Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗
Societies to be bodies corporate
11.—(1) A society on registration becomes a body corporate by the name under which it is registered, with perpetual succession, and with power to hold movable and immovable property, to enter into contracts, to sue and be sued and to do all things necessary for the purposes of its constitution.[3/2018] (2) A society may, but need not, have a common seal.[3/2018]
Acts of societies not to be invalidated by certain defects
12. No act of a society or any committee of management or any officer is deemed to be invalid by reason only of the existence of any defect in the constitution of the society or of the committee of management or in the appointment or election of an officer or on the ground that the officer was disqualified for his or her appointment.
Power to federate
13.—(1) Societies may form secondary societies and an apex organisation. (2) The functions of an apex organisation are as follows:(a) to give such assistance and advice in the formation, organisation and operation of societies as will enable the societies to comply with the provisions of this Act and the Rules; (b) to provide, organise and supervise effective centralised services for co‑operative education and training, supplies, marketing, banking, transport, accounting, audit, consultancy and such other services as may be necessary for societies; (c) to promote good governance standards in societies; (d) to carry out such other functions or duties as may be conferred on the apex organisation by this Act or the Rules.[3/2018]
Power to make by-laws
14.—(1) A society may, subject to the Registrar’s approval, make any by-laws that are necessary or desirable for the purposes for which the society is established. (2) The by-laws of every society must include provisions in respect of matters mentioned in the Schedule.
Amendment and registration of by-laws
15.—(1) A society may, subject to this Act, amend its by-laws. (2) No by-law or amendment to a by-law of a society is valid until it has been registered by the Registrar. (3) No amendment of by-laws may be registered unless a resolution to amend the by-laws is passed either —(a) by at least three-quarters of the members present and voting at a general meeting duly summoned; or (b) if a referendum is held, by at least three-quarters of the votes returned, provided that the voting papers have been sent to all members of the society and that the number of returned votes is at least one-third of the total membership or 500, whichever is the less, and the returned votes are examined and counted under the Registrar’s supervision. (4) Every application for the registration of the amended by‑laws must —(a) be signed by the chairperson or the secretary of the society;[Act 17 of 2024 wef 18/07/2024] (b) contain such information as the Registrar may require; (c) be accompanied by a copy of the amendment and the relevant resolution, and such other documents as the Registrar may require; and (d) be accompanied by such fee as may be prescribed. (5) The Registrar may register a by-law or an amendment to a by‑law if the Registrar is satisfied that it is not inconsistent with the provisions of this Act and the Rules. (6) If the Registrar refuses to register a by-law or an amendment to a by-law, the Registrar must record in writing the reasons for the Registrar’s refusal and must inform the society of the Registrar’s decision. (7) Where the Registrar refuses to register a by-law or an amendment to a by-law, an appeal may be made to the Minister within 2 months after the Registrar informs the society of the Registrar’s decision under subsection (6) and the decision of the Minister is final.[3/2018] (8) Where the Registrar registers a by-law or an amendment to a by‑law, the Registrar must send a copy of the by‑law or the amendment thereto with a notice of registration to the society.
