Section 16 in The Gujarat Co-Operative Societies Act, 1961
16. Change of liability.
(1)Subject to the provisions of this Act and the rules, a society may by passing a resolution and by amending its bye-laws, change the form or extent of its liability.(2)When a society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writing to all its members and creditors and, notwithstanding anything in any bye-laws or contract to the contrary, any member or creditor shall, during a period of one month from the date of service of such notice upon him, have the option of withdrawing his investment in its shares, and his deposits and loans, and of demanding the payment of its other dues, if any.(3)Any member or creditor who does not exercise his option within the period specified in sub-section (2), shall be deemed to have assented to the change.(4)An amendment of the bye-laws of a society, changing the form or extent of its liability, shall not be registered or take effect until, either-(a)all members and creditors have assented, or deemed to have assented thereto as aforesaid; or(b)all claims of members and creditors exercising the option, under subsection (2) have been met in full.
