/akn/my/act/act/1993/502
The full official text, structured for quick navigation. Copy any provision or jump straight to a section.
Quick answer
CO-OPERATIVE SOCIETIES ACT 1993 is Malaysia Act, cited as Act 502 1993, currently marked in force and first recorded in 1993.
Opening note
Part I
This Act shall come into operation on a date to be appointed by the Minister by notification to be published in the Gazette, and the Minister may appoint different dates for the coming into force of this Act in different parts of Malaysia or for the coming into force of different provisions of this Act.
"appointment" includes any appointment or reappointment by way of election;
In this Act, unless the context otherwise requires Interpretation.
"Board" means the governing body of a registered society to whom the management of its affairs is entrusted;
"business of financing" means the business of receiving deposits and—
the lending of money and the provision of any other credit facility;
"by-laws" means the registered by-laws made by a registered society in the exercise of any power conferred by this Act, and includes a registered amendment of the by-laws;
"conviction" includes a finding of guilt and the proving of an offence;
"co-operative principles" includes—
a representative of individual members elected at a regional meeting of members of a primary society in which the general meeting of members is replaced by a general meeting of delegates; or
a representative of a registered society which is itself a member of another registered society, the meetings of which such representative has been elected or appointed to attend;
Co-operative Societies
"deposit" means the money deposited by any person with a registered society in a fixed deposit account or a savings account or other deposit account but does not include a share or subscription or specific savings;
"dividend" means a share of the profits of a registered society divided amongst its members in proportion to the share or subcription capital held by them;
"inaugural general meeting" means the general meeting at which persons desirous of forming a cooperative society resolve to form the society, to adopt the by-laws proposed for the society and to apply for the registration of the society;
"member" includes a person or registered society joining in the application for the registration of a society, and a person or registered society admitted to membership in accordance with the regulations and bylaws after registration;
"officer" means a chairman, secretary, treasurer or any other member of a Board and includes any other person empowered by the regulations or by-laws to give directions in regard to the business of the registered society;
"patronage rebate" means a share of the profits of a registered society divided among its members in proportion to the volume of business done with the society by them from which such profits were derived;
"primary society" means a society registered under subsection 4(1);
"registered society" means a co-operative society registered under this Act;
"registrable offence" means an offence which is registrable under the Registration of Criminals and Undesirable Persons Act 1969 as specified in the First Act 7. and Second Schedules to that Act;
"Registrar-General" means the Registrar-General of Co-operative Societies appointed under section 3;
"regulations" means regulations made under this Act;
"secondary society" means a society registered under subsection 4(2);
"share" means a share in the share capital of a registered society contributed by a member in respect of his membership in that registered society;
"specific savings" means money deposited by a member with a registered society with the express intention of utilising the money deposited for a specified purpose permitted under the regulations;
"subscription" means the sum contributed at regular intervals by a member in respect of his membership in a registered society and withdrawable on termination of membership;
"subsidiary" of a registered society means a company, as defined in the Companies Act 1965, in which such registered society controls the composition of the Board of Directors or more than half of the voting power, or holds more than half of the issued share capital, and includes a subsidiary, as defined in that Act, of such a company;
"surplus funds" means the funds in excess of the amounts required for immediate use by a registered society as working capital for its business, which may be deposited or invested away from the society without affecting the operation of such business;
"tertiary society" means a society registered under subsection 4(3).
The Registrar-General may appoint such number of public officers as may be necessary to be Registrars to assist him and the Registrars shall, subject to the control of the Registrar-General, have all the powers and functions of the Registrar-General except those specified in sections 65, 69, 71, 72, 80, 92 and 93.
The functions of the Registrar-General shall be—
to register and revoke the registration of cooperative societies and to ensure that the cooperative societies function in accordance with the provisions of this Act;
to encourage and promote the establishment and development of co-operative societies in all sectors of the economy and to help cooperative societies increase their efficiency.
In addition to the powers, duties and functions conferred on the Registrar-General by this Act and the regulations, the Registrar-General shall have and may exercise all such powers, discharge all such duties and perform all such functions as may be necessary for the purposes of giving effect to and carrying out the provisions of this Act.
The person for the time being discharging the duties of Registrar-General and his successors in office shall be a body corporate under the name of "Registrar-General of Co-operative Societies, Malaysia" (in this section called the "corporation"), which shall have perpetual succession and a corporate seal and which may—
acquire, purchase, take, hold and enjoy movable and immovable property of every description; and
sell, convey, assign, surrender and yield up, mortgage, charge, demise, re-assign, transfer or otherwise dispose of any movable and immovable property vested in the corporation upon such term as to the corporation seems fit.
The corporate seal of the corporation may from time to time be broken, changed, altered and made anew as to the corporation seems fit, and until a seal is provided under this section a stamp bearing the inscription "Registrar-General of Co-operative Societies, Malaysia" may be used as the corporate seal.
All deeds, documents and other instruments requiring the seal of the corporation shall be sealed with the seal of the corporation in the presence of the officer for the time being discharging the duties of Registrar-General who shall sign every such deed, document or other instrument to which the corporate seal is affixed, and such signing shall be sufficient evidence that such seal was duly and properly affixed and that it is the lawful seal of the corporation.
The corporation shall maintain proper records and accounts in respect of its transactions and the accounts shall be audited annually by the Auditor General.
Part II
A society which consists of primary societies only and which has as its object the facilitation of the operations of such societies may be registered under this Act as a secondary society.
A society which consists of secondary societies only or of secondary and primary societies and which has as its object the facilitation of the operations of such societies may be registered under this Act as a tertiary society.
each of such individual persons is qualified for membership under section 26 and is not disqualified for membership under section 27.
No society shall be registered as a secondary society unless it consists of at least two primary societies.
No society shall be registered as a tertiary society unless it consists of at least two secondary societies.
in the case of a primary society, by at least ten persons all of whom qualify for membership;
in the case of a secondary society or a tertiary society, by a duly authorised person on behalf of each primary society or secondary society, as the case may be.
The application for registration shall be accompanied by—
subject to subsection 8(2), minutes of the inaugural general meeting, signed by at least fifty persons present.
Every society registered under subsection (1) shall be with limited liability.
Where the Registrar-General refuses to register a society, an appeal shall lie to the Minister against such refusal within two months from the date of such refusal.
The word "Koperasi" shall form part of the name of every society registered under this Act.
The word "Berhad" shall be the last word in the name of every society registered under this Act.
Notwithstanding paragraph 6(2)(b), the application for registration of such a society as is referred to in subsection (1) shall be accompanied by minutes of the inaugural general meeting signed by all persons present.
The registration of a society shall render it a body corporate by the name under which it is registered, with perpetual succession and a common seal, and with power to hold movable and immovable property of every description, to enter into contracts, to institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it is constituted.
