Section 77: Investigation and remedies

77. Investigation and remedies (1) Where, in the course of an audit, inquiry or inspection or the winding up of a society, it is found that any officer or past officer of the society has— (a) made any payment contrary to this Act or the rules of the society; C49 – 41 [Issue 9] Co-Operatives Act (b) caused any deficiency or loss by gross negligence or misconduct; or (c) misappropriated or fraudulently retained any property of the society, the Principal Co-operative Auditor, auditor or liquidator shall refer the matter to the Registrar who may, even in the absence of such a reference and on his own motion or on the application of an interested party, cause an investigation to be made into the conduct of that person. (2) No investigation under subsection (1) shall be made except within— (a) 10 years from the date on which the act occurred; or (b) one year from the date on which the act comes to the notice of the Registrar. (3) The Registrar may, after an investigation under subsection (1), where he is satisfied that there are good grounds for doing so, make an order, in writing, requiring the person specified in that subsection or, where the person is dead, his legal representative, to repay or restore the property with interest at such rate, or to pay contribution and costs or compensation to such extent, as the Registrar may determine. (4) The Registrar may, on an audit, inquiry or inspection, require any officer, any person in his capacity of member or legal representative of a deceased officer or any member, having under his control or in his custody any money or property of a society, to deliver to him the money or property.