Section 36 in The Bihar Co-operative Societies Rules, 1959
36. Change of liability.
- Subject to the proviso to Section 5(1) of the Act a registered society may, by a resolution passed at a general meeting held specially for the purpose, and with the previous sanction of the Registrar change its liability from limited to unlimited or from unlimited to limited, or in the case of a society of limited liability change the extent of such liability :Provided that-(i)the society shall give two week's notice in writing to its members and creditors of its intention to change the nature or extent of its liability;(ii)any member or creditor shall have the option of withdrawing his shares, deposits, or loan, as the case may be, within one month from the date of the general meeting, and the change shall not take effect until all such claims have been satisfied, and(iii)in the event of the decision to change the nature or extent of the liability being latter reversed, any member or creditor who has withdrawn his share, deposits, or loans, as the case may be, under clause (ii), shall have the right to resume its interest in the society as shareholder, depositor or creditor to the same extent as he had before the withdrawal.
