(1) A cooperative may be registered with limited or unlimited liability.
(2) Where a cooperative amends its articles of association to change the form and extent of its members’ liability, it shall give notice thereof together with a copy of the amendment to 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 change of creditor shall, during a period of fifteen days from the date of service of the notice upon him/her, have the option of withdrawing his/her shares, deposits or loans, as the case may be.
(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) An amendment passed under sub-section (2) shall not take effect until––
(a) all claims of the members and creditors of the cooperative who have exercised the option under sub-section (2) have been met in full or otherwise satisfied ; and
(b) notice of the amendment of the articles of association of the cooperative has been received by the Registrar in accordance with this Act.
(5) Subject to the provisions of sub-section (6), the liability of a member or of the estate of a deceased member for the debts of the cooperative as they existed––
(a) in the case of a past member, on the date on which the person ceased to be a member ; and
(b) in the case of a deceased member, on the date of his/her death ;
shall continue for a period of two years from such date.
(6) Where a cooperative is ordered to be dissolved, the liability of a past member, who ceased to be a member, or of the estate of a deceased member, who died, within two years immediately preceding the date of order of dissolution, shall continue until competition of the liquidation proceedings, by such liability shall be limited only to the debts of the cooperative as they existed on the date of cessation of membership or death, as the case may be.