Chptr-13.Liquidation

A co-operative society is formed with definite objectives. Members normally expect certain services from a society. But this may not be really achieved from a defunct or dormant society. If the society is going against its object and beyond his power, there is no other alternative but dissolve it. The competent authority under the act to wind up or dissolve the society is the registrar who usually appoint a liquidator for the purpose.

SECTION 71 (1) (2) 

WINDING UP OF LIQUIDATOR

Section 71 (1) state that if the registrar after an inquiry has been held under section 65 or an inspection has been made under section 66 or on receipt of an application made by not less than 3/4 of the member of the society, is of the opinion that, the society ought to wound up he may make an order in writing to direct the society to be wound. Before doing so, he should consult the financing bank and circle co-operative union. He shall give an opportunity to the society to state its objection if any.

the other circumstance of  liquidation are the following.

1. Where the total number of the members has been reduced to less than 25

2. Where the society has not commenced working with in six month of it registration 

3. Where the number of actual workers falls below the prescribed limit in the case of
    a society formed exclusively for the benefit of the person engaged in a particular
    industry or operation 

SECTION 73 & RULES 69 

POWERS OF LIQUIDATOR 

1. The liquidator shall publish a notice require all claims against the society to be
    submitted to him within a period of tho months

2. File the case for and on the behalf of the society

3. To determine the contribution to be made by the members, past members,
    legal heirs, nominees etc after settling the asset and the liability of the society 

4. Liquidator shall investigate the clime against the society. Priority in settling
   the clime shall also be decided by the society. He shall have the power to fix
   the rate of payment as per the availability of the funds.       

5. Cost of liquidation shall be decided by him

6. he shall have the power to decide whether a person is a member, past member,
    nominee, heir etc.