law: Co-Operative Societies Act 2008 
  148.
  
  Division of society
  1.      Any society may, by
  
  resolution in this section referred to as a “preliminary resolution” passed by
  
  three-fourths of the members present and voting at a special general meeting
  
  called for the purpose, resolve to divide itself into 2 or more societies.
  2.      A preliminary
  
  resolution-
  a.     
  
    shall
  
  contain proposals for the division of the assets and liabilities of the society
  
  among the new societies into which it is proposed to divide the society; and
  b.    
  
    may
  
  specify the area of operation of, and the members who will constitute, each of
  
  the new societies.
  1.      
  2.      
  3.      A copy of the
  
  preliminary resolution shall be sent to the Registrar and all members and
  
  creditors of the society that is being divided.
  4.      At least ten days
  
  notice of the preliminary resolution shall be given to any person whose
  
  interests will be affected by the division of the society, and the notice shall
  
  be published at least once in a newspaper circulating in .
  5.      Any member of a
  
  society may, notwithstanding any by-law to the contrary, by notice given to the
  
  society within a period of 3 months from his receipt of the preliminary
  
  resolution, state his intention not to become a member of any of the new
  
  societies.
  6.      Any creditor of the
  
  society may, notwithstanding any agreement to the contrary, by notice given to
  
  the society within a period of 3 months from his receipt of the preliminary
  
  resolution, state his intention to demand the payment of moneys due to him.
  7.      Any person, other
  
  than a member or creditor, whose interest may be affected by the division of a
  
  society may, by notice given to the society, object to the division unless his
  
  claim is satisfied.
  8.      After the expiry of 3
  
  months from the receipt of the preliminary resolution by all the members and
  
  creditors of the society and of the notice to any other person given under
  
  subsection (4), another special general meeting of the society, of which at
  
  least 15 days notice shall be given to its members, shall be convened for the
  
  consideration of the preliminary resolution.
  9.      If at the special
  
  general meeting referred to in subsection (8) the preliminary resolution is
  
  confirmed by a special resolution either without changes or with such changes
  
  as in the opinion of the Registrar are not material, the Registrar may, subject
  
  to subsection (11) and section 13, register the new societies; and upon
  
  registration, the original society shall be deemed to be dissolved and its
  
  registration cancelled.
  10.   The decision of the
  
  Registrar as to whether any changes made in the preliminary resolution are
  
  material shall be final and not subject to any appeal.
  11.   At the special
  
  general meeting referred to in subsections (8) and (9) provision shall be made
  
  by another resolution for-
  a.     
  
    repayment
  
  of the share capital of all the members who have given notice under subsection
  
  (5);
  b.    
  
    satisfaction
  
  of the claims of all the creditors who have given notice under subsection (6);
  c.     
  
    satisfaction
  
  of the claims of such of the other persons who have given notice under
  
  subsection (7), but no member or creditor or other person shall be entitled to
  
  such repayment or satisfaction until the preliminary resolution is confirmed in
  
  accordance with subsection (9).
  1.   
  2.   
  3.   
  4.   
  5.   
  6.   
  7.   
  8.   
  9.   
  10.   
  11.   
  12.   Where within such
  
  time as the Registrar considers reasonable-
  a.     
  
    the
  
  share capital of the members referred to in subsection (11)(a) is not
  
  repaid;
  b.    
  
    the
  
  claims of the creditors referred to in that subsection are not satisfied; or
  c.     
  
    the
  
  claims of the other persons mentioned in subsection (11)(c) are not
  
  satisfied or secured, the Registrar may refuse to register the new societies.