Division of A Co-operative Housing Society

v     Steps After Preliminary approval

(i)                 The Registrar usually signifies his preliminary accord to the proposed division of the society and asks the society to submit a proposal for final approved of the scheme, if he is fully convinced that there is no alternative other than to divide the society.

(ii)               On getting preliminary approved of the scheme, the Hon. Secretary of the society has to prepare the statement of division of assets and liabilities as on the last day of the preceding Co-operative year on the basis of the scheme of division adopted while submitting proposals for preliminary approval of the scheme. On the basis of the statement referred to above, he should prepare two or three balance sheets, according to the number of units into which a Society is proposed to be divided. Although the Act and the Rules thereunder do not provide for submission of audited balance sheets, it is advisable to get the balance sheets (consolidated) and the divided balance sheets audited. The balance sheets should be accompanied by supporting schedules.

(iii)             The Hon. Secretary should then call a managing committee meeting and place before it the letter from the Registrar communicating the preliminary approval of the scheme of division and the consolidated balance sheet, the assets and liabilities which are proposed to be divided, the divided balance sheets with schedules in support of the items in the balance sheets.

(iv)             The managing committee should then consider the proposal put up by the Hon. Secretary and decide the time, date and place of the general body meeting at which the proposal for final bifurcation of the Society is to be considered.

(v)               The agenda of the general body meeting should include as an item, consideration of the proposal of division of the Society for securing final approval thereto of the Registrar.

(a)    The notice and agenda of the general body meeting should accompany

(1)      A copy of the letter received from the Registrar, communicating the preliminary approval of the scheme of division of the society

(2)      Copy of the consolidated balance sheet and divide balance sheets with supporting schedules

(3)      A copy of the statement, indicating how the scheme of division will be beneficial to the society

(4)      A copy of the statement indicating how the assets and liabilities of the society are divided

(5)      Names of the Chief Promoters, who will formally act as Chief Promoters of the proposed new societies to come up as a result of division of the society.

(6)      The names for the proposed new societies.