Amendment status not verified — confirm the current text below against the official source.
Power to direct amalgamation.- (1) Where, in the opinion of the Registrar, the amalgamation of two or more registered societies is necessary or desirable for increasing their strength or usefulness, he may, after consulting the financing bank, if any, to which the societies are affiliated call upon by notice in writing such societies to amalgamate into one society in accordance with the procedure specified in section 14 and within the maximum time limit that may be specified by him. (2) If the societies fail to amalgamate into one society within a period specified therefor the Registrar may, after giving an opportunity to the committee of each of the societies to state its objections, if any, and may, by order in writing, direct the amalgamation of the societies into one society and furnish to each such society a copy of the by-laws of the amalgamated society, as proposed by him. (3) Every society so directed shall within one month from the date of receipt by it of the Registrar's direction, give notice of the direction to all its members and creditors in such form and manner as may be specified by the Registrar, and if the society fails to give notice of the direction within the said period, the Registrar or any person authorised by him in this behalf may give such notice. (4) (a) Any member of any society so directed may notwithstanding any by-law to the contrary, by notice given to the society of which he is a member within a period of one month from the date of receipt by him of the notice of the direction, intimate his intention not to become a member of the amalgamated society. (b) Any creditor of any society so directed may, notwithstanding any agreement to the contrary, by notice given to the society of which he is a creditor within the period referred to in clause (a), demand a return of the amount due to him. (5) Any member or creditor who does not exercise his option within the period referred to in sub-section (4) shall be deemed to have assented to the amalgamation. 55 (6) After the expiry of one month from the date of despatch of the notice of the direction to all the members and creditors of all the societies, the Registrar may, subject to the provisions of section 9, but notwithstanding anything contained in section 8, register the amalgamated society and the by-laws thereof. On such registration, the registration of the original societies shall be deemed to have been cancelled. (7) The registration of the amalgamated society shall be a sufficient conveyance to vest in it all the assets and liabilities of the original societies and the repayment of the share capital of the members and the satisfaction of the claims of the creditors, if any, referred to in sub-section (4) shall be made by the amalgamated society within such time as the Registrar may fix.