Ibrahim K
I own a flat in Thane in my name. My wife is not a co-owner. Can my wife represent me in the Building Society? Can she hold an office in the Building Society?
If not.the how can she legally do it?
I C Naik
So far a large number of CHS members have raised issues related to Associate Membership. One more time let us grasp the very basic aspects.
Members of Cooperative Societies have rights specified in the MCS Act, MCS Rules and the bye Laws registered by the concerned society in the office of the Registrar of Cooperative Societies.
The Act says a term “member” includes Associate and Nominal both besides the original member having a prescribed economic interest in the concerned cooperative Society. Further Associate member must hold shares in the society jointly with original member whose name appears 1st on the certificate. Nominal Member is not allowed to hold shares.
The Act confers voting rights to Associate member in Society (General) Meetings in the absence of the original member. Under Section 24(2) the Act an associate member, may, have such privileges and rights and be subject to such liabilities of a member, as may be specified in the by-laws of the society.
Rule 19(1) says No person shall be admitted as a member of a society unless,—
(i) he has applied in writing in the form laid down by the society or in the form specified by the Registrar, if any, for membership;
?Name of Ibrahim’s Wife does not appear on share certificate,so she can’t attend meetings. One who is not a member can not hold an office in the Society.
So how does that can be done legally is the question,
We do not have a benefit of what rights his society’s bye Laws confer on Associate member. Sp we need to know that. If his society has by any chance adopted the latest Model bye Laws then the bye law No 3(xxiv)(b) of his society defines Associate member as “Associate Member” means a Members who holds the right, title and interest in the property individually or jointly with others, but whose name does not stand first in the share certificate;
So Ibrahim’s wife has to be made a co-owner of the flat by suitable deed and after registering apply to the Committee for Associate Membership. Before a deed for co-ownership is registered it is necessary to ascertain if the Latest Model Bye Laws permits the CHS which has registered it to allow Assoc thatiate Member to contest election to the Committee. bye Law No 25 of this Model reads: No Associate Member shall have any rights or privileges of an active Member except as provided under Section 27(2) of the Act ” This Section contains the Law on voting in General meeting of co-operative society.
So we go to Section 27(2) which reads thus: Where a share of a society is held jointly by more than one person, the person whose name stands first in the share certificate, if present, shall have the right to vote. But in his absence the person whose name stands second, and in the absence of both, the person whose name stands next, and likewise, in the absence of the preceding persons the person whose name is next on the share certificate, who is present and who is not a minor, shall have the right to vote.” So going by this bye-law, she has only one right after becoming Associate Member that is to vote in Society Meeting if Ibrahim is absent.
There is one more bye-law in the latest Model that is number 117 which describes a list of 6 numbers (a-f) of situations and a person found to be fitting into any one of such situations he/she can not contest election nor can be co-opted in to managing Committee. Two situations (d) and (e) can confuse a member. A person is in a situation (d) where he/she is an Associate member trying to join Committee by winning election or by getting co-opted to fill casual vacancy. If such person does not submit “the no-objection certificate and undertaking, as prescribed under these bye-laws, by the Member(i.e. to be given by the original Member)”
Assuming Ibrahim is prepared to issue certificate as referred to in situation (d) above even then her status will continue as “not an active member” (situation e), as she can not become a Committee Member because only her husband can have a status of an Active Member, going by how a person can continue to be an active member under the Act(Section 2(19)(a1)and Bye Law No 3(xxiv)(a)respectively reading as under:
1.2(19)”(a-1) “active member” means one who participates in the affairs of the society and utilises the minimum level of services or products of that society as may be specified in the by-laws;”;
BLNo 3)xxiv)(a.) “Active Member” means
i.One who has purchased and owns a Flat / Unit in the Society.
ii.One who attends at least one General Body Meeting of the Society in the previous five consecutive years.
Provided that nothing in this clause shall apply to the members whose absence has been condoned by the General Body Meeting of the Society.
iii.Who has paid the Society Maintenance Service and other charges at least once in previous consecutive five years.
Associate Member can not satisfy such conditions which a person is required to comply to remain an “active member”.
so legally there is no way Ibrahim’s wife can become an office bearer of the CHS of which her husband is active member.
Even if Ibrahim’s CHS has any of the Model bye Laws namely Model 1984 or 2001 or 2009 the answer is same that is she can become a member by getting her name added to the Share Certificate but legally she cannot join the Committee as all Model Bye Laws confer only one right to Associate to seat in General Body Meeting and to vote if Ibrahim were to remain absent.
It does not mean ?Ibrahim?’s wife can never become a Committee Member. Ibrahim has to muster support of a large number of members of his CHS to ??undertake amendment bye laws to confer rights to to Associate members of his society.
