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MARVIN MANDEL, Governor 2959
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SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section 5-529 (d) of Article - Corporations
and Associations, of the Annotated Code of Maryland (1975
Volume and 1976 Supplement) be and it is hereby repealed
and reenacted, with amendments, to read as follows:
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Article — Corporations and Associations
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5-529.
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(d) If raw agricultural products are delivered by
members to a cooperative association under marketing
contracts which entitle the members to net proceeds from
the sale of the products in their raw or processed state
and subject the members to assessments in the event of an
operating loss, the financial statements included in the
annual report referred to in (a) above for associations
engaged in handling raw agricultural products shall be
audited by the association's independent certified public
accountant. The audit shall be made in accordance with
generally accepted auditing standards. Copies of an
annual report together with the independent certified
public accountant's report on his examination of the
association's financial statements shall be furnished to
each member or stockholder of the association and the
Maryland Secretary of Agriculture. An independent
certified public accountant and legal counsel shall be
appointed by the association's board of directors. The
certified public accountant shall explain his report
orally to the board of directors AND SHALL ALSO CERTIFY
TO THE SECRETARY OF AGRICULTURE THAT THE AUDIT HAS BEEN
MADE IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING
STANDARDS.
[If the Secretary of Agriculture finds any financial
misrepresentation in the information contained in the
annual report, he shall so notify each director of the
association as shown on the records of the Department
within 180 days following the end of its fiscal year.
The Secretary of Agriculture may engage independent or'
State employed auditors to determine if there is any
misrepresentation.]
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SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1977.
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Approved May 26, 1977.
CHAPTER 737
(Senate Bill 1006)
AN ACT concerning
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