By-laws to bind members
16.—(1) Subject to subsection (2), the by‑laws and any amendment to the by‑laws of a society, when registered, bind the society and the members thereof to the same extent as if they were signed by each member and contained covenants on the part of each member for the member and the member’s personal representatives to observe all the provisions of the by-laws.[3/2018] (2) An amendment of the by‑laws of a society that has any of the following effects does not bind anyone who becomes a member of the society before the registration of that amendment under section 15, unless that member consents in writing to that amendment binding that member:(a) that amendment requires that member —(i) to take or to subscribe for more shares than the number held by that member immediately before the date of registration of that amendment under section 15; or (ii) to pay upon the shares so held by that member any sum exceeding the amount unpaid upon those shares at that date; (b) that amendment increases (in any other way) the liability of that member at any time to contribute to the share, subscription or loan capital of the society; (c) that amendment will cause or require any shares of that member (being an institutional member) to be converted into permanent shares.[3/2018]
Conversion from non-credit society to credit society
16A.—(1) A non-credit society must not provide any financial service.[3/2018] (2) A non‑credit society that intends to provide any financial service must apply to the Registrar, in such manner as may be prescribed, for the Registrar’s written approval to become a credit society.[3/2018] (3) Every application made by a non-credit society under subsection (2) must be accompanied by such fee as may be prescribed. (4) The Registrar may require a non-credit society to furnish the Registrar with the information or documents that the Registrar considers necessary in relation to the application. (5) The Registrar may grant the written approval if the Registrar is satisfied that all of the following requirements will be met upon the conversion of the non‑credit society to a credit society:(a) the primary object of the society is to provide any financial service; (b) the provision of the financial service is in the interests of the members of the society; (c) the by‑laws of the society are, or are amended under section 15 to be, consistent with the criterion in section 39(4) for membership in the society; (d) there is available sufficient capital for the provision of the financial service by the society; (e) the society is able to meet such minimum financial or prudential requirements, or such other requirements, as may be prescribed, either generally or specifically; (f) there are available officers who, having regard to their qualifications, experience, reputation, character, financial integrity and reliability, are capable of —(i) directing and managing the provision of the financial service by the society; and (ii) keeping the records and accounts of the society.[3/2018] (6) The Registrar may grant the written approval subject to any terms and conditions that the Registrar thinks fit.[3/2018] (7) Where the Registrar grants written approval for a non‑credit society to become a credit society, the Registrar must —(a) notify the society in writing that it is registered as a credit society to provide the financial service specified in the notice, starting on a date specified in the notice; and (b) amend the register of societies to show that the society is registered as a credit society to provide that financial service.[3/2018] (8) A non‑credit society that is granted written approval to become a credit society —(a) must not provide any new service other than a financial service, starting on such date as the Registrar may determine (being a date that may be different from the date mentioned in subsection (7)(a)); but (b) may continue to provide indefinitely any service (not being a financial service) that was carried on by the society immediately before that date.[3/2018] (9) A non‑credit society that is aggrieved by a decision by the Registrar to refuse written approval for the non‑credit society to become a credit society may, within 2 months after the date of the decision, appeal in writing to the Minister, whose decision is final.[3/2018] (10) Any non‑credit society that contravenes subsection (1) or (8)(a) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for each day or part of a day during which the offence continues after conviction.[3/2018]
Control of credit societies
16B.—(1) No credit society may, without the Registrar’s written approval, provide, or enter into any partnership, joint venture or other arrangement with any person to provide, any financial service other than the financial service or services which it is registered to provide. (2) Any credit society which contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction.
Conversion from credit society to non-credit society on application
