Section 38 in The Bihar Co-operative Societies Rules, 1959
38. Voluntary amalgamation of societies.
(1)Any two or more registered societies may, at a general meeting of each society held for the purpose, of which at least seven days' notice has been given to their respective members, resolve to amalgamate as a new society.(2)A copy of the resolution of each society passed under sub-Rule (1) and hereinafter in this Rule referred to as the preliminary resolution shall be sent to all the members and creditors thereof.(3)Any member, any such society may, notwithstanding any bye-law to the contrary, be given to the society of which he is a member within a period of one month from the receipt of the preliminary resolution, intimate his intention not to become a member of the new society.(4)Any creditor of any such society may, notwithstanding any agreement to the contrary, by notice given to the society of which he is creditor within the said period, intimate his intention to demand a return of the amount due to him.(5)After the expiry of one month from the receipt of the preliminary resolution by all the members and creditors of all the societies, a joint meeting of the members of such societies of which at least fifteen day's notice shall be given to them, shall be convened for considering the preliminary resolution. If at such meeting, the preliminary resolution is confirmed by a resolution passed by a majority of the members present, either without changes or with such changes as in the opinion of the Registrar are not material, he may subject to the provision of sub-Rule (8) of Rule 55 and Rule 4, register the new society and the bye-laws thereof, and, on such registration, the registration of the old societies shall be deemed to have been cancelled.(6)The opinion of the Registrar as to whether the changes made in preliminary resolution are or are not material shall be final.(7)At the joint meeting referred to in sub-Rule (5), provision shall be made by another resolution for-(i)the payment of the share capital of all the members who have given notice under sub-Rule (3); and(ii)the satisfaction of the claims of all the creditors who have given notice under sub-Rule (4):Provided that no member or creditor shall be entitled to such payment on satisfaction of the claim until the preliminary resolution is confirmed as provided in sub-Rule (5).(8)If within such time as Registrar considers reasonable, the share capital of the members referred to in sub-Rule (7) is not repaid or the claims of the creditors referred to therein are not satisfied, the Registrar may refuse to register the new society.(9)On the registration of the new society, the assets and liabilities of the amalgamated societies shall vest in the new society.
