Raguram
We are a 100 member CHS, residing in 2 separate buildings divided by a road with separate water tank and water meter and separate electricity meter. One building consists of 40 members and one building consists of 60 members.
The 40 members of the society residing in a separate building wish to break free from the 60 members building as 60 members are always in a majority while passing any resolutions affecting the 40 members
1. can the simple majority of the 40 members (21 members) write to registrar for separation?
2. if the registrars agree, will we require 2/3rd majority of 100 members to split the society?
3. since we are always in a minority (40 members) against their 60 members how to proceed with the split?
I C Naik
Dear Ragu
There are two Sections in MCS Act 1960 viz:- 17 and 18.
In case of both a division of COOPERATIVE HOUSING SOCIETY in to two requires
1. prior approval of the authority registering the society.
2. Satisfying claims of dissenting Creditors/Members if any
Section 17 would be helpful if 67 out of 100 members are willing to split the cooperative housing society. So 40 member building has to convince 27 out of 60 members to join with them. In the New Election Rules societies having membership of 99 or less can elect committee in Special General Meeting avoiding close involvement of the SCEA – State Cooperative Election Authority. As division in to two legal entities is very convenient because of clear demarcation of assets and services, this logic might work. So try with confidence and optimism.
SOMEWHAT DIFFICULT BUT NO IMPOSSIBLE OPTION:
Section 18 empowers the Registrar to ask your Society to split in to 2 provided
the Registrar is satisfied that
a.it is essential in the public interest or
b.in the interest of members of such societies”;or
c.in the interest of the co-operative movement, or
d.for the purpose of securing the proper management of any society, that your society should be divided to form two societies.
Therefore the 40 Member must gather evidences to convince the Registrar that for the purpose of securing the proper management of your society, it should be divided to form two societies of 40 flat building and 60 flat building.
Registrar should be shown copies of resolutions passed in general body showing bias towards interest of the 60 member building. A positive case also could be made out that property maintenance and providing utility/services could be better managed if two separate Committees of 11 member each + 1 Experts and 2 Functional members on the Committees will be in service of 100 members in two societies. 28 members in management out of 100 members is in itself makes a sound case to support that to split the COOPERATIVE HOUSING SOCIETY in to two societies of 40 and 60 members is
a. in the interest of members of such societies”;AND
b. in the interest of the co-operative movement, AND
c. IT WILL secure proper management of the societies
If you can work it out with the concerned Housing Federation in advance it will work better.