Section 12 - Classification of societies
(1) The Registrar shall classify all societies into one or other of the classes of societies
defined in
section 2 and also into such sub-classes thereof as may be prescribed by rules.
(2)The Registrar may, for reasons to be recorded in writing, alter the classification of a
society from one class of society to another, or from one subclass thereof to another; and
may, in the public interest and subject to such terms and conditions as he may think fit to
impose, allow any society so classified to undertake the activities of a society belonging
to another class.
(3) A list of all societies so classified shall be published by the Registrar every three years
in such manner as the State Government may, from time to time direct.
Section 13 - Amendment of bye-laws of society
(1) No amendment of the by-laws of a society shall be valid until registered under this
Act. For the purpose of registration of an amendment of the bye-laws, a copy of
the amendment passed, in the manner prescribed, at a general meeting of the society,shall
be forwarded to the Registrar.
Every application of registration of an amendment of the
bye-laws shall [* *] be disposed of by the Registrar within a period of two months
from the date of its receipt.
* * *
[(1A) Where there is a failure on the part of the Registrar to dispose of such application
within the period aforesaid, the Registrar shall,within a period of fifteen days from the
date of expiration of that period refer the application to the next higher officer and where
the Registrar himself is the registering officer, to the State Government, who or which, as
the case may be,shall dispose of the application within two months from the date of its
receipt and on the failure of such higher officer or the State Government, as the case may
be, to dispose of the application within that period, the amendment of the bye-laws shall be
deemed to have been registered.
(1B) No amendment of the bye-laws of a society shall be registered by the Registrar under
this section or in the case of the bye-laws which are deemed to have been registered
shall have effect, if the amendment is repugnant to the policy directives, if any,issued by
the State Government under
section 4.]
(2)When the Registrar registers an amendment of the bye-laws of a society [or where an amendment of the bye-laws is deemed to have been registered] he shall issue to the society
a copy of the amendment certified by him, which shall be conclusive evidence that
the same is duly registered.
(3) Where the Registrar refuses to register [such amendment], of the bye-laws of a
society, he shall communicate the order of refusal; together with his reasons therefor, to the
society.
Footnote:
1. This portion was added by Mah. 27 of 1969, s. 6.
2. The words "as far as possible," were deleted by Mah.20 of 1986, s. 8(a)(i).
3. The proviso was deleted,by Mah. 20 of 1986, s. 8(a)(ii).
4. Thesesub-sectionswere inserted by Mah. 20 of 1986, s. 8(a)(iii).
5. These words were inserted, by Mah. 20 of 1986, s. 8(a)(a).
6. These words were substituted for the words "the amendment", by Mah. 20 of 1986, s.8(b)(b).
Section 14 - Power to direct amendment of bye-laws
(1) If it appears to the Registrar that an amendment of the bye-laws of a society is
necessary or desirable in the interest of such society, he may call upon the society, in the
manner prescribed, to make the amendment within such time as he may specify.
(2) If the society fails to make the amendment within the time specified, the Registrar
may, after giving the society an opportunity of being heard arid after consulting such
State federal society as may be notified by the State Government, register such
amendment, and issue to the society a copy of such amendment certified by him. With
effect from the date of the registration of the amendment in the manner aforesaid, the
bye-laws shall be deemed to have been duly amended accordingly; and the bye-laws as
amended shall, subject to appeal (if any), be binding on the society and its members.
Section 15 - Change of name
(1) A society may, by resolution passed at a general meeting and with the approval of the
Registrar, change its name; but such change shall not affect any right or obligation of the
society, or of any of its members, or past members, or deceased members; and any legal
proceedings pending before any persons, authority or court may be continued by or
against the society, under its new name.
(2) Where a society changes its name, the Registrar shall enter the new name in its place
in the register of societies and shall also amend the certificate of registration accordingly.
Section 16 - Change of liability (The provisions of this section shall not apply to the housing societies as per Amendment To MCS Act 1960 dtd 09.03.2019)
(1) Subject to the provisions of this Act and the rules, a society may, by amendment of its
bye-laws, change the form or extent of its liability.
