(1) The Registrar or an interested person may, after giving the cooperative ninety days notice of the proposed application, apply to the Court for an order dissolving a cooperative, where the cooperative:
(a) obtained its registration by fraud or mistake;
(b) exists for an illegal purpose;
(c) has willfully, after notice by the Registrar, violated any of the provisions of this Act or its articles of association; or
(d) is no longer operating on a cooperative basis.
(2) Where an interested person applies to a Court in pursuance of this section, he/she shall give the Registrar notice of his/her application and the Registrar is entitled to appear and be heard in person or by counsel.
(3) Where the Court receives an application in pursuance of this section, it may order that the cooperative be dissolved or liquidated and dissolved under the supervision of the Registrar.
(4) where the Registrar receives an order made in pursuance of sub- section (3), he/she shall:
(a) if the order is to dissolve the cooperative, dissolve it, strike off its name form the register of cooperatives and issue a certificate of dissolution; or
(b) if the order is to liquidate and dissolve the cooperative, appoint any person as a liquidator to wind up the affairs of the cooperative.
Appointment of liquidator
53. Where a co-operative is to be dissolved and no liquidator is appointed by the general body, the Registrar may appoint any person as a liquidator to wind up the affairs of the co-operative with the direction that the liquidation proceedings be made final within two years two years from the date of appointment as liquidator.
Duties of liquidator
54. A liquidator shall:
(a) immediately give notice to each claimant and creditor, known to the liquidator;
(b) immediately publish a notice regarding his/her appointment as liquidator in the Gazette, and once a week for two consecutive weeks in a local newspaper of the area where the co-operative has its registered office;
(c) place in the notice mentioned in clause (a) and (b), a provision requiring any person;
(i) indebted to the co-operative, to render an account and pay to the liquidator at the time and place specified any amount owing;
(ii) possessing property to the co-operative, to deliver it to the liquidator at the time and place specified; and
(iii) having a claim against the co-operative, whether liquidated, un-liquidate, future or contingent, to present particulars of the claim in writing to the liquidator;
Not later than sixty days from the first publication of the notice.
(d) take into custody and control the property of the co-operative;
(e) open and maintain a trust account for the moneys of the co-operative;
(f) keep accounts of the moneys of the co-operative received and paid out by him/her;
(g) maintain separate lists of the members, creditors and other persons having claims against the co-operative;
(h) where at any time the liquidator determines that the co-operative is unable to pay or adequately provide for the discharge of its obligation, apply to the Registrar/ general body as the cause may be, for directions; and
(i) deliver to the Registrar/general body, periodically as the Registrar/ general body may require, financial statements of the co-operative in any form that the liquidator considers proper or that the Registrar/general body may require.
functions and responsibilities of liquidator