By I C Naik
The provisions of MSC Act 1960 are effective since 2nd February 1960.These new sections require amendment to bye laws but pending amendment these are applicable
Section 75 – Annual general meeting
(1) Every society shall, within a period of four months after the close of the financial year, get its books of accounts audited and within six months after the close of financial year to transact its business as may be provided in this Act, call the annual general body meeting of its members
“Provided that, where such meeting is not called by the society, the Registrar or any officer authorised by him may call such meeting in the manner prescribed and that meeting shall be deemed to be a general body meeting duly called by the society,”;and the Registrar may order that the expenditure incurred in calling such a meeting shall be paid out of the funds of the society or by such person or persons who in the opinion of the Registrar, were responsible for the refusal or failure to convene the general meeting].
(2) At every annual general body meeting of a society, the committee shall lay before the society,—
i. a statement showing the details of the loans, if any, given to any of the members of the committee or any member of the family of any committee member, including a society or firm or company of which such member or members of his family is a member, partner or director, as the case may be; the details of repayment of loan made during the preceding year and the amount outstanding and overdue at the end of that year;
ii. annual report of its activities;
iii. plan for disposal of surplus;
(iv) list of amendments of the by-laws of the society, if any;
iv. declaration regarding date and conduct of its election of its committee, when due;
v. audit report of the preceding financial year;
vi. rectification report of earlier audit;
vii. annual budget for next year;
viii. any other information required by the Registrar in pursuance of any of the provisions of the Act and rules; and
ix. such other business will be transacted as may be laid down in the by-laws and of which due notice has been given.
Explanation I.— For the purposes of this sub-section, the expression “family” means a wife, husband, father, mother, brother, sister, son, daughter, son-in-law or daughter-in-law ;
Explanation II.— In the case of a society not carrying on business for profit, an audited income and expenditure account shall be placed before the society at the annual general body meeting instead of audited profit and loss account, and all references to audited profit and loss account, and to “profit” or “loss” in this Act, shall be construed in relation to such society as references respectively to the “excess of income over expenditure”, and “excess of expenditure over income.”;
“(2A) Every society shall, appoint an auditor or auditing firm from a panel approved by the State Government in this behalf in its annual general body meeting having such minimum qualifications and experience as laid down in section 81, for the current financial year and shall also file in the form of return to the Registrar, the name of the auditor appointed and his written consent for auditing the accounts of the society within a period of thirty days from the date of the annual general body meeting :
Provided that, the same auditor shall not be appointed for more than three consecutive years by the annual general body meeting of the same society. “;
“(4) At every annual general body meeting the audited balance sheet, the audited profit and loss account, audit report of the preceding financial year submitted by the auditor appointed under section 81, rectification report of earlier audit and the committee’s report shall be placed for adoption and such other business will be transacted as may be laid down in the by-laws, and of which due notice has been given.”;
Section 79 – “Societies obligation to file returns and statements and Registrar’s power to enforce performance of such obligations.”.
(1A) Every society shall file returns within six months of the close of every financial year to which such accounts relate, to the Registrar or to the person authorized by him. The returns shall contain the following matters, namely :—
1. annual report of its activities;
2. its audited statement of accounts;
3. plans for disposal of surplus funds as approved by the general body of the society;
4. list of amendments to the by-laws of the society, if any;
5. declaration regarding date of holding of its general body meeting and conduct of elections when due;
(/) any other information required by the Registrar in pursuance of any of the provisions of this Act.
(IB) Every society shall also file a return regarding the name of the auditor or auditing firm from a panel approved by a State Government in this behalf, appointed in the general body meeting together with his written consent, within a period of one month from the date of annual general body meeting.”
