Query from Rajagopal

Dear Adv Mr. Naik:

Hearty Congrats for providing solace to many affected persons, through this very informative and helpful website.

Though little lengthy, I request your help & guidance to get clarity on following points. Some of the provisions under the new Model Bye-laws are confusing for the laymen, hence these queries. I am sure, answers to these queries from an expert like you would clarify doubts of many, and would greatly help MCs and Members to responsibly run affairs of Co-Op Hsg Societies with better spirit of co-operation & practical sense, but within the ambit of relevant laws.

We are a 50+ year old, 60 members fully residential Co-Op Hsg Society in Mumbai. Last year, we adopted Model bye-Laws 2014. Many of our memberships are in names of ladies, most members are Senior or Super-Senior citizens, and quite a few members do not reside here. Our Redevelopment DA is signed, but some final hitches are being ironed out.

Our Society hardly has any members who opt to become MC members, or take interest in affairs of society. However, few non-members (mostly spouses of lady members) regularly contribute to the working of Society. Though their names do not appear along with the Members name on the Share Certificates, they were enrolled as Associate Members in Soc Registers on the strength of the relevant application form duly signed by the member & associate member, and by taking Rs. 100/- as fee. These Associate Members were also elected to MC at various times in the past. However, after adopting the Model Bye-law, such Associate Memberships are being questioned by some, as their names do not appear on the Share Certificate. In March 2018 we had an election to MC, under the guidance of the election Officer, excluding the erstwhile Associate Members. However, the new MC finds it difficult to manage as they lack experience in Society matters. In this backdrop, kindly clarify:

1. a) Can the erstwhile Associate Members be classified as Associate Members even now, as they became Associate Members before adoption of the new Model Bye-Law 2014? Is there any enabling Section in MCHS Act or New Model Bye-law or Case which can be quoted/referred?
2. b) If the erstwhile Associate Members cannot be classified as Associate Members after adopting the New Model Bye-Law, can they be allowed to attend the AGM/SGM without participation in voting, but may still provide their views on issues of common interest to members, as it would be in the interest of the society?
3. c) Can the General Body by majority decide on allowing such erstwhile Associate Members being present in the AGMs/SGMs?
4. d) Can the General Body by majority pass a resolution to amend Society’s Bye-Law to allow erstwhile Associate Members continuation as Associate Members but without any voting power, in view of their contributions to the Society in the past, and their own interest in the Society by virtue of their spouses continue to be members & owners of Flats in the Society.
5. e) Can these erstwhile Associate Members become “Expert Directors” or “Functional Directors” in the MC, without any Voting rights, even though their names do not appear in the Share Certificates?
6. f) We have 60 members & 8 MC Members currently. Can the MC Co-Opt 4 more Directors, ie 2 more Expert Directors plus 2 more Functional Directors?
7. f) Does the Committee need to inform the Registrar of CHS or the Election Officer about co-option as under (e) or (f) above?
8. g) Some of our Redevelopment Sub-committee members are such erstwhile Associate Members without their names on the Share Certificate.  Can such erstwhile Associate Members continue as members of Sub-Committees constituted by the MC and/or General Body? Is there any law restricting sub-Committees to be constituted from existing members of the Society only?

Thanks for your valuable time. Look forward to your valuable views & guidances.

I C Naik

1. Your society faces a shortage of experienced and willing members to shoulder a responsibility of management.
2. This responsibility has become much more challenging in view of imminent redevelopment.
3. Your society is old and had been operating on old style.
4. Your society has adopted the latest Model Bye-Laws so you have rules regulations updated and it is easy to know them.
5. Your society’s registered bye-laws, Associated member is required to be a Joint owner of the flat and his name must appear on the share certificate at No 2 or 3 or later.
6. He cannot join the Management Committee because your society ‘s bye-law No. 25 confers on Associate only right is to attend  the General Body Meeting if the main member was absent and no other right.
7. As per bye-law No. 115 strength of your Management Committee is 11 (out of which 2 must be contested and filled up by Women and 3 must be contested and filled up by members of specified casts and 6 are general) Cooperative Department takes the view that if 2+3 reserved seats are not filled up they will go vacant.
8. There is nothing your society can do except to go by this.
9. Management Committee of Your society can co-opt 2 and 2 Functional members as experts and Functional members (Salaried Employees) in addition to 6+2+3 and none of them have to be members of the society.

See if your Committee of desired strength can be constituted based on above.