Section 51: Division of society.

(1) A registered society may at a meeting of its general body, specially called for the purpose, of which at least fourteen days notice shall be given to the members, resolve to split into two or more societies.
(2) A resolution passed under the provisions of subsection (1) of this section (in this section referred to as "preliminary resolution") shall contain proposals for the division of the assets and liabilities of the society among the new societies into which it operatives and specify the members who shall constitute each of the new societies.
(3) A copy of the preliminary resolution shall be sent to all the members and creditors of the society.
(4) A member of the society may, notwithstanding anything contained in the bye-laws of the society to the contrary, by notice given to the society, within a period of two months from his receipt of the preliminary resolution, intimate his intention not to become a member of any of the new societies.
(5) A creditor of the society may, notwithstanding any agreement to the contrary, by notice given to the society, within a period of two months from his receipt of the preliminary resolution, intimate his intention to demand a return of the amount due to him.
(6) After the expiry of two months from the receipt of the preliminary resolution by all the members and creditors of the society, a general meeting of the society of which at least fourteen days notice shall be given to its members, shall be convened for considering the preliminary resolution.
(7) If, at a meeting convened under subsection (6) of this section, the preliminary resolution is confirmed by a resolution passed either without change or with such changes as in the opinion of the Director are not material, he may register the new societies and their bye-laws and on such registration the registration of the old society shall be deemed to have been cancelled.
(8) The opinion of the Director as to whether the changes made under subsection (7) of this section in the preliminary resolution are material or not shall be final and no appeal shall lie therefrom.
(9) At the meeting convened under subsection (6) of this section, provision shall be made by another resolution for-
(a) the repayment of the share capital of all the members who have given notice under subsection (4) of this section; and
(b) the satisfaction of the claims of all the creditors who have given notice under subsection (5) of this section, so however that no member or creditor shall be entitled to the repayment or satisfaction until the preliminary resolution is confirmed as provided in subsection (7) of this section.
(10) If, within such time as the Director considers reasonable, the share capital of the members referred to in subsection (9) of this section are not repaid or the claims of the creditors referred to in that subsection are not satisfied, the Director may refuse to register the new societies.
(11) The registration of the new societies shall operate to vest the assets and liabilities of the original society in the manner specified in the preliminary resolution as confirmed under subsection (7) of this section.