(2) When a society has passed a resolution to change the form or extent of its liability, it
shall give notice thereof in writing to all its members and creditors and notwithstanding
anything in any bye-law or contract to the contrary, any member or creditor shall, during
a period of one month from the date of service of such notice upon him, have the option
of withdrawing his shares, deposits or loans.
(3) Any member or creditor who does not exercise his option within the period specified
in sub-section (2), shall be deemed to have assented to the change.
(4) An amendment of the bye-laws of a society, changing the form or extent of its
liability, shall not be registered or take effect until, either--
(a) all members and creditors have assented, or deemed to have assented, thereto as
aforesaid; or
(b) all claims of members and creditors who exercise - the option, given by sub section (2), within the period specified therein, have been met in full or otherwise satisfied.
Section 17 - Amalgamation, transfer, division or conversion of societies
(1) A society may, with the previous approval of the Registrar, by resolution passed by
two-thirds majority of the members present and voting at a special general meeting held
for the purpose, decide--
(a) to amalgamate with another society;
(b) be transfer its assets and liabilities, in whole or in part, to any other society;
(c) to divide itself into two or more societies; or
(d) to convert itself into another class of society:
Provided that, when such amalgamation, transfer, division or conversion, aforesaid,
involves a transfer of the liabilities of a society to any other society, no order on the
resolution shall be passed by the Registrar, unless he is satisfied that--
(i) the society, after passing such resolution, has given notice thereof in such manner as
may be prescribed to all its members, creditors and other persons, whose interests are
likely to be affected (hereinafter in this section referred to as "other interested persons"),
giving them the option, to be exercised within one month from the date of such notice, of
becoming members of any of the new societies, or continuing their membership in the
amalgamated or converted society, or demanding payment of their share or interest or
dues, as the case may be,
(ii) all the members and creditors and other interested persons, have assented to the
decision, or deemed to have assented thereto by virtue of any member or creditor or any
other interested person failing to exercise his option within the period specified in clause
(i) aforesaid, and
(iii) all claims of members and creditors and other interested persons, who exercise the
opinion within the period specified, have been met in full or otherwise satisfied.
(2) Notwithstanding anything contained in the Transfer of Property Act, 1982, or the
Indian Registration Act, 1908, in the event of division or conversion, the registration of
the new societies or, as the case may be, of the converted society, and in the event of
amalgamation, on the amalgamation the resolution of the societies concerned with
amalgamation, shall in each case be sufficient conveyance to vest the assets and liabilities
of the original society or amalgamating societies in the new societies or converted or
amalgamated society, as the case may be.
(3) The amalgamation of societies, or division or conversion of a society shall not affect
any rights or obligation of the societies so amalgamated, or society so divided or
converted, or render defective any legal proceedings which might have been continued or
commenced by or against the societies which have been amalgamated, or divided or
converted; and accordingly, such legal proceedings may be continued or commenced by
or against the amalgamated society, or, as the case may be, the converted society, or the
new societies.
(4) Where two or more societies have been amalgamated, or a society has been divided or
converted, the registration of such societies or society shall be cancelled on the date of
registration of the amalgamated society, or the converted society, or the new societies
between which the society may have been divided.
Section 19 - Reconstruction of societies
Where a proposal for a compromise or arrangement--
(a) between a society and its creditors, or
(b) between a society and its members,
is approved at a special general meeting called for the purpose, the Registrar may on the
application of the society or of any member or of any creditor of the society, or in the
case of a society which is being wound up, of the liquidator, order reconstruction in the
prescribed manner, of the society.
Section 20 - Partnership of societies
(1) Any two or more societies may, with the prior approval of the Registrar by resolution
passed by three-fourths majority of the me members present and voting at a general meeting of
each such society, enter into partnership for carrying out any specific business or
business, provided that each member has had clear ten days, written notice of the
resolution and the date of the meeting.
[Provided that, in case of a society which has not taken any financial assistance from the
Government, in the form of sh are capital, loan or guarantee, the prior approval of the
Registrar for entering into such partnership shall not be required.]
(2) Nothing in the Indian Partnership Act, 1932, shall apply to such partnership.
