Section 5 in The Tamil Nadu Co-Operative Societies Act, 1983
5. Change of liability.
(1)Subject to any rules made in this behalf, any registered society may, at a meeting of its general body specially called for the purpose of which at least fifteen clear days' notice shall be given to its members, resolve to change its liability from unlimited to limited and to amend its bye-laws for this purpose.(2)(i)When a registered society has passed a resolution under sub-section (1), a copy of the said resolution shall be sent to all the members and creditors of the society.(ii)Any member of such society may, notwithstanding any bye-law to the contrary, by notice given to the society within a period of two months from the date of receipt by him of the resolution, intimate his intention not to continue as a member of the society and to withdraw his share or interest in the capital and other moneys due to him.(iii)Any creditor of such society may, notwithstanding any agreement to the contrary, by notice given to the society within a period of two months from the date of receipt by him of the resolution, intimate his intention to demand a return of the amount due to him.(3)Every member or creditor who has given notice under clause (ii) or clause (iii) of sub-section (2), shall be entitled to receive his share or interest in the capital and other moneys due to him, if he be a member and the amount in satisfaction of his dues, if he be a creditor.(4)If the Registrar is satisfied that the re-payment of the share or interest in the capital and other moneys due to all the members and the satisfaction of the claims of all the creditors referred to in sub-section (3) have not been made, he may refuse to register the amendment of the bye-law.
