Winding up of a Co-operative

Winding up of a Co-operative. (1) On an application made by not less than one-fifth of the members of a Co-operative to wind up the affairs of the said Co-operative, the board shall convene a general meeting by issuing a notice to each member. Such notice alongwith a notice to attend the general meeting shall also be issued to the Registrar union Co-operative, creditors, auditor and to the subsidiary organisation of the Co-operative, who shall also have a right to make a representation at the general body. (2) The general body shall approve the resolution to wind up the Co-operative and to appoint a liquidator after the same is passed by two-thirds of the members present in the general meeting and voting. Such resolution shall contain the details of the assets and liabilities of the Co-operative, the claims of any creditors, the number of members and the nature and extent of interest of each member in the Co-operative. A copy of resolution after approval by the general body shall be sent by registered Provided that in the case of a Co-operative Bank, no action in terms of sub-sections (1) and (2) shall be taken unless a copy of the application referred to in sub-section (1) is sent to the Reserve Bank or National Bank, as the case may be, and its consent obtained and. Explanation.- In this section “interest” means interest of a member in a Co-operative and includes shares, member loans, deposits and obligations of any kind that,- (i) arise by virtue of the bye-laws of the Co-operative; and (ii) are owed by the Co-operative to the member. (3) The Registrar may require from a Co-operative, liquidator or any other person who is required to furnish information, an annual or other returns showing,- (a) the progress of winding up; (b) the distribution of any undistributed surplus or reserves; and (c) any other information that he may require. (4) The Registrar after consideration of the information under sub-section (3) may approve the resolution to wind up the Co-operative and communicate the same to the said Co-operative and the Federal Co-operative. Such resolution shall take effect from the date of approval by the Registrar.