Widgets

AMALGAMATION OF SOCIETIES


Section 29 of the statute provides that any two or more societies referred to as the amalgamating societies may by special resolution referred to as the Preliminary Resolution resolve to amalgamate as a single society referred to as the amalgamated society.  A copy of the preliminary resolution shall be sent to all members and creditors of each of the amalgamating societies and to all other persons whose interests in the amalgamating societies will be affected by the amalgamation. 

Any member of any of the amalgamating societies may notwithstanding any bylaw to the contrary by notice in writing given to his society at least one month before the date of amalgamation intimate his intention not to become a member of the amalgamated society.

Any creditor of any of the amalgamating societies may notwithstanding any agreement to the contrary by notice in writing given to such society at least one month before the date of amalgamation intimate his intention to demand payment of any money due to him.

Any other person whose interest will be affected by the amalgamation may by notice given to the concerned amalgamating society not less than one month before the dates of the amalgamation object to the amalgamation unless his claim is satisfied.  Not less than 3 months after the date of the meeting at which the preliminary resolution was passed a further special general meeting of each of the amalgamating societies shall be held to consider the preliminary resolution and any notices received by a member, a creditor or any other person.

At the special general meeting provision shall be made by a further resolution of the society referred to as the Secondary Resolution for

1.                  The payment of the share capital of any member who has given notice;
2.                  The satisfaction of any claims by creditors who have given notice;
3.                  the Satisfaction of the claims of such other persons who have given notice for the securing of their claims in such a manner as may be determined or directed by the registrar.

There is a proviso to the effect that provided that no member of creditor or other person shall be entitled to such repayment of satisfaction until the confirmation of the Preliminary Resolution.

Each amalgamating society made by further resolution passed by a two thirds majority of the members present and voting confirm the preliminary resolution if within such time as the registrar considers reasonable he is satisfied that the secondary resolution of each of the amalgamating societies complies with the provisions of the Act, he may register the amalgamated society and its bylaws and thereupon the following will result:

1.                  Each of the amalgamating societies shall stand dissolved and its registration cancelled;
2.                  the registration of the amalgamated society shall be a sufficient conveyance to vest the assets and liabilities of the amalgamating societies in the amalgamated society;
3.                  The remaining members of the amalgamating societies shall become members of the amalgamated society and subjected to its bylaws; and
4.                  Any shareholders of the amalgamating societies or any other persons who have claims against the amalgamating societies and whose claims were not satisfied in accordance with the secondary resolution may pursue such claims against the amalgamated society. 

If the registrar refuses the amalgamation those societies may appeal against such refusal to the cooperative society’s tribunal established under Section 77 of the Act.

 
 
 

Like Us on Facebook

Contact Form

Name

Email *

Message *