Chapter II- Registration of Co-operative Societies, Section 16- Power to direct amalgamation, division and reorganisation in public interest etc.

  1. The Registrar may, by order, provide for the amalgamation, division or reorganisation of these co-operative societies into a single society or into societies based on the constitution, property rights, interests and authorities and such liabilities, duties and obligations specified in that order. However, he must be satisfied of the following before giving such an order-
  • The amalgamation, division and reorganisation of the co-operative societies concerned is essential in public interest;
  • It is in the interest of the co-operative movement;
  • It is in the interest of securing the proper management of the co-operative societies concerned.
  1. No order shall be made under this section unless-
  • A copy of the proposed order has been drafted and sent to the co-operative society or each of the co-operative societies concerned; and
  • The Registrar has considered and made such modifications in the draft order as may seem desirable to him in the light of any suggestions and objections which may be received by him within two months from the date on which a copy of the order is received by the society, or its members or creditors.
  1. The order given by the Registrar may contain supplemental provisions as may, in the opinion of the Registrar, be necessary to give effect to the amalgamation, division or reorganisation.
  2. Every member or creditor of each of the co-operative societies concerned who has objected to the scheme within the period specified, shall be entitled to receive his share or interest (if he happens to be a member), and the amount in satisfaction of his dues (if he happens to be a creditor).