A certificate of registration signed by the Registrar-General shall be conclusive evidence that the society therein mentioned is duly registered, unless it is proved that the registration of the society has been revoked.
Part III
Every registered society shall have an address, registered in accordance with this Act, to which all notices and communications shall be sent, and shall inform the Registrar-General of every change of that address.
Every registered society shall prominently display at its registered address and all its places of business the registered name of the society.
Every registered society shall keep—
a list of its members, open to inspection, free of charge, at all reasonable times at the registered address of the society to members only.
Every registered society shall lodge with the Registrar-General-
a list of members of the Board not later than fifteen days after its annual general meeting;
minutes of all general and Board meetings not later than thirty days after the date of the meetings;
such other information as the Registrar-General may require in regard to the constitution, membership, working and financial condition of the society.
Any register or list of members kept by any registered society shall be prima facie evidence of the name, address, identity card number, membership number and occupation of a member and of the dates he became and ceased to be a member.
No officer of any registered society shall, in any legal proceedings to which the registered society is not a party, be compelled to produce any of the registered society's books, the contents of which can be proved under subsection (1), or to appear as a witness to prove any matters, transactions or accounts therein recorded, unless the court for special reasons so directs.
The by-laws of a registered society shall, when registered, bind the registered society and its members to the same extent as if they were signed by each member and contained covenants on the part of each member for himself and for his successor to observe all the provisions of the by-laws.
No amendment of the by-laws of a registered society shall be valid until that amendment has been registered under this Act, for which purpose copies of the amendment shall be forwarded to the Registrar-General.
If the Registrar-General is satisfied that any amendment of the by-laws is not contrary to this Act or to the regulations, he may register the amendment.
An appeal against the refusal of the Registrar-General to register any amendment of any by-law shall lie to the Minister within three months from the date of such refusal.
An amendment which changes the name of a registered society shall not affect any right or obligation of the society or of any of its members or past members, and any legal proceedings pending may be continued by or against the society under its new name.
When the Registrar-General registers an amendment of the by-laws of a registered society, he shall issue to the society a copy of the amendment certified by him, which shall be conclusive evidence of the fact that the amendment has been duly registered.
In this section, "amendment" includes the making of a new by-law and the variation or rescission of a by-law.
18 (18A) $ \rightarrow $
No registered society shall form, own, acquire or hold a subsidiary without the prior approval of the Registrar-General.
that every such member who produces any such articles shall dispose of the whole or any specified amount, proportion or description thereof to or through the society; and
that any member who is proved or adjudged, in such manner as may be prescribed by the regulations, to be guilty of a breach of such by-laws or contract shall pay to the society as liquidated damages a sum ascertained or assessed in such manner as may be prescribed by such regulations.
No contract entered into under this section shall be contested in any court on the ground only that it constitutes a contract in restraint of trade.
any debt or outstanding demand payable to a registered society by any member or past member shall be a first charge on all crops or other agricultural produce, fish (fresh water and salt water), felled timber or other forest produce, marine produce, livestock, fodder, agricultural, industrial and fishing implements, plant, machinery, boats, tackle and nets, raw materials, stock-in-trade and generally all produce of labour and things used in connection with production raised, purchased or produced in whole or in part from any loan whether in money or in goods given to him by the society;
any outstanding demands or dues payable to a registered housing society by any member or past member in respect of rent, shares, loans or purchase money or any other rights or amounts payable to such society shall be a first charge upon his interest in the immovable property of the society.
Nothing in paragraph (1)(a) shall affect the claim of any bona fide purchaser or transferee without notice.
A registered society shall have a lien upon the share or subscription or interest in the capital and deposits of a member or past member or deceased member and upon any dividend, patronage rebate, or profits payable to a member or past member or to the estate of a deceased member in respect of any debt due to the society from such member or past member or estate, and may set-off any sum credited or payable to a member or past member or estate of a deceased member in or towards payment of any such debt.
Subject to section 22, the share or subscription or interest of a member in the capital of a registered society shall not be liable to attachment or sale under any decree or order of a court in respect of any debt or liability incurred by such member, and neither his assignee in insolvency nor a receiver duly appointed shall be entitled to, or have any claim on, such share or subscription or interest.
in the case of a deceased member who was a Muslim, to the legal representative of such member or to such person as may appear to the Board to be a person entitled to such share or interest pursuant to any distribution made under any law relating to the distribution of estate; or
in the case of a deceased member who was not a Muslim, to the person nominated in accordance with the regulations in this behalf or, if there is no person so nominated, to such person as may appear to the Board to be the heir or legal representative of such member, or may pay to such legal representative, nominee, heir or person, as the case may be, a sum representing the value of the deceased member's share or interest, as ascertained in accordance with the regulations or its bylaws.
If the deceased member was not a Muslim, and the nominee, heir or legal representative is not qualified for membership in accordance with this Act, the regulations or the by-laws, the registered society may, on the application of such nominee, heir or legal representative, as the case may be, within six months of the death of such member, transfer the share or interest of such member to any person specified in the application who is so qualified.
Notwithstanding subsection (1), if six months have elapsed since the death of a member who was a Muslim and the registered society concerned is unable to ascertain who the legal representative of such member is or no legal representative has been appointed or the estate of such member has not been distributed or the estate of such member has been distributed but the registered society is unable to ascertain who the person entitled to such share or interest pursuant to such distribution is, the registered society may pay to the Official Administrator a sum representing the value of the share or interest of such member, as ascertained in accordance with the regulations or its by-laws.
A registered society may pay all other moneys due to a deceased member from the registered society to the legal representative, Official Administrator, nominee, heir or person, as the case may be, referred to in subsections (1) and (3).
Any deposit made by or for the benefit of the minor may, together with the bonus, be paid to the minor or to the guardian of that minor for the use of that minor.
The receipt of any minor or guardian for money paid to him by a registered society under this section shall be a sufficient discharge of the liability of the registered society in respect of that money.
Part IV
In order to qualify for membership in a primary society, a person must—
have attained the age of eighteen years or, in the case of a school co-operative society, have attained the age of twelve years; and
be resident or be employed or be in ownership of land within the area of operations of the primary society, or, in the case of a school cooperative society, be a registered student of the school.
No person shall be eligible for admission as a member of a registered society if—
he has been expelled from membership under this Act and a period of one year has not elapsed from the date of such expulsion.
No member of a registered society shall exercise the rights of a member unless and until he has made such payment to the registered society in respect of membership or acquired such interest in the registered society as may be prescribed by the regulations or by the by-laws of such society.
No person shall be a member of more than one registered society whose primary object is to grant loans to its members.
Notwithstanding subsection (1), a member of a secondary or a tertiary society may have such voting powers as are provided by the by-laws of such secondary or tertiary society.
