Amendment status not verified — confirm the current text below against the official source.
(1) A society may, with the previous approval of the Registrar, by resolution passed by two-thirds majority of the members present and voting at a special general meeting held for the purpose, decide a) To amalgamate with another society ; b) To transfer its assets and liabilities, in whole or in part to any other society ; c) to divide itself in to two or more societies ; or d) to convert itself into another class of society ; Provided that when such amalgamation, transfer division or conversion, aforesaid, involves, a transfer of the liabilities of a society to any other society, no order on the resolution shall be passed by the Registrar, unless he is satisfied that (i) the society, after passing such resolution has given notice thereof in such manner as may be prescribed to all its members creditors and other persons whose interest are likely to be affected (hereinafter, in this section referred to as "other interested persons") giving them the option, to be exercised within one month from the date of such notice of becoming members of any of the new societies, or containing their membership in the amalgamated or converted society, or demanding payment of their share or interest or dues, Power to direct amendment of bye-laws. Change of name. Change of liability. Amalgamatio n, transfer, division or conversion of societies. as the case may be. (ii) all the members and creditors and other interested persons, have assented thereto, by virtue of any member or creditor, or any other interested person failing to exercise his option within the specified period in clause (i) aforesaid, and (iii) all claims of members and creditors and other interested persons, who exercise the option within the period specified have been met in full or otherwise satisfied. (2) Notwithstanding anything contained in the Transfer of property Act, 1882, or the Indian Registration Act, 1908, in the event of division or conversion, the registration of the new societies or, as the case may be, of the converted society, and in the event of amalgamation on the amalgamation, the resolution of the societies concerned with amalgamation, shall in each case be sufficient conveyance to vest the assets and liabilities of the original society or amalgamating societies in the new societies or converted or amalgamated society, as the case may be, (3) The amalgamation of societies or division or conversion of a society shall not affect any rights or obligations of the societies so amalgamated, or society so divided or converted, or render defective any legal proceedings which might have been continued or commenced by or against the societies which have been amalgamated, or divided or divided or converted ; and accordingly such legal proceedings may be continued or commenced by or against the amalgamated society, or, as the case may be, the converted society, or the new societies. (4) Where two or more societies have been amalgamated or a society has been divided or converted the registration of such societies or society shall be cancelled on the date of registration of the amalgamated society, or the converted society or the new societies between which the society may have been divided. 18.(1) Where the Registrar is satisfied that it is essential in the public interest or in the interest or the cooperative movement, or for the purpose of securing the proper management of any society, that two or more societies should amalgamate or any society should be divided to form to or more societies or should be reorganized, then notwithstanding anything contained in the last preceding section, but subject to the provisions of this section, the Registrar may, after consulting such federal society as may be notified by the Government, by the order published in the Official Gazette, provide for the amalgamation, division or reorganization of those societies, into a single society, or into societies, with such constitution, property, rights interests and authorities and with such liabilities, duties and obligations, as may be specified in the order. (2) No order shall be made under this section, unless - a) a copy of the proposed order has been sent in draft to the society or each of the societies concerned; and b) the Registrar has considered and made such modifications in the draft order as may seem to him desirable in the light of any suggestions and objections which may be received by him within such period (not being less than two months from the date on which the copy of the order as aforesaid was received by the society) as the Registrar may fix in that behalf, either from the society, or from any member or class of members thereof, or from any creditor or class of creditors. (3) The order referred to in sub-section (1) may contain such incidental consequential and supplemental provisions as may, in the opinion of the Registrar, be necessary to give effect to the amalgamation, the division or the reorganization. (4) Every member or creditor of each of the societies to be amalgamated divided or reorganized, who has objected to the scheme of amalgamation, division or reorganization within the period specified, shall be entitled to receive, on the issue of the order of amalgamation, division or reorganization, his share or interest if he be a member, and the amount in satisfaction of his dues if he be a creditor. Power to direct amalgamation , division and reorganization in public interest etc. (5) On the issue of an order under sub-section (1 ), the provisions of sub- Section (2), (3) and (4) of section 17 shall apply to the societies so amalgamated, divided or reorganized as if they were amalgamated divided or reorganization under that section, and to the society amalgamated, divided or reorganized.