Transfer of assets and liabilities

(1) A co-operative may, by a special resolution, decide to transfer its assets and liabilities, in whole or in part, to any other co-operative which agrees, by a special resolution, to receive such assets and liabilities. (2) Where special resolutions are passed under sub-section (1), each co-operative shall, within the following 15 days, give notice thereof together with a copy of the resolution passed by it to all its members and creditors, and notwithstanding any provision in the articles of association or contract to the contrary, any member other than one who voted in favour of the proposed transfer of assets and liabilities and any creditor shall, during a period of fifteen days from the date of service of the notice upon him/her, have the option of withdrawing from the co-operative, his/her interests, subject to the discharge of his/her obligations to the co-operative. (3) Any member or creditor who does not exercise his/her option within the period specified in sub-section (2) shall be deemed to have agreed to the resolution. (4) The special resolution passed under sub-section (1) shall not take effect until- (a) all claims of the members and creditors of each co-operative who have exercised the option under sub-section (2) have been met in full or otherwise satisfied; and (b) information about the transfer of assets and liabilities has been sent by the co-operative concerned to the Registrar and the Registrar’s acknowledgement of receipt of the information received. (5) When special resolutions passed under sub-section (1) take effect, the resolutions shall be sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance. (6) When a co-operative transfers the whole of its assets and liabilities to any other co-operative, under this section, the registration of the co-operative shall stand cancelled and it shall be deemed to have been dissolved and shall cease to exist as a registered body, and the Registrar shall delete the name of the co-operative from the register of co-operatives.