Section 9 in The Assam Co-operative Societies Act, 1949
9. Change of liability.
(1)Subject to the proviso to Section 4 and to any rules made in this behalf, a registered society may, with the previous sanction of the Registrar, change its liability from limited to unlimited or from unlimited to limited :Provided that-(i)the society shall give notice in writing of its intention to change its liability to all its members and creditors;(ii)any member of creditor shall, notwithstanding any bye-law or contract to the contrary, have the option of withdrawing his shares, deposits or loans, as the case may be within three months of the service of such notice on him and the change shall not take effect until all such claims have been satisfied; and(iii)any member or creditor, who does not exercise his option within the period aforesaid, shall be deemed to have assented to the change.(2)Notwithstanding anything contained in the proviso to sub-section (1) no change shall take effect at once if all the members and creditors assent thereto.(3)The Registrar shall register the amendment of the bye-laws consequent on the change of liability; provided that no person who ceases to be a member of the society before such amendment is registered shall be adversely affected by the change of liability.