Subject to sections 31 and 36, no member shall vote through another member and no delegate shall vote through another delegate.
Representation by proxy.
A member of a secondary or a tertiary society may appoint any one of its delegates, who must be a member of its Board, as its proxy for the purpose of voting in the conduct of the affairs of such secondary or tertiary society.
Contracts with society of members who are minors.
The minority of any person duly admitted as a member of any registered society shall not debar that person from executing any instrument or giving any acquittance necessary to be executed or given under this Act or the regulations and shall not be a ground for invalidating or avoiding any contract entered into by any such person with the society; and any such contract entered into by any such person with the society, whether as principal or as surety, shall be enforceable at law or against such person notwithstanding his minority.
Restriction on shareholding.
No member, other than a registered society, shall hold more than one-fifth of the share capital of any registered society.
Restrictions on transfer or charge of share or subscription or interest.
The transfer or charge of the share or subscription or interest of a member or past member or deceased member in the capital of a registered society shall be subject to such conditions as to maximum holding as may be prescribed by or under this Act.
Liability of past member and estate for debts of society.
The estate of a deceased member of a registered society shall not be liable for the debts of the registered society as they existed on the date of his decease for a period of more than two years reckoned from the date of his decease.
Part V
Subject to the provisions of this Act, the regulations and the by-laws, the ultimate authority of a registered society shall vest in the general-meeting of its members, at which every member by himself or by delegate, or, in the case of a secondary society or tertiary society, by proxy, has a right to attend and vote.
Every registered society whose area of operation is over a State, over two or more States or throughout Malaysia shall make by-laws providing that representation at its general meeting shall be—
by delegates elected by individual members at their regional or area general meetings; or
The business of the first general meeting shall include the election of office bearers who shall serve until the first annual general meeting and who shall be eligible for re-election.
Every registered society shall hold an annual general meeting of members or delegates not later than six months after the close of each financial year.
The Registrar-General or any person authorised by the Registrar-General may summon at any time a special general meeting of a registered society in such manner and at such time and place as he may direct, and may specify what matters shall be discussed by the meeting; and such meeting shall have all the powers and be subject to the same rules as a general meeting called in accordance with this Act or the by-laws of the registered society.
Every registered society shall give to the Registrar-General reasonable written notice of all general meetings which it is to hold and shall furnish to the Registrar-General information relating to the date, time, place and the agenda of such meetings; and the Registrar-General or any person authorised by general or special order in writing by the Registrar-General shall have the right to attend any such meeting and to give advice on any matter under discussion, but the Registrar-General or such authorised person shall have no right to vote at such meeting.
Every registered society shall have—
a Board, which shall consist of not less than six and not more than fifteen members; and
an Internal Audit Committee, which shall consist of not less than three and not more than six members, duly appointed at the annual general meeting.
he has been dismissed as an employee of a registered society.
Co-operative Societies
No person shall be eligible to be appointed to the Internal Audit Committee of a registered society if he has been appointed to the Board of such registered society and no person shall be appointed to the Board of a registered society if he has been appointed to the Internal Audit Committee of such registered society.
From the third year of registration of a society, no person shall be appointed to be a member of the Board of such registered society unless he has been a member of such registered society for a minimum period of two years.
Subsection (3) shall not apply to a registered society with one hundred or less members and to school co-operative societies.
The Board of a registered society shall represent the society before all competent public authorities and in all dealings and transactions with third persons, shall have power to institute or defend suits brought in the name of the registered society and, in general, shall direct, manage and supervise the business, the funds and the property of the registered society, and shall exercise all the necessary powers to ensure the full and proper administration and management of the affairs of the society, except those powers reserved for the general meeting of members or delegates.
Notwithstanding subsection (1), no action, suit, prosecution or other proceedings shall be brought or instituted personally against any member of the Board or officer of a registered society in respect of any act done or statement made bona fide in pursuance or execution or intended execution of this Act, the regulations or the by-laws of such registered society.
If the Board of a registered society has appointed a person as a manager to administer and manage the affairs of such registered society, such appointment shall not absolve the members of the Board from their liability and responsibility for the proper direction and conduct of the affairs of such registered society.
No member of the Board of a registered society appointed to represent such registered society on the board of directors of any of its subsidiaries shall receive or accept any remuneration from such subsidiary without the prior approval of the general meeting of such registered society.
In this section, "allowance" means the remuneration paid to a member of the Board of a registered society or a member of the Internal Audit Committee of a registered society in consideration of his services rendered to the society on a regular basis.
the Board of that registered society shall suspend such officer from being an officer of that registered society; and
if such officer is also an officer of the Board of any other registered society, the Board of that other registered society shall suspend such officer from being an officer of that other registered society,
902 12A from the time he is first charged in court until the final determination of the proceedings against him, including any further proceedings by way of appeal, and he shall accordingly cease to exercise any rights or perform any functions or duties in respect of such office and he shall not receive any remuneration in respect of such office during the period of suspension.
If an officer who has been suspended under subsection (1) is, upon the final determination of the proceedings against him, acquitted, he shall be paid such remuneration as would have been payable to him during the period of suspension but for the provisions of subsection (1).
If an officer of a registered society is convicted of a registrable offence or an offence under this Act and the conviction is not set aside at the conclusion of all proceedings, including any appeal, such officer shall be deemed to have vacated his office from the date he is first charged for the offence and he shall be debarred from being appointed as an officer of any registered society.
examine the accounts of the registered society, or appoint competent persons to examine such accounts, at regular intervals which shall not in any case be less than once every three months; and
communicate to the Board any discrepancies that may occur in the management of the registered society.
The Internal Audit Committee of a registered society shall present at the annual general meeting a report on the management and affairs of the registered society, including any violations of the by-laws of the society.
The Internal Audit Committee of a registered society shall at all times have access to all books, accounts and documents of the registered society, and any person required by the Internal Audit Committee to produce any information or such books, accounts and documents shall comply with such requirement.
All costs and expenses incurred by the Internal Audit Committee of a registered society in the exercise of their duties, functions and responsibilities shall be borne by such registered society.
Part VI
The funds of a registered society may be raised by any or all of the following:
entrance fees, which shall not be refundable except in cases where an application for membership has been rejected;
shares subscribed and paid by members, of which a minimum number prescribed in the bylaws of such registered society shall not be withdrawable except after termination of membership, while shares subscribed in excess of this minimum contribution may be withdrawable or transferable or both, subject to the provisions of this Act and the regulations and to any limitations laid down in the by-laws of such registered society;
in the case of registered societies which have as their object the promoting of thrift among their members and the creating of a source of credit for their members, subscription capital;
specific savings of members, which shall be withdrawable subject to conditions laid down in the by-laws;
deposits or loans from members and nonmembers, subject to such restrictions as are laid down in this Act and the regulations and in the by-laws of such registered society;
donations and grants made by third persons, except that no donations from any foreign source, whether offered directly or otherwise, shall be received by a registered society without the prior approval of the Registrar-General.
another registered society, and such loan or other credit facility shall be subject to—
(aa) the regulations and by-laws of such society; and
(bb) in the case of its subsidiary or subsidiaries or another registered society, the approval of the Registrar-General also.