16BA.—(1) A credit society that intends to stop providing every financial service carried on by the society, and does not intend to provide any new financial service, must apply to the Registrar, in such manner as may be prescribed, for the Registrar’s written approval to become a non‑credit society.[3/2018] (2) An application under subsection (1) must be accompanied —(a) by the prescribed application fee, if any; and (b) by such documents and information as the Registrar requires in relation to the application.[3/2018] (3) The Registrar may grant the written approval if the Registrar is satisfied that all of the following requirements will be met upon the conversion of the credit society to a non-credit society:(a) the object of the society is to provide any service other than any financial service; (b) the provision of the service mentioned in paragraph (a) is in the interests of the members of the society; (c) there is available sufficient capital for the provision of the service mentioned in paragraph (a) by the society; (d) there are available officers who are capable of —(i) directing and managing the provision of the service mentioned in paragraph (a) by the society; and (ii) keeping the records and accounts of the society.[3/2018] (4) The Registrar must not grant the written approval unless a resolution for the conversion of the credit society to a non‑credit society has been passed at a general meeting of the credit society by at least 75% of the members of the society present and voting.[3/2018] (5) The Registrar may grant the written approval subject to any terms and conditions that the Registrar thinks fit.[3/2018] (6) Where the Registrar grants written approval for a credit society to become a non‑credit society, the Registrar must notify the society in writing that its registration as a credit society is cancelled, starting on a date specified in the notice.[3/2018] (7) A credit society that is granted written approval to become a non-credit society —(a) must stop doing all of the following things, starting on such date as the Registrar may determine (being a date that may be different from the date mentioned in subsection (6)):(i) make any new loan to any person; (ii) allow any new credit to any person; (iii) receive any new deposit from any person; and (b) must return, to every person from whom the society had received a deposit in accordance with section 68(2) while the society was a credit society, the deposit made by the person (including any interest accrued on the deposit) within 12 months after the date on which the registration of the society as a credit society is cancelled, or such shorter or longer period as the Registrar may determine in any particular case.[3/2018] (8) A society that becomes a non-credit society may continue to receive repayments of existing loans made and credit allowed in accordance with section 67 while the society was a credit society.[3/2018] (9) A credit society that is aggrieved by a decision by the Registrar to refuse written approval for the credit society to become a non‑credit society may, within 2 months after the date of the decision, appeal in writing to the Minister, whose decision is final.[3/2018] (10) Any society that contravenes subsection (7) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for each day or part of a day during which the offence continues after conviction.[3/2018]
Modifying of terms and conditions of written approval
16BB.—(1) The Registrar may modify the terms and conditions of a written approval under section 16A(5) or 16BA(3).[3/2018] (2) The Registrar must, before modifying the terms and conditions of a written approval under section 16A(5) or 16BA(3), give to the society concerned —(a) notice in writing of the Registrar’s intention to do so; and (b) an opportunity to make written representations, within the time specified in the notice (being at least 14 days after the date the notice is served on the society), as to why the term or condition should not be modified.[3/2018] (3) The Registrar must notify the society in writing of the Registrar’s decision whether to modify the terms and conditions of a written approval under section 16A(5) or 16BA(3).[3/2018] (4) Where the Registrar decides to modify the terms and conditions of a written approval under section 16A(5) or 16BA(3), the written notice in subsection (3) must specify a date (at least 14 days after the date of the notice) when the modification is to take effect.[3/2018] (5) A society that is aggrieved by the Registrar’s decision to modify the terms and conditions of a written approval under section 16A(5) or 16BA(3) may, within 14 days after the decision or such longer period as the Minister may allow in any particular case, appeal in writing to the Minister, whose decision is final.[3/2018] (6) If the society appeals to the Minister under subsection (5), the decision appealed against does not take effect unless the decision is confirmed by the Minister, or the appeal is withdrawn or is for any reason dismissed by the Minister.[3/2018] (7) In this section, “modify”, in relation to the terms and conditions of a written approval under section 16A(5) or 16BA(3), includes deleting or varying and substituting such a term or condition, and adding a term or condition of such a written approval.[3/2018]
Change of name of society
16C.—(1) Despite anything in sections 6 and 15, where the Registrar is satisfied that a society has been registered (whether through inadvertence or otherwise and whether before, on or after 20 October 2008) by a name —(a) which is referred to in section 6(1); or (b) the use of which has been restrained by an injunction granted under the Trade Marks Act 1998, the Registrar may, by a written direction, direct the society to change its name to such other name as the Registrar may approve in accordance with such terms and conditions as may be specified in the written direction. (2) Every society which has been directed to change its name under subsection (1) must comply with the written direction within the time specified in the written direction, unless the written direction is annulled by the Minister. (3) Any society that is aggrieved by the Registrar’s written direction to change its name under subsection (1) may, within 2 months after the issue of the written direction, appeal to the Minister whose decision is final.[3/2018] (4) A change of name of a society pursuant to this Act does not affect the identity of the society or any right or obligation of the society or any of its members or past members, and any legal proceedings that might have been continued or commenced by or against it by its former name may be continued or commenced by or against it by its new name.
