Section 27 of the Societies Act in Kenya addresses the accountability of treasurers and other officers responsible for the financial affairs of registered societies.
Here are the key provisions of Section 27:
Key Provisions of Section 27:
Duty to Render Accounts (Subsection (1))
Treasurers and other officers responsible for the accounts, funds, or financial transactions of a registered society are required to render a full and true account at least once every year, as specified in the society’s constitution or rules.
Additionally, they must do so at other times as required by the society’s rules or a resolution of its members. Upon resigning or vacating office, a full account must be provided.
Handover of Funds and Property (Subsection (2))
Following the rendering of accounts, if a treasurer or officer is resigning or vacating the office, they are obligated to promptly hand over to the succeeding treasurer or officer, as applicable, any funds due and all relevant society property, including bonds, securities, effects, books, and papers.
Penalties for Non-Compliance (Subsection (3))
Failure to comply with the provisions outlined in this section constitutes an offence. Treasurers or officers contravening Section 27 may be subject to penalties, including fines or imprisonment.
Significance of Section 27:
Financial Transparency and Accountability
Section 27 reinforces the importance of financial transparency within registered societies. Treasurers and designated officers are mandated to provide accurate accounts of the society’s financial activities, promoting accountability.
Periodic Reporting
The requirement for annual reporting and additional reporting as needed ensures that the financial state of the society is regularly assessed. This periodic reporting contributes to early detection and correction of any financial irregularities.
Smooth Transition of Responsibilities
The provision for handing over funds and property to the successor ensures a smooth transition in the financial management of the society.
This promotes continuity and minimizes disruptions in financial operations.
Conclusion
Section 27 plays a vital role in upholding financial integrity within registered societies. By setting clear expectations for treasurers and officers, the section contributes to the overall accountability and transparency of financial matters, fostering trust among society members and stakeholders.
The penalties outlined in the section serve as a deterrent against non-compliance, emphasizing the seriousness of maintaining accurate financial records and facilitating the smooth transition of financial responsibilities.
