(1) No multi state cooperative society with unlimited liability shall be registered after the commencement of cooperative Society Act: Provided that where a credit 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). (2) Subject to the provisions of this Act and the rules, a multi state co-operative society may, by an amendment of its bye-laws, change the extent of its liability. (3) When a multi state 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 t 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 state cooperative society change in 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 t in sub-section (3) within the period specified therein have been met in full or otherwise satisfied. All new societies to be registered under the Act have to be societies with limited liability. No new multi state co-operative society with unlimited liability can be registered under the Act. Section 16 also requires all existing multi state co-operative societies which were in existence at the time of its commencement to decide within a period of one year from its commencement whether they would like to opt to continue to function as a society with unlimited liability or would choose to convert itself into a multi-state co-operative society with limited liability. The procedure for converting itself into a multi state co-operative society with .limited liability is laid down in sub-sections (2) to (4) of Section 16. Subject to restrictions mentioned in the Act, a multi state co-operative society may, by an amendment of its bye-laws, change the extent of its liability. The cooperative societies can pass a resolution to change the extent of its liability, then the society must give notice in writing to all its members and creditors. The nature of the society's liability can be changed only by an amendment: its bye-laws. Firstly, the society should pass a resolution to change itself into. liability society. After passing such a resolution it should give notice reef in writing to all its members and creditors. On receipt of such notice all e members and creditors, notwithstanding anything contained in any bye or contract, shall have the right to withdraw their shares, deposits or as the case may be, within one month from the service of such notice. In a member or creditor does not exercise the option given in the notice, he is agreed to the change of liability. Such amendment regarding change of rights and liabilities shall not be registered unles and until the assent of all the members and creditors has been obtained. In case members or creditors do not assent to the change, the society has to clear claims in full. It has also to obtain the assent of the remaining members' creditors. Unless the assent has been obtained or the claims have been processed, the amendment to the bye-laws changing the extent of its liability is registered.