1. Make an application to the high court of the state or union territory in which the registered office of your producer company is located for re-conversion of your producer company, being an erstwhile inter state co-operative society registered and formed.
2. The same application can be made by your company only under either of the following two circumstances :
(a) resolution in the meeting by not less than two-thirds of your company’s members voting and present.
(b) on request by your company’s creditors representing three-fourth value of your company’s total creditors.
Re-conversion on Members Resolution
3. If your company wants to re-convert your producer company again into an inter-state co-operative society under the circumstance, the following steps mentioned below.
4. Convene a board meeting, the notice of which shall be given by the chief executive in writing to every director of the company for the time being in India. Every other directors address in India. It is not less than 7 days prior to the date of the meeting of the board and pass a board resolution authorizing any director or secretary or the chief executive of your company to take steps for re-conversion.
5. Also approve in the said board meeting the draft of the notice for calling the general meeting fixing. The time, date, place and agenda for pass a resolution is not less than two-third of your company’s members present and voting.
6. The chief executive of your to give notice of the board meeting as same. If he not to do so, then he will be punishable with a fine of Rs.1000.
7. If needed call the same board meeting at shorter notice and record in writing the reasons for calling the said board meeting at shorter notice.
8. Issue notices in writing at least 21 days before the date of the general meeting proposing the resolution for re-conversion of your producer company again into an inter-state-co-operative society with suitable explanatory statement.
9. Pass the resolution and hold the meeting for re-conversion by not less than two-third of your company’s members and present.
Re-conversion on creditors request
10. If your company’s wants to re-convert your producer company again into an inter-state-co-operative society under the circumstance mentioned the above steps.
11. Issue notices to the director of the company as per section 581V(2) and (3) of the 1956 act for converting a board meeting. Then hold a board meeting and take the decision on such re-conversion by passing a resolution after placing before the said meeting the requests made by creditors representing not less than three fourth value of your company’s total creditors.
12. Make an application to the high court in the form as may be prescribed enclosing therewith a certified true copy of the general meeting resolution or certified true copy or copies of requests made by the creditors as the case may be for re-conversion.
13. The high court shall on the application made section 581ZS under sub-section (1) of the direct holding meeting of your company’s members on such creditors.
14. Hold the meeting as directed by high court and ensure that majority in number representing three fourths in value of the creditors or members of your company.
15. Make an application to the high court for sanctioning the re-conversion as agreed by the creditors or members.
16. The high court will make an order sanctioning re-conversion after it is satisfied that your company or any other person by whom an application for sanctioning of the re-conversion is made. It has filed the same documents and papers with it.
17. Once the high court sanctions the re-conversion it will be binding on all the members and all the creditors.
18. File a certified true copy of the order made by the high court under sub-section(3) of section 581ZS with the ROC.
19. The copy of the high courts order is electronically filed with the ROC in e-Form 21 as an attachment.
20. The requirement of filing with the ROC a certified copy of the order of the high court under sub-section(4) of section 581ZS.
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