State Act

THE KARNATAKA SOUHARDA SAHAKARI ACT, 1997

51. Final Accounts.- (1) A liquidator shall pay the costs of liquidation out of the property of the Co-operative and shall pay or make adequate provision for payment of all claims against the Co-operative. (2) After paying or making adequate provision for all claims against the Co-operative, the liquidator shall apply to 1[the Registrar]1 for approval of his final accounts and for permission to distribute in cash or in kind the amounts due to the members out of the remaining property of the Co-operative in accordance with the bye-laws. (3) Where the 1[the Registrar]1 approves the final accounts rendered by a liquidator in pursuance of sub-section (2), 1[he]1 shall,- (a) issue directions regarding the custody or disposal of the documents and records of the Co-operative; and (b) discharge the liquidator. 1[(4) Where the Registrar discharges the liquidator under sub-section (3), he shall issue a certificate of winding up of the Co-operative and cancel the registration of such Co-operative.]1 (5) The Co-operative ceases to exist as a corporate body from the date on which the certificate of registration is cancelled.