(1) A cooperative may by a special resolution, decide to transfer its assets and liabilities, in whole or in part, to any other cooperative which agrees, by a special resolution to receive such assets and liabilities.
(2) Where special resolutions are passed under sub-section (1), each cooperative shall give notice thereof together with a copy of the resolution passed by it to all its members and creditors, and notwithstanding any provision in the articles of association or contract to the contrary, any member other than those who voted in favour of the proposed transfer of assets and liabilities and any creditor shall, during a period of fifteen days from the date of service of the notice upon him/her, have the option of withdrawing the shares, deposits or loans from the cooperative, as the case may be, subject to discharge of his/her obligations to the cooperative.
(3) Any member or creditor who does not exercise his/her option within the period specified in sub-section (2) shall be deemed to have assented to the resolution.
(4) The special resolutions passed under sub-section (1) shall not take effect until,––
(a) all claims of the members and creditors of each cooperative who have exercised the option under sub-section (2) have been met in full or otherwise satisfied ; and
(b) information about the transfer of assets and liabilities has been sent by the cooperatives concerned to the Registrar and his/her acknowledgment of receipt of the information received.
(5) When special resolutions passed under sub-section (1) take effect, the resolutions shall be sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance.
(6) When a cooperative transfers the whole of its assets and liabilities to any other co-operative under this section, the registration of the Cooperative shall stand cancelled and shall be deemed to have been dissolved and shall cease to exist as a corporate body and the Registrar shall delete the name of the cooperative from the register of cooperatives.