Subsection (1) shall not apply to a registered society that is permitted to grant any loan or other credit facility in accordance with the provisions of any other written law governing its operations.
The Minister may, by general or special order, prohibit or restrict the lending of money on a charge or mortgage of immovable. property by any registered society or class of registered societies.
$ \rho u \cdot ( A ) 1 4 6 \vert 2 0 0 0 $
A registered society shall determine annually, at a general meeting, the maximum limit of indebtedness in respect of existing and new borrowings and deposits which may be incurred in the coming year.
Subject to sections 51 and 52, the transactions of a registered society with persons other than its members shall be subject to such prohibitions and restrictions as may be prescribed by its by-laws.
any financial institution licensed under the Banking and Financial Institutions Act 1989;
any registered society approved by the Registrar-General by notification in the Gazette;
any bonds or securities issued in Malaysia and approved by Bank Negara Malaysia;
new shares, the issue or sale of which has been approved under the Securities Industry Act 1983, in any public limited company incorporated in Malaysia which is already listed on a stock exchange in Malaysia or the listing of which on a stock exchange in
Co-operative Societies
Malaysia has been approved under the Securities Industry Act 1983; or
such other investments and securities as are for the time being authorised under any written law for the investment of trust funds.
No registered society shall invest its surplus funds in any other mode, except, with the approval of the Registrar-General, in—
the share capital or convertible or redeemable debenture stocks of any company other than those specified in subsection (1); or-
No registered society shall invest its funds under paragraphs (1)(e) and (1)(f) and subsection (2) exceeding a limit which shall be determined by its general meeting.
AA963
for any body corporate registered in malaysia d/AA963
the revaluation of land or building, or both, as fixed assets, with the approval of the Registrar-General.
The capital gains referred to in paragraph (1)(a) may be utilised by the registered society for all or any of the following purposes:
→ AA963 (ba) any joint venture company or
No registered society shall utilise the capital gains referred to in paragraph (1)(a) for the purpose of issuing bonus shares unless and until all its accumulated and current losses, if any, have been completely written off.
The capital gains referred to in paragraph (1)(b) may be utilised by the registered society for the issue to its members of bonus shares which shall not be withdrawn but which may, with the approval of the Board, be transferred to another member of that registered society or, in the case of a member who dies after the issue of the bonus shares, be paid out of the Bonus Share Redemption Fund of that registered society.
The bonus shares redeemed by a registered society may be reissued as bonus shares to its members in accordance with the provisions of its by-laws.
This section shall not apply to a registered society that is required by the provisions of any other written law governing its operations to deal with its capital gains in the manner provided in such law.
The audited net profits of a registered society for each financial year shall be determined after allowing for the operational expenses, provision for bad and doubtful debts, depreciation of assets, and diminution of investments.
Subject to subsection (7), every registered society shall, out of its audited net profits for the preceding financial year, pay such sum as may be determined by the Minister to—
any secondary or tertiary society which the Minister has declared to be a body representing the co-operative movement at national and international level.
or to both, or to the Co-operative Education Trust Fund established under the regulations for the furtherance of co-operative principles.
No secondary or tertiary society shall be declared under paragraph (2)(b) to be a body representing the co-operative movement at national and international level unless—
the objects of such society include the promotion of co-operative principles and the facilitation of the operations of registered societies; and
the affiliation of all registered societies without any restrictions or the payment of any fee except entrance fees; and
the appointment to its Board, by the Minister, of at least one representative from his ministry and of one representative from the Ministry of Finance.
There may be deducted from the sum mentioned in subsection (1) any sum paid pursuant to subsection (2).
Subject to subsection (7), a registered society may, after the payments specified in subsections (1) and (2), utilise the audited net profits for the preceding financial year for all or any of the following purposes:
the payment of dividend, which shall not in any case exceed such maximum rate as may be prescribed in the regulations, on the shares and subscriptions of members of the registered society;
the payment of honoraria to members of the Board of the registered society, which shall not in any case exceed such sum as may be approved by the Registrar-General;
the payment for any charitable purposes or for any other purpose of a sum not exceeding ten per centum of the audited net profits.
No rebate on patronage, return on deposits or dividend on shares and subscriptions shall be payable to members of a registered society and no honoraria shall be payable to members of the Board of a registered society except out of the audited net profits of that registered society.
No registered society, shall utilise its net profits for any purpose under subsection (2) or (5) unless and until all its accumulated losses, if any, have been completely written off.
Notwithstanding subsection (7), a registered society whose accumulated losses have not been completely written off may, with the approval of the Registrar-General, utilise its audited net profits for the preceding financial year for the payment of dividends which shall not in any case exceed five per centum of the audited net profits.
Part VII
Every registered society shall cause appropriate entries to be made in the accounting and other records as soon as possible but not later than thirty days of the completion of the transactions to which they relate.
Every registered society shall cause to be prepared as soon as possible but not later than two months after the completion of each financial year its trading and profit and loss accounts and balance sheet together with any other document required for the purpose of audit.
The records referred to in subsection (1) shall be kept at the registered office of the registered society or at such other place as the Board shall think fit and shall at all times be open to inspection by the Registrar-General and by any person authorised by him generally or specially in writing.
The Registrar-General may in any particular case order that the accounting and other records of a registered society, including those of its subsidiary or subsidiaries, if any, be open to inspection by an approved auditor acting for any member or officer of such registered society, but only upon an undertaking in writing given to the Registrar-General that any information acquired by the auditor during his inspection shall not be disclosed by him except to that member or officer.
trading and profit and loss accounts, a statement of sources and application of funds for the period since the preceding accounts, or, in the case of the first account, since the registration of the society, or its subsidiary or subsidiaries, if any, made up to a date not more than twelve months before the date of the general meeting;
a report signed by or on behalf of the Board with respect to the state of affairs of the registered society and its subsidiary or subsidiaries, if any;
the observations of the Registrar-General referred to in subsection (2) on the accounts and balance sheet of the registered society and its subsidiary or subsidiaries, if any.
The accounts and balance sheet of a registered society and its subsidiary or subsidiaries, if any, duly audited shall be submitted to its members not less than fifteen days and to the Registrar-General not less than thirty days before the annual general meeting, and the Registrar-General may make such observations as he deems fit on the accounts and balance sheet.
