76 of the Multi-State Co-operative Societies Act, 2002 entitles the auditor to be heard at any general meeting they attend on any part of the business that concerns them as an auditor.

3. Does Section 76 of the Multi-State Co-operative Societies Act, 2002 give the auditor the right to vote at general meetings?

No, Section 76 of the Multi-State Co-operative Societies Act, 2002 only gives the auditor the right to receive notices, attend the meetings, and speak on business concerning them as an auditor, not to vote.

Test yourself

Q1.Under Section 76 of the Multi-State Co-operative Societies Act, 2002, what communications must a multi-State co-operative society forward to its auditor?

Q2.According to Section 76 of the Multi-State Co-operative Societies Act, 2002, on what topics is the auditor entitled to be heard during a general meeting?

Q3.Which right is NOT granted to an auditor of a multi-State co-operative society under Section 76 of the Multi-State Co-operative Societies Act, 2002?

Q4.Under Section 76 of the Multi-State Co-operative Societies Act, 2002, if a society holds a special general meeting, must they notify the auditor?

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