Section 12 in The M.P. Swayatta Sahakarita Adhiniyam, 1999
12. Division of co-operative.
(1)A co-operative may, by special resolution, decide to divide itself into two or more co-operatives.(2)Where special resolution is passed under sub-section (1), the co-operative shall give notice thereof together with a copy of the resolution passed by it to all its members and creditors and any member other than those who voted in favour of the proposed division and any creditor shall, during a period of thirty days from the dale of service of notice upon him have the option of withdrawing his shares, deposits or loans, from the co-operative as the case may be, subject to the discharge of his obligations to the co-operative.(3)Any member or creditor who fails to exercise the option within the period specified in sub-section (2) shall be deemed to have assented to the division.(4)The 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 intended division and settlement of claims of members and creditors is sent to the Registrar and his acknowledgment of receipt of the information is obtained; and(c)the certificates of registration and the original bye-laws of the resultant co-operatives, signed and sealed by the Registrar, are issued under sub-section (6) of Section 4.(5)When a co-operative divides itself into two or more co-operatives under this section, the registration of such co-operative shall stand cancelled and it shall be deemed to have been dissolved and shall cease to exist as a corporate body and the Registrar shall delete the name of such 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 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 interests were transferred, in accordance with the scheme of division approved by the general body of such co-operative notwithstanding anything contained in this Act.
