(1) The Government may appoint an officer of the Government to be the Registrar of Co--operatives for the State.
(2) The Government may also appoint as many officers of the Government as Additional Registrars, Joint Registrars, Deputy Registrars and Assistant Registrars of Co--operatives as it thinks fit for assisting the Registrar.
(3) The Government may, by general or special order, confer all or any of the powers of the Registrar under this Act on the Additional Registrar, Joint Registrar, Deputy Registrar or Assistant Registrar of Co--operatives.
Section 4 - Co--operatives which may be registered
1["(1) No co-operative shall be registered under this Act, unless,-
(a) its main objects are to serve the interests of the members in the area of operation.
(b) its bye-laws provides for economic and social betterment of its members through self help and mutual aid in accordance with the co-operative principles."]
(2) Subject to the provisions of this Act where,-
(a) not less than ten individuals belonging to different families intend to form a Co-operative; or
(b) a Co-operative society intends to convert itself into a Co-operative under this Act by passing a resolution in this behalf; or
(c) five or more Co-operatives registered under this Act intend to form into a union Co-operative by passing a resolution in this behalf;
they may be registered as Co-operative under this Act.
1["Provided that no Co-operative shall be registered if it is likely to be economically unsound or the registration of which may have an adverse impact on the development of the Co-operative movement.
Provided further that no Co-operative shall be registered under this Act as a Housing Co-operative and no Housing Co-operative Society shall be converted into a Housing Co-operative."]
______________________________________
1. Inserted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 4 - Co--operatives which may be registered
1["(1) No co-operative shall be registered under this Act, unless,-
(a) its main objects are to serve the interests of the members in the area of operation.
(b) its bye-laws provides for economic and social betterment of its members through self help and mutual aid in accordance with the co-operative principles."]
(2) Subject to the provisions of this Act where,-
(a) not less than ten individuals belonging to different families intend to form a Co-operative; or
(b) a Co-operative society intends to convert itself into a Co-operative under this Act by passing a resolution in this behalf; or
(c) five or more Co-operatives registered under this Act intend to form into a union Co-operative by passing a resolution in this behalf;
they may be registered as Co-operative under this Act.
1["Provided that no Co-operative shall be registered if it is likely to be economically unsound or the registration of which may have an adverse impact on the development of the Co-operative movement.
Provided further that no Co-operative shall be registered under this Act as a Housing Co-operative and no Housing Co-operative Society shall be converted into a Housing Co-operative."]
______________________________________
1. Inserted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 5 - Application for registration of Co-operative
(1) An application for registration of aCo-operative shall be made to the Registrar in such form and in such manner as may be prescribed.
(2) Every such application shall be accompaniedby,-
(a) the original and five copies of thebye-laws of the proposed Co-operative as adopted by the promoters of such Co-operative or by the representatives ofCo-operatives who wish to form into a union Co-operative or by the general body of aCo-operative society which intends to convert itself into a Co-operative under this Act;
(b) a list of names of individuals orCo-operatives which intend to form a Co-operative and in the case of a Co-operative society, a list of names of members of such society together with the names of members of the committee containing their addresses, occupation and financial commitments;
(c) a true copy of the minutes of the meeting at which thebye-laws were adopted, duly signed by atleast a majority of individuals or promoters present or representatives present at such meeting where thebye-laws were adopted, or in the case of a Co-operative society, a true copy of the resolution and the minutes of the general meeting;
(d) a copy of the challan for having paid the registration fee of one percent of the total authorised share capital by whatever name called, subject to a minimum of five hundred rupees and a maximum of five thousand rupees; and
(e) in case of aCo-operative society, documents to show that the Co-operative society has not received any share capital and any loans or guarantee by Government or loans and guarantee by anyCo-operative society.
