CCOS Rules 57Chapter VIII · Liquidation

Section 57 · Procedure to be adopted by liquidator

- Where a liquidator has been appointed under sub-section (1) of Section 70, the following procedure shall be adopted :-

(a)

The appointment of the liquidator shall be intimated in writing to the society.

(b)

The liquidator shall prepare an upto-date list of-

(i)members;

(ii)past members, with dates of their withdrawal, who are subject to liability under Section 29; and

(iii)deceased members, with dates of their death, names of their legal heirs who represent their estate and who are subject to liability under Section 29.

(c)

The liquidator shall, as soon as the order of winding up of the society takes effect, publish by such means as he may think proper, a notice requiring all claims against the society the winding up of which has been ordered, to be submitted to him within two months of publication of the notice. All liabilities recorded in the account books of the society shall be deemed ipso-facto to have been duly submitted to him under this clause.

(d)

The liquidator shall, after settling the assets and liabilities of the society, as they stood on the date on which the order of winding up takes effect, proceed next to determine the contribution (including debts due) to be made by each of the members, past members, or by the estates or nominees, heirs or legal representatives of deceased members or by any officers or former officers, to the assets of the society under clause (b) and as costs of liquidation determined under clause (e) of sub-section (2) of Section 71. He may also make a subsidiary order regarding such contributions and costs and such order shall be enforceable in the same manner as the original order.

(e)

The liquidator shall submit to the Registrar such reports and returns in such form as the Registrar may specify showing the progress made in the liquidation of the society.

(f)

The liquidator may empower any person by general or special order in writing to make collections and grant valid receipts on his behalf.

(g)

All funds in the charge of the liquidator shall be deposited in a Co-operative Bank or in the Post Office Savings Bank or with such other bank as may be approved by the Registrar and shall stand in his name.

(h)

The Registrar shall fix the amount of remuneration, if any, to be paid to the liquidator. The remuneration shall be included in the cost of liquidation which shall be payable out of the assets of the society in priority to all other claims.

(i)

The liquidator may issue summons to persons whose attendance is required to give evidence or to produce documents. He shall record brief notes of the evidence of such persons.

(j)

If any liability cannot be discharged by the liquidator owing to the whereabouts of the claimants not being known or for any other cause, the amount covered by such undischarged liability may be deposited in a Co-operative Bank and shall be available for meeting the claims of the person or persons concerned.

(k)

The liquidator shall have power to call meetings of members of the society under liquidation.

(l)

At the conclusion of the liquidation, the liquidator shall call a general meeting of the members as they existed on the date of winding up of the society. The liquidator or any person authorised by him in writing in this behalf shall summarise the results of his proceedings in the meeting and report what sum, if any, remains in his possession after meeting all the liabilities of the society. If the bye-laws of the society do not describe the object to which the surplus assets, if any, have to be applied after liquidation, the liquidator shall proceed to take a vote of the members present to determine any object of public utility to which they have to be applied.

(m)

After the liquidation proceedings of the society have been closed, the liquidator shall submit a final report as laid down in sub-section (3) of Section 71, to the Registrar together with a copy of the proceedings of the general meeting, if any, referred to in clause (1) and shall subject to the provisions of the said subsection hand over all the records of the society to such person as the Registrar may direct.

(n)

The liquidator may, at any time, be removed by the Registrar and he shall on such removal be bound to be hand over all the property and documents relating to the society under liquidation to such person as the Registrar may direct.

(o)

The liquidator shall keep such books and accounts as may from time to time be required to be kept by the Registrar, who may at any time cause such books and accounts to be audited. The liquidator shall pay such fees for the audit as may be levied under the Act.

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