Section 17 in The Delhi Co-operative Societies Rules, 2007
17. Amalgamation, transfer of assets and liabilities and division of co-operative societies.
(1)Every co-operative society desiring to effect amalgamation, transfer of assets and liabilities and division shall make an application to the Registrar in that behalf giving full details about such amalgamation, transfer or division, as the case may be.(2)On receipt of the application referred to in sub-rule (1) of this rule, the Registrar may invite objections from members and shareholders or creditors or from any other person who in the opinion of the Registrar is interested in the affairs of the cooperative society and may call for such further information or particulars from the cooperative society as he may deem necessary.(3)On receipt of such application, the Registrar may, after examining the details furnished in the application and after considering all suggestions received by him in response to his invitation referred to in sub-rule (2) of this rule, and other particulars which he may call upon the co-operative society to furnish, give his approval to the amalgamation, transfer, or division as the case may be, in the interest of the cooperative society.(4)After the receipt of the approval of the Registrar under sub-rule (3) of this rule, the co-operative society shall convene a special general body meeting by giving notice of at least fifteen days to all its members and creditors and pass a resolution for amalgamation, transfer of assets and liabilities or division, as the case may be, by two-third majority of the members present and voting at the meeting. The resolution so passed shall contain the purpose and the full scheme indicating how the proposed amalgamation, transfer, or division would be useful to the co-operative society and be given effect to of the scheme involves transfer of liabilities or assets of the cooperative society to another co-operative society, a statement to that effect shall be made in the application to be made under sub-rule (1) of this rule. If the scheme involves transfer of liabilities or assets, the co-operative society shall give written notice in Form-7 to all the members, creditors and any other person whose interests are likely to be affected by such transfer. The notice shall also be published in at least one newspaper in English and Hindi and one in vernacular language in circulation in the National Capital Territory of Delhi and a copy thereof shall be exhibited on the notice board in the office of the co-operative society and the office of the Registrar.(5)Within one month from the date of notice referred to in sub-rule (4) of this rule, the member, creditor and other person whose interests are likely to be affected by the transfer of the liabilities or assets of the co-operative society, may exercise his option as required by sub-section (4) of section 16 of the Act, in writing duly signed by him and delivered or caused to be delivered to the co-operative society, failing which they shall be deemed to have assented to the transfer of liabilities of the co-operatives society to another co-operative society. The option once exercised shall be final and shall not be revoked.(6)The co-operative society shall meet in full or otherwise satisfy all claims of members and creditors and other interested persons who have exercised the option.(7)For the purposes of determining the claims of a member under clause (b) of subsection(6)of section 16 of the Act, the value of the 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 actual amount received by the co-operative society in respect of such share'.(8)The co-operative society shall submit a report to the Registrar of the action taken by it and request the Registrar to give effect to its decision for amalgamation, transfer or division by registering the amalgamated co-operative society or the new co-operative society as the case may be and cancelling the registration of the cooperative societies which have been amalgamated on divided.(9)On receipt of the report from the co-operative society under sub-rule (8) of this rule, the Registrar shall, after satisfying himself that the procedure has been properly followed, register the amalgamated, or divided co-operative societies and cancel the registration of the co-operative societies which have been amalgamated, or divided.