Address of society
17.—(1) Every society must have an address registered in accordance with this Act to which all notices and communications must be sent. (2) The Registrar will register, as the registered address of a society —(a) the address declared in the application for registration of the society to be the address of the society; or (b) if the society changes its address, the new address of which notice is given to the Registrar under subsection (3).[3/2018] (3) A society must give the Registrar, and every creditor of the society who is not a member of the society, notice of any change of the address of the society within 30 days after the date of the change.[3/2018]
Register of members and shares
18.—(1) Every society must maintain a register of members, and where a society issues shares to its members, a register of shares held by each member. (2) Where a society issues permanent shares to its institutional members, the number of permanent shares held by each institutional member must be recorded in the society’s register of shares.[3/2018] (3) The register of members and shares is prima facie evidence of any of the following particulars entered in the register:(a) the date on which the name of any person was entered in the register as a member; (b) the date on which any such person ceased to be a member; and (c) the number of shares held by a member.
Relevant particulars of officers of society
19.—(1) The Registrar may issue a written direction requiring a society to provide the relevant particulars of any officer of that society specified in the direction, whether that officer was appointed or elected before, on or after 10 April 2018.[3/2018] (2) A society must give the Registrar the relevant particulars of each officer mentioned in the direction under subsection (1) within such period (being at least 30 days) as that direction may specify.[3/2018] (3) A society must give the Registrar notice of any change to any of the relevant particulars of an officer given under subsection (2) within 30 days after the date of that change.[3/2018] (4) In this section, “relevant particulars”, in relation to an officer of a society, means —(a) the name of the officer; (b) the occupation of the officer; (c) a residential or business address in Singapore at which —(i) the officer can be located; and (ii) the Registrar may correspond with the officer; and (d) any other particulars of the officer that the Registrar may, by a written direction, require that society to provide.[3/2018]
Copy of this Act, Rules, by-laws and list of members open to inspection
20. Every society must keep a copy of this Act, the Rules, its by‑laws and a list of its members open to inspection by its members free of charge, at all reasonable times at the registered address of the society.
Contracts with members
21.—(1) A society which has as one of its objects the disposal of any article produced or obtained by the work or industry of its members, whether the produce of handicraft, agriculture, animal husbandry, fisheries or otherwise, may provide in its by-laws or may otherwise contract with its members —(a) that every such member who produces any such article must dispose of the whole or any specified amount, proportion or description thereof to or through the society; and (b) that a member who is proved or adjudged, in accordance with the provisions of this Act and in such manner as may be prescribed by the by-laws, to be guilty of a breach of the by-laws or contract must pay to the society as liquidated damages a sum ascertained or assessed in such manner as may be prescribed by the by-laws. (2) The validity of a by-law made by a society or a contract entered into under this section is not affected by reason only that it constitutes a contract in restraint of trade.
Imposition of fines upon members
22.—(1) The by-laws may provide for the imposition of fines on its members for any infringement of its by-laws, but no such fine may be imposed upon any member until a written notice of the intention to impose the fine and the reason therefor has been served on the member and the member has had an opportunity of being heard or otherwise showing cause why the fine should not be imposed. (2) No fine exceeding $500 may be imposed except with the Registrar’s written approval. (3) Any such fine is recoverable by the society as a debt due to the society.
Creation of charges in favour of societies
23.—(1) Subject to any other written law as to priority of debts, where a society has —(a) supplied to a member or past member industrial implements or machinery or materials for manufacture or building, or seeds, fertiliser, animals, feeding stuffs or agricultural implements; (b) rendered services to a member or past member; or (c) lent money to a member or past member to enable the member or past member to buy those things or to obtain those services, the society has a first charge upon those things or (as the case may be) upon industrial or agricultural produce, animals or articles produced therewith or therefrom or with the aid of the money, except that nothing herein contained affects the claim of a bona fide purchaser or transferee without notice. (2) Outstanding demands or dues payable to a housing society by a member or past member in respect of rent, shares, loans or purchase money or any other rights or amounts payable to the society are a first charge upon the member’s or past member’s interest in the immovable property of the society.
