Section 14 in The M.P. Swayatta Sahakarita Adhiniyam, 1999
14. Merger of co-operatives.
(1)A co-operative may, by special resolution, decide to merge itself into any other co-operative which, by special resolution, agrees to such merger.(2)Where special resolutions are passed under sub-section (1), each co-operative shall give notice thereof together with a copy of the resolution passed by it to all its members and creditors, and any member other than those who voted in favour of the proposed merger and any creditor shall, during a period of thirty days from the date of service of notice upon him, have the option of withdrawing his shares, deposits or loans from the co-operative, as the case may be, subject to the discharge of his obligations to the co-operative concerned.(3)Any member or creditor who fails to exercise the option within the period specified in sub-section (2) shall be deemed to have assented to the merger.(4)The special resolutions passed under sub-section (1) shall not take effect until :-(a)all claims of the members and creditors of each co-operative who have exercised the option under sub-section (2) have been met in full or otherwise satisfied; and(b)information of the intended merger and settlement of claims of members and creditors is sent to the Registrar and his acknowledgment is obtained.(5)When a co-operative merges itself into any other co-operative under this section, the registration of the merged co-operative shall stand cancelled and it shall be deemed to have been dissolved and shall cease to exist as a corporate body, and the Registrar shall delete the name of such co-operative from the register of co-operatives.(6)When a co-operative merges itself into any other co-operative under this section, the members of the first co-operative who assented or deemed to have assented to the merger, shall be deemed to have become the members of the second co-operative notwithstanding anything contained in this Act.
