Short Answer

Yes, committee members can be personally liable for errors in accounts.

Detailed Explanation

Section 73 of the Gujarat Cooperative Societies Act, 1961 deals with the liability of committee members. It states that every member of the committee of a cooperative society shall be jointly and severally responsible for the proper custody of the books, records, and funds of the society. This means that if there are errors in the accounts due to negligence or misconduct on the part of the committee members, they can be held personally liable.

Furthermore, Rule 91 of the Gujarat Cooperative Societies Rules, 1965 elaborates on the duties of the committee members regarding the accounts of the society. It mandates that the committee shall ensure that the accounts are properly maintained, audited, and presented to the general body for approval. Failure to fulfill these duties can lead to personal liability for the committee members in case of errors or discrepancies in the accounts.

In practice, if errors are found in the accounts of a cooperative society and it is determined that committee members were negligent in their duties or engaged in misconduct, they can be held accountable for any financial losses suffered by the society. This could involve legal proceedings to recover the losses from the personal assets of the committee members.

Real-world Scenarios

• Scenario 1: The committee members of a cooperative housing society fail to reconcile the accounts properly, leading to a significant financial discrepancy. As a result, the society incurs losses. In this case, the committee members can be personally liable for the financial losses due to their negligence in maintaining the accounts.

• Scenario 2: A cooperative credit society discovers that funds have been misappropriated due to errors in the accounts. Upon investigation, it is revealed that the committee members did not exercise proper oversight. The committee members may face personal liability for the misappropriated funds.

• Scenario 3: During an audit, it is found that the committee members of a cooperative society have manipulated the accounts to conceal financial irregularities. In such a scenario, the committee members can be held personally liable for any losses suffered by the society as a result of their misconduct.

Reference

• Section 73 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]

• Rule 91 of the Gujarat Cooperative Societies Rules, 1965: [Official PDF]