What is the procedure for verifying the books of accounts by an individual member in a muliti state cooperative act credit society?
1 Is it possible to invoke section 108 of multi state coop act and sec 35 of multi-state cooperative act rules for such inspection?
I C Naik
A good question!
The law is covered by Section 108 of Multi State Cooperative Society’s Act, Rule 35 of The Multi-State Cooperative Societies Rules, 2002 and Model Bye-law No 54 of Model Bye-laws of National level Cooperative Society/Federal Cooperative/Multi-State Cooperative Society.
As per the Act, a member of Multi State Cooperative Society has a right of inspection of books of accounts and papers.
The member making the inspection may during the course of inspection, make or cause to be made copies of books of account and other books and papers; Member does not have to pay any fees as per rule.
Model bye Laws restricts the inspection to the registers or records in so far as they relate to member’s own business transactions and to carry it out during office hours. This restriction is contrary to the provision of the Act and is untenable.
Rules and Bye-laws are silent about procedure to be followed, leaving it to be an area of friction between members and management.