(1) No amendment of any bye-laws of a co-operative society shall be valid unless such amendment has been registered or deemed to have been registered under this Act.
(2) Every proposal for such amendment approved by the general body and complete in all respect as prescribed shall be forwarded to the Registrar within thirty days of approval of the general body and if the Registrar is satisfied that the proposed amendment -
(a) is not contrary to the provisions of this Act and the rules;
(b) does not conflict with the co-operative principles; and
(c) will promote the economic, social and cultural interests of the members of the co-operative society; he may register the amendment :
Provided that in case of amendment of bye-laws of a co-operative bank, prior approval in writing of the Reserve Bank shall be necessary.
(3) The Registrar shall forward to the co-operative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been duly registered.
(4) Where the Registrar refuses to register an amendment of bye-laws of a cooperative society, he shall communicate the order of refusal together with the reasons therefor, to the co-operative society in the prescribed manner.
(5) In case the Registrar does not communicate any decision under sub-section
(2) or sub-section (4) as above within the period of ninety days, the amended bye-laws shall be deemed to have been registered.
(6) Where it appears to the Registrar that amendment in the bye-laws of a cooperative society is necessary and desirable in the interest of the co-operative society or class of co-operative societies, the Registrar shall direct the cooperative society or the class of co-operative societies, as the case may be, to make amendment in the bye-laws within a period of sixty days, by convening a general body meeting of the co-operative society.
(7) After the expiry of the period specified in sub- section (6) and if the cooperative society fails to make the amendment, the Registrar after giving the cooperative society an opportunity of being heard, may register the amendment and issue to the co-operative society, a copy of such amendment certified by him with a certificate signed by him, with effect from the date of registration the amendment shall be binding on the co-operative society and its members, subject to appeal, if any.
When amendments of bye-laws come into force.
13. An amendment of the bye-laws of a co-operative society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered or deemed to be registered.
Change of name.
14.(1) A co-operative society may by an amendment of its bye-laws, change its name but such change shall not affect any right or obligation of the co-operative society or of any of its members or past members and any legal proceedings pending may be continued by or against the co-operative society under its new name :
Provided that prior approval in writing of the Reserve Bank shall be necessary for change of the name of a co-operative bank.
(2) Where a co-operative society changes its name, the Registrar shall enter the new name on the register of co-operative societies in place of the former name and shall amend the certificate of registration accordingly.
Change of liability.
15.(1) Subject to the provisions of this Act and the rules, a co-operative society may, by an amendment of its bye-laws change the form or extent of its liability.
(2) When a co-operative society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writing to all its members and creditors and, notwithstanding any bye-laws or contract to the contrary, any member or creditor shall, during a period of thirty days from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.
(3) Any member or creditor who does not exercise his option within the period specified in sub-section (2) shall be deemed to have assented to the change.
(4) An amendment of a bye-laws of a co-operative society changing the form or extent of its liability shall not be registered or take effect until either -
(a) the assent thereto of all members and creditors has been obtained; or
(b) all claims of members and creditors who exercise the option referred to in sub-section (2) within the period specified therein have been met in full.
Amalgamation, transfer of assets and liabilities and division of co-operative societies.
16.(1) A co-operative society may, by a resolution passed by a two-thirds majority of the members present and voting at a general body meeting of the co-operative society -
(a) transfer its assets and liabilities in whole or in part to any other co-operative society;
(b) divide itself into two or more co-operative societies;
(c ) approve a scheme of compromise or arrangement or reconstruction.
(Inserted vide Notification No. F.14(31)/LA-2004/16 dated 17/01/2005)
(2) Any two or more co-operative societies may, by a resolution passed by a twothirds majority of the members present and voting at a general body meeting of each such co-operative society, amalgamate themselves and form a new cooperative society.
(3) The resolution of a co-operative society under sub-section (1) or sub-section (2) shall contain all particulars of the transfer, division or amalgamation or scheme of compromise or arrangement or reconstruction,( Substituted vide Notification No. F.14(31)/LA-2004/16 dated 17/01/2005) as the case may be :
Provided that in the case of a co-operative bank, the Registrar shall not accord approval to any such resolution without the previous sanction in writing of the Reserve Bank.
(4) When a co-operative society has passed any such resolution, it shall give notice thereof in writing to all its members and creditors and, notwithstanding any byelaws or contract to the contrary, any member or creditor shall, during the period of thirty days 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 resolution passed by a co-operative society under this section shall not take effect until, either -
(a) the assent thereto of all the members and creditors has been obtained;
(b) all claims of members and creditors who exercise the option referred to in subsection (4) within the period specified therein have been met in full.
(7) Where a resolution passed by a co-operative society under this section involves the transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance.
Power to direct amalga-mation, division and re-organisation in public interest, etc.