(1) Subject to the provisions of the Act and the rules, a co-operative society may, by an amendment of its bye-laws, change the form or extent of its liability.
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(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 byelaws or contract to the contrary, any member or creditor shall, during a period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or repay 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 the bye-laws of a co-operative society changing the form or extent of its liability shall not be registered or take effect until 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.