(1) Any two or more cooperatives may, by special resolutions, decide to amalgamate themselves and form a new cooperative.
(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 merger, or creditor shall, during a period of fifteen days from the date of service of the notice upon his/her, have the option of withdrawing his/her shares, deposits or loans from the cooperative, as the case may be, subject to the 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 of the intended amalgamation and settlement of claims of members and creditors is sent to the Registrar and his/her acknowledgment of receipt of the information is obtained and
(c) the certificate of registration and a copy of the articles of association of the resultant cooperative, signed and sealed by the registrar, is issued in accordance with section 4.
(5) When two or more cooperatives amalgamate themselves into a new cooperative under this section, the registration of the cooperatives so amalgamated shall stand cancelled and they shall be deemed to have been dissolved and shall cease to exist as corporate bodies, and the Registrar shall delete the names of the cooperatives from the register of cooperatives.
(6) When two or more cooperatives amalgamate themselves into a new cooperative under this section, all the members of the cooperatives who have assented or are deemed to have assented to the amalgamation shall be deemed to have become members of the new cooperative.
(7) When special resolutions passed under sub-section (1) take effect, the resolutions shall be sufficient conveyance to vest the assets and labilities in the transferee without any further assurance.