Co-Operative Societies Act 2008

128. Disqualifying auditor

1.      Subject to subsection (7), an individual is not qualified to be an auditor of a society if he is not independent of the society and its member societies, and of the directors and officers of the society and its member societies.

2.      For the purposes of this section whether or not an individual is independent is a question of fact to be determined having regard to all the circumstances.

3.      An individual is presumed not to be independent of a society if he or his business partner—

a.      is a member, a director, an officer or an employee of the society or any of its member societies or a business partner or employee of any director, officer, member or employee of any such society, or its member societies;

b.     is a member of a Credit Committee or any other committee of the society or any of its member societies; or

c.      transacts a substantial amount of business with the society or a member society thereof.

1.     

2.     

3.     

4.      The provision of professional advice by or on behalf of an individual or his business partner does not by itself deprive an individual or his business partner of his independence for the purposes of this section.

5.      An auditor who becomes disqualified under this section must, subject to subsection (7), resign forthwith after he becomes aware of his disqualification.

6.      A member of a society may apply to the Registrar for an order or the Registrar may, upon his own motion, make an order declaring an auditor disqualified under this section and the office of auditor vacant.

7.      A member of a society may apply to the Registrar for an order or the Registrar may, upon his own motion, make an order exempting an auditor from disqualification under this section; and the Registrar may, if he is satisfied that an exemption would not adversely affect the members, exempt the auditor on such terms as he thinks fit.

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