Each report to which paragraph (1)(c) relates shall state with appropriate details—
whether or not the results of the operations of the registered society and of its subsidiary or subsidiaries, if any, in the period covered by the profit and loss accounts have, in the opinion of the Board, been materially affected by items of an abnormal character;
the amount, if any, which has been paid declared or recommended to be paid by way of dividend;
whether or not any circumstances have arisen which render adherence to the existing method of valuation of assets or liabilities of the registered society misleading or inappropriate;
whether any contingent liabilities which have not been discharged have been undertaken by the registered society or by any of its subsidiaries in the period covered by the profit and loss account and, if so, the amount thereof and whether or not any such contingent liability has become enforceable or is likely to become enforceable within the succeeding period of twelve months which will materially affect the registered society in its ability to meet its obligations as and when they fall due;
apart from the Reserve Account required under this Act, the amount, if any, which is proposed to be carried to any other fund or reserve account shown specifically on the balance sheet or to any other fund or reserve account to be shown specifically on a subsequent balance sheet; and
where the Board is of the opinion that the total of the current assets would not at least realize the value at which they are shown in the accounts of the registered society, its opinion as to the amount that those current assets might reasonably be expected to realize in the ordinary course of business of the registered society.
In subsection (3), the expression "items of an abnormal character" includes—
any change in the basis of valuation of the whole or any part of the trading stock or of the whole or any part of the work in progress;
Every trading and profit and loss account and balance sheet laid before a registered society in the annual general meeting, including any consolidated profit and loss account and consolidated balance sheet, shall give a true and fair view of the state of affairs of the registered society and of its subsidiary or subsidiaries, if any.
Notwithstanding subsection (1), the Registrar-General may at any time, of his own motion or on the application of a registered society, audit or cause to be audited the accounts of any registered society.
such person applies in writing to the Registrar-General to be so approved; and
the Registrar-General is satisfied that such person is fit and competent to be so approved.
No person shall be approved to audit nor shall he audit the accounts of the same registered society for any continuous period exceeding six years, but such person may be approved to audit and may resume auditing the accounts of a registered society two years after he has ceased to audit the accounts of that registered society.
For the purposes of subsection (2), the approval for a further period of an auditor, which immediately follows his ceasing to act as the auditor of the same registered society, shall be construed as making the period continuous.
No person shall be approved to audit the accounts of a registered society or, where he is already approved as an auditor, shall audit the accounts of a registered society or do anything required to be done by an auditor under this Act if—
he is in any way indebted to the registered society or to any of its subsidiaries for a sum which exceeds ten thousand ringgit:
he is an officer of the registered society or a partner of such officer in any enterprise;
he is an employee of the registered society or a partner of such employee in any enterprise;
he is an employee of an officer of the registered society or an employee of such employee; or
he has been convicted of any offence under this Act, or the Companies Act 1965 or of any offence involving fraud or dishonesty under any other written law.
The auditor of a registered society shall audit and report on the financial statements submitted by the registered society after the close of the financial year.
The auditor of a registered society shall, in respect of the accounts, records and statements referred to in subsections (1) and (2), report—
whether such financial statements give a true and fair view of the financial transactions and the state of affairs of the society; and
such other matters arising from the audit as he considers should be reported, and shall state in his report whether—
(aa) proper accounting and other records have been kept; and
(bb) the receipt, expenditure and investment of moneys and the acquisition and disposal of assets by the registered society during the year have been in accordance with this Act, the regulations and the by-laws of that registered society.
The auditor of a registered society may at any other time report to the Registrar-General and the registered society upon any matters arising out of the performance of the audit.
The audit of the accounts of a registered society shall include an examination of and report on overdue debts, if any, and an examination of and report on the valuation of the assets and liabilities of the registered society.
Part VIII
The Registrar-General, or any public officer authorised by him generally or specially in writing, shall have access to all the books, accounts, documents and securities of a registered society and its subsidiary or subsidiaries, if any, and shall be entitled to inspect the cash in hand; and every officer (including any past officer) of the registered society and its subsidiary or subsidiaries, if any, shall furnish such information and produce such books, accounts, documents and securities in regard to the transactions and working of the registered society and its subsidiary or subsidiaries, if any, as the person making such inspection may require.
If, in the course of or consequent upon an inspection under section 64, it appears that an offence under this Act or the regulations has been committed, the Registrar-General or the public officer authorised by him in writing to make such inspection may enter any premises belonging to or occupied by the registered society and may seize and detain any books, documents and securities of the registered society which may furnish evidence of an offence under this Act or the regulations.
For the purpose of an inquiry under subsection (1), the Registrar-General or the authorised person referred to in subsection (1) may summon any person who he has reason to believe has knowledge of any of the affairs of the registered society and may examine such person on oath and may require any person to produce or surrender any books, accounts and documents in his custody belonging to the registered society and its subsidiary or subsidiaries, if any, if the Registrar-General or such authorised person has reason to believe that such books, accounts and documents may furnish evidence of an offence under this Act or under the regulations.
Every person authorised under subsection (1) shall, upon the completion of an inquiry under subsection (1), report his findings to the Registrar-General.
If an inspection is carried out under section 64 or an inquiry is held under section 66, the Registrar-General may communicate the result of the inspection or the inquiry to the registered society and may, by order in writing, direct any officer of the registered society to take such actions as may be determined in the order to remedy, within such time as may be specified therein, the defects, if any, disclosed as a result of the inspection or the inquiry.
No inspection shall be made or directed under subsection (1) on the application of a creditor of a registered society unless the creditor—
satisfies the Registrar-General that the debt is a sum then due and that he has demanded payment thereof and has not received satisfaction within reasonable time; and
deposits with the Registrar-General such sum as the Registrar-General may require as security for the costs of such inspection.
The Registrar-General shall communicate the result of an inspection under subsection (1) to the creditor and the registered society.
suspend all or any of the activities of the registered society, for such period as he shall specify;
freeze the bank accounts of the registered society to prevent losses or misuse of funds.
Any order made under subsection (1) shall have effect as soon as it is made and shall, unless it is set aside under subsection (7), be valid for such period as is therein specified; and such period may be extended from time to time but shall not in the aggregate exceed four years.
Notwithstanding that an appeal has been lodged under subsection (7), the Registrar-General may appoint a person (including a body corporate, whether registered under this Act or any other written law) to be an administrator to manage, subject to the supervision of the Registrar-General, the affairs of the registered society; and such administrator shall manage the affairs of the registered society until a new Board has been elected under the by-laws of the registered society or, if the order made under subsection (1) is subsequently set aside, until the order is so set aside.
A person appointed under subsection (3) shall have and exercise all the powers conferred on the Board of the registered society; and as respects the management of the registered society the following provisions shall have effect:
a person so appointed may be provided with such remuneration as the Registrar-General may think fit;
any remuneration provided under paragraph (a) and all expenses and costs shall be payable out of the funds of the registered society; and
a person so appointed shall not be liable to the registered society or any member thereof or to any person for any act done by him in good faith.
