Amendment status not verified — confirm the current text below against the official source.
(1) Subject to the provisions hereinafter contained, a society which has as its chief object the promotion of the economic interest and general welfare of its members in accordance with cooperative principles laid down in Schedule 'A' may be registered under this Act, provided that a society established with the object of facilitating the operation of such a society including a society formed by the division of an existing registered society or amalgamation of existing two or more societies, may be registered under this Act with limited liability. (2) No cooperative society with unlimited liability shall be registered after commencement of this Act. (3) Where a cooperative society with unlimited liability was functioning before the commencement of this Act such society shall exercise the option within a period of one year from such commencement either to continue to function as such or to convert itself into a cooperative society with limited liability by following the procedure of amendment as specified in section 12. EXPLANATION For the purpose of this sub section cooperative society with limited liability means a cooperative society in which the liability of its members for the debts of the cooperative society is limited by its bye laws, to such form and extent as they may undertake to contribute to any deficit in the assets of the cooperative society in the event of its being wound up. (4) Where a cooperative society is ordered to be dissolved under any provision of this Act, the liability of a past member or of the estate of a deceased member, who ceased to be member or died during the period of two years immediately preceding the date of order for dissolution, shall continue unt». completion of the entire liquidation proceedings, but such liability shall be limited only to the debts of the cooperative society as they stood on the date of cessation of his C - membership or his death, as the case may be. (5) No society shall be registered if in the opinion of the Registrar its >' declared objects are not likely to be achieved or if it is economically unviable, technically and cooperatively unsound or if it may have an adverse effect upon any registered co-operative society or the cooperative movement as a whole or if the members or the applicants do not need the services or are not in a position to use the services of the co-operative society: Provided that no other organization, entity or societies registered under any other Act existing for the time being in force other than this Act shall be registered or converted or merged as a cooperative society. “(6) The Co-operative Society to be registered as a Co-operative Bank shall specifically indicate in its byelaws submitted before the Registrar at the time of registration, that the society shall be a Co-operative Bank which shall carry on the business of banking as defined under section 5(b) of the Banking Regulation Act, 1949 on the basis of which the Registrar shall register the said society as a Co-operative Bank as defined under this Act. 374 THE ASSAM GAZETTE, EXTRA ORDINARY, FEBRUARY 4, 2012 (7) The existing Co-operative Societies carrying on the business of banking as defined under section 5(b) of the Banking Regulation Act, Act No. 10 1949 on the date of coming into force of this Act, shall amend their o f 1 9 4 9 Bye-laws indicating that the said societies have been carrying on the business of banking in the State of Assam and shall file a copy of the amended bye-laws before the Registrar for getting the societies registered as a Co-operative Bank and Registrar shall register the said societies accordingly under this Act. Explanation For the purposes of this sub-section the term “existing A ssam A ct Cooperative Societies" means the Co-operative Societies registered ^ 0 1 of under the Assam Co-operative Societies Act, 1949, and carrying on the business of banking at the commencement of this Act.” “CO OPERATIVE BANK TO BE ELIGIBLE CO OPERATIVE BANK