Dáil Éireann debate -
Tuesday, 25 Mar 1997

Vol. 476 No. 7

Written Answers. - Registration of Co-ops.

Frank Crowley

Question:

356 Mr. Crowley asked the Minister for Enterprise and Employment if he will ensure that the Registrar of Friendly Societies insists that updated co-operative rules must stipulate that the shareholders must give prior notice of their intention to change financial auditors. [8236/97]

Minister for Enterprise and Employment (Mr. R. Bruton)

While there is no statutory requirement that co-operatives should be registered under the Industrial and Provident Societies Acts, 1893 to 1978, it is the case that most co-operatives are so registered.

The Second Schedule to the Industrial and Provident Societies Act, 1893, describes the items that should be included in the rules of any society registered under that Act. For instance, paragraph 8 of the schedule requires provision to be made for the audit of accounts and for the appointment of auditors or a public auditor, while paragraph 3 of the same schedule deals,inter alia, with the mode of holding meetings. There is, however, no requirement under the Acts that shareholders must give notice of their intention to change financial auditors, and the registrar considers it unlikely that any co-operatives have rules which would provide specifically for such notice. If the Deputy has a particular case in mind, I will be happy to check out the position if he communicates with me.

Case law over the years has established that the Registrar of Friendly Societies cannot oblige societies, including co-operatives registered under the Industrial and Provident Societies Acts, to include provisions in their rules over and above those required by law. Accordingly, the registrar considers that he is not in a position under existing legislation to require the stipulation suggested by the Deputy, if societies were not prepared to amend their rules in the manner suggested on a voluntary basis.