Nothing in this section shall be deemed to affect the power of the Registrar-General to order the winding up of a registered society.
Notwithstanding the foregoing provisions of this section, the Registrar-General may by order remove any officer of the registered society if it is in the interest of the registered society for him so to do, but no person shall be so removed without giving him an opportunity to be heard; and any vacancy created by such removal shall be filled in the manner provided in the by-laws of the society.
Any person aggrieved by the order of the Registrar-General made under subsection (1) or subsection (6) may, within twenty-one days of the making of such order, appeal to the Minister, who shall confirm or set aside such order and the decision of the Minister shall be final and conclusive.
If an officer of a registered society has been removed by order of the Registrar-General under the provision of subsection 69(6), such officer shall thereafter not be eligible to be appointed as a member of the Board or any committee of the registered society or be re-employed by that or any other registered society, as the case may be, for a period of five years from the date of such removal.
Dissolution.
Any member of a registered society may, within a period of two months from the date of an order under subsection (1), appeal from such order to the Minister.
If no appeal is presented to the Minister from an order under subsection (1) within a period of two months from the date of such order, the order shall take effect on the expiry of that period.
If an appeal is presented to the Minister from an order under subsection (1) within a period of two months from the date of such order, the order shall not take effect unless and until it is confirmed by the Minister.
If the Registrar-General makes an order under subsection (1) for the revocation of the registration of a registered society, he may make such further order as he may think fit for the custody of the books and documents and for the protection or disposal of the assets of the registered society until the order revoking the registration of the society takes effect under subsection (3) or, if an appeal is presented under subsection (4), until the order is confirmed or otherwise.
No registered society shall be wound up except by an order of the Registrar-General.
Every order made under subsection (1) shall take effect from the date of such order.
If the registration of a registered society is revoked by an order under section 71 or under section 72, the society shall cease to exist as a corporate body from the date on which the order takes effect.
If the registration of a registered society is revoked under section 71 or section 72, the Registrar-General may appoint a competent person to be liquidator of the registered society.
determine from time to time the contributions to be made by members and past members or by the estates of deceased members of the registered society to its assets;
appoint a day by notice before which creditors whose claims are not already recorded in the books of the registered society shall state their claims for admission or be excluded from any distribution made before they have proved them;
decide any question of priority which arises between claimants and draw up a scheme for the payment of their dues;
institute and defend suits and other legal proceedings by and on behalf of the registered society by his name or office and to appear in court as a litigant in person on behalf of the society;
empower any person to make collections and to grant valid receipts on his behalf;
decide by what persons and in what proportions the costs of liquidation are to be borne;
give such directions in regard to the collection and distribution of the assets of the registered society and the disposal of the books and documents of the society as may be necessary in the course of winding up the society;
compromise any claim by or against the registered society provided the sanction of the Registrar-General has first been obtained;
call such general meetings of members or delegates as may be necessary for the proper conduct of the liquidation;
take possession of the books, documents and assets of the registered society;
sell, convey, transfer, assign, exchange, surrender and yield up, lease, mortgage, charge, recover, re-assign, or otherwise deal with, all or any part of the properties of the registered society, and deal with the proceeds thereof in any manner for the benefit, or in the interest, of the registered society or the members, depositors, creditors or customers of, or persons having any lawful dealings or transactions with, the registered society;
enter into any arrangement, agreement, or scheme with any person whereby all or part of the properties of the registered society are sold, conveyed, transferred, assigned, exchanged, surrendered and yielded up, leased, mortgaged, charged, re-assigned, or otherwise disposed of, to any person in consideration of such person agreeing to meet all, or a specified part of, the liabilities of the registered society including the deposit liabilities of the registered society;
enter into any arrangement, agreement composition, compromise, or scheme, with any depositors, creditors, customers or persons having any lawful dealings or transactions with the registered society whereby any right of any such person, or any liability of the registered society to any such person, is made subject to the arrangement, agreement, composition, compromise or scheme entered into by the liquidator;
employ any person as an employee of the registered society, or terminate the employment of any employee of the registered society, in accordance with the terms of the contract of service, or take such action, including disciplinary action and punishment, as may be deemed necessary, appropriate or expedient in respect of such employment or termination;
carry on the business of the registered society so far as may be necessary for winding,it up beneficially; and
arrange for the distribution of the assets of the registered society in a convenient manner when a scheme of distribution has been approved by the Registrar-General.
Notwithstanding paragraph (1) (o), the liquidator of a credit society is not entitled to issue any loan.
A liquidator may refer any dispute to the Registrar-General, and in relation to such dispute section 82 shall apply as if such dispute were a dispute touching the business of a registered society.
A liquidator shall deposit the funds and other assets of a dissolved society which are collected by him or which come into his possession as liquidator in such manner and in such place as may from time to time be determined by the Registrar-General.
A liquidator shall, every three months, or at such lesser intervals as the Registrar-General may direct, submit to the Registrar-General a report stating the progress made in winding up the affairs of the society, and shall, on completion of the liquidation proceedings, submit a final report and make over to the Registrar-General all books, registers and accounts belonging to the society and all books and accounts relating to such proceedings kept by him.
Any liquidator appointed under this Act shall in so far as such powers are necessary for carrying out the purposes of this section, have power to summon and enforce the attendance of parties and witnesses and to compel the production of documents by the same means and (so far as may be) in the same manner as is provided for in the case of a Sessions Court.
If the Registrar-General has, pursuant to subsection (4), determined that the funds of a dissolved society be remitted to him, such funds shall be held by him in a Trust Account to be known as the Co-operative Societies Liquidation Account pending their distribution to the beneficiaries in accordance with a scheme to be approved by him.
The funds held in the Co-operative Societies Liquidation Account may be deposited or invested in accordance with the Trustee Act 1949 and the net income from such deposit or investment shall be credited to the Co-operative Central Fund which shall be held and administered by the Registrar-General in accordance with the regulations.
The Registrar-General may, in respect of a society referred to in section 74-
rescind or vary any order made by a liquidator and make whatever new order is required;
procure the auditing of the liquidator's accounts and authorise the distribution of the assets of the society; and
make an order for the remuneration of the liquidator, which remuneration shall be included in the costs of liquidation and shall be payable out of the assets in priority to all other claims.
An order made by the liquidator or by the Registrar-General under section 75 or 76 shall be enforced by any Sessions Court having jurisdiction over the place where the registered office of the society is situated in like manner as a judgement of that Court.
Except as provided expressly in section 77, no civil court shall have any jurisdiction in respect of any matter concerned with the dissolution of a registered society under this Act, and no appeal shall lie to any civil court from any order of the liquidator.
