Part-1
By I C Naik
Exercise of aligning model Bye-Laws to 97th Constitutional Amendment and to the consequential amendment to the MCS Act 1960 vide the Maharashtra Cooperative Societies (Amendment) Act 2014 (Amendment Act) took nearly 2 years. Several housing societies have been formed registering new Model. In 2013 several existing housing societies buckled to the unprecedented departmental pressure and did reportedly adopt this half backed Model. As a matter of fact 2013 Model was rushed through alongside the belated 1st Ordinance promulgated to align the MCS Act 1960 as aforesaid. Later after enactment of Amendment Act, 2014 Model was put up on the web.
A few Bye-Laws in this latest version appear to be inconsistent. Never the less it is only prudent for compliance conscious societies as a step one, to substitute their registered bye-laws in a manner laid down under Bye-Law No 166. It should be a quick process as Model Bye-Laws are approved for adoption. In step 2 again amend them so as to be comfortable in their compliance. Certain amendments are suggested in this paper (Part 1 of 2 ). The management of housing society should become much more law compliant, easier and much better managed too.
1.As per Section 2(16) of the MCS Act 1960 main object of a CHS is “to provide its members “Common amenities and services”.Take care of this dothe Following:
a.Add a Clause No (xviii-a) after Clause (xviii) reading as “ Common Amenities and Services Fund’means a fund to be set up under Bye-Law No 13 and to be used as provided under Bye-Law No 14 as housing society is required to provide common amenities and services as it is so defined U/S 2(16) of the MCS Act 1960 ”
b.Add new Sub-clause (e) under Bye-Law No 13 reading as under:“Common Amenities and Services Fund” means a Fund established and maintained by the Society to which certain sums are credited from time to time. These sums are specified under appropriate heads of society charges (other than those identified with existing Funds and charges being income of the society), comprised in the demand notes raised on the members pursuant to Bye-Law No 69 ”
c.Add new Sub-clause (e) under Bye-Law No 14 reading as under: “Common Amenities and Services Fund” shall be utilized to provide to the members Common Amenities and Services.
2.Substitute item (iii) in Sub-clause (a) of Clause (xxiv) of Bye-Law No 3 by the following namely; “Who has paid the Society Charges regularly and outstanding dues if any at any time did not exceed 12 month’s demands raised under Bye-Law No 69during previous consecutive five years.’
3.Substitute the definition of Associate Member in Bye-Law No 3(xxiv)(b) by that exactly as defined U/S 2(19)(b) of the Act namely :”associate member” means a member who holds jointly a share of a society with others, but whose name does not stand first in the share certificate”.
4.Substitute the sub-clause (i) of Clause ( c ) of Bye-Law No 22 by the following namely: “He / She or his associate member being a member of the managing committee, have both put to gather attended at least three General Body Meetings in previous consecutive period of five years”
5.Substitute the sub-clause (iii) of Clause ( c ) of Bye-Law No 22 by the following namely: “Who has paid the Society Charges regularly and outstanding dues if any at any time did not exceed 12 month’s demands raised under Bye-Law No 69during previous consecutive five years.’.
6.Add a Proviso to clause (b) of Bye-Law No 23 as under; Provided that the managing committee shall electronically provide to its members copies of the registered bye-laws free of cost within 72 hours of the receipt of the request communicated by an electronic mail at the address notified by the society:
7.Add following Proviso to Bye-Law No 25; Provided an Associate member whose name appears in the agreement referred to under Bye-Law No 19(a)(vi) shall have a right to join the managing committee subject to the provisions under the registered bye-laws of the Society and the Maharashtra Cooperative Societies (election to committee) Rules 2014 (for short Cooperative Election Rules.
8.Amending Bye-Law No 32 : delete the following phrase from this Bye-Law no 32.
“ and / or Associate Member of the Society”
9.Amending Bye-Law No 34;
a.Add the phrase “of the associate member if any”after the words ‘the shares and interest of the deceased Member’ and
b.Delete the note appended to the Bye-Law.
10.Amending Bye-Law No 35;
Delete the sentence:“ It shall also publish such notice in at least two local news papers, having wide circulation. The entire expenses of publication of the notice shall be recoverable from the value of shares and interest of the deceased Member in the capital/property of the Society”
If any reader is interested to understand rationale of any suggestion may seek clarification by writing to <info@www.indiancooperative.com>