(1) Subject to the provision of this Act and rules, a Co-operative Society may, by 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 one month 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 the 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 the 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.