AGM for unaudited cooperative bank
Querist :
Anonymous
(Querist) 25 December 2010
This query is : Resolved
Dear Expert,
Need your assistance to guide us on the below mentioned situation:
I am a member of a cooperative bank, wherein this bank has not got its Balance Sheet audited nor approved it from the Apex/RBI bank. However, it has been conducting the AGM meetings and getting the required approval for the expenditure from the members in such AGM.
Question I have, can a cooperative bank conduct a ASMs without getting its balance sheet and/or P/L audited and approved by the concerned authorities (RBI/Apex). Also, could you please direct the exact cooperative act no# for conducting such AGM and relevant details.
Thanks in advance for your help.
Advocate. Arunagiri
(Expert) 25 December 2010
From which year and How long the balance sheet was not audited and approved?
Querist :
Anonymous
(Querist) 25 December 2010
Additional information, this cooperative bank has not got its Balance sheet approved from consecutive THREE years now.
Advocate. Arunagiri
(Expert) 25 December 2010
17. Audit. (1) The Registrar shall audit or cause to be audited by some person authorised by him by general or special order in writing in this behalf the accounts of every registered society once at least in every year.
Querist :
Anonymous
(Querist) 26 December 2010
Point taken. In this case, this bank has not audit its balance sheet from last three years. Can they conduct the Annual general body meeting? Please advice...
Advocate. Arunagiri
(Expert) 26 December 2010
If it is a urban bank or Central bank, they come under Banking regulations Act, they have to get the RBI approval. For other co-operative banks (credit society) they need not get the approval of the RBI, they have to send the annual report to the RBI, The report has to be published within three months.
If they are not doing so the license is liable to be cancelled.
They can conduct AGM.
