Co Operative Society Security
Cooperative society security involves both legal protections for the society's assets and records and physical/procedural security for its members and property. Legal security includes the Registrar of Cooperative Societies's power to intervene if records are tampered with or property is misappropriated. Procedural security involves the society's own rules for safeguarding funds and property, managing loans, and protecting its members from threats.
Legal and administrative security
- Protecting records and property: If a cooperative society's records or property are at risk of being tampered with, destroyed, or misappropriated, the Registrar can apply to a magistrate to secure them. The magistrate can issue a warrant for police to seize the records and property and hand them over to the new committee or liquidator.
- Financial security: Cooperative societies have rules about how they can invest their funds, such as in post office savings banks, specified securities, or shares of other cooperative societies.
- Loan security: Societies have restrictions on lending money, generally only to members, and require the Registrar's sanction for loans to other societies or on the security of movable property.
- Penalties for misconduct: Officers or custodians who fail to hand over records and property to entitled persons can face fines. Individuals who fraudulently acquire property can also be punished.