85. The Society Board will in respect of each year of account ending
on 31st August:
- a. cause to be prepared a revenue account or revenue accounts which:
- (i) singly or together deal with the affairs of the Society and any
subsidiary company or society as a whole for that year; and
- (ii) give a true and fair view of the income and expenditure of the Society
and any subsidiary company or society for that year;
- b. cause to be prepared a balance sheet giving at that date a true and fair
view of the state of the affairs of the Society and any subsidiary company or
86. The Society Board is to lay a revenue account and balance sheet duly
audited and signed by the auditor and incorporating the report of the auditor
thereon before each annual general meeting, accompanied by a report by the
Society Board on the position of the affairs of the Society and any subsidiary
or holding company or society signed by the chair of the Society Board meeting
at which the report is adopted.
87. The Society Board is not to
cause to be published any balance sheet unless it has previously been audited by
the auditor and it incorporates a report by the auditor that it gives a true and
fair view of the income and expenditure, or the state of the affairs of the
Society, as the case may be. Every revenue account and balance sheet published
is to be signed by the Secretary and by two Society Board members acting on
behalf of the Society Board.
88. A qualified auditor must be
appointed to audit the Society’s accounts and a balance sheet for each financial
year. In this rule “qualified auditor” means a person who is a qualified auditor
under Section 7 of the Friendly and Industrial and Provident Societies Act 1968
and Section 25 of the Companies Act 1989.
89. The auditor shall, in
accordance with Section 9 of the Friendly and Industrial and Provident Societies
Act 1968, make a report to the Society on the accounts examined by them and on
the revenue account or accounts and the balance sheet of the Society for the
year in question.
90. None of the following persons is to be
appointed as auditor of the Society:
- a. an officer or servant of the Society; or
- b. a person who is a partner or close relative of or in the employment of or
who employs an officer or servant of the Society.
91. Save as provided in this Rule every appointment of an auditor is to be
made by resolution of a general meeting of the Society. The exceptions are:
- a. the first appointment of an auditor is to be made within three months of
the registration of the Society and is to be made by the Society Board if no
general meeting of the Society is held within that time;
- b. the Society Board may appoint an auditor to fill any casual vacancy
occurring between general meetings of the Society.
92. An auditor appointed to audit the accounts and balance sheet of the
Society for the preceding year of account (whether by a general meeting or by
the Society Board) is to be re-appointed as auditor of the Society for the
current year of account (whether or not any resolution expressly re-appointing
them has been passed) unless:
- a. a resolution has been passed at a general meeting of the Society
appointing somebody instead of them or providing expressly that they are not be
- b. they have given to the Society notice in writing of their unwillingness
to be re-appointed; or
- c. they are not permitted by these Rules to be the auditor; or
- d. they have ceased to act as auditor of the Society by reason of
- e. proper notice of an intended resolution to appoint another person in
their place has been given but the resolution cannot be proceeded with because
of the death or incapacity of that other person.
93. A resolution at a general meeting of the Society:
- (i) appointing another person as auditor in place of a retiring auditor; or
- (ii) providing expressly that a retiring auditor is to not be re-appointed
will not be effective unless notice of the intention to move it has been
given to the Society not less than twenty-eight days before the meeting at which
it is to be moved.
If such a notice is given the following
procedure will be adopted:
- (a) The Society will send a copy of the notice to the retiring auditor.
- (b) If it is practicable to do so the Society will give notice of the
intended resolution to its members with the notice of the meeting.
- (c) If that is not practicable, the Society will publish details of the
notice by advertisement not less than seven days before the meeting in a
newspaper circulating in the area in which the Society conducts its business.
- (d) If the retiring auditor makes any representations in writing to the
Society in response to the notice or notifies the Society that they intend to
make such representations, the Society will notify the members as required by
Section 6 of the Friendly and Industrial and Provident Societies Act 1968.