Powers of Registrar to direct amalgamation or merger of co-operative societies

§125

Summary

(1) Where in the opinion of the Registrar amalgamation or merger of two or more co-operative societies is necessary or desirable for increasing their strength or usefulness, he may, notwithstanding anything to the contrary contained in this Act, after consulting the financing bank, if any, to which the societies are indebted, call upon such societies by order in writing to amalgamate or merge, within such time as may be specified by him, into one society, and thereupon the societies shall take all such steps as may be necessary for that purpose in accordance with the provisions of section 15. (2) On the failure of the societies to amalgamate or merge in accordance with the order passed under sub-section (1) the Registrar may 3[X X X] by order in writing direct amalgamation or merger of the societies into the society. (3) The direction of the Registrar under sub-section (2) shall be deemed to be a preliminary resolution of the societies concerned for the purpose of sub-section (2) and (3) of section 15, and the Registrar shall take such further steps as required by that section. (4) After the expiry of 4[thirty days from the date of receipt of the copy of the preliminary resolution under clause (a) of sub-section (2) of section 15 or as the case may be, from the date of its publication in a newspapers under clause (b) of that sub-section] the Registrar shall, from the funds of the societies concerned, repay, subject to the provision of section 41, the share capital of all the members, and satisfy the claims of all creditors, who have given notice under clause (i) and clause (ii) respectively of sub-section (3) of section 15 and thereafter declare the amalgamation or merger, as the case may be, of the societies and in the case of amalgamation, register the new society so formed and its bye-laws. (5) A declaration of merger or registration of the new society under sub-section (4) shall be deemed to be a merger or registration under section 15 and the provisions of sub-section (7) of that section shall apply to it.

(1) Where in the opinion of the Registrar amalgamation or merger of two or more co-operative societies is necessary or desirable for increasing their strength or usefulness, he may, notwithstanding anything to the contrary contained in this Act, after consulting the financing bank, if any, to which the societies are indebted, call upon such societies by order in writing to amalgamate or merge, within such time as may be specified by him, into one society, and thereupon the societies shall take all such steps as may be necessary for that purpose in accordance with the provisions of section 15. (2) On the failure of the societies to amalgamate or merge in accordance with the order passed under sub-section (1) the Registrar may 3[X X X] by order in writing direct amalgamation or merger of the societies into the society. (3) The direction of the Registrar under sub-section (2) shall be deemed to be a preliminary resolution of the societies concerned for the purpose of sub-section (2) and (3) of section 15, and the Registrar shall take such further steps as required by that section. (4) After the expiry of 4[thirty days from the date of receipt of the copy of the preliminary resolution under clause (a) of sub-section (2) of section 15 or as the case may be, from the date of its publication in a newspapers under clause (b) of that sub-section] the Registrar shall, from the funds of the societies concerned, repay, subject to the provision of section 41, the share capital of all the members, and satisfy the claims of all creditors, who have given notice under clause (i) and clause (ii) respectively of sub-section (3) of section 15 and thereafter declare the amalgamation or merger, as the case may be, of the societies and in the case of amalgamation, register the new society so formed and its bye-laws. (5) A declaration of merger or registration of the new society under sub-section (4) shall be deemed to be a merger or registration under section 15 and the provisions of sub-section (7) of that section shall apply to it.

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