(1) A cooperative society may by a special resolution passed at a meeting of its General Assembly decide to divide itself into two or more cooperative societies.
(2) Where a special resolution is passed under sub-section(l), the cooperative society shall give notice thereof together with a copy of the resolution passed by it to all its members and creditors and any member other than \ those who voted in favour of the proposed division and any creditor shall t during a period of thirty days from the date of service of notice upon him have the option of withdrawing the shares .deposits or loans from the < cooperative society, as the case may be, subject to the discharge of his obligations to the cooperative society.
(3) Any member or creditor who fails to exercise the option within the period specified in sub-section(2) shall be deemed to have assented to the division.
(4) The special resolution passed under sub-section(1)shall not take effect until -
(a) all claims of the members and creditors of the cooperative society who have exercised the option under sub-section (2) have been met in full or otherwise satisfied;
(b) information of the intended division and settlement of claims of members and creditors is sent to the Registrar and his approval is obtained; and
(c) the certificates of registration and the original bye-laws of the resultant cooperative society signed and sealed by the Registrar are issued under section 11.
(5) When a cooperative society divides itself into two or more cooperative societies under this section the registration of such cooperative society shall stand cancelled and it shall be deemed to have been dissolved and shall cease to exist as a corporate body and the Registrar shall delete the name of such cooperative societies from the register of cooperative societies .
(6) When a cooperative society divides itself into two or more cooperative societies such member who has assented or deemed to have assented to the division shall be deemed to have become a member of that newly formed cooperative society to which his interest were transferred ,in accordance with the scheme of division approved by the general body of such cooperative society notwithstanding anything contained in this A c t.