Section 16 in The Delhi Co-operative Societies Rules, 2007
16. Change in Liability.
(1)The change of form and extent of liability of a co-operative society or in terms of multiple of share capital, shall be secured by passing a resolution in that behalf at a general body meeting of the co-operative society indicating in clear terms the manner of changing the liability. The co-operative society shall give thirty days notice in writing of such meeting to all its members and creditors and shall furnish them with copies of the resolution proposed to be moved at the meeting. After the resolution is duly moved and passed, a copy thereof shall be sent to the Registrar within ninety days.(2)Every notice to be given by the co-operative society under sub-section (2) of section 15 of the Act shall be sent by post under certificate of posting or other wise to the address of each of its members and creditors as recorded in the book of the co-operative society. A copy of such notice shall be exhibited on the notice board of the co-operative society and a copy shall also be sent to the Registrar for exhibition on the notice board in his office; and thereupon, notice of the resolution to change the form or extent of its liability shall be deemed to have been duly given to all its members and creditors, notice not being sent to their correct address or notice not being received by them, notwithstanding.(3)For the purpose of determining the claims of a member under clause (b) of sub-section(4)of section 15 of the Act, the value of a share of a member shall be the amount arrived at by a valuation based on the financial position of the co-operative society as shown in the last audited balance sheet, provided that it shall not exceed the amount actually received by the co-operative society in respect of such share.(4)Any member or creditor desiring to exercise his option under sub-section (2) of section 15 of the Act shall inform the co-operative society in writing and where the member does not propose to withdraw his entire share or deposit, the members or creditor shall clearly indicate in writing the extent of his withdrawal. The option once exercised shall be final and shall not be revoked. The co-operative society shall examine and draw up a scheme for orderly payment of all the claims in an equitable manner including shares, the value of which shall be ascertained in accordance with the provisions of sub-rule (3) of this rule. The scheme may also provide for settlement of claims by mutual agreement. If the Registrar does not approve the scheme on the ground of impracticability or undesirability, the resolution passed by the society under sub-rule (1) shall be ineffective, and the form and extent of liability of a co-operative society shall not be deemed to be changed in accordance with the resolution passed aforesaid.(5)After the Registrar approves the scheme, the co-operative society shall make payments to its members and creditors as provided in clause (b) of sub-section (4) of section 15 of the Act and make a report to that effect to the Registrar and furnish the Registrar with a proposal to amend the bye-laws of the co-operative society duly passed in that behalf. On receipt of the proposal, the Registrar shall register the amendment in accordance with the provisions of section 12 of the Act.