(3) The Registrar shall, if he is satisfiedthat,-
(a) the application is in conformity with the provisions of this Act and rules;
1 ["(aa) the proposedCo-operative complies with the requirements of sound business and has reasonable chances of success,"]
(b) the proposedbye-laws are in conformity with section 10; and
(c) the name of the proposedCo-operative is not the same as that of a Co-operative already registered under this Act or is not the same as that used by aCo-operative society already registered under section 7 of the Karnataka Co-operative Societies Act, 1959,
register theCo-operative and also its bye-laws and send by registered post a certificate of registration and the original registeredbye-laws signed and sealed by him to the Chief Promoter mentioned in the application or to theCo-operative society within a period of ninety days from the date of receipt of application. A copy of such certificate of registration along with the copy of thebye-laws shall also be sent to the Federal Co-operative.
1 ["Provided that in the case of either a proposed or an existingCo-operative Bank, the registration in terms of this section shall take place only with the prior approval of the Reserve Bank".]
(4) If the conditionslaid-down in sub-section (3) are not fulfilled, the Registrar shall communicate by registered post the order of refusal together with the reasons therefor, to the Chief Promoter or to theCo-operative society, as the case may be, within ninety days from the date of receipt of application.
(5) An appeal against the order undersub-section (4) may be made,-
(a) if the order was made by the Registrar, to the Government; or
(b) if the order was made by any other officer to that officer's immediate superior officer.
(6) If the Registrar fails either to register or to refuse registration within the period specified insub-section (3) or (4), the Co-operative shall be deemed to have been registered under this Act after the expiry of the said period.
______________________________________
1. Inserted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 5 - Application for registration of Co-operative
(1) An application for registration of aCo-operative shall be made to the Registrar in such form and in such manner as may be prescribed.
(2) Every such application shall be accompaniedby,-
(a) the original and five copies of thebye-laws of the proposed Co-operative as adopted by the promoters of such Co-operative or by the representatives ofCo-operatives who wish to form into a union Co-operative or by the general body of aCo-operative society which intends to convert itself into a Co-operative under this Act;
(b) a list of names of individuals orCo-operatives which intend to form a Co-operative and in the case of a Co-operative society, a list of names of members of such society together with the names of members of the committee containing their addresses, occupation and financial commitments;
(c) a true copy of the minutes of the meeting at which thebye-laws were adopted, duly signed by atleast a majority of individuals or promoters present or representatives present at such meeting where thebye-laws were adopted, or in the case of a Co-operative society, a true copy of the resolution and the minutes of the general meeting;
(d) a copy of the challan for having paid the registration fee of one percent of the total authorised share capital by whatever name called, subject to a minimum of five hundred rupees and a maximum of five thousand rupees; and
(e) in case of aCo-operative society, documents to show that the Co-operative society has not received any share capital and any loans or guarantee by Government or loans and guarantee by anyCo-operative society.
(3) The Registrar shall, if he is satisfiedthat,-
(a) the application is in conformity with the provisions of this Act and rules;
1 ["(aa) the proposedCo-operative complies with the requirements of sound business and has reasonable chances of success,"]
(b) the proposedbye-laws are in conformity with section 10; and
(c) the name of the proposedCo-operative is not the same as that of a Co-operative already registered under this Act or is not the same as that used by aCo-operative society already registered under section 7 of the Karnataka Co-operative Societies Act, 1959,
register theCo-operative and also its bye-laws and send by registered post a certificate of registration and the original registeredbye-laws signed and sealed by him to the Chief Promoter mentioned in the application or to theCo-operative society within a period of ninety days from the date of receipt of application. A copy of such certificate of registration along with the copy of thebye-laws shall also be sent to the Federal Co-operative.
1 ["Provided that in the case of either a proposed or an existingCo-operative Bank, the registration in terms of this section shall take place only with the prior approval of the Reserve Bank".]
(4) If the conditionslaid-down in sub-section (3) are not fulfilled, the Registrar shall communicate by registered post the order of refusal together with the reasons therefor, to the Chief Promoter or to theCo-operative society, as the case may be, within ninety days from the date of receipt of application.
