Chapter X DISSOLUTION

resolution, authorise its own dissolution Provided that a notice of the general meeting shall also be sent with an invitation to attend, to the Registrar, to any federation of which the Cooperative Society is affiliated, to creditors and to any organisation with which a partnership contract has been entered into. (2) lnvitees under the proviso of sub-section (1) shall have the right to make representation to the general body if they so wish to, giving reason why dissolution is not called for. (3) Within fifteen days of such authorization for dissolution, the Cooperative Society shall send to the Registrar a copy of the authorization to dissolve the Cooperative Society. (4) The authorization approved in pursuance of sub-lection (1) shall be required to set out the following namely (a) the assets and liabilities of the Cooperative Society; (b) the claims of creditors, and collaborators and protected share holders, (c) the number of members; (d) the nature and extent of the members interest in the Cooperative Society, and (e) the name of the liquidator, if appointed by the general body, or a request to the Registrar to appoint the liquidator or a request to the Registrar to issue a certificate of dissolution where there are no assets or liabilities. (5) Where the Registrar receives the special resolution passed in pursuance of sub-section (1) he shall cause at the expense of the Cooperative Society a notice of the special resolution to be published in the district where the registered office of the Cooperative Society is located. (6) The Registrar may require form the Cooperative Society, the liquidator appointed by the Cooperative Society or may other person who is required to furnish information, a periodical return showing. (a) the progress of dissolution; (b) the distribution of any undistributed surplus or reserve; and (c) any other relevant information the he may require.

after giving the Cooperative Society ninety days notice of the proposed application, apply to the Tribunal for an order dissolving the Cooperative Society, where he has reasonable cause to believe that the Cooperative Society has no right to be or to continue to be recognized as a Cooperative Society, because it- (a) obtained its registration by fraud or mistake;

(b) is serving illegal purposes; (c) has willfully, after notice by the Registrar; violated any of the provisions of this Act or its by- laws; (d) is no longer operating in accordance with Cooperative principles and the provision of this Act; (e) has not commenced business within two years of the date of registration; or (f) has not carried on business for the past two consecutive years. (2) Where an interested person applies in pursuance of this section, he shall gibe the Registrar notice of his application and the Registrar shall be entitled to appear and be heard in person or by counsel. (3) Where the Tribunal receives an application in pursuance of this section it may, after giving a reasonable opportunity to the Cooperative Society to state its case, order that the Cooperative Society be dissolved or liquidated and dissolved under the supervision of the Registrar. (4) Where the Registrar receives an order made in pursuance of sub-section (3) he shall, (a) where the order is to dissolve the Cooperative Society, issue a certificate of dissolution, or (b) where the order is to liquidate and dissolve the Cooperative Society under the supervision of the Registrar, publish a notice in newspaper published or distributed in the district in which the registered office of the Cooperative Society is situated.

and dissolved and no liquidator is appointed y the general body or the Tribunal, the Registrar may- (a) appoint any person as a liquidator to wind up the affairs of the Cooperative Society, or (b) where he is satisfied that the Cooperative Society has no assets and liabilities, issue a certificate of dissolution.

(i) in the case of a liquidator not appointed by the Registrar, to the Registrar, and (ii) to each claimant and creditor known to the liquidator. (b) immediately publish notice of his appointment once a week for two consecutive weeks in a newspaper published or distributed in the place where the Cooperative Society has its registered office and take reasonable steps to give notice of the liquidation in every jurisdiction where the Cooperative Society carries on business; (c) Place in notice mentioned in clause (a) and (b) a provision requiring ay person, (i) indebted to the Cooperative Society, to render an account and pay to the liquidator at the time and place specified any owing, (ii) possessing property of the Cooperative Society to deliver it to the liquidator at the time and place specified, and (iii) having a claim against the Cooperative Society, whether liquidated, unliquidated, future or contingent, to present particulars of the claim in writing to the liquidator not later than two months after the first publication of the notice. (d) take into custody and control the property of the Cooperative Society; (e) open and maintain a trust account for the moneys of the Cooperative society; (f) keep accounts of the moneys of the Cooperative Society received and paid out by him; (g) maintain a separate list of members, creditors and other persons hiving claims against the Cooperative Society;

(h) where at any time he determines that the Cooperative Society is unable to pay or adequately provide for the discharge of its obligations apply to the Registrar for directions; and (i) deliver to the Registrar, periodically as the Registrar may require, financial statements of the Cooperative Society is any form that the liquidator considers proper or that the Registrar may require.

(a) retain lawyers, accountants, engineers, appraises and other professional advisors; (b) bring, defend or take part in any civil, criminal or administrative action or proceeding in the name and on behalf of the Cooperative Society; (c) carry on the business of the Cooperative Society as required for an orderly liquidation; (d) sell by public auction any property of the Cooperative Society; (e) do all acts and execute any documents in the name and on behalf of the Cooperative Society; (f) borrow money on the security of the property of the Cooperative Society; (g) settle or compromise any claims by or the Cooperative Society; and (h) take all other steps that he considers necessary for the liquidation of the Cooperative Society and distribution of its properties and funds. (2) Where a liquidator has reason to believe that any persbn has in his possession or under his control, has concealed, withheld or misappropriated any property of the Cooperative Society he may apply to the court for proceeding into the matter in accordance with law. (3) Where the proceeding under sub-section (2) discloses that a person has concealed, withheld or misappropriated of the Cooperative Society, the Court may order that person to restore the property of pay compensation to the liquidator on behalf of the Cooperative Society. (4) No liquidator or his relatives shall purchase, directly or indirectly any part of the stock-in-trade, debts or assets of the Cooperative Society.

property of the Cooperative Society and shall pay or make adequate provision for all claims against the Cooperative Society. (2) After paying or making adequate provision for all claims against the Cooperative Society, the liquidator shall apply to the Registrar for approval of his final accounts and for permission to distribute in money or in kind the remaining property of the Cooperative Society in accordance with the bye-laws. (3) where the Registrar approves the final accounts rendered by a liquidator in pursuance of sub-section (2), he shall- (a) issue directions with respect to the custody or disposal of the documents and records of the Cooperative Society; and (b) discharge the liquidator. (4) Where the Registrar discharges a liquidator pursuant to sub- section (3) he shall issues a certificate or dissolution. (5) The Cooperative Society ceases to exist on the date shown in the certificate of dissolution, which shall not be later than twenty-four months after appointment of the liquidator. CHAPTER Xl MISCELLANEOUS