Division of A Co-operative Housing Society

(a)    Resolution

The resolution of division of the society containing the purpose behind division of the society, how the scheme is beneficial to the members, full details of the scheme of division of assets and liabilities etc. will have to be passed by 2/3^rd majority of the members present and voting at the general body meeting.

(b)   Public Notice

After the resolution of bifurcation presupposing two divisions only is passed as above, the society has to give notice in form ‘G’ attached to the Maharashtra Co-operative Societies Rules, 1961, to all members, creditors and other persons, who are likely to be affected by the scheme and has to publish it in one of the newspapers. A copy of the notice has also to be exhibited on the notice board of the society and on the notice board of the Registrar’s office. The publication of the notice in form ‘G’ in a newspaper is very costly. A Co-operative housing society generally has no outside creditors. The expenditure could be avoided by securing exemption from the Government as provided under Rule 16(3) (provision) of the Maharashtra Co-operative Societies, Rules, 1961.

(c)    Satisfaction of Creditors

The members, creditors or persons likely to be affected by the scheme, have to exercise an option within one month of the publication of the notice, as to which of the new societies they want to join or they may demand repayment of their share money, or interest in the capital/property of the society or dues. If the option is not exercised within the stipulated period, the society could assume that the member, creditors or the persons likely to be affected by the scheme have assented to the scheme. If the option is exercised, the society will satisfy the claims as per the options exercised.

(d)   Registration Proposal of new societies

The chief Promoters named in the proposal should prepare registration proposals of the respective societies.

v     Final Submission

The society will then submit the proposal to the Registrar for final approval as under:

(i)                 A report indicating how the society has complied with the provisions, regarding bifurcation presupposing two divisions only of the society

(ii)               A copy of the notice and agenda of the general body meeting of the society

(iii)             A copy of the scheme, along with the consolidated balance sheet and divided balance sheet and divided balance sheet and schedules

(iv)             A copy of the resolution of the general body of the society

(v)               A copy of the notice in form ‘G’

(vi)             A cutting of the paper, in which the notice in form ‘G’ was published

(vii)           Registration proposals of the new societies