Section 11 in The Chhattisgarh Co-operative Societies Rules, 1962
11. Re-organisation of societies.
(1)Every society desiring to effect amalgamation, transfer of assets and liabilities, division or conversion under sub-section (2) of Section 16 shall frame a full scheme of re-organisation indicating how the proposed amalgamation, transfer of assets and liabilities, division or conversion would be useful to the society and be given effect to. Where the scheme involves a division of a society into two or more societies, it shall contain proposals regarding the name, the area of operations, draft bye-laws and the list of members and creditors of the new society or societies into which the society would be divided. Where the scheme involves conversion of the society into a class of society, the object of which is materially different from that under which it has been classified under the Act. It shall contain draft bye-laws of that class of society into which the society would be converted.(2)After framing the scheme of reorganisation under sub-rule (1), the society shall convene a special general meeting by giving a written notice of twenty-one days to all its members along with the proposed scheme of reorganisation. In the case of the society desiring amalgamation with or transfer of the assets and liabilities in whole or in part to any other society (hereinafter referred to as the other society), the society shall send a copy of the notice and the proposed scheme to the other society also for information. The society shall pass a resolution for amalgamation, transfer of assets and liabilities, division or conversion, as the case may be, by two-thirds majority of the members present and voting at the special general meeting and shall in the case of the amalgamation or transfer of assets and liabilities forward a copy of such resolution to the other society.(3)After the receipt of the resolution the other society shall convene a special general meeting by giving a written notice of twenty-one days to all its members along with the scheme of re-organisation and draft amendment to its bye-laws, if any, and pass a resolution by two-thirds majority of the members present and voting at the special general meeting for approving the scheme of reorganisation and the amendment to its bye-laws, if any, and send a copy of its resolution in respect of the approval to the society which has decided to re-organise itself.(4)The affected society shall, in the case of amalgamation or transfer of assets and liabilities, after the receipt of the approval under sub-rule (3) and in the case of division or conversion, after the passing of the resolution under sub-rule (2), take action under sub-sections (5) and (6) of Section 16.(5)The affected society shall submit a report to the Registrar of the action taken by it and request him to approve the decision for amalgamation, transfer of assets and liabilities, division or conversion.(6)On receipt of the report from the affected society under sub-rule (5), the Registrar shall, after satisfying himself that the procedure has been properly followed, approve the decision of the society and register the amalgamated, divided or converted society or societies.(7)(a)Before issuing any direction under sub-section (3) of Section 16 for the amalgamation, transfer of assets and liabilities, division or conversion of any society or societies, the Registrar shall prepare a draft scheme of reorganisation in respect of such amalgamation, transfer of assets and liabilities, division or conversion stating in particular the manner in which the new committee or committees of the society or societies resulting from such amalgamation, transfer of assets and liabilities, division or conversion shall be constituted and the bye-laws which such society or societies shall follow. The Registrar shall send a copy of the draft of the direction proposed to be issued by him under sub-section (3) of Section 16, to the society or each of the societies concerned calling upon it or them to invite objections or suggestions from any member or class of members thereof or from any creditor or class of creditors and to submit such objections or suggestions together with its own or their own opinion within a period to be specified by the Registrar.(b)The Registrar shall consider all such objections, suggestions and opinion and make such modifications in the draft direction as may seem to him desirable in the light of those objections, suggestions or opinion and then issue a final direction under sub-section (3) of Section 16.
