Amendment status not verified — confirm the current text below against the official source.
(1) Subject to the provisions of this Act and the rules, a co-operative society, may by an amendment of its bye-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, it shall give notice thereof in writing to all its members and creditors and notwithstanding any bye-law or contract to the contrary, any member or creditor shall, during a period of three months from the date of service of the notice upon him, have the option of withdrawing, subject to the provisions of section 41, his shares, deposits or loans, as the case may be. (3) Any member or creditor who does not exercise his option within the period specified in sub-section (2), shall be deemed to have assented to the change. (4) An amendment of the bye-laws of a co-operative society changing the form or extent of its liability shall not be registered until, either- (a) it has been assented to or deemed to have been assented to by all the members and creditors ; or (b) all claims of members and creditors who exercise the option referred to in sub-section (2) within the period specified therein have been met in full.