Section 16 in The M.P. Co-Operative Societies Act, 1960
16. Reorganisation of Societies.
(1)In this section-(a)"affected society" means a society which decides to reorganise itself in any of the manners specified in sub-section (2); and(b)"resulting society" means a society-(i)which is formed as a result of amalgamation under clause (a) of sub-section (2); or(ii)to which the assets and liabilities of the affected societies are transferred in whole or in part under clause (b) sub-section (2); or(iii)which is formed as a result of division under clause (c) of sub-section (2); or(iv)which is the result of change of class as provided in clause (d) of sub-section (2).(2)A society may, by resolution passed by two-third majority of the members present and voting at a special general meeting held for the purpose decide to reorganise itself by-(a)amalgamating itself with another society; or(b)transferring its assets and liabilities in whole or in part to any other society; or(c)dividing itself into two or more societies; or(d)converting itself into a class of society, the object of which is materially different from that under which it has been classified under this Act :Provided that no such decisions shall take effect unless it is approved by the Registrar :[Provided further that in case of a Co-operative Bank, the Registrar shall not give his approval save with the previous sanction in writing of the Reserve Bank;] [Inserted by M.P. Act No. 8 of 1970.][Provided also that an order for the winding up or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction, of a Co-operative Bank shall be made only with the previous sanction in writing of the Reserve bank.] [Inserted by M.P. Act No. 25 of 2016, dated 12.9.2016.](3)Notwithstanding anything contained in sub-section (2) where the Registrar is satisfied that it is essential in the public interest or in the interest of the members of the affected societies or necessary to secure the proper management of any society, he may direct that any society or societies shall reorganise itself or themselves in any one or more of the modes indicated in sub-section (2) :[Provided that, in the case of a Co-operative Bank, the Registrar shall not issue any direction save with the previous sanction in writing of the Reserve Bank :Provided further that before a final order under this sub-section is passed by the Registrar every society concerned shall be given an opportunity of expressing its opinion on the reorganisation proposals.] [Inserted by M.P. Act No. 8 of 1970.](4)The procedure for reorganisation of a society in accordance with the decision under sub-section (2) or the direction of the Registrar under sub-section (3), as the case may be, shall be such as may be prescribed.(5)If any such reorganisation under sub-section (2) or (3) is likely to affect in any manner the interest of any person, notice thereof shall be given to all such persons and every such person shall be given an option, to be exercised within a month from the date of the issue of such notice, of either becoming a member of the resulting society or societies or of demanding the payment of the share or interest or dues in respect of the affected society, as the case may be.(6)No reorganisation shall be final until the assent of every such person whose interest is likely to be affected, has been obtained or deemed to have been obtained by virtue of his failure to exercise the option given to him, and further, unless all the claims of persons who have exercised the option of demanding the payment of their shares or interests or dues under sub-section (5) have been met in full.(7)Every resulting society under this section shall have such constitution, property, powers, rights, interests, authorities, duties and obligations as may be specified in the scheme of reorganisation and every such scheme of reorganisation may contain such consequential, incidental and supplemental provisions as may, in the opinion of the Registrar, be necessary to give effect to such scheme.(8)Notwithstanding anything contained in the Transfer of Property Act, 1882 (IV of 1882) or the Indian Registration Act, 1908 (XVI of 1908), a resolution of a society approved by the Registrar under sub-section (3) shall be sufficient conveyance to vest the assets and liabilities of each affected society in the resulting society or societies concerned, such vesting being subject only to the provisions of the scheme of reorganisation.(9)The reorganisation of societies shall not in any manner, whatsoever affect any right or obligation of the resulting society or societies or render defective any legal proceedings by or against the society or societies and any legal proceedings that might have been continued or commenced by or against the society or the societies, as the case may be, before the reorganisation may be continued or commenced by or against the resulting society or societies.(10)Where any two or more societies have been amalgamated or a society has been divided or converted, the registration of such society or societies shall be deemed to have been cancelled on the date of registration of the amalgamated society or of the converted society or of the new societies into which the society may have been divided.(11)Where a land mortgage bank has been reorganised by amalgamation with a central bank, the amalgamated bank shall in respect of all transactions relating to the land mortgage bank business made on and after such amalgamation be deemed to be a land mortgage bank within the meaning of the law relating to Land Mortgage Banks for the time being in force.Explanation. - For the purposes of this section "Central Bank" means a society with the words "Central Bank" or "District Bank" as part of its name and whose main object is to finance societies which are members of it and lie within a specified area.(12)Every scheme of such reorganisation shall be published in the official Gazette for general information.
