Sections 74 to 76 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 74 to 76 are three short rules on what happens to the audit report once it is made. Only the appointed auditor may sign it (section 74). It must be read before the general meeting and be open to inspection by any member (section 75). And the auditor must receive every notice and communication that members get, and may attend and be heard at any general meeting on business that concerns him (section 76). None was amended in 2023. They are stated here as per the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023.
Only the person appointed as auditor may sign the auditor's report or sign or authenticate any other document that the law requires the auditor to sign or authenticate (s.74). The report must be read before the general meeting and is open to inspection by any member (s.75). The auditor is sent all notices and communications that members are entitled to receive and is entitled to attend and be heard at any general meeting on any part of the business that concerns him as auditor (s.76).
Section 74: who signs the report
"Only the person appointed as an auditor of the multi-state cooperative society shall sign the auditor's report, or sign or authenticate any other document of the multi-state cooperative society required by law to be signed or authenticated by the auditor."
The rule has two limbs: the auditor's report, and "any other document" that "law" requires the auditor to sign or authenticate. The phrase "required by law" is not limited to this Act. The section ties signature to appointment: a person who has not been appointed under section 70 cannot sign, and a person who has been appointed and then deemed to have vacated office under section 72(4) is no longer "the person appointed". Appointment is explained in our note on appointment and remuneration of auditors.
For a society with several auditors, or with a branch auditor whose report is forwarded to the main auditor under section 73(4)(c), the section does not say how signature is shared; it says only that the person appointed signs. If you are checking that your audit documents are signed by the right person, our legal due diligence team can help.
Section 75: reading and inspection
"The auditor's report shall be read before the multi-state cooperative society in the general meeting and shall be open to inspection by any member of the multi-state cooperative society."
| Duty or right | Text |
|---|---|
| Reading | "shall be read before the multi-state cooperative society in the general meeting" |
| Inspection | "shall be open to inspection by any member" |
Two points of reading. First, the duty to read is in terms mandatory and is not limited to a particular general meeting; the report is laid before the society in general meeting under section 73(3), and the reading is naturally at that meeting. Second, the right of inspection belongs to "any member": the member need not be a director or hold a minimum number of shares. The section says nothing about copies, a fee or a time limit for inspection, and we say nothing either.
Under section 70(3A), inserted in 2023, the auditor must submit the report to the society within six months of the close of the financial year; the annual general meeting at which it is read is dealt with in our note on the annual general meeting.
Section 76: the auditor's right to notices and to attend
"All notices of, and other communications relating to, any general meeting of a multi-state cooperative society, which any member of the multi-state cooperative society is entitled to have sent to him, shall also be forwarded to the auditor of the multi-state cooperative society; and the auditor shall be entitled to attend any general meeting and to be heard at any general meeting which he attends on any part of the business which concerns him as auditor."
The section gives two rights:
- to receive everything a member is entitled to receive about a general meeting (notices and "other communications relating to" it); and
- to attend "any general meeting" and be heard on "any part of the business which concerns him as auditor".
The right to be heard is limited to business that concerns him as auditor. It is wider than the annual general meeting at which he is appointed, since it covers "any general meeting". A resolution to replace him, for instance, concerns him, and section 71 separately gives the retiring auditor the right to have written representations circulated or read; see our note on concurrent audit, auditor resolutions and qualifications.
The section does not say who forwards the notices, and does not say what follows if they are not forwarded. The effect of an omission on a meeting is not addressed in these sections.
How the three sections fit together
Section 73 makes the auditor report to the members. Section 74 says who can sign it. Section 75 says the members hear it and can inspect it. Section 76 makes sure the auditor is present or at least informed. Together they guard against two risks: a report that is signed by the wrong person, and a report that is made without the members or the auditor knowing about the meeting. Beyond these, the Central Government's power of special audit in section 77 provides a separate route when the affairs of a society are of concern; see our note on special audit directed by the Central Government.
A practical example
The auditor of Sagar Multi-State Co-operative Society completes his report. A junior in his office offers to sign it for him because he is travelling; section 74 does not allow it, since only the person appointed as auditor may sign. At the annual general meeting the Chief Executive has the report read out, and a member asks to inspect the full report the next morning; section 75 makes it open to his inspection. The society had forgotten to send the auditor the notice of a special general meeting called to discuss the audit. Section 76 required the notice to be forwarded to him, and he may attend and be heard on the part of the business that concerns him.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| ss.74, 75, 76 | As printed above | Unchanged |
The 2023 Amendment Act is Act 11 of 2023 and came into force on 3 August 2023 by notification S.O. 3493(E). The principal Act came into force by notification, date not in the source. The 2023 changes that surround these sections are in section 70 (panel, six-month report) and section 73 (standards).
Need help with audit reporting?
A society should be able to show who signed its audit report, when the report was read to the general meeting and that the auditor was sent every notice. Our legal due diligence team can check those records before the next annual general meeting.
Key takeaways
- Only the person appointed as auditor may sign the auditor's report or any other document the law requires him to sign or authenticate.
- The report must be read before the general meeting and is open to inspection by any member.
- The auditor must be sent every notice and communication that members are entitled to receive about a general meeting.
- The auditor may attend any general meeting and be heard on business that concerns him as auditor.
Read next
- Powers and duties of auditors and audit standards (section 73)
- Special audit directed by the Central Government (section 77)
- Annual general meeting of the general body (section 39)
- Multi-State Co-operative Societies Act, 2002: complete guide
Disclaimer: Based on the Ministry of Cooperation copy of the Multi-State Co-operative Societies Act, 2002 read with the Multi-State Co-operative Societies (Amendment) Act, 2023 (in force from 3 August 2023), as consulted on 2 October 2026. The Multi-State Co-operative Societies Rules, 2002 as amended, later notifications and later amendments are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.