Sec 11(1): A co-operative Society can change its liability through an amendment to its byelaws.
A Co-operative Society can change liability unlimited to limited but not limited to unlimited.
Sec 11(2): When a society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writing to all its members and creditors and notwithstanding the provisions of section 24 shall not apply (restrictions on withdrawal of shares for 3 years from the date of admission or any bye-law or contract to the contrary, any member or creditor shall, during a period of two months from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.
Sec 11(3) Any member or creditor who does not exercise his option within the period specified in sub-section (2) shall be deemed to have given his assent to the change.
Sec 11(4) An amendment of the bye-laws of a society changing the form or extent of its liability shall not be registered or take effect until either—
(a) the assent thereto of all members and creditors has been given or deemed to have been given; or
(b) all claims of members and creditors who exercise the option referred to in sub-section (2) within the period specified therein have been met in full.
Rule 12(1)- The amendment shall be made by 2/3rd majority of members present and voting in a general body meeting specially called for this purpose.
Rule 12(2)- for convene the meeting at least 7 clear days notice has to be given.
