(1) A company registered under any enactment relating to the formation and registration of companies may, by a special resolution, determine to convert itself into a registered society.

(2) A resolution for the conversion of a company into a registered society shall be accompanied by three copies of the regulations of the company and shall appoint ten persons being members of the company, who, together with the secretary of the company shall sign the application for registration under paragraph 4 of this Decree, and who may be authorised to accept any alterations made by the Registrar to the regulations of the company without further consulting the company, or may be required to lay all such alterations before the company at a general meeting for acceptance as the resolution may direct.

(3) A copy of the special resolution for conversion of the company into a registered society shall be sent, together with the regulations of the company to the Registrar, who shall thereupon proceed to deal with the resolution as if it were an application for registration under paragraph 4 of this Decree.

(4) A copy of the resolution for the conversion of a company into a registered society under the seal of the company, together with the certificate of registration issued by the Registrar, shall be sent for registration to the office of the Registrar of Companies, and, upon the registration of the resolution and certificate, the conversion shall take effect.

(5) Upon the conversion of a company as a registered society the registration of the company as a company shall become void, and shall be cancelled by the Registrar of Companies and the regulations of the company shall, for the purposes of this Decree, be deemed to be the bye-laws of the registered society.

(6) The registration of a company as a registered society shall not affect any right of claim for the time being subsisting against the company, or any claim or right of the company to enforce any right, claim, or penalty, and accordingly the registered society concerned may sue and be sued in the name of the company as if the company had not become registered as a society.

(7) Every right or claim, and the liability to penalty of the company so registered shall have priority as against the property of the society over all other rights or claims against or liabilities of the society.