ADVOKS GLOBAL · KENYA
The Co-operative Societies Rules
51. Suspension of operations
Edition: 2022-12-31 · In force
51. Suspension of operations
(1)Where upon inspection or inquiry, the Commissioner considers that a co-operative society accepting deposits from its members is bankrupt or insolvent, or that it has willfully violated the Act, or is operating in an unsafe or unsound manner, the Commissioner may issue an order temporarily suspending such operations for a period not exceeding thirty days.(2)The Committee shall be given written notice of the spension, which shall include a list of the reasons for the suspension and upon receipt of the notice, the society shall cease all operations, except those allowed by the Commissioner.(3)The Committee may within the time specified by the Commissioner, show cause why the suspension of its operations should not continue.(4)The Committee may request for a hearing and may present its proposals to remedy the situation in order to resume operation of taking deposits from members.(5)Upon receipt of evidence that the conditions causing the suspension have been corrected, the Commissioner may revoke the suspension and permit the society to resume normal operations.(6)If the Commissioner after providing an opportunity for a hearing, rejects the society’s plan to continue operation, he may issue an order of involuntary liquidation and appoint a liquidator and where the society fails to answer the suspension notice or to request a hearing within the prescribed time, the Commissioner may issue an order of involuntary liquidation and appoint a liquidator and liquidate the society.