Charge and set-off in respect of shares or interest of members
24. A society has a charge upon the share or interest in the capital and on the deposits of a member or past member or deceased member and upon a dividend or patronage refund payable to a member or past member or to the estate of a deceased member in respect of a debt due to the society from the member or past member or estate, and may set‑off a sum credited or payable to a member or past member or estate of a deceased member for the payment of any such debt.
Shares or interest not liable to attachment or sale
25. Subject to section 24, the share or interest of a member in the capital of a society is not liable to attachment or sale under any decree or order of a court in respect of a debt or liability incurred by the member, and neither the member’s assignee in insolvency nor a receiver duly appointed is entitled to, or have a claim on, that share or interest.
Transfer of shares or interest where member dies or lacks capacity
26.—(1) On the death of a member, a society may transfer the share or interest of the deceased member —(a) to the person nominated by the member in accordance with section 45; (b) if there is no person so nominated, to such person as may appear to the committee of management of the society to be the legal personal representative of the deceased member; or (c) if either of those persons referred to in paragraphs (a) and (b) is not qualified under this Act or under the by-laws of the society for membership, to such other person who is so qualified, to be specified within 6 months after the death of the deceased member by the nominee or legal personal representative, as the case may be.[3/2018] (2) A society may pay all other moneys due to the deceased member from the society to such nominee or legal personal representative, as the case may be. (3) Where the committee of management of a society is satisfied that an individual (being a member or a person claiming through a member) lacks capacity to manage the individual’s property and affairs and that it is just and expedient to do so, the society may pay or transfer the individual’s share or interest, or the value of all the moneys due to the individual from the society, to a person whom the committee of management is of the view is the proper party to receive the same on the individual’s behalf.[3/2018] (4) A payment or transfer cannot be made under subsection (3) where the individual lacks capacity to manage the individual’s property and affairs, and —(a) there is in force a lasting power of attorney conferring on a donee authority to make decisions about the individual’s property and affairs (either generally or for the purposes of this Act); or (b) a deputy is or is deemed appointed to make decisions on the individual’s behalf in relation to the individual’s property and affairs (either generally or for the purposes of this Act).[3/2018] (5) The value of the share or interest of a member mentioned in subsection (1), or of an individual (being a member or a person claiming through a member) mentioned in subsection (3), is represented by the sum actually paid by the member to acquire the share or interest unless the by-laws provide the calculation thereof otherwise.[3/2018] (6) All transfers and payments made by a society in accordance with this section are valid and effectual against a demand made upon the society by another person. (7) In this section —(a) “deputy”, “donee” and “lasting power of attorney” have the meanings given by section 2(1) of the Mental Capacity Act 2008; and (b) an individual lacks capacity in relation to a matter if the individual lacks capacity within the meaning of section 4 of the Mental Capacity Act 2008 in relation to that matter.[3/2018]
Deposits by or on behalf of minors
27.—(1) A credit society may receive deposits from or for the benefit of minors and it is lawful for a credit society to pay them the interest which may become due on the deposits. (2) A deposit made by a minor may, together with the interest accrued thereon, be paid to that minor; and a deposit made on behalf of a minor may, together with the interest accrued thereon, be paid to the guardian of that minor for the use of the minor. (3) The receipt of a minor or guardian for money paid to the minor or guardian under this section is a sufficient discharge of the liability of the credit society in respect of that money.
Contracts with members of society who are minors
28. The minority of a person duly admitted as a member of any society —(a) does not preclude that person from executing any instrument or giving a discharge necessary to be given under this Act or the Rules; and (b) is not a ground for invalidating or avoiding a contract entered into by any such person with the society, and the contract entered into by that person with the society, whether as principal or as surety, is enforceable at law or against that person despite the person’s minority, except that this section does not apply to school co‑operatives.