The priority of payment of the unsecured debts of a society in such liquidation as is referred to in subsection (1) shall rank in the following order:
firstly, the costs of liquidation, including the remuneration of the liquidator as provided under paragraph 76(g);
secondly, all amounts due to the Government of Malaysia on unsecured loans or advances and all amounts due to the Employees Provident Fund;
fourthly, all wages or salaries (whether or not earned wholly or in part by way of commission) including any amount payable by way of allowance or reimbursement under any contract of employment or award or agreement regulating conditions of employment of any employee of such society, but not including any termination or retirement benefits payable on cessation of employment for any reason;
fifthly, all amounts due in respect of worker's compensation under any written law relating to worker's compensation in relation to physical injury to a worker employed by such society;
sixthly, all monies payable to any person, whether in respect of remuneration or compensation, in relation to the death of any employee of such society;
seventhly, all payments due to any public authority under any written law by way of tax or otherwise;
When the liquidation of a society has been closed and any person has not claimed or received what is due to him under the scheme of distribution, notice of the closing of the liquidation shall be published in the Gazette, and all claims against the funds of the registered society liquidated shall be proscribed when two years have elapsed from the date of the publication of the notice in the Gazette.
Any balance of the funds remaining after the expiry of the period of two years referred to in subsection (3) shall be credited into the Co-operative Central Fund.
An order under subsection (1) shall be enforced by the Sessions Court having jurisdiction over the place where the registered office of the society is situated in like manner as a judgement of that Court.
This section shall apply notwithstanding that the act referred to in subsection (1) is one for which the offender may be criminally responsible.
Any person aggrieved by any order of the Registrar-General made under section 80 may appeal to the Minister within twenty-one days from the date of such order and the decision of the Minister shall be final and conclusive.
among members, past members and persons claiming through members, past members and deceased members;
between a member, past member, or person claiming through a member, past member or deceased member, and the society, its Board, or any officer of the society;
between the society and any other registered society, such dispute shall be referred to the Registrar-General for decision.
A claim by a registered society for any debt or demand due to it from a member, past member or the nominee, heir or legal representative of a deceased member shall be deemed to be a dispute touching the business of the society within the meaning of subsection (1).
The Registrar-General may, on receipt of a reference under subsection (1)—
Any party aggrieved by the award of the arbitrator or arbitrators may appeal therefrom to the Registrar-General within two months from the date of the award and in such manner as may be prescribed in the regulations.
The decision of the Registrar-General shall be final and shall not be called in question in any civil court.
The award of the arbitrator or arbitrators under subsection (3) shall, if no appeal is preferred to the Registrar-General under subsection (4) or if such appeal is withdrawn or abandoned, be final and shall not be called in question in any civil court.
The decision of the Registrar-General or the award of the arbitrator or arbitrators which, by virtue of subsections (5) and (6), is final shall be enforced by the
Sessions Court having jurisdiction over the place where the registered office of the society is situated in the same manner as if the decision or award had been a judgement of such Sessions Court.
Any party aggrieved by the decision of the court on any dispute referred to it under paragraph (3)(c) may appeal therefrom in accordance with the provisions of the rules of court applicable thereto.
Tribunal.
A tribunal established under subsection (1) shall hear and determine any dispute within the meaning of subsections 82(1) and 82(2) which is referred to it under this section.
The Minister may make such regulations, which are not inconsistent with the provisions of this Act, as may be necessary or expedient for the purpose of enabling the tribunal to carry out its functions, and in particular, without prejudice to the generality of the foregoing power, such regulations may provide for the constitution, officers and proceedings of the tribunal.
Upon the establishment of a tribunal under subsection (1), all disputes within the meaning of subsections 82(1) and 82(2)—
which, before such establishment, have been referred to the Registrar-General under subsection 82(1) but in respect of which—
no step has been taken or no proceedings have been commenced by the Registrar-General for their disposal under paragraph 82(3) (a); or
Co-operative Societies
no decision has been made by the Registrar-General to refer them to an arbitrator or arbitrators for disposal under paragraph 82(3)(b) or to require the parties concerned to refer them to a court under paragraph 82(3)(c), shall be referred to such tribunal.
A tribunal established under subsection (1) may—
procure and receive all such evidence, whether written or oral, and examine all such persons as witness as the tribunal may think it necessary to procure or examine;
require the evidence of any witness to be made on oath or affirmation, (and may for those purposes administer any oath or affirmation) or by statutory declaration;
summon any person to attend any meeting of the tribunal to give evidence or produce any document or other thing in his possession and examine him as a witness or require him to produce any document or other thing in his possession;
hear and determine the dispute referred to it notwithstanding the absence of any party to the dispute who has been served with a summons or notice to appear;
notwithstanding any written law relating to evidence, admit any evidence, whether written or oral, which might be inadmissible in civil or criminal proceedings; and
The award of a tribunal shall be binding upon the parties and shall be enforced by the Sessions Court having jurisdiction over the place where the registered office of the society is situated in the same manner as if the award had been a judgement of such Sessions Court.
(CA) (7) Any party aggrieved by the award of a tribunal may appeal therefrom to the High Court in accordance with the provisions of the rules of court applicable thereto.
Notwithstanding the establishment of a tribunal under subsection (1), the Registrar-General before whom a dispute is pending under paragraph 82(3)(a) or any arbitrator or arbitrators to whom a dispute has been referred under paragraph 82(3)(b) shall continue to deal with such dispute under those paragraphs, and subsections 82(4), 82(6) and 82(7) shall continue to apply to the decision of the Registrar-General or the award of such arbitrator or arbitrators, as the case may be.
Subsections 82(3), 82(4), 82(5), 82(6), 82(7) and 82(8) shall not apply to any dispute referred to a tribunal under this section.
Any reference in this Act to a decision of the Registrar-General or an award of an arbitrator or arbitrators shall, in respect of disputes determined by a tribunal under this section, be construed as a reference to an award of such tribunal.
Any Judge of the High Court, as the Chief Justice may direct, may consider and determine any question of law referred to such High Court under subsection (1), and the opinion given on such question shall be final and conclusive.
Part IX
A registered society may—
amalgamate with another registered society or other registered societies to form one single society;
divide itself into two or more societies, in accordance with the regulations.
