In the previous article “Reorganize Co Operative Society on Members Request“, we discussed about members right to reorganize society.  Same way Registrar has powers under Co-operative Society Act to amalgamate or reorganize society. This article discuss about when and how Registrar can use this power.

When can the Registrar Direct for Reorganization of Society

Registrar can direct reorganization of society on satisfaction of any one or more of the below conditions:

  • It is essential in the public interest.
  • In the interest of co-operative movement.
  • For the purpose of securing proper management of any society.

Before Reorganization by Registrar

Before Registrar can order for reorganization of a society, he has to

  • Send a copy of the draft of the proposed order to the society or each of the societies concerned.
  • Consider suggestions and objections received from the society or from any members or any creditors within period as fixed by  the registrar.

What can Registrar order for ?

Registrar in consultation with federal society (Gujarat State Co-operative Union) can order to

  • Amalgamation of societies into a single society.
  • Reorganization of society with such constitution, property rights, interest and authorities, and such liabilities, duties and obligations.
  • Constitution of the committee of management or any other committee
  • Persons who shall be, or continue to be, the officers of such society

Impact on Members

  • Every member of each of the societies so amalgamated, shall be deemed to be a member of the new amalgamated society,
  • Every member of the society so re-organized shall be deemed to be a member of the new re-organized society and
  • All such members shall have all rights, privileges and liabilities of the members of the concerned new societies
  • A member who do not want to be part of the amalgamated / reorganized society, can resign and withdraw his share from the society.

New Society

  • All Assets, rights and liabilities of amalgamated society is transferred to new amalgamated society.
  • All Assets, rights and liabilities of reorganized society is transferred to new re-organised society.

Taxation

Order / Resolution of society will be considered sufficient for conveyance to vest the asset and liability of the original society.

Post Division

  1. Cancellation of share certificate of members moving to new society.
  2. Informing registrar for change in number of members in society.
  3. Formation of new society for divided part by completing documentation formalities.
  4. Issuance of Share Certificate to the members.
  5. Formation of new committees to manage society.
  6. Registration of PAN, TAN, GST etc
  7. Opening new bank account, informing vendors
  8. Apply for change in name in various licences (Lift, Fire etc)

Reference

  1. Gujarat Co operative Societies Act, 1961
  2. Transfer of Property Act, 1882 (IV of 1882)
  3. Indian Registration Act, 1908 (XVI of 1908)

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