Section 5 in The M.P. Swayatta Sahakarita Adhiniyam, 1999
5. Conversion of co-operative society into co-operative.
(1)Notwithstanding anything contained in the Co-operative Societies Act, the co-operative society other than a housing co-operative society registered and functioning under the Co-operative Societies Act, which intends to convert itself into co-operative, may apply for conversion under this Act:[Provided that where the Central Government or State Government have given share capital, loan or Government guarantee to a co-operative society intending to convert itself into a swayatta co-operative under this Act, the co-operative society shall, before applying for under this Act, return such share capital, loan or guarantee to such Government, and such Government shall accept such returned share capital, loan or guarantee as the case may be.] [[Substituted by M.P. Act No. 24 of 2001 (w.e.f. 15-10-2001). Prior to substitution it read as under:'Provided that where the Central Government or State Government have given share capital, loan, Government guarantee or grant to a co-operative society intending to convert itself into a swayatta co-operative .under this Act, the co-operative society shall, before applying for under this Act, return such share capital, loan or guarantee to such Government, and such Government shall accept such returned share capital, loan or guarantee or grant as the case may be.']](2)(a)An application for conversion shall be submitted to the Registrar by hand or by registered post, by the elected board of such co-operative society which intends to convert itself into a co-operative under this Act, on the basis of a resolution passed by a majority of members present at a meeting of the general body to the co-operative society making application under sub-section (1) (hereinafter in this section referred to as such general body), called with atleast twenty days notice provided that such meeting is attended by atleast twenty-five per cent of total members or five hundred members, which ever is less.(b)The person by whom or on whose behalf such application is made shall furnish such information in regard to the co-operative society applying under sub-section (1) or the proposed co-operative as the Registrar may require.(3)Every such application shall be accompanied by-(a)a true copy of the resolution of such general body expressing commitment to the co-operative principles specified in Schedule A;(b)evidences to show that the society is not in possession of any share capital, loan or guarantee [x x x] [Words 'or has not received grant' omitted by M.P. Act No. 24 of 2001 (w.e.f. 15-10-2001).] from the Central or the State Government;(c)the original and four copies of the bye-laws of the proposed co-operative as adopted by such general body;(d)a true copy of the resolution of such general body adopting the bye-laws;(e)a true copy of the latest annual report and audited statement of accounts of such co-operative society;(f)a true copy of the resolution of such general body along with particulars regarding the writing off of accumulated losses, if any from various reserves or by debting to the accounts of members as decided at the meeting of such general body;(g)a list of members who attend such general body meeting;(h)a copy of the treasury challan in support of payment of registration fee calculated in accordance with the provisions of sub-section (1) of Section 18.(4)The Registrar shall register the co-operative and also take on record its bye-laws and communicate by registered post a certificate of registration and the original bye-laws signed and sealed by him, within ninety days from the date of submission or receipt of application for registration, as the case may be, to such person as specified in the application for the purpose subject to the fulfilment of following, namely :-(a)the application is in conformity with the requirements laid down by this Act;(b)the object of the proposed co-operative is the economic and social betterment of its members through the provision of core services to fulfil such common need as specified in the proposed bye-laws;(c)the proposed bye-laws are-(i)not inconsistent with the provisions of this Act; or(ii)not against the aims and objects of the co-operative; or(iii)is in conformity with the co-operative principles specified in Schedule A; and(d)the registration fee has been paid.(5)If the conditions mentioned in sub-sections (3) and (4) are not fulfilled, the Registrar shall communicate by registered post the order of refusal together with the reasons therefor, within ninety days from the date of submission or receipt of application for registration, as the case may be, to the person as specified in the application for the purpose :Provided that no order of refusal shall be passed without giving an opportunity of being heard to the applicant.(6)The certificate of registration signed and sealed by the Registrar shall be conclusive evidence that the co-operative mentioned therein is a co-operative duly registered under this Act, unless it is proved that the registration of the co-operative has been subsequently cancelled.(7)Where within ninety days of submission or receipt of the application for registration, as the case may be, an applicant receives neither the certificate of registration nor the orders of refusal, the applicant may move the co-operative Tribunal for redressal.(8)Where a co-operative is registered under sub-section (4), it shall send to the Registrar of Co-operative Societies a copy of the registration certificate under the Co-operative Societies Act, and a copy of the registration certificate under this Act and the Registrar of Co-operative Societies shall, within thirty days of the receipt of such information, delete the name of such co-operative society from the register of co-operative societies.(9)Where a co-operative is registered under sub-section (4), the assets and liabilities, the rights and obligations, and members of the applicant co-operative society shall become the assets and liabilities, the rights and obligations, and the members of the co-operative registered under this Act, and all transactions of the applicant co-operative society shall be deemed to have been the transactions of the co-operative registered under this Act.