(5) An appeal against the order undersub-section (4) may be made,-
(a) if the order was made by the Registrar, to the Government; or
(b) if the order was made by any other officer to that officer's immediate superior officer.
(6) If the Registrar fails either to register or to refuse registration within the period specified insub-section (3) or (4), the Co-operative shall be deemed to have been registered under this Act after the expiry of the said period.
______________________________________
1. Inserted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 6 - Certificate of registration
(1) Where a Co--operative is registered or deemed to be registered, the certificate of registration duly signed and sealed by the Registrar shall be conclusive evidence that the Co--operative mentioned therein, is a Co--operative registered or deemed to be registered under this Act.
(2) Notwithstanding anything contained in the Karnataka Co--operative Societies Act, 1959, when a certificate of registration is issued to a Co--operative after conversion of a Co--operative society into a Co--operative, the registration of such Co--operative society under the Karnataka Co--operative Societies Act, 1959, shall be cancelled by the Registrar with effect from the date of issue of certificate of registration under this Act.
Section 7 - Co--operative to be a body corporate
A Co--operative registered under this Act shall be a body corporate by the name under which it is registered having perpetual succession and common seal. The Co--operative shall be entitled to acquire, hold and dispose of property, to enter into contracts, to sue and be sued and to do all other things necessary for the purpose for which it is constituted.
Section 8 - Registration with limited or unlimited liability
A Co--operative may be registered with limited or unlimited liability. Where the liability is limited, the expression "limited" shall be suffixed to the name of the Co--operative.
Section 9 - Display of names etc
Every Co--operative shall display its full name and the certificate of registration issued under this Act at its registered office or place at which it carries on business. The Registration number, name and address of its registered office shall be mentioned,--
(a) in all notices, other official publications and correspondences;
(b) in all its contracts, business letters, order for goods, invoices, statements of accounts, receipts and letters of credit;
(c) in all bills of exchange, promissory notes, endorsements, cheques and orders for money it signs or signed on its behalf; and
(d) in the corporate seal.
Section 10 - Bye--laws
(1) Subject to the provisions of this Act or rules, everyCo-operative shall function in accordance with its bye-laws which as far as possible shall adhere to theCo-operative principles.
(2) Thebye-laws of every Co-operative shall provide for the following matters, namely:-
(i) the name, address and area of operation of theCo-operative;
(ii) the objects of theCo-operative;
(iii) conditions of eligibility, disqualifications for, and procedure for admission, withdrawal, removal or cessation of membership including that of the directors and office bearers;
1 ["(iiia) the rights, privileges, duties and liabilities of membership including those of nominal and associate members"]
(iv) recruitment and conditions of service of staff of theCo-operative;
(v) procedure to conduct the board meetings, rights of members including the right to vote and contest for elections;
(vi) the consequences of default in payment of any sum due by a member to theCo-operative;
(vii) the powers and functions of the general body and the manner of election of representative general body, if any, and matters which must be dealt with by the general body and by the representative general body, if any;
(viii) the manner and frequency of convening general meetings and quorum required;
(ix) the manner of conducting elections of directors, office bearers and filling up of casual vacancies thereof;
(x) the composition of the board and number of office bearers;
(xi) the extent and conditions for mobilisation of funds in the form of share capital, deposits, debentures, loans and other contributions from its members other than Government;
(xii) the powers, functions and duties of the President or Chairperson;
(xiii) the powers, functions and duties of Chief Executive;
(xiv) the terms and conditions on which theCo-operative may deal with non-members;
(xv) the manner of electing representatives to unionCo-operatives and the Federal Co-operative;
(xvi) the nature and amount of authorised share capital of theCo-operative;
(xvii) the maximum shares which a member can hold;
(xviii) the maximum dividend payable to members on paid up share capital;
(xix) the purpose for which the funds may be applied;
(xx) contribution towards FederalCo-operative Fund and the constitution of various funds and their purposes;
(xxi) appropriation of amount out of the net profit specifically for thefollowing:-
(a) twenty five percent towards reserve fund constituted by theCo-operative;
(b) three percent towards theCo-operative Education Fund, out of which one percent shall be towards the Co-operative Education Fund of the FederalCo-operative and the remaining to the Co-operative Education Fund of the Karnataka StateCo-operative Federation Limited, Bangalore;
(c) 1 [xxx]
(d) twenty percent towards the operational reserve to meet unforeseen losses or contingencies;
(e) five percent towards the Common Good Fund whose purpose is approved by the general body;
(f) bonus not exceeding two months' pay to be paid to the employees;
(g) dividend to the members;
(xxii) fixation of quantum and procedure to make good the operational deficiency incurred by theCo-operative out of its reserve fund and operational reserve fund;
(xxiii) the manner of appointment of auditors or Chartered Accountants and their powers and functions;
(xxiv) the manner of disposal of funds when theCo-operative is under liquidation;
(xxv) the circumstances and manner of winding up of theCo-operative; and
(xxvi) any other matter which is required to be or may be provided in thebye-laws.
