(1) An application for reconstruction of a society under section 19 may be made in Form ‘K’. On receipt of such application the Registrar may, taking into consideration the compromise or arrangement for reconstruction of the society, if he thinks fit, prepare a draft order indicating,-
(i) the manner in which the amounts payable by the society to its creditors should be paid and the amounts recoverable from its debtor members should be recovered,
(ii) the manner in which the share capital, if any, of such members should be reduced,
(iii) the manner in which the scheme of reconstruction should be implemented, and
(iv) the manner in which the bye-laws of the society will stand amended in order to give effect to the scheme of reconstruction.
A copy of the draft order shall be exhibited on the notice board of the society and a copy thereof shall be exhibited on the notice board of the Reconstruction of a society.
19 Registrar's office inviting objections and suggestions from all those interested within a specified period, which shall not exceed one month.
2) After taking into consideration the objections and suggestions (if any) received, the Registrar may issue an order approving such reconstruction or staying further proceedings in respect of such reconstruction. On issue of a order approving the reconstruction, the society shall stand reconstructed and the bye-laws of the society shall be modified to that effect and to that extent.
CHAPTER- III Members and their rights and liabilities.
19. No person shall be admitted as a member of a society.
(i) He has applied in writing in the form laid down by the society or in the form specified by the Registrar, if any, for membership;
(ii) his application is approved by the committee of the society in pursuance of the powers conferred on it in that behalf and subject to such resolution as the general body of members may in pursuance of the powers conferred on it in that behalf from time to time pass, and in the case of nominal, associate or sympathiser member, by an officer of the society authorised in that behalf by the committee;
(iii) he has fulfilled all other conditions laid down in the Act, the Rules and the bye-laws ;
(iv) in case of a Self Help Group firm, company or body corporate, society registered under the societies Registration Act, 1860, a public trust registered under any law for the time being in force relating to registration of public trusts or a local authority, the application tor membership is accompanied by a resolution authorising it to apply for such membership.
20. In accordance with the procedure laid down in bye-laws and in the Act for admission of any member, a society may admit minors and persons of unsound mind inheriting share or interest of deceased member as its members through their legal representative or guardian respectively. The members as admitted will enjoy such rights and liabilities through such legal representative or guardian as are laid down in the bye-laws of the society that are consistent with the Act and Rules.