Ardhendu Bhattacharya
I have a query related to Housing Society. My Society is in Mira Road, Thane. I wanted to know whether a Housing management committee can appoint other members of the society as member of Committee to look after certain responsibilities like maintenance, water management, etc.
If yes, what type of members are they? Are they functional member or do they join as an Expert member ? I understand that such members may not have decisive powers in the management. Please reply.
I C Naik
The Constitutional (97th Amendment) Act 2011 has in new “Part IXB: The Cooperative Societies” of Indian Constitution introduced two new categories of committee members for a cooperative society which can be co-opted by committees. Relevant portions are extracted below.
ARTICLE 243ZJ (3) The Legislature of a State shall, by law, make provisions for co-option of persons to be members of the board having experience in the field of banking, management, finance or specialisation in any other field relating to the objects and activities undertaken by the co-operative society, as members of the board of such society:
Provided that the number of such co-opted members shall not exceed two in addition to twenty-one directors specified in the first proviso to clause (1):
Provided further that such co-opted members shall not have the right to vote in any election of the co-operative society in their capacity as such member or to be eligible to be elected as office bearers of the board:
Provided also that the functional directors of a co-operative society shall also be the members of the board and such members shall be excluded for the purpose of counting the total number of directors specified in the first proviso to clause (1).”
Co-option of maximum of two “Expert Directors” under suitable provision of State Cooperative Law is now mandatory.
It appears on going through the last proviso about functional directors [ other than experts] their appointment is not mandatory but if appointed they are additional members of the board/committee with all voting rights including a right to be elected office bearer.
Experts Directors are also members of Committee to be co-opted by elected members and to operate as expert advisors with no voting rights in elections and cannot become office bearers. In other matters their votes are to be taken in to account.
How Functional Directors are to be appointed Constitution is silent and the State Act has the freedom to make provisions.
Unless the Society Law provides for these two categories just as the Constitution provides for societies can not go ahead with these appointments.
THE MAHARASHTRA COOPERATIVE SOCIETIES (AMENDMENT) ACT 2013 has inserted new section in the M C S Act 1960 relevant reading as under:
“73AAA. (i) The Committee shall consist of such number of members as may be provided in the by-laws:
Provided that, the maximum number of members of the committee shall not exceed twenty one:
(2) The Committee may co-opt “expert directors” relating to the objects and activities undertaken by the society:
Provided that, the number of expert directors shall not exceed two, in addition to the maximum twenty-one members of the committee as specified in first proviso of sub-section (1):
Provided further that, the committee may, in case of the committee having not more than seventeen members nominate a person as a functional director; and in case of the committees having more than seventeen members and not more than twenty-one members may nominate such number of functional directors not exceeding two:
Provided also that, in respect of the society having contribution of the Government towards its share capital, the members of the committee shall include two officers of the Government nominated by the State Government, which shall be in addition to the number of members specified in the first proviso to sub-section (1):
Provided also that, the functional directors of a co-operative society shall also be the members of the committee and such members shall be excluded for the purposes of counting the total numbers of members of the committee specified in the first proviso to sub-section (1):
Provided also that, such expert directors shall not have the right to vote at any election of the society and shall not be eligible to be elected as office bearers of the committee.
Within maximum of 21 + 2 experts+ 2 functional the actual strength of board of directors/committee members is left to be prescribed under the registered Bye Laws of the concerned society.
In order to make the story complete, the latest Model Bye Laws of cooperative housing societies draft of which is under approval, which can be down loaded from following site has proposed strength of the managing committee for cooperative housing societies of varying strength of membership.
http://sahakarayukta.maharashtra.gov.in/SITE/PDF/Rules_Acts_Bylaws/Model_ByeLaws_of_Housing_Cooperative_societies.pdf
Bye law No 115 reproduced from Model 2013(under approval)
The Committee shall consist of *11/13/……. /21 members of the society.
This strength includes the reservation of seats as provided under section 73B and 73C of the Act.
Note: *The strength of the managing committee and strength of the
quorum for conducting the meeting would be as under:-
*Strike out what is not relevant
Provided that the Societies having less than 15 members can fix the number of members of the Committee in accordance with the provisions of the Act in this respect..
ANSWERS
1. Whether a Housing management committee can appoint other members of the society as member of Committee to look after certain responsibilities like maintenance, water management, etc
A: THE MANAGING COMMITTEE can allot its work amongst its own members only.
2. Expert members do have decisive powers in the matter of election of the managing committee and cannot be elected to any office. In all other matters they have a vote. Their number is not counted in the numbers mentioned in the table of strength of the managing committee in Bye Laws 115.
3.Functional members are also from outside the table of strength but they are no different in any manner. Can vote in elections and also hold any office.