8
9
Investroact
of funda.
Disporul of prolita
Ordinance
No. 20 of 1947.
Andit.
88. A registered society may invest or deposit its funds→→
(a) in a post office savings bank, or with any bank or person carrying on the business of banking approved for this purpose by the Registrar; or
(b) in any securities issued or guaranteed by a Government under the British Crown; or
(a) with any other registered society approved for this purpose by the Registrar; or
(d) in any other mode approved by the Registrar.
34. (1) At least one-fourth of the net profits of every registered society, as ascertained by the audit prescribed by section 35, shall be carried to a fund to be called the réserve fund, which shall be employed as prescribed by the rules. After deduction of any tax which may have been charged on such society in accordance with the provisions of the Inland Revenue Ordinance, 1947, the remainder of such profits and any profits of past years available for distribution may he divided among the members by way of dividend or bonus, or allocated to any funde constituted by the society, to auch extent or under such conditions as way be prescribed by the rules or by-laws:
Provided that in the case of a society with unlimited liability, no distribution of profits shall be made without the general or special order of the Governor.
(2) Any registered aociety, may, with the sanction of the Registrar, after one-fourth of the net profita in any year has been carried to a reserve fund, contribûte an amount not exceeding ten per centum of the reroaining net profits to any charitable purpose or to a common-good fund.
PART VI.
AUDIT, INSPECTION AND INQUIRY.
35. (1) The Registrar shall andit or cause to be audited by some person authorised by him by general or special order in writing the accounts of every registered society once at least in every year.
(2) The audit under sub-section (1) shall include an examination of overdue debts, if any, and a valuation of the assets and liabilities of the registered society.
(3) The Registrar and every other person appointed to audit the accounts of a society shall have power when necessary-
(a) to summon at the time of his audit any officer, agent, servant or member of the society who he bas reason to believe can give material information in regard to any transactions of the society or the management of ite affairs; or
(b) to require the production of any book or document relating to the affairs of, or any cash or securities belonging to, the society by the officer, agent, servant or member in possession of such book, document, cash or securities.
Registrar
books, etc.
86. The Registrar, or any person authorised by general or ot or special order in writing by the Registrar shall at all times to Hapeet bave access to all the books, accounts, papers and securities cities of a registered society, and shall be entitled to inspect the cash in hand; and every officer of the society shall turnislı such information in regard to the transactions and working of the society as the person making such inspection may require.
37. (1) The Registrar may of his own motion, and Inquiry sod shall on the application of a majority of the committee, or inspection. of not less than one-third of the members of a registered society, hold an inquiry or direct some person authorised by him by order in writing in this behalf to hold an inquiry into the constitution, working, and financial condition of a registered society; and all officers and members of the society shall furnish such information in regard to the affairs of the society and produce the cash in hand and such books, sccounts, papers and securities of the society as the Registrar or the person authorised by him may require.
(2) The Registrar shall, on the application of a creditor of the registered society, inspect or direct some person authorised by him in writing in this behalf to inspect the books of the society, if the applicant-
(a) proves that an ascertained sum of money
is then due to him and that he has demanded payment thereof and has not received satisfaction within a reasonable time, and
(b) deposits with the Registrar such sum as security for the costs of the proposed inspection as the Registrar may require.
(3) The Registrar shall communicate the results of any such inspection to the creditor and to the society into whose affairs inquiry has been made.
(4) Where an inquiry is held under sub-section (1) or an inspection is made under sub-section (2), the Registrar may apportion the costs or such part of the costs, as he may think right, between the registered society, the members demanding an inquiry, the officers or former officers of the society, and the creditor, if any, on whose application the inquiry was made.
(6) Any sum awarded by way of costs against any society or person under this section may be recovered, on application to the court of a Magistrate having juris- diction in the place where the registered office of the society is situated or the person resides or carries on business for the time being, in like manner as a fine imposed by such
court.
PART VII.
DISSOLUTION.
88. (1) If the Registrer, after holding an inquiry or making an inspection under section 37 or on receipt of an application made by three-fourths of the members of a registered society, is of opinion that the society ought to be dissolved, he may make an order for the cancellation of the registration of the society.
Dissolution.