Short Answer

Yes, members can demand the auditor to answer questions at the Annual General Meeting (AGM).

Detailed Explanation

Section 81 of the Gujarat Cooperative Societies Act, 1961 empowers the members to question the auditor at the AGM. This section states that at every AGM, the auditor of the cooperative society shall be present to answer any questions relating to the audit. This provision ensures transparency and accountability in the financial affairs of the society.

In practice, during the AGM, members have the right to seek clarifications from the auditor regarding the audit report, financial statements, discrepancies, or any other audit-related matters. The auditor is obligated to provide satisfactory explanations to the queries raised by the members. This interaction between the auditor and members helps in ensuring that the audit process is conducted effectively and the financial position of the society is accurately represented.

Real-world Scenarios

• At an AGM of a cooperative housing society, a member raises concerns about the increase in maintenance charges. The member questions the auditor about the justification for the rise in expenses and seeks detailed explanations regarding the financial statements.

• In another scenario, during the AGM of a cooperative credit society, a member queries the auditor about the discrepancies noted in the audit report related to loan disbursements. The auditor clarifies the findings and addresses the member's concerns.

Reference

• Section 81 of the Gujarat Cooperative Societies Act, 1961: Official PDF