Chapter X AMALGAMATION AND DIVISION

Corporate202632 sections12 chapters

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26. Amalgamation or division of societies

Statutory text

(1) Any two or more societies, after passing special resolutions for amalgamating with each other, shall move an application along with copy of resolutions, in such form as may be prescribed for obtaining approval of the Registrar and after getting the approval, shall amalgamate together as one society.
(2) Any society, after passing special resolution for division of a society, shall move an application in such form as may be prescribed along with the copy of resolution, for obtaining approval of the Registrar and after getting the approval, shall stand divided.
(3) The special resolution shall contain proposals for the division of the assets and liabilities of the society among the new societies, relationship of the parent society with the divided societies, if any, and may specify the areas of operation of and the members who may constitute each of the new societies: Provided that before division, the society shall settle all the claims and liabilities or divide the assets and liabilities amongst the societies on pro-rata basis.
(4) No amalgamation or division of a society under sub-section (1) or sub-section (2), as the case may be, shall have any effect until and unless the new society or societies is duly registered.
(5) Upon the registration of the new amalgamated society or the divided societies, as the case may be, the assets and liabilities of the original registered society or societies shall, subject to the provisions of this section, be transferred to and become the assets and liabilities of the new society or societies in the manner specified in the special resolution.

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