Proof of entries in books of society
29.—(1) A copy of an entry in a book of a society, regularly kept in the course of business, is prima facie evidence in any legal proceedings, civil or criminal, of the existence of the entry and of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is admissible. (2) Such copy of an entry in the book of a society must be certified by a written certificate at the foot of the copy, declaring that it is a true copy of the entry and that the book containing the entry is still in the custody of the society, the certificate being dated and signed by the chairperson and the secretary of the society. (3) No officer of any such society may, in any legal proceedings to which the society or the liquidator of the society is not a party, be compelled to produce any of the society’s books, the contents of which can be proved under subsection (1) or to appear as witness to prove matters, transactions or accounts therein recorded, unless the court for special reasons so directs.
Submission of minutes, returns and statements
32. Every society must submit to the Registrar the minutes of meetings and such information, returns and statements as the Registrar may, by written directions, require.
Documents, etc., to be in English
32A.—(1) Every document that a society is required to furnish or submit to, or lodge with, the Registrar must be in the English language or, if the document or any part of it is not in the English language, be accompanied by an accurate translation in the English language of that document or part.[3/2018] (2) The committee of management of the society must ensure the accuracy of the translation mentioned in subsection (1).[3/2018] (3) Where any document or part of a document which a society is required to keep under this Act is not in the English language, the committee of management of the society must —(a) cause an accurate translation in the English language of that document or part (as the case may be) to be made not later than 30 days after the document is made or received by the society; and (b) cause the translation to be kept with that document for so long as that document is required under this Act to be kept by the society.[3/2018] (4) In this section, “document” includes an account, a book or a record.[3/2018]
Keeping of records and documents, etc.
32B.—(1) Every society must keep or cause to be kept every record or document relating to its constitution, general meetings, membership, accounts, financial position or financial affairs, or the meetings of its committee of management, for a period of at least 5 years after the end of the last financial year to which any matter in that record or document relates.[3/2018] (2) A society may keep any record or document of the society in hard copy form or in electronic form.[3/2018] (3) A society must ensure that any record or document kept in electronic form is capable of being reproduced in hard copy form.[3/2018] (4) Where a society keeps any record or document in electronic form, the society must take reasonable precautions —(a) to ensure the proper maintenance of the record or document; (b) to prevent any falsification of the record or document; and (c) to facilitate the discovery of any falsification of a record or document.[3/2018]
Duty to inform Registrar of certain developments, etc.
32C.—(1) Where a credit society becomes aware of any development or circumstance specified in subsection (2), whether occurring before, on or after 10 April 2018, the credit society must immediately inform the Registrar, in the manner specified by the Registrar, of that development or circumstance.[3/2018] (2) The developments and circumstances mentioned in subsection (1) are as follows:(a) a development or circumstance which is likely to cause the society to become insolvent, to be unable to meet its obligations, to suspend payments to its members or creditors, or to be wound up under section 83, at any time on or after 10 April 2018; (b) a development or circumstance which adversely affects, or is likely to adversely affect, either or both of the following, at any time on or after 10 April 2018:(i) the interests of all or any of the classes of members of the society; (ii) the reputation of the society; (c) the institution or resolution, at any time on or after 10 April 2018, of any legal proceedings against the society, or against a member of the society in connection with the member’s conduct in any matter relating to the society or its affairs.[3/2018]
Audit of societies
33.—(1) Every society must at least once in every year have its books and accounts audited by a public accountant or a person authorised by the Registrar in writing. (2) A person is not eligible to be or remain an auditor of a society if the person —(a) has outstanding liabilities with the society or any of its related entities; (b) is an officer of the society; (c) is a partner, an employer or an employee of an officer of the society; or (d) is a partner or an employee of an employee of an officer of the society. (3) An auditor of a society has power —(a) to have at all reasonable times free access to all accounting and other records relating directly or indirectly to the financial transactions of the society; (b) to require the production of any book or document relating to the affairs of, or any property belonging to, the society by its officer, agent, employee or member in possession of the book, document or property; (c) to require any officer, agent, employee or member of the society to furnish any information in regard to any transaction of the society or the management of its affairs; and (d) to make copies of or extracts from accounting and other records, or retain possession of such records for such period as may be necessary to enable them to be inspected. (4) In this section, “related entity”, in relation to a society, means —(a) the parent society of the society, or a subsidiary of such a parent society; or (b) a subsidiary of the society.
