(1) Where the Registrar has reasonable cause to believe that a cooperative:
(a) has not commenced business within two years after the date shown on its certificate of registration; or
(b) has not carried on business for two consecutive years;
He/she shall send to the cooperative a letter by registered post, inquiring whether the cooperative is carrying on business.
(2) Where the Registrar does not, within thirty days of the date he/she sent a letter in pursuance of sub-section (1), receive an answer to the letter, he/she shall, within, fifteen days after the expiry of thirty days, send to the cooperative a letter stating that:
(a) a letter was sent to the cooperative in pursuance of sub-section (1);
(b) no answer to that letter has been received by him/her, and
(c) if an answer is not received to the letter sent under this sub-section with in thirty days from the date it is sent, a notice will be published in the Gazette to dissolve the cooperative.
(3) Where the Registrar:
(a) receives an answer from the cooperative that it is not carrying on business;
or
(b) does not, within thirty days after the date that he/she sent a letter in pursuance of Sub-section (2), receive an answer to that letter;
he/she may publish in the Gazette and send to the cooperative a notice that, at the expiry of thirty days from the date of that notice, the cooperative will have its name struck off the register, or, unless cause is shown to the contrary, be dissolved.
(4) At the expiry of thirty days after the date of the issue of the notice in pursuance of sub-section (3), the Registrar may, unless cause to the contrary is previously shown by the cooperative:
(a) where he/she is satisfied that the cooperative has no assets or liabilities, dissolve the cooperative, strike off its name from the register of cooperatives and issue a certificate of dissolution; or
(b) appoint a liquidator to dissolve the cooperative, in accordance with section
53.
(5) Where a cooperative fails to file returns and furnish information, a required under section 45, even after a lapse of two hundred and forty days from the close of the cooperative’s financial year, the Registrar shall require the board to call a special general meeting for the purpose of considering the annual returns to be filed with the information to be furnished to the Registrar.
(6) Where the board fails to call a special general meeting within the time period specified in Section 28 (2), the Registrar may call the special general meeting:
(a) to review the affairs of the cooperative; and
(b) to ascertain whether the general body desires to continue the cooperative.
(7) Where:
(a) a quorum of members is not present at a special general meeting called in pursuance of sub-section(5) or (6); or
(b) the general body fails to pass a resolution to the effect that:
(i) the cooperative is to carry on business;
(ii) the board must present, within Sixty days from the date of the special general meeting, to the general body the annual returns to be filed with and the information to be furnished to the Registrar; and
(iii) the cooperative will file the returns with and furnish the information to the Registrar within ninety days from the date of the special general meeting; or
(c) the cooperative fails to file the returns with and furnish the information to the Registrar within ninety days from the date of the special general meeting; the Registrar may:
(i) where he/she is satisfied that the cooperative has no assets or liabilities, dissolve the cooperative, strike off its name from the register of cooperatives and issue a certificate of dissolution; or
(ii) appoint a liquidator to dissolve the cooperative, in accordance with section 53.
Dissolution by Court