I appreciate your studious replies to the various questions on CHS matters. I am putting here one more query in connection with Associate Member in CHS which please clarify and oblige. Thanks and regards,
In a reply to a query on 11 Aug.2013 regarding Associate Member in CHS you have mentioned that:-
Associate members have been getting a raw deal all along the inception of the M. C. S. Act 1960.
“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 (Section 2(19)(b) of the M. C. S. Act 1960 and Bye Law No 3 (xxiv)(a))
An individual competent to enter in to contract under the Indian Contract Act, 1872 can be admitted as an Associate Member of the CHS in either of the two ways.
Person whose name appears as a joint owner in the agreement executed under section 4 of the Ownership Flats Act, and by making a joint application along with the original member in the prescribed form and paying entrance fee of Rs 100.[Bye Law No 19A and Appendix No 8]
Person whose name does not appear in the agreement referred to above, by making the application in a form prescribed for such a person to be admitted as Associate member and to make him a joint holder of shares. This application has to accompany a written recommendation of the first member, entrance fee of Rs 100 and the share certificate… [Bye Law No 19 (B) Form in Appendix 7]
Thus as per above explanation the Associate Membership can be obtained in both ways with equal or same rights.
The definition under Bye-law No.19 (b) also mentions that—-
–‘ who/which is eligible to be an associate member’—-
Here my question is regarding the word ‘eligibility’ . Does this only imply the meaning to the extent as to competency to enter into contract as per Indian Contract Act 1872, mentioned above or does this also mean that a person should necessarily have share in the property and capital of the CHS jointly with other member. Conversely, can a person without share in the property and share capital become Associate member as per second option mentioned above ?
Please clarify in the matter for which I thank you in anticipation.
I C Naik
“Eligibility” criteria to membership of cooperative societies under Section 22 of the MCS Act 1960 is. (subject to the provisions of section 24,) an individual, competent to contract under the Indian Contract Act, 1872. Section 24 empowers a CHS to specify in its Bye-Laws any right to its Associate member :“ an associate member, may, subject to the provisions of sub-section (8) of section 27, 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.”
Bye-Law No 21 provides “An individual, a firm, a company or a body corporate, registered under any law for the time being in force, who/which is eligible to be an associate member and who/which has made an application in the prescribed form for such membership, along with the entrance fee of Rs. 10, may be admitted as such member by the Committee. Following two Appendices contain forms for admission to Associate Membership”
Appendix 7
The Form of application for Associate membership by and individual, who desires to hold shares
jointly, with another person, who is already admitted to membership of the society.
Appendix 8
The Form of Application for Associate membership, where both the persons apply for Associate membership at a time.
