(1) An application for re-construction of a society under section 16 of the Act may be made in Form ‘G’. On receipt of such application, the Registrar may, taking into consideration the compromise or arrangement for reconstruction of the society, if he thinks fit, prepare a draft order indicating,—
(i) the manner in which the amounts payable by the society to its creditors should be paid and the amounts recoverable from its debtor members should be recovered;
(ii) the manner in which the share capital, if any, of such members should be reduced;
(iii) the manner in which the Scheme of re-construction should be implemented; and
(iv) the manner in which the bye-laws of the society will stand amended in order to give effect to the Scheme of re-construction.
A copy of the draft order shall be exhibited on the notice board of the society and a copy thereof shall be exhibited on the notice board of the Registrar’s office inviting objections and suggestions from all those interested within thirty days from the date of issue of the draft order.
(2) After taking into consideration the objections and suggestions, if any, received, the Registrar may issue an order approving such re-construction or staying further proceedings in respect of such re-construction. On issue of an order approving the reconstruction, the society shall stand reconstructed and the bye-laws of the society shall be modified to that effect and to that extent.