Section 70 - Appointment and remuneration of auditors. - Multi-State Co-Operative Societies Act, 2002

CHAPTER VIII AUDIT, INQUIRY, INSPECTION AND SURCHARGE Appointment and remuneration of auditors . 70. (1) Every multi State co operative society shall cause to be audited by an auditor referred to in sub section (2), its accounts at least once in each year. (2) Every multi State co operative society shall, at each annual general meeting, appoint an auditor or auditors to hold office from the conclusion of that meeting until the conclusion of the next annual general meeting and shall, within seven days of the appointment, give intimation thereof to every auditor so appointed: 1 [ Provided that such auditors or auditing firm shall be appointed from a panel approved by the Central Registrar: Provided further that in case of multi-State co-operative banks, multi-State credit societies with deposits of above five hundred crore rupees and multi-State non-credit societies with turnover of above five hundred crore rupees, the auditor shall be appointed from a panel of auditors approved for audit of such societies by the Central Registrar. ] (3) Every auditor appointed under sub section (1) shall, within thirty days of the receipt from the multi State co operative society of the intimation of his appointment, inform the Central Registrar in writing that he has accepted, or refused to accept, the appointment. 2 [ (3A) An auditor appointed under sub-section (2) shall submit the audit of accounts report to the multi-State co-operative society, within six months from the date of closing of the financial year, to which such accounts relate. ] (4) A retiring auditor shall be re appointed unless ( a ) he is not qualified for re appointment; ( b ) he has given the multi State co operative society a notice in writing of his unwillingness to be re appointed; ( c ) a resolution has been passed at the general meeting of members appointing some body instead of him or providing expressly that he shall not be re appointed; or ( d ) where notice has been given of an intended resolution to appoint some person or persons in the place of a retiring auditor, and by reason of the death, incapacity or disqualification of that person or all those persons, as the case may be, the resolution cannot be proceeded with. (5) Where at an annual general meeting no auditors are appointed or re-appointed, the Central Registrar may appoint a person to fill the vacancy. (6) First auditor or auditors of a multi State co operative society shall be appointed by the board within one month of the date of registration of such society and the auditor or auditors so appointed shall hold office until the conclusion of the first annual general meeting: Provided that ( a ) the multi State co operative society may, at a general meeting, remove any such auditor or all or any of such auditors and appoint in his or their places any other person or persons who have been nominated for appointment by any member of the multi State co operative society and of whose nomination notice has been given to the members of the multi-State co operative society not less than fourteen days before the date of the meeting; and ( b ) if the board fails to exercise its powers under this sub section, the multi-State co operative society in the general meeting may appoint the first auditor or auditors. (7) ( a ) The multi State co operative society may fill any casual vacancy in the office of an auditor; but while any such vacancy continues, the remaining auditor or auditors, if any, may act: 3 [ Provided that where such vacancy is caused by the resignation or death of an auditor, the vacancy shall be filled by the board from the panel of auditors from which such auditor was appointed. ] ( b ) Any auditor appointed in a casual vacancy shall hold office until the conclusion of the next annual general meeting. (8) Any auditor appointed under this section may be removed from office before the expiry of his term by the multi State co operative society in general meeting. (9) The remuneration of the auditors of a multi State co operative society ( a ) in the case of an auditor appointed by the board or the Central Registrar may be fixed by the board or the Central Registrar, as the case may be; and ( b ) subject to clause ( a ), shall be fixed by the multi State co operative society in general meeting or in such manner as the multi State co operative society in general meeting may determine. Explanation . For the purposes of this sub section, any sums paid by the multi-State co operative society in respect of the auditors expenses shall be deemed to be included in the expression remuneration . 4 [ (10) The audit report of the accounts of the national co-operative societies shall be laid before each House of Parliament. ] **************** NOTES:- 1. Substituted vide THE MULTI-STATE CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2023 dated 03-08-2023 before it was read as, Provided that such auditor or auditors may be appointed from a panel of auditors approved by the Central Registrar or from a panel of auditors, if any, prepared by the multi State co operative society. 2. Inserted vide THE MULTI-STATE CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2023 dated 03-08-2023 3. Substituted vide THE MULTI-STATE CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2023 dated 03-08-2023 before it was read as, Provided that where such vacancy is caused by the resignation of an auditor, the vacancy shall only be filled by the multi State co operative society in general meeting. 4. Inserted vide THE MULTI-STATE CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2023 dated 03-08-2023