(1) Every co-operative society shall [within a period of six months of close of the financial year,] call in the manner prescribed thereon, an annual general meeting for the purpose of -
(a) approval of the programme of the activities of the society prepared by the committee for the ensuing year;
(b) consideration of the accounts and annual report prepared in the prescribed manner;
(c) consideration of the audit report prepared in the manner prescribed, and the compliance thereof;
(d) disposal of the net profits; and
(e) consideration of any other matter which may be brought forward in accordance with the bye-laws;
Provided that if no such meeting is called within the time aforesaid, the Registrar or any other person authorised by him may call such meeting in the manner prescribed and that meeting shall be deemed to be a general meeting duly called by the society:
Provided further that the Registrar may order that the expenditure incurred in calling such a meeting under the foregoing proviso shall be paid out of the funds of the society or by such person or persons who, in the opinion of the registrar, were responsible for the refusal or failure to convene the general meeting.
(2) If default is made in calling a general meeting within the period prescribed therefor or in complying with the requirements of subsection (1), the Registrar may, after giving an opportunity of being heard, declare the members of the committee disqualified for continuing as members of such committee and for being elected as members of the committee of any other society, for a period of five years; and if the default is committed by an officer or an employee of the society, the Registrar may, after giving him an opportunity of being heard, impose on him a penalty of Rs. 1000/-.