Conversion into a Society or Company

Any Cooperative Society registered under this Act if wishes to gets itself converted into a society under MACS Act or wishes to be incorporated as Company under Companies Act 1956, it shall have to first return the share capital, assets of the Government it received either directly or through any other agency and also return the Government land and machinery received if any, and also any outstanding loans due to, or guarantees or any of such assistance given by the Government. Before applying for such conversion or incorporation itself, a clearance certificate to this effect from the State Government based on the recommendations of the Registrar on whom powers are conferred as under section 4 of this Act shall be obtained. No cooperative Society which is a beneficiary of Government in terms of funds or land or any other assistance in any form as on date has not fully repaid/returned to the Government, can get registered under MACs Act or Companies Act: Provided that any cooperative societies under APCS Act 1964/ Telangana Cooperative Societies Act without returning the assets share capital, land, machinery, assistance or repaying the outstanding loans or guarantees etc. to the Government/and incorporated under Companies Act, 1956 as on date of this provision coming into force, shall return/repay the same to the Government if it wishes to continue under Companies Act/MACS Act as the case may be Government reserves the right on any of its assets extended to and held by such cooperative society as on date of conversion: Provided further that if the societies so converted into MACS Society or/ and incorporated into the Companies Act, 1956, do not return the assets and repays the dues to the Government within a period of six (06) months from the date of notification of this Amendment, the Government shall have the power to recover such assets and amounts from the formed company or society as arrears under Revenue Recovery Act, 1890.