|Home>>Bare Acts>>Back to Index|
14. Amalgamation or transfer of assets and liabilities or division of multi-State Cooperative Societies.- (1) A multi-State cooperative society may, with the prior consultation of the Central Registrar and by a resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of the society held for the purpose,-
(a) transfer its assets and liabilities in whole or in part to any other multi-State cooperative society or cooperative society;
(b) divide itself into two or more multi-State cooperative societies;
(c) divide itself into two or more cooperative societies.
(2) Any two or more multi-State cooperative societies may, with the prior consultation of the Central Registrar and by a resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new multi-State cooperative society.
(3) The resolution of a multi-State cooperative society under sub-section (1) or sub-section (2) shall contain all particulars of the transfer or division or amalgamation, as the case may be: Provided that in the case of a cooperative bank, the Central Registrar shall not accord approval to any such resolution without the previous sanction in writing of the Reserve Bank.
(4) When a multi-State cooperative society has passed a resolution under sub-section (1) or sub-section (2), it shall give notice thereof in writing to all the members and creditors and, notwithstanding anything contained in the bye-laws or contract to the contrary, any member or creditor, shall, during the period of one month of the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.
(5) Any member or creditor who does not exercise his option within the period specified in sub-section (4) shall be deemed to have assented to the proposals contained in the resolution.
(6) (a) A resolution passed by a multi-State cooperative society under this section shall not take effect until the assent thereto of all the members and creditors has been obtained.
(b) The multi-State cooperative society shall make arrangements for meeting in full or otherwise satisfying all claims of the members and creditor who exercise the option within the period specified in sub-section (4).
(7) On receipt of an application for the registration of new societies formed by division in accordance with the resolution passed under sub-section (1) or of a new society formed by amalgamation in accordance with the resolution passed under sub-section (2), the Central Registrar, on being satisfied that the resolution has become effective under sub-section (6) shall, unless for reasons to be recorded in writing he thinks fit to refuse so to do, register the new societies or society, as the case may be, and the bye-laws thereof.
(8) On the issue of an order under sub-section (7), the provisions of section 17 shall; so far as may be, apply to the multi-State cooperative society so divided or the multi-State cooperative societies so amalgamated.
(9) Where a resolution passed by a multi-State Cooperative Society under this section involves the transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any other law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance.
Copy right : Indu Info (All rights reserved)