Section 11 in Uttarakhand Self Reliant Co-Operatives Act, 2003
11. Division.
(1)A co-operative may, by a special resolution, decide to divide itself into two or more co-operatives.(2)Where a special resolution is passed under sub-section (1), the co-operative shall, within the following 15 days, give notice thereof together with a copy of the resolution to all its members and creditors and, notwithstanding any provision in the articles of association or contract to the contrary, any member other than one who voted in favour of the proposed division, or creditor shall, during a period of fifteen days from the date of service of the notice upon him/her, have the option of withdrawing from the co-operative, his/her interests, subject to the discharge of his/her obligations to the co-operative.(3)Any member or creditor who does not exercise his/her option within the period specified in sub-section (2) shall be deemed to have agreed to the resolution.(4)A special resolution passed under sub-section (1) shall not take effect until(a)all claims of the members and creditors of the co-operative who have exercised the option under sub-section (2) have been met in full or otherwise satisfied;(b)information of the impending division and settlement of claims of members and creditors is sent to the Registrar and the Registrar's acknowledgment of receipt of the information is obtained; and(c)the certificates of registration and the copies of the registered Memorandum and articles of association of the resultant co-operatives, signed and sealed by the Registrar, are issued in accordance with section 3.(5)When a co-operative divides itself into two or more co-operatives under this section, the registration of the erstwhile co-operative shall stand cancelled and it shall be deemed to have been dissolved and shall cease to exist as a body corporate and the Registrar shall delete the name of the co-operative from the register of co-operatives.(6)When a co-operative divides itself into two or more co-operatives, each member who has assented to the division shall be deemed to have become a member of that newly formed co-operative to which his/her interests were transferred, in accordance with the scheme of division approved by the general body.(7)When a special resolution passed under sub-section (1) takes effect, the resolution shall be sufficient conveyance to vest the assets and liabilities in the transferees without any further assurance.
