AMALGA
MATION

The Amalgamation process for Co-operative Societies and Friendly Societies are similar and are guided by Section 53 and Section 47 of the Acts respectively. These provisions allow for two (2) main types of Amalgamation – mergers and transfer of engagement.

 

(i) Mergers – occurs whereby any two or more Societies combine, without dissolution or division, to become a new Society (the Amalgamated Society). All the funds and property of the Societies engaged in the process become vested in the new Society. All members of the merging Societies also automatically remain members of the Amalgamated Society.

In the process, the merging societies would cease to exist as legal entities. The new Society formed by the process will acquire a new name, new registration, new Rules, new Board of Directors and the other necessary Statutory Committee(s).


(ii) Transfer of Engagements – occurs whereby a Society (Transferor) transfers all of its engagements and members to another Society (Transferee), which may undertake to fulfil the engagements of the Transferor. The Society that would be transferred would cease to exist and the Society that would have accepted the engagements would continue in its own name and as a legal entity.

 

 


 

 

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