Co-Operative Societies Act 2008

66. Misappropriation etc.

1.      When the Supervisory Committee is of the opinion that the funds, securities or other property of the credit union or other society have been misappropriated or misdirected, or in the event that the by- the credit union, or other society, this Act or the Regulations have been contravened by the Board, the Credit Committee or a member thereof or an officer or employee engaged by the Board the Supervisory Committee shall forthwith inform the Registrar in writing.

2.      The Supervisory Committee shall with the approval of the Board appoint an auditor or some other body to assist in determining whether any of the funds, securities or other property of the credit union have been misappropriated or misdirected and the remuneration of any auditor or other body so appointed shall be determined by the Supervisory Committee and paid by the credit union or other society.

3.      In the event of a misappropriation or misdirection or a suspected misappropriation or suspected misdirection as referred to in subsection (1), the Supervisory Committee may suspend any member of the Board.

4.      The Supervisory Committee shall forthwith request the Board to summon a general meeting of the members to be held within 14 days after the suspension referred to in subsection (3); and where the Board fails to summon such a meeting the Supervisory Committee shall summon the meeting within 7 days after the expiry of the period of 14 days.

5.      The Supervisory Committee shall report to the general meeting all the circumstances of any misappropriation or misdirection of funds, securities or other property and the reasons for any suspension.

6.      The members of the credit union or other society may, by resolution, dismiss from office any person suspended under subsection (3), and, when the members of the credit union or other society do not dismiss from office any person so suspended, that person shall be reinstated forthwith.

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