Amendment status not verified — confirm the current text below against the official source.
Compulsory amalgamation:- (1) Where the Registrar is satisfied that it is essential or desirable in the interest of the co-operative society or co-operative societies that (i) one or more co-operative societies, be amalgamated with any other co-operative society; or (ii) two or more co-operative societies be amalgamated to form a new cooperative society, then notwithstanding anything contained in section 13, the Registrar, may, by order, after consulting the financing institution, if any, provide for the amalgamation of the said society or societies,– (a) with any other co-operative society, or (b) to form new co-operative society, with such constitution, property, rights, interests, liabilities, duties and obligations, as may be specified in the order. (2) No order shall be made under this section, unless – * Section 13- Sub Section (1) substituted by Act No. 19 of 2006. 11 (i) a copy of the proposed order has been sent to the society or each of the concerned societies requiring them to file objections or suggestions on the proposed order within 15 days from the date of its receipt; (ii) the Registrar has considered all objections or suggestions received from such societies or members or creditors thereof, and has made such modifications in the proposed order as he may deem proper; (iii) every member or creditor of each of the societies to be amalgamated, who has objected to the scheme of amalgamation, shall be entitled to receive within the period specified in the order of amalgamation his share or interest if he be a member, and the amount in satisfaction of his dues if he be a creditor; (iv) 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. * 14-A Special provision in respect of sick societies :- (1) Notwithstanding anything contained in this Act or the rules made thereunder or the bye laws of the societies concerned or in any other law for the time being in force, where, in the opinion of the Registrar, a Co-operative Society, in which majority of the shares are held by the Government, is or has become sick, and that there is no possibility to rehabilitate the same, the Registrar shall, after consulting the Government and the financing institution, if any, to which such co-operative society is indebted, call upon the committee concerned by notice in writing containing such particulars as may be prescribed in the notice to transfer its assets and liabilities to any other society or a company or a firm or a body whether incorporated or not on such terms and conditions as may be formulated in the manner prescribed and on such transfer, the said sick society, shall stand dissolved. (2) If within the time specified in the notice referred to in sub section (1), the said sick society fails to comply with the directions of the Registrar, he shall after giving an opportunity in the manner prescribed to the committee of such a sick society and the creditors thereof to make their representation, if any, by order notified in the official gazette, take such action as he deems fit in the matter, including the issue of direction to the society to transfer its assets and liabilities in the manner referred to in sub section (1) : Provided that no order under sub section (2) shall be passed by the Registrar until – (a) all the suggestions / objections made by creditors /members have been fully considered ; and (b) all the claims submitted by the creditors including National Co-operative Development Corporation have been fully repaid. (3) Government shall be competent to make rules and to give such directions as it deems fit to the Registrar, for the purposes of this section. Explanation– (1) ―Sick Society‖ means a co-operative society which at the end of any one of the preceding three financial years, has accumulated losses equal to or exceeding its entire net worth – (i) ―net worth‖ means the sum total of paid up capital and free reserves; (ii) ―free reserves‖ means all reserves credited out of the profit & loss account but does not include reserves credited out of re-evaluation of assets and write back of depreciation provisions. (2) ―transfer‖ means a transfer of assets and liabilities of sick society by means of sale or lease.