1 [(3) Notwithstanding anything to the contrary contained in this Act, in the case of aco-operative bank, the bye-laws framed under sub-section (2) pertaining to acceptance of deposits, borrowing of funds, maintenance of reserve fund, appropriation of profit. grant of loan, fixation of interest rate on deposits and advances, and such other activities as mentioned in section 6 of the Banking Regulation Act, 1949 as applicable toco-operative societies shall be subject to the provisions of the said Act, the rules, regulations or directions made or issued thereunder from time to time by the Reserve Bank or the National Bank.]
______________________________________
1. Omitted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 10 - Bye--laws
(1) Subject to the provisions of this Act or rules, everyCo-operative shall function in accordance with its bye-laws which as far as possible shall adhere to theCo-operative principles.
(2) Thebye-laws of every Co-operative shall provide for the following matters, namely:-
(i) the name, address and area of operation of theCo-operative;
(ii) the objects of theCo-operative;
(iii) conditions of eligibility, disqualifications for, and procedure for admission, withdrawal, removal or cessation of membership including that of the directors and office bearers;
1 ["(iiia) the rights, privileges, duties and liabilities of membership including those of nominal and associate members"]
(iv) recruitment and conditions of service of staff of theCo-operative;
(v) procedure to conduct the board meetings, rights of members including the right to vote and contest for elections;
(vi) the consequences of default in payment of any sum due by a member to theCo-operative;
(vii) the powers and functions of the general body and the manner of election of representative general body, if any, and matters which must be dealt with by the general body and by the representative general body, if any;
(viii) the manner and frequency of convening general meetings and quorum required;
(ix) the manner of conducting elections of directors, office bearers and filling up of casual vacancies thereof;
(x) the composition of the board and number of office bearers;
(xi) the extent and conditions for mobilisation of funds in the form of share capital, deposits, debentures, loans and other contributions from its members other than Government;
(xii) the powers, functions and duties of the President or Chairperson;
(xiii) the powers, functions and duties of Chief Executive;
(xiv) the terms and conditions on which theCo-operative may deal with non-members;
(xv) the manner of electing representatives to unionCo-operatives and the Federal Co-operative;
(xvi) the nature and amount of authorised share capital of theCo-operative;
(xvii) the maximum shares which a member can hold;
(xviii) the maximum dividend payable to members on paid up share capital;
(xix) the purpose for which the funds may be applied;
(xx) contribution towards FederalCo-operative Fund and the constitution of various funds and their purposes;
(xxi) appropriation of amount out of the net profit specifically for thefollowing:-
(a) twenty five percent towards reserve fund constituted by theCo-operative;
(b) three percent towards theCo-operative Education Fund, out of which one percent shall be towards the Co-operative Education Fund of the FederalCo-operative and the remaining to the Co-operative Education Fund of the Karnataka StateCo-operative Federation Limited, Bangalore;
(c) 1 [xxx]
(d) twenty percent towards the operational reserve to meet unforeseen losses or contingencies;
(e) five percent towards the Common Good Fund whose purpose is approved by the general body;
(f) bonus not exceeding two months' pay to be paid to the employees;
(g) dividend to the members;
(xxii) fixation of quantum and procedure to make good the operational deficiency incurred by theCo-operative out of its reserve fund and operational reserve fund;
(xxiii) the manner of appointment of auditors or Chartered Accountants and their powers and functions;
(xxiv) the manner of disposal of funds when theCo-operative is under liquidation;
(xxv) the circumstances and manner of winding up of theCo-operative; and
(xxvi) any other matter which is required to be or may be provided in thebye-laws.
