(1) A co-operative may, by a special resolution, authorize its own dissolution;
Provided that a copy of the notice of the general meeting shall be sent by registered post with an invitation to attend, to the Registrar, to all to whom the co-operative owes money, to any secondary co-operative to which the cooperative is affiliated, and to any co-operative/s with which a partnership contract has been entered into.
(2) Invitees under the proviso of sub- section (1) shall have the right to make a presentation to the general body, if they so wish to, on the issue of the proposed dissolution.
(3) Within fifteen days of such authorization for dissolution, the co-operative shall send to the Registrar a copy by registered post of the authorization to dissolve the co-operative.
(4) The authorization approved in pursuance of sub- section (1) is required to set out:
(a) the assets and liabilities of the co-operative;
(b) the claims of creditors;
(c) the number of members;
(d) the nature and extent of the members’ interest in the co-operative;
(e) the name and address of the liquidator appointed by the co-operative.
(5) When the Registrar receives the special resolution passed in pursuance of subsection(1):
(a) where the Registrar is satisfied that the co-operative has no assets or liabilities, the Registrar may dissolve the co-operative, strike off its name from the register of co-operatives and issue a certificate of dissolution; or
(b) the Registrar shall, within thirty days of such approval, cause at the expense of the co-operative a notice of the special resolution to be published once a week for two consecutive weeks in a newspaper published or distributed in the district where the registered office of the co-operative is located.
(6) In the case of dissolution, the Registrar may require, till the certificate of dissolution is issued by him/her, from the liquidator appointed by the cooperative or any other person who is required to furnish information, a periodical return showing:
(a) the progress of dissolution;
(b) the distribution of any undistributed surplus or reserve; and
(c) any other relevant information that the Registrar may require.
Dissolution by Registrar