(1) Subject to the provisions of this Act and the rules, a co-operative society may, by an amendment of its by-laws, change the form or extent of its liability.
(2) When a co-operative society has passed a resolution to change the form or extent of its liability, the society shall give notice thereof in writing in the prescribed manner to all its members and creditors and, nothwithstanding any by-laws or contract to the contrary, any member or creditor shall, within one month of the service of the notice upon him, have the option of withdrawing his shares, deposits or loans. Any member or creditor, who does not exercise his option within the period aforesaid, shall be deemed to have assented to the change.
(3) The change shall not take effect until either—
(a) the assent thereto of all members and creditors has been secured; or
(b) all claims of members and creditors who exercise the option referred to in sub-section (2) have been met in full.