1 [(3) Notwithstanding anything to the contrary contained in this Act, in the case of aco-operative bank, the bye-laws framed under sub-section (2) pertaining to acceptance of deposits, borrowing of funds, maintenance of reserve fund, appropriation of profit. grant of loan, fixation of interest rate on deposits and advances, and such other activities as mentioned in section 6 of the Banking Regulation Act, 1949 as applicable toco-operative societies shall be subject to the provisions of the said Act, the rules, regulations or directions made or issued thereunder from time to time by the Reserve Bank or the National Bank.]
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1. Omitted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 11 - Amendment of bye--laws
(1) ACo-operative may amend any of the provisions of its bye-laws by a resolution passed by the majority of members with right to vote or two thirds of the members present and voting, whichever is less, at a general meeting or at a representative general meeting:
Provided that no such resolution shall be passed unless not less than twenty clear days of written notice of the meeting has been given along with a copy of the proposed amendment to each member of the general body or representative general body, as the case may be, and such notice and the proposed amendment are also displayed on the notice board of theCo-operative for a period of not less than twenty days immediately proceeding the date of the meeting.
(2) In case of amendment of itsbye-laws by the Co-operative, an application for the registration of the amendment with particulars specified in subsection (3), shall be forwarded by registered post to the Registrar within a period of thirty days from the date of the resolution.
(3) Every application forwarded under subsection (2) to the Registrar, shall be signed by the President or Chairperson and shall be accompanied by three copies of the resolution adopting the amendment along with the following particulars,namely:-
(a) the date of the meeting at which the amendment was approved;
(b) the total number of members on the roll of theCo-operative who were eligible to vote on the date of such meeting, the number present at the meeting and the number of eligible members who voted for the resolution.
1 [(c) in the case of aCo-operative Bank, a certificate signed by the President or Chairperson, stating that the proposed amendments are in conformity withsub-section (3) of section 10;]
(4) If the proposed amendment is in accordance with the provisions of this Act and rules, the Registrar shall register the proposed amendment within a period of ninety days from the date of receipt of the application.
(5) The Registrar shall communicate by registered post to theCo-operative within a period of fifteen days after registration a copy of the amendment so registered together with a certificate duly signed and sealed by him and such certificate shall be conclusive evidence that the amendment has been duly registered. A copy of such certificate and registered amendment shall be sent to the FederalCo-operative.
(6) If the proposed amendment is not in accordance with the provisions of this Act and Rules, the Registrar shall refuse to register the proposed amendment within a period of ninety days from the date of receipt of the application failing which the amendment shall be deemed to have been registered:
Provided that no order refusing the registration of such amendment shall be made except after giving theCo-operative an opportunity of being heard.
(7) The Registrar shall communicate by registered post to theCo-operative, the order of refusal under sub-section (6) together with the reasons therefor within a period of fifteen days from the date of refusal.
(8) An appeal against the order undersub-section (6) may be made within sixty days from the date of the order,-
(a) if the order was made by the Registrar, to the Government; or
(b) if the order was made by any other officer, to that officer's immediate superior officer.
(9) An amendment to thebye-laws shall come into effect from the date of registration or deemed date of registration.
