Exercise of option by members and creditors

Exercise of option by members and creditors:— [Rule 7,8]

1. (1) Where a society has passed a resolution under Section 11 or Section 12, it shall give notice thereof in the manner prescribed together with a copy of the resolution to all its members and creditors and notwithstanding any bye-law 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.
2. (2) Any member or creditor who does not exercise his option within the period specified in sub-section
3. (1) shall be deemed to have assented to the resolution.
4. (3) A resolution passed by a society under Section 11 or Section 12 shall not take effect until:—
   • (a) all the members or creditors have assented, or deemed to have assented, to the resolution under sub-section
5. (1) or sub-section
6. (2) of this section; and
   • (b) all claims of the members and creditors who have exercised the option referred to under sub-section
7. (1) within the period specified therein have been met in full or otherwise satisfied; and
   • (c) (i) in the case of change of liability or conversion, amendment of the bye-laws of the societies concerned is registered ;
     • (ii) in the case of transfer of assets and liabilities in whole or in part, the consent of the financing bank or federal society as the case may be, if applicable is obtained; or.
     • (iii) in the case of division or amalgamation, the certificate of registration of the societies or the society, as the case may be, is issued.