Footnote:
1. Provison inserted by Mah. 34 of 2001, (w.e.f. 7-9-2001), s. 2.
Section 20A - Collaboration by societies
(1) Any society or societies may, with the prior approval of the State Government,
[and subject to such terms and conditions
as the State Government may impose and in such
manner as may be prescribed] enter into collaboration with any Government undertaking
or any undertaking approved by the State Government for carrying on any specific
business or businesses, including industrial investment, financial aid or marketing and
management expertise.
(2) Before approving any such scheme of collaboration by any society or societies under
sub-section (1), the State Government shall have due regard to the following matters,
namely:--
(a) that the scheme is economically viable;
(b) that it can be implemented without, in any way, eroding the co-operative character of
the society or the societies concerned;
(c) that the scheme is in furtherance of the interests of the members of the society or
societies concerned, or is in the public interest, and in the interest of the co-operative
movement in general.
[Provided that, no prior approval of the State Government shall be necessary in case of a
society which has not taken any financial assistance from the Government in the from of
share capital, loan or guarantee and such society may enter into collaboration with any
undertaking with the prior approval of it's general body if the requirements laid down in
clauses (a), (b) and (c) of sub-section (2), are being fulfilled in case of such society.]
Footnote:
1. Section 20 A was inserted by Mah. 20 of 1986, s. 10.
2. Inserted by Mah. 10 of 1988, s. 4.
3. This provison was added by Mah. 34 of 2001, (w.e.f. 7 - 9 - 2001) s. 3.
Section 21 - Cancellation of registration
The Registrar shall make an order cancelling the registration of a society if it transfers the
whole of its assets and liabilities to another society, or amalgamates with another society,
or divides itself into two or more societies or if its affairs are wound up, [or it is de registered
under the provisions of sub-section (1) of section 21A]
[or winding up
proceedings in respect of the society are closed or terminated
under section 109.].
[* * * *].
The society shall, from the date of such order of cancellation, be deemed to be dissolved
and shall cease to exist as a corporate body.
Footnote:
1. Inserted by Mah.10 of 1988, s.5.
2. This portion was inserted by Mah. 3 of 1974, s.4.
3. The portion beginning with "or it has commenced business" and ending with "be cancelled" was deleted by Mah. 3 of 1974, s. 5.
Section 21A - De-registration of societies
(1) If the Registrar is satisfied that any society is registered on mis-representation made
by applicants, or where the work of the society is completed or exhausted or the purposes
for which the society has been registered are not served, he may, after giving an
opportunity of being heard to the Chief Promoter, the committee and the members of the
society, de-register the society:
Provided that, where the number of members of the society is so large and it is not
possible to ascertain the correct addresses of all such members from the records in the
office of the Registrar and, in the opinion of the Registrar it is not practicable to serve a
notice of hearing on each such individual member, a public notice of the proceedings of
the de-registration shall be given in the prescribed manner and such notice shall be
deemed to be notice to all the members of the society including the Chief Promoter and
the members of the Committee of the Society, and no proceeding in respect of the deregistration
of the society shall be called in question in any Court merely on the ground
that individual notice is not served on any such member.
(2) When a society is de-registered under the provisions of sub-section ( 1), the Registrar
may, notwithstanding anything contained in this Act or any other law for the time being
in force, make such incidental and consequential orders including appointment of Official
Assignee as the circumstances may require.
(3) Subject to the rules made under this Act, the Official Assignee shall realise the assets
and liquidate the liabilities within a period of one year from the date he takes over the
charge of property, assets, books, records, and other documents, which period may, at the
discretion of the Registrar, be extended from time to time, so however, that the total
period does not exceed three years in the aggregate.
(4) The Official Assignee shall be paid such remuneration and allowances as may be
prescribed; and he shall not be entitled to any remuneration whatever beyond the
prescribed remuneration or allowances.
(5) The powers of the Registrar under sub-sections (1) and (2) shall not be exercised by
any [officer below the rank of a Joint Registrar of Co-operative Societies.]
Footnote:
1. Section 21-A was inserted by Mah. 20 of 1986, s. 11.
2. These words were substituted for the portion beginning with the word "person" and ending with the word and figure "section 3 " by Mah. 10 of 1988, s. 6.