______________________________________
1. Inserted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 11 - Amendment of bye--laws
(1) ACo-operative may amend any of the provisions of its bye-laws by a resolution passed by the majority of members with right to vote or two thirds of the members present and voting, whichever is less, at a general meeting or at a representative general meeting:
Provided that no such resolution shall be passed unless not less than twenty clear days of written notice of the meeting has been given along with a copy of the proposed amendment to each member of the general body or representative general body, as the case may be, and such notice and the proposed amendment are also displayed on the notice board of theCo-operative for a period of not less than twenty days immediately proceeding the date of the meeting.
(2) In case of amendment of itsbye-laws by the Co-operative, an application for the registration of the amendment with particulars specified in subsection (3), shall be forwarded by registered post to the Registrar within a period of thirty days from the date of the resolution.
(3) Every application forwarded under subsection (2) to the Registrar, shall be signed by the President or Chairperson and shall be accompanied by three copies of the resolution adopting the amendment along with the following particulars,namely:-
(a) the date of the meeting at which the amendment was approved;
(b) the total number of members on the roll of theCo-operative who were eligible to vote on the date of such meeting, the number present at the meeting and the number of eligible members who voted for the resolution.
1 [(c) in the case of aCo-operative Bank, a certificate signed by the President or Chairperson, stating that the proposed amendments are in conformity withsub-section (3) of section 10;]
(4) If the proposed amendment is in accordance with the provisions of this Act and rules, the Registrar shall register the proposed amendment within a period of ninety days from the date of receipt of the application.
(5) The Registrar shall communicate by registered post to theCo-operative within a period of fifteen days after registration a copy of the amendment so registered together with a certificate duly signed and sealed by him and such certificate shall be conclusive evidence that the amendment has been duly registered. A copy of such certificate and registered amendment shall be sent to the FederalCo-operative.
(6) If the proposed amendment is not in accordance with the provisions of this Act and Rules, the Registrar shall refuse to register the proposed amendment within a period of ninety days from the date of receipt of the application failing which the amendment shall be deemed to have been registered:
Provided that no order refusing the registration of such amendment shall be made except after giving theCo-operative an opportunity of being heard.
(7) The Registrar shall communicate by registered post to theCo-operative, the order of refusal under sub-section (6) together with the reasons therefor within a period of fifteen days from the date of refusal.
(8) An appeal against the order undersub-section (6) may be made within sixty days from the date of the order,-
(a) if the order was made by the Registrar, to the Government; or
(b) if the order was made by any other officer, to that officer's immediate superior officer.
(9) An amendment to thebye-laws shall come into effect from the date of registration or deemed date of registration.
______________________________________
1. Inserted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 12 - Change of Liability, transfer of Assets and Liabilities, Division and Amalgamation of Co--operatives
(1) ACo-operative may, by a resolution passed at its general body,-
(a) decide to amend itsbye-laws to change the form or the extent of its liability;
(b) decide to transfer its assets and liabilities, in whole or in part, to any otherCo-operative which by a like resolution agrees to accept such transfer;
(c) divide itself into two or moreCo-operatives.
(2) Any two or moreCo-operatives may, by passing a resolution at respective general meetings, decide to amalgamate themselves and form a newCo-operative. Every such resolution of a Co-operative shall be passed at its general meeting by a majority of total members with right to vote or two thirds of members present with right to vote, whichever is less, and such resolution shall also contain all particulars of the liability, transfer, division, amalgamation, as the case may be :
1 ["Provided further that in the case of aCo-operative Bank, no resolution under sub-section (1) or under this sub-section, shall be passed without the prior sanction in writing of the Reserve Bank".]
Provided that no such resolution shall be passed unless a notice is issued together with a copy of the proposed resolution to all its members, creditors, unionCo-operative, Federal Co-operative to which it is affiliated, and the consent of the members, creditors, unionCo-operative and Federal Co-operative has been obtained.
(3) Notwithstanding anything contained in anybye-law or contract to the contrary, any member, a union Co-operative, FederalCo-operative or creditor who does not consent to the resolution shall have the option to withdraw their shares, deposits, loans or services, as the case may be, within a period of one month from the date of receipt of the notice under subsection (2).