In particular, without prejudice to the generality of the power conferred by subsection (1), such regulations may—
prescribe the forms to be used and the conditions to be complied with in applying for the registration of a society and the procedure in the matter for such application;
prescribe the conditions to be observed by a registered society applying for financial assistance from the Government;
prescribe the matters in respect of which a registered society may or shall make by-laws and for the procedure to be followed in making, amending and rescinding by-laws, and the conditions to be satisfied prior to such making, amendment or recission;
prescribe all matters relating to the appointments and terms of office of members of the Board of a registered society;
prescribe the manner in which a particular activity may be carried out by a registered society;
prescribe all matters relating to the amalgamation and division of registered societies and the transfer of assets and liabilities of registered societies, including the vesting of assets and liabilities of—
amalgamating societies in the amalgamated society;
a registered society in another society pursuant to a transfer, the registration of the amalgamated society, the new societies and the transfer, and the revocation of the registration of, in the case of an amalgamation, the amalgamating societies, in the case of a division, the existing society, and, in the case of a transfer, the transferor society;
prescribe the purposes for which the funds in the Reserve Account, other than those arising from capital gains, may be utilised;
prescribe the maximum rate of dividend on share capital or subscription capital which may be paid by registered societies;
prescribe the manner in which the Cooperative Central Fund and the Co-operative Societies Liquidation Account shall be held, administered and used;
subject to the express provisions of this Act, determine in what cases an appeal shall lie from the orders of the Registrar-General and prescribe the procedure to be followed in presenting and disposing of such appeals;
prescribe the mode of appointing an arbitrator or arbitrators and the procedure to be followed in proceedings before the Registrar-General or such arbitrator or arbitrators;
prescribe the procedure to be followed by the liquidator appointed under section 74 and the cases in which appeals shall lie from the orders of such liquidator;
prescribe the forms to be used, the fees to be paid, the procedure to be observed and all other matters connected with or incidental to the presentation, hearing and disposal of appeals under this Act or the regulations;
provide for the inspection of documents and registers at the Registrar-General's office and the fees to be paid therefor and for the issue of copies of such documents or registers;
provide for the establishment of a National Cooperative Consultative Council,
Without prejudice to the provisions of subsections (1) and (2), the Minister, with the concurrence of the Minister of Finance, may make such regulations as may be necessary for the purpose of controlling or regulating the activities, and to provide for the better management, of registered societies carrying on the business of financing or the business of insurance.
The Minister may, on being satisfied that it is desirable to do so in the interest of the development of registered societies generally or of a particular registered society or a particular class of registered societies, by general or special order, subject to such conditions as he may impose, exempt any registered society or class of registered societies, from any of the provisions of this Act, or direct that such provisions shall apply to any registered society, or class of registered societies, with effect from such date or with such modifications as may be specified in the order.
Sums due from a registered society to the Federal Government or any State Government and recoverable under subsection (1) may be recovered—
secondly, in the case of registered societies in which the liability of members is limited, from the members subject to the limit of their liability; and
Any person who contravenes the provisions of subsection (1) shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding five thousand ringgit, and, in the case of a continuing offence, to a further fine not exceeding five hundred ringgit for each day during which the offence continues after conviction.
The provisions of the laws for the time being in force relating to trade unions, associations, societies and companies shall not apply to societies registered under this Act.
a registered society or an officer or an employee or a member thereof neglects or refuses to do an act or furnish information required for the purpose of this Act by the Minister, Registrar-General or a person duly authorised in that behalf by the Minister or the Registrar-General, as the case may be;
a registered society or an officer or an employee or a member thereof makes a false return or furnishes false information;
a person without reasonable excuse disobeys any summons or requisition or lawful written order issued under the provisions of this Act or does not furnish information lawfully required from him by a person authorised to do so under the provisions of this Act;
a registered society or an officer or an employee or a member thereof performs any act which requires the consent or the approval of the Registrar-General or the general meeting without first having obtained such consent or approval;
a registered society or an officer or a member of the Internal Audit Committee or an employee or a member thereof neglects or refuses to do an act or thing which is required by or under this Act to be done;
a member of the Internal Audit Committee of a registered society or an auditor makes a false report under subsection 49(2) or section 63, as the case may be;
a registered society or an officer or an employee or a member thereof does or causes to be done an act or thing prohibited by or under this Act.
Every registered society or officer, employee or member of a registered society, or other person, guilty of an offence under this section shall be liable, on conviction, to a fine not exceeding fifty thousand ringgit or to a term of imprisonment not exceeding four years or to both, and, in the case of a continuing offence, to a further fine of one hundred ringgit for each day during which the offence continues after conviction.
The Registrar-General or any public officer authorised by him in writing may, with the consent of the Public Prosecutor in writing, prosecute in any court any case in respect of any offence committed under this Act.
An offer under subsection (1) may be made at any time after the offence has been committed, but before prosecution for it has been instituted, and where the amount specified in the offer is not paid within the time specified in the offer, or any extension of it which the Registrar-General may grant, prosecution for the offence may be instituted at any time thereafter against the person to whom the offer was made.
If an offence has been compounded under subsection (1), no prosecution shall thereafter be instituted in respect of such offence against the person to whom the offer to compound was made.
Part X
In this Part, "repealed laws" means the laws Definition. repealed under section 95.
The body corporate established under section 3A of the Co-operative Societies Act 1948 under the name "Registrar-General of Co-operative Societies, Malaysia" shall continue to exist as a body corporate under this Act and shall be deemed to be the body corporate established under section 3.
Subject to subsection (4), any register kept or maintained or any fund held and administered pursuant to the repealed laws shall be deemed to be part of a corresponding register or fund under this Act.
Notwithstanding subsection (3)—
the Audit and Supervision Fund constituted under the Co-operative Societies Rules of Sabah G.N. S.3 of 1958. Sabah and the Co-operative Societies Rules of Sarawak G.N. Sarawak shall continue to be held and administered by the Registrar responsible for registered societies in the State of Sabah or Sarawak, as the case may be, and shall be used for the purposes provided for under the repealed Co-operative Societies Ordinance 1958 (Sabah) or Co-operative Societies Ordinance (Sarawak), as the case may be, except that no new contribution to such Fund shall be levied; and
the funds deposited in a bank or with a registered society by the Registrar under the provisions of subsection 46 (3) of the repealed Co-operative Ordinance 1958 (Sabah) or Cooperative Societies Ordinance (Sarawak), as the case may be, shall, within six months from the date of coming into force of this Act, be transferred to the Co-operative Societies Liquidation Account held by the Registrar-General under subsection 75 (7).
The Minister may make regulations to provide for the manner in which the Fund referred to in paragraph (4)(a) shall be held and administered and, upon such Fund becoming exhausted, for its dissolution and for other matters connected therewith.
Subject to subsection (3), societies registered or deemed to be registered under any of the repealed laws shall, not later than two years after the commencement of this Act, amend their by-laws so as to bring them in conformity with the provisions of this Act.
Subsection (2) shall not apply to any by-law of a registered society made under any of the repealed laws under which individual persons as well as registered societies, or under which different types of registered societies, may become members of such society or
Co-operative Societies which provides that such society shall be a society with unlimited liability, if such by-law was not inconsistent with the provisions of the repealed law under which it was made.