law: Multi-State Cooperative Societies Act, 1984 
  13. Liability.- 
  1.     
  
    No
  
  multi-State cooperative society with unlimited liability shall be registered
  
  after the commencement of this Act:
  Provided that where a
  
  multi-unit cooperative society with unlimited liability was functioning before
  
  the commencement of this Act, such a society shall exercise the option within a
  
  period of one year from such commencement either to continue to function as
  
  such or to convert itself into a multi-State cooperative society with limited
  
  liability by following the procedure specified in sub-sections (2) to (4).
  1.     
  
  
  2.     
  
    Subject
  
  to the provisions of this Act and the rules, a multi-unit cooperative society
  
  may, by an amendment of its bye-laws, change the extent of its liability.
  3.     
  
    When
  
  a multi-unit cooperative society has passed a resolution to change the extent
  
  of its liability, it shall give notice thereof in writing to all its members
  
  and creditors, and, notwithstanding anything contained in the bye-laws or
  
  contract to the contrary, any member or creditor shall, during the period of
  
  one month from the date of service of the notice upon him, have the option of
  
  withdrawing his shares, deposits or loans, as the case may be.
  4.     
  
    Any
  
  member or creditor who does not exercise his option within the period specified
  
  in sub-section (3) shall be deemed to have assented to the change.
  5.     
  
    An
  
  amendment of a bye-law of a multi-unit cooperative society changing the extent
  
  of its liability shall not be registered or shall not take effect until either-
  a.      the assent thereto of
  
  all members and creditors has been obtained: or
  b.     all claims of members
  
  and creditors who exercise the option referred to in sub-section (3) within the
  
  period specified therein have been met in full or otherwise satisfied.