Section 50A in The Bihar Co-operative Societies Rules, 1959
50A. [ [Inserted by letter No. 14/legal 51-89-2829 dated 2.9.89.]
(1)Subject to the provision of the Act and the Rules, a Cooperative Society may reduce its share capital according to the scheme approved by the Registrar and adopted by the general body of the society in a General Meeting. Such a scheme may provide for-(i)extinguishing or reducing the liability on any of its shares in respect of share capital not paid-up, or(ii)cancelling any paid-up share capital, or(iii)paying back any paid-up share capital which is in excess of the need of the society.](2)The Registrar may direct a Co-operative Society desiring to reduce its share capital to issue a notice by registered post to every creditor who shall be entitled to object to the proposed reduction within one month from the date of receipt of such notice.(3)If a creditor does not consent to the proposed reduction of the share capital, the Registrar may dispense with the consent of the creditor, in case the society secures payment of the debt of such creditor or satisfaction of the claim within the time specified by the Registrar.(4)The Registrar, if satisfied, with respect to any creditor of such society, who has object to the reduction, that either his consent to the reduction has been obtained or his debt or claim has been paid or satisfied may make an order approving the reduction on such terms and conditions as the Registrar may think fit.(5)The resolution for the reduction of share capital of a Co-operative Society shall take effect from the date on which it is approved by the Registrar under sub-Rule (4) above:Provided that nothing in sub-Rules (1), (2), (3), (4) and (5) shall prevent a Cooperative Society from adjusting partially or fully the value of the shares held by an individual member against any amount due from him or from making a refund of the value of shares held by him after the dues of the society against him have been fully satisfied, in accordance with its bye-laws.
