Section 38: Cancellation of registration of a society due to lack of membership.

(1) The Director may, by order in writing, cancel the registration of a primary society if, at any time, it is proved to his satisfaction that the number of the members of the society has been reduced to less than ten or in the case of an industrial society, to less than six and the order shall take effect from the date it is made.
(2) If the Director, after holding or making an inquiry or conducting an inspection under section 37 of this Act or on receipt of an application made by not less than three fourths of the members of the registered society, is of the opinion that the society ought to be dissolved, he may make an order in writing for the cancellation of the registration of the society.
(3) A member of a registered society may, within two months from the date of an order made under subsection (2) of this section appeal against the order to the Minister or Commissioner, as the case may be.
(4) Where no appeal is lodged within two months from the making of an order cancelling the registration of a society, the order shall take effect on the expiry of that period and where however an appeal is presented within two months, the order shall not take effect until it is confirmed by the Minister or the Commissioner, as the case may be.
(5) Where the Director makes an order for the cancellation of the registration of a society under subsections (1) and (2) of this section, he may make such further orders as he may think fit for the custody of the books and documents and the protection of the assets of the society until the order cancelling the registration takes effect.
(6) No registered society shall wind or be wound up except by an order of the Director or of a court.