Special audit of societies
33A.—(1) The Registrar or an authorised person may at any time conduct a special audit of a society that may cover one or more of the following matters:(a) the governance of the society; (b) the operations of the society; (c) the financial condition of the society; (d) the affairs of the society.[3/2018] (2) The Registrar or authorised person may, for the purpose of conducting the special audit, exercise all or any of the powers in section 77.[3/2018]
Annual reports, accounts and financial statements
34.—(1) A society must, as soon as practicable but not later than 6 months after the close of each financial year, submit to the Registrar an annual report on its activities during the year together with a copy of the audited financial statements of the society and the audit report for that year. (2) The annual report of a society must be prepared in such form and manner, and contain such information, as the Registrar may require.[3/2018] (3) The society must do all things necessary to ensure that all payments out of its moneys are correctly made and properly authorised and that adequate control is maintained over the assets of, or in custody of, the society and over the expenditure incurred by the society.[3/2018] (4) The society must —(a) keep such accounting and other records of its transactions and affairs as will sufficiently —(i) explain the transactions and financial position of the society; and (ii) enable the preparation from time to time of true and fair financial statements and any documents required to be attached to the financial statements; (b) cause the records to be kept in such manner as to enable them to be conveniently and properly audited; and (c) ensure that the financial statements give a true and fair view of the financial position and performance of the society.[3/2018] (5) [Deleted by Act 17 of 2024 wef 18/07/2024] (6) The Registrar may, on application by a society, extend the period of 6 months mentioned in subsection (1), if for any special reason the Registrar thinks fit to do so.[Act 17 of 2024 wef 18/07/2024] (7) Subject to subsections (9) and (10), the financial statements of a society must be in compliance with —(a) any accounting standards that may be made or formulated by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007 and applicable to the society; or[Act 36 of 2022 wef 01/04/2023] (b) other requirements substituted by the Minister in lieu of compliance with one or more requirements of the accounting standards referred to in paragraph (a). (8) The committee of management of a society must cause to be attached, to the audited financial statements of the society, such report (if any), in such form and manner and containing such information, as the Registrar may require.[3/2018] (9) Where the financial statements prepared in accordance with any accounting standard or requirement referred to in subsection (7) would not give a true and fair view of the financial position and performance of the society as at the end of the period to which they relate, the financial statements need not be in compliance with that accounting standard or requirement to the extent that this is necessary for them to give a true and fair view of the financial position and performance of the society.[3/2018] (10) In the event of any non-compliance with any accounting standard or requirement referred to in subsection (7), there must be included in the financial statements —(a) a statement by the auditor of the society that the auditor agrees that the non-compliance is necessary for the financial statements to give a true and fair view of the financial position and performance of the society; (b) particulars of the departure, the reason therefor and its effect, if any; and (c) such further information and explanation as will give a true and fair view of the financial position and performance of the society.[3/2018] (11) Any society which fails to comply with subsection (7) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000.
