Cap. 442 Art. 99Amalgamation of societies and transfer of assets and liabilities.

(1) The amalgamation of societies in terms of articles 95

and 96, and the transfer of the assets and liabilities of a society to another society in terms of article 98 shall not be effected and the relative instrument shall not be signed before the expiration of a period of three months, or such shorter period as the Board may, in exceptional circumstances, allow, from the publication in the Gazette of a notice by the Board, containing the general particulars of the intended amalgamation or transfer.

(2) During the period referred to in subarticle (1), any creditor of the societies involved may in writing to the society object to the proposed amalgamation or transfer, and the amalgamation or transfer shall not take place unless the society in question satisfies the Board that the proposed amalgamation or transfer shall not adversely affect the legitimate interests of the said creditor and that sufficient guarantees would remain for the settlement of his legitimate claims.

(3) Any member of an amalgamating society or of a transferor society, or of the acquiring society, or of the transferee society, as the case may be; and upon giving such notice he shall cease to be a member and shall be entitled to receive the nominal value of his shares.

(4) Where a transfer of the assets and liabilities of a society to another society has been effected as provided in article 98, the transferee society shall succeed to all such rights, assets, liabilities and obligations as may be stipulated in the transfer agreement, duly registered with the Board as provided in article 98(2), and all deeds, contracts, instruments and other documents shall have effect and be construed accordingly.