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

The Telangana Mutually Aided Co-operative Societies Act, 1995

Corporate199554 sections

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Statutory text

(1) A Co-operative Society may, by a resolution of its general body,-
- (a) decide to amend its bye-laws to change the form or the extent of its liability;
- (b) decide to transfer its assets and liabilities, in whole or in part, to any other Co-operative Society which agrees to such transfer by a resolution of its general body;
- (c) divide itself into two or more Co-operative Societies.
(2) Any two or more Co-operative Societies may, by a resolution of their respective general bodies, decide to amalgamate themselves and form a new Co-operative Society.
(3) Every resolution of a Co-operative Society under this section shall be passed at its general meeting by a majority of total members with right of/vote or two-thirds of members present and voting whichever is less and such resolution shall contain all particulars of the liability, transfer, division, amalgamation as the case maybe.
(4) Before passing a resolution under this section, the Co-operative society shall give notice thereof together with a copy of the resolution to all its members, and federations to which it affiliated, and creditors who may give their consent. Notwithstanding any bye-law or contract to the contrary, any member federation, or creditor not consenting to the resolution 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.
(5) Any member, federation, or creditor who or which does not exercise within the specified period the right under sub-section (4) shall be deemed to have consented to the resolution.
(6) A resolution passed by a Co-operative Society under this section shall not take effect until,-
- (a) (i) the members, federations, and creditors have consented or are deemed to have consented to the resolution under sub-section (4) or, as the case may be, sub-section (5); or
  - (ii) all claims of the members, federations and creditors who have exercised the option referred to under sub-section (5) 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 Co-operative Society concerned is registered or is deemed to have been registered; or
  - (ii) in the case of division or amalgamation, certificate of registration of the Co-operative Society or Societies is issued.
(7) When a resolution passed by a Co-operative 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.
(8) The registration of a Co-operative Society shall stand cancelled and the Co-operative 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 Co-operative Society are transferred to another Co-operative Society; or
- (b) when such Co-operative Society divides itself into two or more Co-operative Societies.
(9) Where two or more Co-operative Societies are amalgamated to form a new Co-operative Society, the registration of the Co-operative Societies so amalgamated shall stand cancelled and they shall be deemed to have been dissolved and shall cease to exist as corporate bodies.

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