section 16
Reconstruction of societies
The Chhattisgarh Co-operative Societies Act, 1960Corporate1960195 sections
Statutory text
- (1) In this section - (a) "affected society" means a society which decides to reconstruct itself in any of the manners specified in sub-section (2); and (b) "resulting society" means a society which- (1) is formed as a result of amalgamation under clause (a) of sub-section (2); or (2) to which the assets and liabilities of affected societies have been transferred in whole or in part under clause (b) of sub-section (2); or (3) is formed as a result of division under clause (c) of sub-section (2); or (4) is formed as a result of change of class as provided in clause (d) of sub-section (2). (2) A society may, by a resolution passed by a two-thirds majority of the members present and voting at a special general meeting convened for the purpose, decide to reconstruct itself by- (a) amalgamating itself with any other society; or (b) transferring its assets and liabilities in whole or in part to any other society; or (c) dividing itself into two or more societies; or (d) converting itself into a class of society whose objects are substantially different from that of the class of society under which it was classified under this Act: Provided that no such decision shall be effective unless it is approved by the Registrar: Provided further that in case of a co-operative bank, the Registrar shall give his approval only with the prior written consent of the Reserve Bank and not otherwise. (3) Notwithstanding anything contained in sub-section (2), where the Registrar is satisfied that it is essential in the public interest or in the interest of the members of the affected societies or necessary to ensure the proper management of any society, he may direct that any society or societies reconstruct itself/themselves in one or more of the manners indicated in sub-section (2): Provided that in case of a co-operative bank, the Registrar shall issue any direction only with the prior written consent of the Reserve Bank and not otherwise: Provided further that before final order is issued by the Registrar under this section, each concerned society shall be given an opportunity to express its opinion on the proposals of reconstruction. (4) The procedure of reconstruction of a society in accordance with the decision under sub-section (2) or the direction of the Registrar under sub-section (3), as the case may be, shall be such as may be prescribed. (5) If the interests of any person are likely to be affected in any manner by such reconstruction under sub-section (2) or (3), notice of the same (such reconstruction) shall be given to all such persons and every such person shall be given the option to become a member of the resulting society or societies or to demand payment of his share or interest or dues in respect of the affected society, and this option shall be exercised within one month from the date of issue of such notice. (6) No reconstruction shall be final unless the consent has been obtained of every such person whose interest is likely to be affected or is deemed to be obtained on the basis of non-exercise of the option given to him by him, and in addition, unless all the claims of the persons who have exercised the option of demanding payment of their shares or interests or dues under sub-section (5) have been fully met. (7) Every resulting society under this section shall have such constitution, property, powers, rights, privileges, duties and obligations as may be specified in the scheme of reconstruction and every scheme of reconstruction shall contain such consequential, incidental and supplemental provisions as, in the opinion of the Registrar, are necessary to carry out such scheme. (8) Notwithstanding anything contained in the Transfer of Property Act, 1882 (Act No. 4 of 1882) or the Indian Registration Act, 1908 (Act No. 16 of 1908), any resolution of a society which has been approved by the Registrar under sub-section (2) or any order passed by the Registrar under sub-section (3) shall be a sufficient conveyance to vest the assets and liabilities of every affected society in the concerned resulting society or societies and such vesting shall take place subject to the provisions of the scheme of reconstruction. (9) Reconstruction of societies shall not in any manner affect any right or obligation of the resulting society or societies or render defective any legal proceedings by or against that society or those societies, and any such legal proceedings which prior to reconstruction could have been continued or commenced by or against that society or those societies as the case may be, may be continued or commenced by or against the resulting society or societies. (10) Where two or more societies have been amalgamated or a society has been divided or converted, the registration of such society or societies shall be deemed to have been cancelled on the date of registration of the amalgamated society or the converted society or those new societies into which that society has been divided. (11) Where a development bank is reconstructed by amalgamating it with a central bank, such amalgamated bank shall be deemed to be a development bank under the law for the time being in force relating to development banks in respect of all transactions relating to the business of that development bank as are to be done on or after such amalgamation. Explanation.- For the purposes of this section, "central bank" means any society which has as a part of its name the words "central bank" or "district bank" and the main object of which is to finance those societies which are its members and are situated within any specified area. (12) Every such scheme of reconstruction shall be published in the Gazette for general information.
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