(1) Every society, desiring to effect amalgamation, transfer of assets and liabilities, division or conversion, as the case may be, shall make an application to the Registrar in that behalf, giving full details of the Scheme of such amalgamation, transfer, division or conversion, as the case may be.
(2) On receipt of such application, the Registrar may, after examining the details furnished in the application and other particulars which he may call upon the society to furnish, give his approval to the amalgamation, transfer, division or conversion, as the case may be, in the interest of the society.
(3) After the receipt of the Registrar’s approval under sub-rule (2), the society shall convene a special general meeting by giving notice of at least thirty clear days to all its members and creditors and pass a resolution for amalgamation, transfer of assets and liabilities, division or conversion, as the case may be, by two-third majority of the members present and voting at the meeting. The resolution so passed shall contain the purpose and the full Scheme indicating how the proposed amalgamation, transfer, division or conversion, as the case may be, would be useful to the society and be given effect to. Where the Scheme does not involve transfer of the liabilities of the society to another society, a statement to that effect shall be made in the application to be made under sub-rule (1). Where the Scheme involves transfer of liabilities of the society, the society shall give written notice in Form ‘F’ to all its members, creditors and other persons whose interests are likely to be affected by such transfer. The notice shall also be published in at least one newspaper in circulation in the district in which the society’s office is situated and a copy, thereof shall be exhibited on the notice board in the society’s office.
(4) Within thirty days from the date of notice referred to in sub-rule (3), the members, creditors and other persons whose interests are likely to be affected by the transfer of liabilities of the society may exercise their option as required by clause (i) of sub-section (3) of section 15 of the Act, failing which, they shall be deemed to have assented to the transfer of liabilities of the society to another society.
(5) The society shall meet in full or otherwise satisfy all claims of the members and creditors and other interested persons who exercise the option.
(6) The society shall submit a report to the Registrar of the action taken by it and request him to give effect to its decision for amalgamation, transfer, division or conversion, as the case may be, by registering the amalgamated or converted society or the new society, as the case may be, and cancelling the registration of the societies which have been amalgamated, divided or converted, as the case may be.
(7) On receipt of the report from the society under sub-rule (6), the Registrar shall, after satisfying himself that the procedure has been properly followed register the amalgamated, divided or converted societies and cancel the registration of the societies which have been amalgamated, divided or converted as the case may be.
2[14A. Direction by Registrar for amalgamation, transfer, division or conversion of society.¾
(1) Before issuing any directions under sub-section (4A) of section 15 of the Act, the Registrar shall prepare a draft scheme in respect of such amalgamation, transfer, division or conversion stating in particular the manner in which the new Board of Directors of the society or societies resulting from such amalgamation, transfer, division or conversion shall be constituted and the bye-laws which such society or societies shall follow. The Registrar shall then consult such federal society as may be notified by the Government in Official Gazette and after considering the suggestions, if any, that may be made by such federal society, shall send a copy of the directions proposed to be issued by him under sub-section (4A) of section 15 of the Act, to the society or each of the societies, as the case may be, calling upon it or them to invite objections or suggestions from any member or class of members thereof or from any creditors or class of creditors and to submit such objections and suggestions together with it’s own or their own suggestions and objections within a period of not less than two months from the date on which the copy of the aforesaid directions was received by it or them.
(2) The Registrar shall consider all such suggestions and objections and make such modifications in the directions as deemed fit by him and thereafter issue the same.
(3) Any member or creditor of the society who has objected to the scheme of amalgamation, transfer, division or conversion within the period specified in sub-rule (1), may apply to the Registrar for payment of his share or interest, if he is a member, or the amount in satisfaction of his dues, if he is a creditor. The Registrar may nominate an officer not below the rank of a Deputy Registrar to investigate and determine the payments required to be made to the member or creditor, as the case may be.
(4) Subject to the provisions of the Act, the rules and the bye-laws, the Registrar may by order, require the society concerned to meet in full or satisfy otherwise all dues of the members and creditors and thereupon the society shall be bound to meet in full or satisfy otherwise all dues of the members and creditors within such time as may be specified by the Registrar in the order.]