| |
PART VII
Accounts and Audit
|
|
|
Accounting records, systems of business control and keeping of title deeds.
|
76.—(1) A building society shall—
|
|
| |
(a) cause proper accounting records to be kept on a continuous and consistent basis, and
|
|
| |
(b) establish and maintain systems of control of its business and records and systems of inspection and report thereon,
|
|
| |
in accordance with this section.
|
|
| |
(2) The accounting records of a society shall be such as to—
|
|
| |
(a) correctly record and explain the transactions of the society;
|
|
| |
(b) disclose, with reasonable accuracy and promptness, the financial position of the society at any time;
|
|
| |
(c) enable the directors properly to discharge the duties imposed on them by or under this Act and their functions of direction of the affairs of the society;
|
|
| |
(d) enable the society properly to discharge the duties imposed on it by or under this Act; and
|
|
| |
(e) enable the accounts of the society to be readily and properly audited.
|
|
| |
(3) Without prejudice to the generality of subsection (1) or (2), accounting records kept pursuant to this section shall contain—
|
|
| |
(a) entries from day to day of all sums of money received and expended by the society and the matters in respect of which the receipt and expenditure take place;
|
|
| |
(b) a record of the assets and liabilities of the society and entries from day to day of every transaction entered into by the society which will or may give rise to liabilities or assets of the society; and
|
|
| |
(c) in respect of the provision of services, a record of the services provided and of all the invoices relating thereto.
|
|
| |
(4) For the purposes of subsection (1) proper accounting records shall be deemed to be kept if they comply with subsections (2) and (3), and give a true and fair view of the state of affairs of the society and explain its transactions.
|
|
| |
(5) The systems of control which are to be established and maintained by a society pursuant to subsection (1) are systems for the control of the conduct of its business as required by or under this Act and in accordance with the decisions of the board of directors and for the control of the accounting and other records of its business and no such systems shall be treated as established or maintained unless there is kept available to the board a detailed statement in writing of the systems as in operation for the time being.
|
|
| |
(6) The systems of inspection and report which are to be established and maintained by a society pursuant to subsection (1) are systems of inspection on behalf of, and report to, the board of directors on the operation of the systems of control of the society's business and records as required by subsection (5).
|
|
| |
(7) Without prejudice to the generality of subsection (1), the systems of control and of inspection and report must be such as to secure that the society's business is so conducted and its records so kept that—
|
|
| |
(a) the information necessary to enable the directors and the society to discharge their duties and functions is sufficiently accurate, and is available with sufficient regularity or at need and with sufficient promptness for these purposes; and
|
|
| |
(b) the information obtained by or furnished to the Central Bank is sufficiently accurate for the purposes for which it is obtained and is available as required by the Bank.
|
|
| |
(8) The accounting records of a society shall be kept at the chief office of the society or at such other place as the directors think fit and shall at all reasonable times be open to inspection by the directors.
|
|
| |
(9) Every record required to be kept under this section shall be preserved by the society for a period of not less than 6 years after the latest date to which it relates.
|
|
| |
(10) Where a society has subsidiaries, the society shall also secure that such accounting records are kept and such systems of control and of inspection and report are established and maintained by the society and the subsidiaries as will enable the society to comply with the requirements of this section in relation to the business of the society and those subsidiaries.
|
|
| |
(11) Every society shall establish and maintain a system to ensure the safe custody of all documents of title belonging to the society and of deeds relating to property mortgaged to the society.
|
|
| |
(12) (a) A society which contravenes this section or a director of a society or a chief executive who fails to take all reasonable steps to secure compliance by the society with this section or has, in the case of a director or chief executive, by his own wilful act been the cause of any default by the society thereunder, shall, in respect of each such failure or act, be guilty of an offence.
|
|
| |
(b) In any proceedings under this subsection against a person for an offence of failing to take all reasonable steps to comply with this section it shall be a defence to prove that he had reasonable grounds for believing and did believe that a competent and reliable person was charged with the duty of ensuring such compliance and was in a position to discharge that duty.
|
