24.1 All cooperative laws in the region based on British model have provisions for Enquiry and Inspection (Bangladesh, India, Malaysia, Nepal, Fiji, and Sri Lanka).
24.2 In the case of Indonesia under Article 39, Japan under article 93, and South Korea under article 164, the government has the power to inspect or examine the records and business of any cooperative.
24.3 The inspection or Enquiry can be suo motto or upon request by a specified number of members, but inspections on a regular basis is not mandatory. Only in Japan, under article 94.4, is it stated that the administrative authorities once a year shall inspect cooperative businesses and accounts. In the case of Filipino Law, there is no provision either for inspection or inquiry. In Fiji, under section 85, the supervisory committee of the society could initiate inquiry also.
24.4 The provision of regular inspections, as in Japan, could be provided in supplementary laws, ensuring that every cooperative is inspected by the Department, if not every year then at least every third years. The inspection should particularly examine the following:
24.5 The inspection report should be placed in the next General Assembly for information and follow-up. The department should take immediate action in case of any contravention of laws, bye-laws and laws of the land. Irregularities and rectification only should be the responsibility of the Board of Directors/General Assembly. The registering authority should not interfere or impose its opinion on internal matters of the societies inspected. The register should act as a quasi-judicial authority.