Duties of auditor
35.—(1) The auditor must inspect and audit the accounts and other relevant records of the society and must immediately draw the attention of the Registrar and the society to any irregularity disclosed by the inspection and audit that is, in the auditor’s opinion, of sufficient importance to justify the auditor so doing. (2) The financial statements submitted by the society after the close of the financial year must be audited and reported on by the auditor. (3) The auditor must report —(a) whether the financial statements give a true and fair view of the financial position and performance of the society; and (b) such other matters arising from the audit as the auditor considers should be reported.[3/2018] (4) The auditor must state in the auditor’s report whether —(a) proper accounting and other records have been kept; and (b) the receipt, expenditure and investment of moneys and the acquisition and disposal of assets by the society during the year have been in accordance with the by-laws and the provisions of this Act and the Rules. (5) The auditor may at any other time report to the Registrar and the society upon any matters arising out of the performance of the audit. (6) The audit of the accounts of a society must include an examination of and report on overdue debts (if any) and an examination of and report on the valuation of the assets and liabilities of the society.[3/2018] (7) The Registrar may impose additional duties on an auditor, including but not limited to the following:(a) a duty to submit to the Registrar such additional information in relation to the auditor’s audit as the Registrar considers necessary; (b) a duty to enlarge or extend the scope of the auditor’s audit of the transactions and affairs of the society; (c) a duty to carry out any other examination or establish any procedure in any particular case; (d) a duty to submit a report to the Registrar on any of the matters referred to in paragraphs (b) and (c), and the auditor must carry out such duty or duties. (8) The society must remunerate the auditor in respect of the discharge of such duty or duties as the Registrar may impose on the auditor under subsection (7), subject to the Registrar’s written directions. (9) If an auditor of a society, in the course of the performance of his or her duties as auditor, has reason to believe that an offence involving fraud or dishonesty is being or has been committed against the society by any officer or employee of the society and —(a) the offence is punishable by imprisonment for a term that is not less than 2 years; and (b) the value of the property obtained or likely to be obtained from the commission of the offence is not less than $20,000, the auditor must immediately report the matter to the Registrar. (10) An officer of a society who refuses or fails, without lawful excuse, to allow an auditor of the society access, in accordance with this section, to any accounting and other records, including registers, of the society in the officer’s custody or control, or to give any information or explanation as and when required under this section, or otherwise hinders, obstructs or delays an auditor in the performance of the auditor’s duties or the exercise of the auditor’s powers, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $4,000.
Audit committees
36.—(1) Every credit society must have an audit committee. (2) The committee of management of a credit society must appoint an audit committee —(a) which consists of at least 3 individuals (who may but need not be members of the committee of management), each of whom must be independent of the credit society in the manner prescribed; and (b) with at least one member possessing such qualifications, training or experience as may be prescribed.[3/2018] (3) If a member of an audit committee resigns, dies or for any other reason ceases to be a member with the result that the number of members is reduced below 3, the committee of management of the credit society must, within 3 months after that event, appoint such number of new members as may be required to make up the minimum number of 3 members.[3/2018] (4) The functions of an audit committee are —(a) to review —(i) with the auditor, the audit plan; (ii) with the auditor, the auditor’s audit report; (iii) the assistance given by the officers of the credit society to the auditor; (iv) the scope and results of the audit procedures; and (v) the financial statements of the credit society and, if the credit society is a parent society, the consolidated financial statements, submitted to the audit committee by the credit society or the parent society, and thereafter to submit them to the members of the committee of management of the credit society or the parent society; and (b) to nominate a person or persons as auditor, despite anything contained in the by-laws or section 33(1), together with such other functions as may be agreed to by the audit committee and the committee of management of the credit society. [3/2018] (5) The auditor has the right to appear and be heard at any meeting of the audit committee and must appear before the audit committee when required to do so by the audit committee. (6) Upon the request of the auditor, the chairperson of the audit committee must convene a meeting of the audit committee to consider any matter the auditor believes should be brought to the attention of the members of the committee of management, or the members, of the credit society. (7) Each audit committee may regulate its own procedure and, in particular, the calling of meetings, the notice to be given of such meetings, the voting and proceedings at such meetings, the keeping of minutes and the custody, production and inspection of such minutes.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. Read the official text ↗
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
The Singapore legislation on this platform is subject to copyright of the Singapore Government and is used/reproduced for the purposes of this platform with the permission of the Attorney-General's Chambers. Users of this platform may check Singapore Statutes Online for the latest version of the Singapore legislation.