(4) The unionCo-operative, Federal Co-operative or any member or creditor who does not exercise his option within the period specified under subsection (3), shall be deemed to have consented to the resolution.
(5) No resolution of aCo-operative to change liability or for transfer of assets and liabilities, division and amalgamation shall be passedunless,-
(a) in case of change of liability or transfer of assets andliabilities,-
(i) the members, unionCo-operative, Federal Co-operative and creditors have consented or are deemed to have consented to the resolution under subsection (3) orsub-section (4), as the case may be; or
(ii) all claims of the members, unionCo-operatives, Federal Co-operative and creditors who have exercised the option referred to under subsection (3) within the period specified therein, have been met in full or otherwise satisfied; and
(b) amendment of thebye-laws of Co-operative concerned is registered; and
(c) in the case of division or amalgamation, certificate of registration of theCo-operative or Co-operatives is issued.
(6) Where a resolution passed by aCo-operative in this section involves a transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee.
______________________________________
1. Inserted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 12 - Change of Liability, transfer of Assets and Liabilities, Division and Amalgamation of Co--operatives
(1) ACo-operative may, by a resolution passed at its general body,-
(a) decide to amend itsbye-laws to change the form or the extent of its liability;
(b) decide to transfer its assets and liabilities, in whole or in part, to any otherCo-operative which by a like resolution agrees to accept such transfer;
(c) divide itself into two or moreCo-operatives.
(2) Any two or moreCo-operatives may, by passing a resolution at respective general meetings, decide to amalgamate themselves and form a newCo-operative. Every such resolution of a Co-operative shall be passed at its general meeting by a majority of total members with right to vote or two thirds of members present with right to vote, whichever is less, and such resolution shall also contain all particulars of the liability, transfer, division, amalgamation, as the case may be :
1 ["Provided further that in the case of aCo-operative Bank, no resolution under sub-section (1) or under this sub-section, shall be passed without the prior sanction in writing of the Reserve Bank".]
Provided that no such resolution shall be passed unless a notice is issued together with a copy of the proposed resolution to all its members, creditors, unionCo-operative, Federal Co-operative to which it is affiliated, and the consent of the members, creditors, unionCo-operative and Federal Co-operative has been obtained.
(3) Notwithstanding anything contained in anybye-law or contract to the contrary, any member, a union Co-operative, FederalCo-operative or creditor who does not consent to the resolution shall have the option to withdraw their shares, deposits, loans or services, as the case may be, within a period of one month from the date of receipt of the notice under subsection (2).
(4) The unionCo-operative, Federal Co-operative or any member or creditor who does not exercise his option within the period specified under subsection (3), shall be deemed to have consented to the resolution.
(5) No resolution of aCo-operative to change liability or for transfer of assets and liabilities, division and amalgamation shall be passedunless,-
(a) in case of change of liability or transfer of assets andliabilities,-
(i) the members, unionCo-operative, Federal Co-operative and creditors have consented or are deemed to have consented to the resolution under subsection (3) orsub-section (4), as the case may be; or
(ii) all claims of the members, unionCo-operatives, Federal Co-operative and creditors who have exercised the option referred to under subsection (3) within the period specified therein, have been met in full or otherwise satisfied; and
(b) amendment of thebye-laws of Co-operative concerned is registered; and
(c) in the case of division or amalgamation, certificate of registration of theCo-operative or Co-operatives is issued.
(6) Where a resolution passed by aCo-operative in this section involves a transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee.
______________________________________
1. Inserted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 13 - Consequences of transfer of assets and liabilities, division and amalgamation
(1) Where the whole of the assets and liabilities of a Co--operative are transferred to another Co--operative, the registration of the first mentioned Co--operative shall stand cancelled and that Co--operative shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(2) Where two or more Co--operatives are amalgamated into a new Co--operative, the registration of each of the amalgamating Co--operatives shall stand cancelled on the registration of the new Co--operative and each such Co--operative shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(3) Where a Co--operative divides into two or more Co--operatives the registration of that Co--operative shall stand cancelled on the registration of the new Co--operatives and that Co--operative shall be deemed to have been dissolved and shall cease to exist as a corporate body.
