Friendly and Industrial and Provident Societies Act 1968

4 Obligation to appoint auditors. E+W+S

(1) Subject to the following provisions of this section [F1 and section 4A(1) of this Act], every society shall in each year of account beginning on or after 1st January 1969 appoint a qualified auditor or qualified auditors to audit its accounts and balance sheet for that year.

(2) Subsection (1) of this section shall not apply to any society . . . F2 if—

(a) the receipts and payments of that society in respect of the preceding year of account did not in the aggregate exceed £5,000;

(b) the number of its members at the end of that year did not exceed five hundred; and

(c) the value of its assets at the end of that year did not in the aggregate exceed £5,000.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

(4) A society to which by virtue of subsection (2) . . . F2 of this section subsection (1) of this section does not apply in respect of any year of account is in this Act referred to as an exempt society in respect of that year of account.

(5) Subject to any direction given by the [F4 Authority] under the next following subsection, every society which is an exempt society in respect of the current year of account shall in that year appoint at its option either—

(a) a qualified auditor or qualified auditors, or

(b) two or more persons who are not qualified auditors,

to audit its accounts and balance sheet for that year.

(6) The [F4 Authority] may give a direction in the case of any particular society which is an exempt society in respect of the current year of account requiring it to appoint a qualified auditor to audit its accounts and balance sheet for that year.

(7) The [F4 Authority] may give a direction in the case of any particular society which was an exempt society in respect of any year of account before the year of account in which that direction is given and did not appoint a qualified auditor or qualified auditors to audit its accounts and balance sheet for that year—

(a) requiring it to appoint a qualified auditor to audit those accounts and that balance sheet, and

(b) in a case where that society has sent to [F5 the Authority] its annual return for that year before the date of the direction, requiring it after its accounts and balance sheet have been audited by a qualified auditor to send to [F5 the Authority] within three months from receipt of the direction a further annual return complying with the requirements of this Act and . . . F2 of section 39 of the Act of 1965 (other than that as to time of sending).

(8) Regulations made by the F6 . . .Treasury may—

(a) substitute for any sum or number for the time being specified in subsection (2) of this section . . . F2 such sum, number . . . F2 as may be specified in the regulations; and

(b) prescribe what receipts and payments of a society shall be taken into account for the purposes of those subsections.

Annotations:

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Amendments (Textual)

F1 S. 4(1) words inserted (1.9.1996) by S.I. 1996/1738, arts. 1, 9(5)

F2 Words repealed by Friendly Societies Act 1974 (c. 46), Sch. 11

F3 Ss. 3(6), 4(3), 9(8), 11(4)(6)-(8), 16, 17(4), Sch. 1 paras. 1-8, Schs. 2, 3 paras. 5, 6 repealed by Friendly Societies Act 1974 (c.46), Sch. 11

F4 Words in s. 4(5)(6)(7) substituted (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(1), Sch. 3 Pt. III para. 248(a) (subject to savings and transitional provisions in art. 13(3)); S.I. 2001/3538, art. 2(1)

F5 Words in s. 4(7)(b) substituted (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(1), Sch. 3 Pt. III para. 248(b) (subject to savings and transitional provisions in art. 13(3)); S.I. 2001/3538, art. 2(1)

F6 Words in s. 4(8) repealed (1.12.2001) by S.I. 2001/2617, arts. 2(b), 13(1)(2), Sch. 3 Pt. III para. 248(c), Sch. 4 (subject to savings and transitional provisions in art. 13(3)); S.I. 2001/3538, art. 2(1)

Modifications etc. (not altering text)

C1 S. 4 extended (1.10.1996) by 1996 c. 52 s. 7, Sch. 1 Pt. III para. 17; S.I. 1996/2402, art. 3

S. 4 applied (1.11.2001) by 2001 asp 10, s. 63, Sch. 7 para. 14; S.S.I. 2001/336, art. 2(3), Sch. Pt. II (subject to transitional provisions in art. 3)

C2 S. 4(1) extended by Housing Associations Act 1985 (c. 69, SIF 61), s. 25

C3 S. 4(8): transfer of functions (1.12.2001) by virtue of S.I. 2001/2617, arts. 2(b), 4(1), Sch. 1 Pt. I (with art. 5); S.I. 2001/3538, art. 2(1)