Change of liability

(1) Subject to the provision of this Regulation and the rules, a co-operative society may, by an amendment of its bye-laws, change the form or extent of its liability. (2) When a co-operative society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writing to all its members and creditors and, notwithstanding any bye-laws or contract to the contrary, any member or creditor shall, during a period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be. (3) Any member or creditor who does not exercise his option within the period specified in sub-section (2) shall be deemed to have assented to the change. (4) An amendment of a bye-law of a co-operative society changing the form or extent of its liability shall not be registered or shall not take effect until either (a) all the members and creditors have assented, or deemed to have assented, to the change: or (b) all claims of the members and creditors who exercise the option referred to in sub-section (2) within the period specified therein have been met in full or otherwise satisfied. On receipt of an application for registration, together with other documents referred to in rule 11, the Register shall examine the amendment proposed by the co-operative society and if he is satisfied that the amendment is not contrary to the Regulation or the rule and is in the interest of the society and the co-operative movement, he may register the amendment and issue to the co-operative society a copy of the amendment duly certified by him under section 10. Where Registrar is of opinion that the proposed amendment may be accepted subject to any modification, he may indicate to the society such modification after explaining in writing his reasons therefor. (1) The Registrar may issue such instructions as may be necessary for the purpose of drawing of election programme, filling of nomination papers, withdrawals of nomination papers, allotment of symbols, manner of voting, counting and other relevant matters to facilitate the holding of election in respect of a co-operative society or class of co-operative societies. (2) If any dispute arises in connection with election of any officer of co-operative society, it shall be referred to within thirty days of the declaration of the result of such election to the Registrar in same manner as provided in rule 55 of the rules.