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Keeping of books of account, etc.
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59.—(1) Every society shall cause to be kept proper books of account relating to all sums of money received and expended by it, the matters in respect of which income and expenditure takes place and all assets and liabilities of the society.
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(2) Every society shall establish and maintain a system of control and inspection of its books of account and a system for supervising its cash holdings and all receipts and remittances.
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(3) For the purposes of subsection (1), proper books of account shall be deemed to be kept in relation to the matters mentioned in that subsection only if there are kept such books as are necessary to give a true and fair view of the state of the society's affairs and to explain its transactions.
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(4) Every society shall establish and maintain a system to ensure the safe custody of all documents of title belonging to the society and of the deeds relating to property mortgaged to the society.
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(5) For the purposes of subsection (4), a society shall be deemed not to have established a proper system unless under the system the consent of the board of directors (or of a person so authorised by the board of directors) is required on each occasion on which any such document of title or deed is released from the custody of the officers of the society.
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(6) The books of account 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.
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(7) Every record (other than a document or deed referred to in subsection (4)) required to be kept under this section shall be preserved by the society for a period of not less than six years after the date to which it relates.
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(8) (a) Where a director of a society fails to take all reasonable steps to secure compliance by the society with this section or has by his own wilful act been the cause of any default by the society thereunder, he shall, in respect of each such failure or act, be guilty of an offence and shall be liable on conviction on indictment to a fine not exceeding £300.
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(b) In any proceedings under this subsection for an offence of failing to take all reasonable steps to comply with this section, it shall be a defence to prove that the defendant had reasonable grounds for believing that a competent and reliable person was charged with the duty of ensuring such compliance and was in a position to discharge that duty.
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