Page 83 - Quick Insights Book 2022

23 State Co-operatives (Including Co-Operative Banks)

ENACTMENT OF MULTI STATE CO-OPERATIVE
SOCIETIES ACT, 2002
Co-operatives is a state subject and all states have accordingly
enacted their own Cooperative Societies Acts for incorporation,
regulation and winding up of co-operative societies within their
territorial jurisdiction. For co-operative societies working in more
than one state, the Multi State Co- operative Societies Act, 2002
came into force which contains detailed provisions regarding
registration, membership and management of such societies.

As per Section 70 of Multi State Co-operative Societies Act,
2002 “Every multi-state cooperative society shall cause to be
audited by an auditor referred to in sub-section (2), its accounts
at least once in each year” and As per the provisions of
Section-72 of Multi Co-operative Societies Act, 2002, “A person
shall not be qualified for appointment as an auditor of a multi-
State cooperative society unless he is a Chartered Accountant
within the meaning of the Chartered Accountants Act, 1949 (38
of 1949)”.
Constitution (Ninety Seventh Amendment) Act 2011: Considering
the need for uniformity in co-operative legislation, the
Government of India brought out the Constitution (Ninety
Seventh Amendment) Act 2011 which provides that the
Legislature of a State may, by law, make provisions with
respect to the maintenance of accounts by the co-operative
societies and the auditing of such accounts at least once
in each financial year. Also, it provides that the minimum
qualifications and experience of auditors and auditing firms that
shall be eligible for auditing accounts of co-operative societies
has to be laid down by the Legislature of a State. Due to this,
various States have amended their respective Cooperative
Societies Act, to include the provisions as per the Constitutional
Amendment Act. State Co-operatives
It is competent for the Co-operative Movement in India to
have professional management, professional Audits and an (Including
independent professional approach with integrity, impartiality
and objectivity in the Co-operative Societies for its stability and Co-operative Banks)
growth. At present, most of the State Co-operative Societies
Acts contain provisions for getting the accounts of co-operative
societies audited by Chartered Accountants.
With the growth of co-operative sector, the areas of professional
work in the multi-state co-operative societies and state co-
operative societies are expected to increase. While the central
registrar appoints auditors for the national level societies,
provisions relating to the appointment of auditors of state co-
operative societies differ from state to state.

70 Quick Insights on Professional Opportunities for Chartered Accountants