Misappropriation, etc

(1) When the Supervisory Committee is of the opinion that the funds, securities, or other property of the credit union have been misappropriated or misdirected, or in the event that the by- laws, the Rules or this Act have been contravened by the Board, the Credit Committee or a member of either body or any officer or employee engaged by the Board, the Supervisory Committee shall forthwith inform the Registrar in writing. (2) In the event of a misappropriation or suspected misappropriation or misdirection or suspected misdirection, the Supervisory Committee shall, in consultation with the Board, appoint an auditor or special examiner to investigate the situation at the expense of the credit union. (3) In the event that the auditor or special examiner appointed pursuant to sub-section (2), concludes that misappropriation or misdirection has occurred, he or she shall submit his report to the Registrar, the Board of Directors, the Supervisory Committee and the Credit Committee. (4) Where, on receipt of the report of the auditor or special examiner, the Registrar is satisfied that there is sufficient Credit Unions Act 35 evidence of misappropriation or misdirection on the part of any director, or a member of the credit union, or any officer or employee engaged by the Board, he or she may after consultation with the Supervisory Committee and after giving the person concerned a reasonable opportunity to exculpate him or herself, suspend such person from the exercise of his or her functions, and shall request the Board to summon a special general meeting of the members, and where the Board fails to do so, he or she shall hold the meeting within fourteen (14) days of the date of suspension. (5) The Registrar shall report to the special general meeting all the circumstances of any misappropriation of mis-direction and the reasons for any suspension under sub-section (4). (6) The member of the credit union may by resolution and after due deliberation, dismiss from office or reinstate any person suspended under sub-section (4).