Right to Audit Report

- Sharadchandra Desai, Warden, Co-operative Court

Q: Many housing societies do not provide their annual audit report and balance sheet to members free of charge. For that, the fee is charged as per Section 171 of the by-laws. Otherwise the audit report is shown in the organization's office for only for half an hour for a day or two before the Annual General Meeting. But it cannot be studied in such a short time and therefore questions based on it cannot be properly asked in the meeting. As per Bye-law no. 67 and 68, the monthly service fee paid to the member organization includes printing, stationery and postage. Therefore, the organization should give a copy of the audit report to the members along with the notice of the general meeting. Are members entitled to get this report free of cost and is it binding on the organization? - Shrikrishna Rajopadhye.

Answer : Yes, it is possible to give this report along with the notice of general meeting. Section 75 of the Maharashtra Co-operative Act as well as bye-laws guide about general meeting and the minutes, prospectus, audit report to be given therein. According to the above provisions, documents, statements, audit reports etc. must be given to all the members along with the notice of the Annual General Meeting. Showing such documents a day or two prior to the meeting is strictly non-compliance with the provisions of the Act. But sometimes some of these documents are not available in advance. But since it is sure that they will be available before the meeting, the annual general meeting is held. At this point the problem presented arises. However, it can only be an exception; There is no rule. If the committee of the organization has good reason for such delay, the general meeting accepts the delay and the meeting is held. If the problem you wrote happens every year, it cannot be called an exception. You can complain about this to the Deputy Registrar by providing the last three years' records and the Deputy Registrar can order the institution.

We wonder why the organization charges members for printing materials, but charges for audit reports. But this is limited to money, government offices, reports given to various officials through the organization, writing materials. It is from this money that the organization provides free notices, reports etc. of the general meeting to the members. All reports, accounts, materials are not expected to be provided to all members from such collected money. From money taken from members, only in accordance with law. The organization is obliged to provide copies of the required documents, the law provides for certain documents to be obtained by inquisitive members if they require them; But for that the member has to pay its value. Otherwise, if all the documents are given free, it will be a waste of funds of the organization.

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