A 18
[Subsidiary]
Reserve fund.
Audit of accounts.
Audit and
supervision fund.
CAP. 331
Co-operative Societies Rules.
[1964 Ed.
66. (1) The reserve fund of a registered society, created in pursuance of subsection (1) of section 34 of the Ordinance, may, with the sanction of the Registrar-
(a) be utilized in the business of the registered society; or
(b) be applied to meet occasional deficiencies incurred by the registered society.
(2) In sanctioning the utilization or application of the reserve fund under paragraph (1) of this rule, the Registrar may impose such terms and conditions as he may deem fit.
67. In pursuance of section 35 of the Ordinance, the accounts of every registered society shall be audited once at least in every year by some person authorized by the Registrar. Such person shall have access to all the books and accounts of the registered society and shall examine every balance sheet and annual return of the receipts and expenditure, funds and effects of the registered society, and shall verify the same with the accounts and vouchers relating thereto, and shall either sign the same as found by him to be correct, duly vouched and in accordance with the Ordinance, and shall report to the Registrar accordingly, or shall specially report to the Registrar in what respects he finds the same incorrect, unvouched or not in accordance with the Ordinance. The Registrar shall thereupon forward the report of such person to the committee.
68. (1) There shall be constituted a fund to be known as the audit and supervision fund and every registered society shall, when called upon to do so by the Registrar, make annually a contribution to such fund.
(2) Until such time as a society has been established and registered for the purposes of supervision and audit, such contributions shall be held by the Registrar and administered by him on behalf of the contributing registered societies.
(3) So long as the Registrar administers the fund on behalf of the contributing registered societies, he shall report in every year to the Government in respect of the income derived from contributions, the expenditure he has sanctioned from the fund and the balance in his hands.
(4) As soon as a society for supervision and audit has been established and registered, the fund shall be credited to such society and shall be utilized by such society in accordance with its objects and by-laws.
(5) Until a society for supervision and audit has been established and registered, the Registrar shall fix the amount of the annual contribution to the fund of every registered society called upon to contribute to the fund. The amount of every such annual