Hong Kong Regulations

CO-OPERATIVE SOCIETIES RULES - RULE 68

Audit and supervision fund

(1) There shall be constituted a fund to be known as the audit and supervision
fund and every registered society shall, when called upon to do so by the
Registrar, make annually a contribution to such fund.

(2) Until such time as a society has been established and registered for the
purposes of supervision and audit, such contributions shall be held by the
Registrar and administered by him on behalf of the contributing registered
societies.

(3) So long as the Registrar administers the fund on behalf of the
contributing registered societies, he shall report in every year to the
Government in respect of the income derived from contributions, the
expenditure he has sanctioned from the fund and the balance in his hands.

(4) As soon as a society for supervision and audit has been established and
registered, the fund shall be credited to such society and shall be utilized
by such society in accordance with its objects and by-laws.

(5) Until a society for supervision and audit has been established and
registered, the Registrar shall fix the amount of the annual contribution to
the fund of every registered society called upon to contribute to the fund.
The amount of every such annual contribution shall be subject to a maximum of
either five per cent of the net annual profits of the registered society or of
one per cent of the working capital of the registered society, and shall not
in any case be less than three per cent on the net annual profits or one half
per cent of the working capital.