### Co-operative Societies Ordinance 《合作社條例》

31. Deposits and loans received by a registered society
A registered society shall receive deposits and loans from persons who are not members only to such extent and under such conditions as may be prescribed by the rules or by-laws.

32. Restrictions on other transactions with non-members
Save as provided in sections 30 and 31, the transactions of a registered society with persons other than members shall be subject to such prohibitions and restrictions as may be prescribed by the rules.

33. Investment of funds
A registered society may invest or deposit its funds—
(a) in a post office savings bank, or with any bank or person carrying on the business of banking approved for this purpose by the Registrar; or
(b) in any securities issued or guaranteed by the Government of the Hong Kong Special Administrative Region or of any other place approved by the Registrar; or (Amended 61 of 2000 s. 3)
(c) with any other registered society approved for this purpose by the Registrar; or
(d) in any other mode approved by the Registrar.

34. Disposal of profits
(1)  At least one-fourth of the net profits of every registered society, as ascertained by the audit prescribed by section 35, shall be carried to a fund to be called the reserve fund, which shall be employed as prescribed by the rules. After deduction of any tax which may have been charged on such society in accordance with the provisions of the Inland Revenue Ordinance (Cap. 112), the remainder of such profits and any profits of past years available for distribution may be divided among the members by way of dividend or bonus, or allocated to any funds constituted by the society, to such extent or under such conditions as may be prescribed by the rules or by-laws:
Provided that in the case of a society with unlimited liability, no distribution of profits shall be made without the general or special order of the Chief Executive. (Amended 61 of 2000 s. 3) 
(2) Any registered society, may, with the sanction of the Registrar, after one-fourth of the net profits in any year has been carried to a reserve fund, contribute an amount not exceeding ten per cent of the remaining net profits to any charitable purpose or to a common-good fund.

### Co-operative Societies Ordinance 《合作社條例》

35. Audit
(1) The Registrar shall audit or cause to be audited by some person authorized by him by general or special order in writing the accounts of every registered society once at least in every year.
(2) The audit under subsection (1) shall include an examination of overdue debts, if any, and a valuation of the assets and liabilities of the registered society.
(3) The Registrar and every other person appointed to audit the accounts of a society shall have power when necessary—
(a) to summon at the time of his audit any officer, agent, servant or member of the society who he has reason to believe can give material information in regard to any transactions of the society or the management of its affairs; or
(b) to require the production of any book or document relating to the affairs of, or any cash or securities belonging to, the society by the officer, agent, servant or member in possession of such book, document, cash or securities.

36. Power of Registrar to inspect society’s books, etc.
The Registrar, or any person authorized by general or special order in writing by the Registrar, shall at all times have access to all the books, accounts, papers and securities of a registered society, and shall be entitled to inspect the cash in hand; and every officer of the society shall furnish such information in regard to the transactions and working of the society as the person making such inspection may require.

### Co-operative Societies Ordinance 《合作社條例》

37. Inquiry and inspection
(1) The Registrar may of his own motion, and shall on the application of a majority of the committee, or of not less than one-third of the members of a registered society, hold an inquiry or direct some person authorized by him by order in writing in this behalf to hold an inquiry into the constitution, working, and financial condition of a registered society; and all officers and members of the society shall furnish such information in regard to the affairs of the society and produce the cash in hand and such books, accounts, papers and securities of the society as the Registrar or the person authorized by him may require.
(2) The Registrar shall, on the application of a creditor of the registered society, inspect or direct some person authorized by him in writing in this behalf to inspect the books of the society, if the applicant—
(a) proves that an ascertained sum of money is then due to him and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and
(b) deposits with the Registrar such sum as security for the costs of the proposed inspection as the Registrar may require.
(3) The Registrar shall communicate the results of any such inspection to the creditor and to the society into whose affairs inquiry has been made.
(4) Where an inquiry is held under subsection (1) or an inspection is made under subsection (2), the Registrar may apportion the costs or such part of the costs, as he may think right, between the registered society, the members demanding an inquiry, the officers or former officers of the society, and the creditor, if any, on whose application the inquiry was made.
(5) Any sum awarded by way of costs against any society or person under this section may be recovered, on application to a magistrate having jurisdiction in the place where the registered office of the society is situate or the person resides or carries on business for the time being, in like manner as a fine imposed by such court.

### Co-operative Societies Ordinance 《合作社條例》

38. Dissolution
(1) If the Registrar, after holding an inquiry or making an inspection under section 37 or on receipt of an application made by three-fourths of the members of a registered society, is of opinion that the society ought to be dissolved, he may make an order for the cancellation of the registration of the society.
(2) Any member of a registered society may, within two months from the date of an order under subsection (1), appeal from such order to the Chief Executive. (Amended 61 of 2000 s. 3)
(3) Where no appeal is presented within two months from the making of an order cancelling the registration of a society, the order shall take effect on the expiry of that period. Where an appeal is presented within two months, the order shall not take effect until it is confirmed.
(4) Where the Registrar makes an order for the cancellation of the registration of a society under subsection (1) he may make such further order as he may think fit for the custody of the books and documents and the protection of the assets of the society until the order cancelling registration takes effect.
(5) No registered society shall be wound up save by an order of the Registrar.

39. Cancellation of registration for lack of membership
The Registrar may, by order in writing, cancel the registration of any registered society other than a society which includes among its members one or more registered societies, if at any time it is proved to his satisfaction that the number of the members has been reduced to less than ten. Every such order shall take effect from the date thereof.

40. Effect of cancellation of registration
Where the registration of a society is cancelled by an order under section 38 or 39 the society shall cease to exist as a corporate body from the date on which the order takes effect, hereinafter referred to as the date of dissolution:
Provided that any privileges conferred on the society by or under sections 14, 15, 16 and 17 shall be deemed to be vested in any liquidator appointed for that society by the Registrar.

41. Liquidation after cancellation of registration of society
Where the registration of a society is cancelled under section 38 or 39 the Registrar may appoint one or more persons to be, subject to his direction and control, the liquidator or liquidators of the society.