Section 11 in The Orissa Self-Help Co-operatives Act, 2001
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), it will be treated to be a scheme according to which the Co-operative shall 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 thirty days from the date of issue of the notice upon him/her, have the option of withdrawing his/her shares, deposits or loans, as the case may be, 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 assented to the resolution.(4)A special resolution passed under Sub-section (1) shall not take effect untit-(a)all claims of the members and creditor 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 intended division and information about settlement of claims of members and creditors along with memorandum of association and articles of association of the Co-operatives are sent to the Registrar by registered post; and(c)the certificates of registration and the certified copy of memorandum of association including articles of association of such Co-operatives, signed and sealed by the Registrar, are issued to them in accordance with Section 4.(5)When a Co-operative divides itself into two or more Co-operatives under this section, the registration of the Co-operative shall stand cancelled and it shall be deemed to have been dissolved and the Registrar shall delete the name of the Co-operative from the register of Co-operatives. On the other hand, the names of the newly formed Co-operatives which are registered by the Registrar shall find place in the register of Co-operatives.(6)When a Co-operative divides itself into two or more Co-operatives, each member who has assented or deemed to have 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 respective Co-operatives so formed without any further assurance.
