Section 59
Financial statement and report of the Board
of Co-Operative Societies Act 1993
Every co-operative society shall, at some date not later than eighteen months after the registration thereof and subsequently once at least in every calendar year, lay at its annual general meeting—
(a)
trading and profit and loss accounts, and any statement as may be determined by the Commission, for the period since the preceding accounts, or, in the case of the first account, since the registration of the co-operative society, or its
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subsidiary or subsidiaries, if any, made up to a date not more than twelve months before the date of the general meeting;
(b)
a balance sheet as at the date to which the accounts are made up;
(c)
a report signed by or on behalf of the Board with respect to the state of affairs of the co-operative society and its subsidiary or subsidiaries, if any; and
(d)
the auditor’s report referred to in section 63.
(2)
The accounts and balance sheet of a co-operative society and its subsidiary or subsidiaries, if any, duly audited shall be submitted to its members not less than fifteen days and to the Commission not less than thirty days before the annual general meeting, and the
Commission may make such observations as he deems fit on the accounts and balance sheet.
(2A)
All the Commission’s observations that have financial effect on the co-operative society’s audited accounts and balance sheet shall be adjusted accordingly by the co-operative society and clearly shown in the audited accounts of the co-operative society in the next financial year.
(3)
Each report to which paragraph (1)(c) relates shall state with appropriate details—
(a)
whether or not the results of the operations of the co-operative 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;
(b)
the rate and amount, if any, which has been paid, declared or recommended to be paid by way of dividend;
(ba) the issuance of bonus shares, if any, and the criteria, therefor;
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(c)
whether or not any circumstances have arisen which render adherence to the existing method of valuation of assets or liabilities of the co-operative society misleading or inappropriate;
(d)
whether any contingent liabilities which have not been discharged have been undertaken by the co-operative 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 co-operative society in its ability to meet its obligations as and when they fall due;
(e)
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;
(f)
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 co-operative 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 co-operative society; and
(g)
whether all adjustments pursuant to subsection 59(2A) have been carried out accordingly.
(4)
In subsection (3), the expression “items of an abnormal character” includes—
(a)
any change in accounting policies adopted since the last report;
(b)
any transfers to or from reserves or provisions;
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(c)
any writing off of substantial amounts of bad debts;
(d)
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;
(e)
any item of an unusual nature or value which appears in the accounts; and
(f)
any absence from the accounts of any material item usually included therein.
(5)
Every trading and profit and loss account and balance sheet laid before a co-operative 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 co-operative society and of its subsidiary or subsidiaries, if any.
(6)
Any co-operative society or officer of the co-operative society who fails to comply with subsection (1), commits an offence and shall, on conviction, be liable to a fine not exceeding two hundred thousand ringgit and shall, in addition, be liable to a daily fine of five hundred ringgit for each day during which the offence continues after conviction.