(1) Every society desiring to effect amalgamation, transfer of assets and l iabil i t ies, division or conversi on under sub-section (2) of Section 16 shall frame a full scheme of re -organisation indicating how the proposed amalgamation, transfer of assets and l iabil i t ies, division or conversion would be useful to the society and be given effect to.
Where the scheme involves a division of a society into two or more societies, i t shall contain proposals regarding the name, the area of operations, draft byelaws and the l ist of members and creditors of the new society or societies into which the society would be divided . Where the scheme involves conversion of the society into a class of society, the object of which is materially different from that under which i t has been classified under the Act. It shall contain draft bye-laws of that class of society into which the s ociety would be converted.
(2) After framing the scheme of re -organisation under sub-rule (1), the society shall convene a special general meeting by giving a writ ten notice of twenty-one days to all i ts members along with the proposed scheme of re - organisation. In the case of the society desiring amalgamation with or transfer of the assets and liabil i t ies in whole or in part to any other society (hereinafter referred to as the other society). the society shall send a copy of the notice and the proposed scheme to the other society also for information. The society shall pass a resolution for amalgamation, transfer of assets and l iabil i t ies, division or conversion, as the case maybe, by two -thirds majority of the members present and voting at the special general meeting and shall in the case of the 15 amalgamation or transfer of assets and l iabil i t ies forward a copy of such resolution to the other society.
(3) After the receipt of the resolution the other society shall convene a special general meeting by givin g a writ ten notice of twenty-one days to all i ts members along with the scheme of re -organisation and draft amendment to i ts bye-laws, if any, and pass a resolution by two -thirds majority of the members present and voting at the special general meeting for approving the scheme of re -organisation and the amendment to i ts bye -laws, if any, and send a copy of i ts resolution in respect of the approval to the society which has decided to re -organise i tself .
(4) The affected society shall , in the case of amalgamation or transfer of assets and l iabil i t ies, after the receipt of the approval under sub -rule (3) and in the case of division or conversion, after the passing of the resolution under sub-rule (2), take action under sub -sections (5) and (6) of Section 16.
(5) The affected society shall submit a report to the Registrar of the action taken by i t and request him to approve the decision for amalgamation, transfer of assets and l iabil i t ies, division or conversion.
(6) On receipt of the report from the affected society under sub-rule
(5), the Registrar shall , after satisfy ing himself that the procedure has been properly followed, approve the decision of the society and register the amalgamated, divided or converted society or societies.
(7)(a) Before issuing any direction under sub-section (3) of Sect ion 16 for the amalgamation, transfer of assets and l iabil i t ies, division or conversion of any society or societies, the Registrar shall prepare a draft scheme of reorganisation in respect of such amalgamation, trans fer of assets and l iabil i t ies, division or conversion stating in particular the manner in which the new committee or committees of the society or societies result ing from such amalgamation, transfer of assets and l iabil i ties, division or conversion shall b e consti tuted and the bye -laws which such society or societies shall follow. The Registrar shall send a copy of the draft of the direction proposed to be issued by him under sub-sect ion (3) of Section 16, to the society or each of the societies concerned call ing upon i t or them to invite objections or suggestions from any member or class of members thereof or from any creditor or class of creditors and to submit such objections or suggestions together with i ts own or their own opinion within a period to be specified by the Registrar.
(b) The Registrar shal l consider all such objections, suggestions and opinion and make such modifications in the draft direction as may seem to him desirable in the light of those objections, suggestions or opinion and then iss ue a final direction under sub -section (3) of Section 16.