Section 13(1) in The Tamil Nadu Co-Operative Societies Act, 1983
(1)(a)Any registered society may, at a meeting of its general body specially called for the purpose of which at least fifteen clear days' notice shall be given to its members, resolve to divide itself into two or more societies. The said resolution (hereafter in this sub-section referred to as the preliminary resolution) shall contain proposals for the division of the assets and liabilities of the society among the new societies into which it is proposed to divide it and may prescribe the area of operation of, and specify the members who will constitute, each of the new societies. The proposed bye-laws of the new societies shall be annexed to the preliminary resolution.(b)(i)A copy of the preliminary resolution shall be sent to all the members and creditors of the society.(ii)Any member of the society may, notwithstanding any bye-law to the contrary, by notice given to the society within a period of one month from the date of receipt by him of the preliminary resolution, intimate his intention not to become a member of any of the new societies.(iii)Any creditor of the society may, notwithstanding any agreement to the contrary, by notice given to the society within a period of one month from the date of receipt by him of the preliminary resolution, intimate his intention to demand a return of the amount due to him.(c)After the expiry of two months from the date of dispatch of the preliminary resolution to all the members and creditors of the society, a meeting of the general body of the society of which at least fifteen clear days' notice shall be given to its members, shall be convened for considering the preliminary resolution and the proposed bye-laws. If, at such meeting, the preliminary resolution and the proposed bye-laws of the new societies are confirmed by a resolution passed by a majority of not less than two-third of the members present and voting, either without changes or with such changes, as in the opinion of the Registrar, are not material, he may subject to the provisions of clause (e) and of section 9, but notwithstanding anything contained in section 8 and on receipt of a copy of such resolution certified in the manner prescribed, register the new societies and the bye-laws thereof. On such registration, the registration of the original society shall be deemed to have been cancelled.The opinion of the Registrar as to whether the changes made in the preliminary resolution are, or are not, material shall be final.(d)At the meeting referred to in clause (c), provision shall be made by another resolution for-(i)(A)the re-payment of the share or interest in the capital and other moneys due to all the members who have given notice under sub-clause (ii) of clause (b); and(B)the satisfaction of the claims of all the creditors who have given notice under sub-clause (iii) of clause (b):Provided that no member or creditor shall be entitled to such re-payment or satisfaction until the preliminary resolution is confirmed as provided in clause (c); and(ii)the constitution of an interim board consisting of the members specified in the resolution to conduct the affairs of each of the new societies for a period of three months from the date of registration or for such further period or periods not exceeding [six months] [Substituted for 'one year' by Tamil Nadu Act No. 4 of 2013 dated 23.2.2013, w.e.f. 31.1.2013.] in the aggregate from the date of registration as the Registrar may consider necessary; but the interim board constituted under this sub-clause shall cease to function as soon as a board has been constituted in accordance with the provisions of this Act, the Rules and the bye-laws.(e)If the Registrar is satisfied that provision for the re-payment of the share or interest in the capital and other moneys due to all the members and for the satisfaction of the claims of all the creditors referred to in clause (d) has not been made, he may refuse to register the new societies.(f)The registration of the new societies shall be a sufficient conveyance to vest the assets and liabilities of the original society in the new societies in the manner specified in the preliminary resolution as confirmed under clause (c).
