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Section 31

Action on Special Audit Or Inquiry Report.

1[31. Action on Special Audit or Inquiry Report.-- On communication of a special audit report under section 28 or an inquiry report under section 29, the Registrar should examine the report and if satisfied on the findings of the report without prejudice to any civil or criminal proceedings to which the Board of Directors may be liable:-

(a) direct the Board to convene a General Body Meeting within such reasonable time as he may specify, to enable him to bring to the notice of the General Body, either directly or through his nominee, the findings of the special audit or inquiry report, for necessary action.

If the society fails to convene General Body within one month it is deemed that the General Body has accepted the findings of the Special Audit or Inquiry Report.

(b) Notwithstanding the action taken by the General Body under this section, the Registrar may initiate necessary action on the findings of Special Audit Report / Inquiry Report.]


1. Substituted with marginal heading by G.O.Ms.No.28, Agriculture and Co-operation (Coop.II) Department, dated 19.04.2016.