State Act

THE KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959.

72. Winding up of co-operative societies.- (1) If the Registrar after 1[an audit has been conducted under section 63 or an inquiry]1 has been held under section 64 or an inspection has been made under section 65 or on receipt of an application made by not less than three-fourths of the members of a co-operative society, is of opinion that the society ought to be wound up, 1[he may, after giving the society an opportunity of making its representation, issue an order]1 directing it to be wound up. (2) The Registrar may, of his own motion, make an order directing the winding up of a co-operative society,— 1[(a) where the number of members of the society has been reduced to less than the minimum number required for registration of the co-operative society; or]1 (b) where the co-operative society has not commenced working 2[within a period of six months of the date of its registration or has ceased to function for six months]2 1[or]1 1[(c) where the co-operative society has ceased to comply with the conditions imposed by or under this Act regarding registration and management.]1 (3) The Registrar may cancel an order for the winding up of a co-operative society, at any time, in any case where, in his opinion, the society should continue to exist. 1[(4) Notwithstanding anything contained in this section, no co-operative bank shall be wound up 2[or an order for winding up shall be cancelled]2 except with the previous sanction in writing of the Reserve Bank.]1 1[(5) Notwithstanding anything in this section, the Registrar shall make an order for the winding up of a cooperative society, if the general body of the society, by a resolution passed by two thirds majority of the members present and voting in a general meeting decides for the winding up of that society]1 1[(6) The process of winding up of a co-operative society under sub-sections (1), (2) and (5) above, shall be completed within a period of three years from the date of direction from the Registrar: Provided that the said period may be extended by the Registrar for the reasons to be recorded in writing for a further period of one year: Provided further that the State Government may, on a report made by the Registrar shall have power to extend the said period, if it is satisfied that, there are genuine grounds for the extension.]1