Change of liability, transfer of assets and liabilities, division, amalgamation

(1) A Cooperative Society may, by a resolution of its general body, change the extent of its limited liability. (2) A Cooperative Society may, by a resolution of its general body transfer its assets and liabilities, in whole or in part, to any other Cooperative Society which agrees to such transfer by a resolution of its general body. (3) A Cooperative Society may, by a resolution of its general body, divide itself into two or more Cooperative Societies. (4) Any two or more Cooperative Societies may, by a resolution of their respective general bodies, amalgamate themselves and form a new Cooperative Society. (5) Every resolution of a Cooperative Society under this section shall be passed at its general meeting by a majority of total members with right of vote and such resolution shall contain all particulars of the liability, transfer, division, amalgamation as the case may be. (6) Where a resolution is passed under this section, the Cooperative Society shall give notice thereof together with a copy of the resolution to all its members and federation to which it is affiliated and creditors who may give their consent. Notwithstanding any bye-law or contract to the contrary any member, federation or creditor shall, during a period of one month from the date of service of the notice have the option of withdrawing their shares, deposits, loans or services as the case may be. (7) Any member, federation or creditor who or which does not exercise within the specified period the right under sub sub-section (6) shall be deemed to have assented to the resolution. (8) A resolution passed by a Cooperative Society under this section shall not take effect until (a) (i) all the members, federation and creditors have assented under sub-section (6) or are deemed to have assented to the resolution under sub-section (7), or (ii) all claims of the members, federation and creditors who have exercised the option referred under sub-section (6) within the period specified therein have been met in full or otherwise satisfied, and (b) (i) in the case of change of liability, amendment of the bye-laws of the Cooperative Society concerned is registered or deemed to have been registered, or (ii) in the case of division or amalgamation, the certificate of registration of the Cooperative Society or the Cooperative Societies as the case may be, is issued or deemed to have been issued. (9) When a resolution passed by a Cooperative Society under sub-section (2) takes effect the resolution shall be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance. (10) The registration of a Cooperative Society shall stand cancelled and the Cooperative Society shall be deemed to have been dissolved and shall cease to exist as a corporate body (a) When the whole of the assets and liabilities of such Cooperative Society are transferred to another Cooperative Society, or (b) When such Cooperative Society divides itself into two or more Cooperative Societies. (11) Where two or more Cooperative Societies are amalgamated into a new Cooperative Society the registration of the Cooperative Societies so amalgamated shall stand cancelled and they shall be deemed to have been dissolved and shall cease to exist as corporate bodies.