Section 14 - Partnership of Co--operatives
(1) Any two or moreCo-operatives may, by resolutions passed by three-fourth majority of the members present and after voting at a general meeting of each of suchCo-operatives, may enter into partnership to carryout any one or more specific business. A written notice of the date of the general meeting shall be given to each member before ten clear days of such meeting;
1 ["Provided that aco-operative Bank, shall not enter into such a partnership without obtaining prior permission of the Reserve Bank in writing."]
(2) Nothing in the Indian Partnership Act, 1932 (Central Act 9 of 1932) shall apply to such partnership.
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1. Inserted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 14 - Partnership of Co--operatives
(1) Any two or moreCo-operatives may, by resolutions passed by three-fourth majority of the members present and after voting at a general meeting of each of suchCo-operatives, may enter into partnership to carryout any one or more specific business. A written notice of the date of the general meeting shall be given to each member before ten clear days of such meeting;
1 ["Provided that aco-operative Bank, shall not enter into such a partnership without obtaining prior permission of the Reserve Bank in writing."]
(2) Nothing in the Indian Partnership Act, 1932 (Central Act 9 of 1932) shall apply to such partnership.
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1. Inserted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 15 - Promotion of subsidiary organisations
(1) Any Co-operative may, by a resolution passed at its general meeting by a majority of members present with a right to vote, promote one or more subsidiary organisations for the furtherance of its objectives and such organisations may be registered under any law for the time being in force.
1["Provided that a Co-operative Bank shall not promote a subsidiary, nor shall a Co-operative promote a subsidiary whose by-laws permit the carrying on of banking business, without the prior permission of the Reserve Bank in writing."]
(2) The annual reports and accounts of any such subsidiary organisation shall be placed before the general meeting of the Co-operative every year.
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1. Inserted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 15 - Promotion of subsidiary organisations
(1) Any Co-operative may, by a resolution passed at its general meeting by a majority of members present with a right to vote, promote one or more subsidiary organisations for the furtherance of its objectives and such organisations may be registered under any law for the time being in force.
1["Provided that a Co-operative Bank shall not promote a subsidiary, nor shall a Co-operative promote a subsidiary whose by-laws permit the carrying on of banking business, without the prior permission of the Reserve Bank in writing."]
(2) The annual reports and accounts of any such subsidiary organisation shall be placed before the general meeting of the Co-operative every year.
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1. Inserted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 16 - Collaboration by Co--operatives
Any Co-operative or Co-operatives may enter into collaboration with any other organisation or organisations approved by the Government to carry out any one or more specified business provided in the bye-laws of such Co-operative or Co-operatives. Where such collaboration requires creation of a new organisation under any other law for the time being in force, such organisation may be registered as an institution under such law for fulfillment of the objectives with which it was created and such collaboration shall be reviewed every year by the general body of the Co-operative.
1["Provided that in the case of a Co-operative Bank, such collaboration shall be entered into with the prior approval of the Reserve Bank in writing."]
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1. Inserted by Act 21 of 2004 w.e.f. 31.3.2004.
Section 16 - Collaboration by Co--operatives
Any Co-operative or Co-operatives may enter into collaboration with any other organisation or organisations approved by the Government to carry out any one or more specified business provided in the bye-laws of such Co-operative or Co-operatives. Where such collaboration requires creation of a new organisation under any other law for the time being in force, such organisation may be registered as an institution under such law for fulfillment of the objectives with which it was created and such collaboration shall be reviewed every year by the general body of the Co-operative.
1["Provided that in the case of a Co-operative Bank, such collaboration shall be entered into with the prior approval of the Reserve Bank in writing."]
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1. Inserted by Act 21 of 2004 w.e.f. 31.3.2004.