Expert Director could be an outsider

C M Sandala

I will trouble you over two matters that need clarity in understanding. I take the opportunity to thank you for responding to an earlier query whether expired M.C. could conduct AGM?

The New Model Bye-Laws of Cooperative Housing Society, 2014, define an Associate Member (Pg. 5).

We are a Co-operative Housing Society situate in Mumbai.  Under February, 2013, ordinance and as confirmed by the new model bye-laws, an Expert Director (under 114.b) and Functional Director (under 114.c) may be appointed by the Managing Committee.  On provison that said Directors will have no right to vote.

To best of my knowledge, nowhere in the bye-laws or amended MCS Act or Rules & Regulations, framed by the Hon. Commissioner / State Government does it stipulate whether such intended persons can be member of family defined on Pg. 6 of bye-laws.

It is obvious that to achieve objects of a Co-operative Housing Society as briefly laid out in preamble to new model bye-laws, Society may need expertise of such persons to be nominated as Expert Director with or without remuneration or as paid employee.

To illustrate further, first named or associate member on share certificate have voting rights.  A member of the same “family” may prove of assistance as Expert Director with let us say tremendous experience and past exposure in a housing co-operative.  Whilst first named or associate member are free to exercise vote, can the said Expert member of the same family be inducted to help Society achieve its objectives without conflict of interest prejudicial to interests of Society as a whole.

Second question in brief.  Would there be any reason why office bearers in a Co-operative Housing Society are not referred to or shown as in honorary capacity in model bye-laws or Act?

I C Naik

Expert Director could be an outsider not connected with any member of the Society. So there is no bar for an Associate to be co opted to the Committee.

The Committee is having responsibility of Management and whether honorary or paid, responsibility is no different. So mentioning honorary does not carry any additional meaning.