Section 76: Inquiry on a society

76. Inquiry on a society (1) The Registrar may— (a) on the application of a creditor of the society or of not less than one tenth of the total number of members or 2 members, whichever is higher, holding at least— (i) 10 per cent of the ordinary shares of a society; or (ii) 30 per cent of the preference shares of a society, if any; (b) on a resolution of the Board or of a general meeting; (c) where the internal controller fails to forward the quarterly report to the Registrar within 2 months from the end of the time allocated by the Registrar under section 55 (6) (b); or (d) where he so determines, appoint an inspector to inquire into the affairs of a society or such aspects of the affairs of a society as may be specified in the instrument of appointment and to make a report on his investigation, in such form and manner as the Registrar shall direct. (2) Where an application is made under subsection (1) (a), the Registrar may, before appointing an inspector, require the applicant to provide— (a) the reason for the application; and (b) such security as the Registrar may determine to cover the cost of the inquiry. (3) An inspector appointed under subsection (1) shall submit his findings within such period as the Registrar may specify in the instrument of appointment. (4) Where, from a report of an inspector, it appears to the Registrar that proceedings in the interests of the members ought to be brought by the society— (a) for the recovery of any sum in respect of any fraud, misfeasance or other misconduct— (i) in connection with the promotion or formation of that society; or (ii) in the management of its affairs; or (b) for the recovery of any property of the society which has been misapplied or wrongly retained, he may bring proceedings for that purpose in the name of the society.