Query of Ganapathy from Vashi

We have 7 m.c members in our society of 70  & the secretary has started taking lots of arbitrary decision either without involving the m.c or not following the m.c decisions. In case we have to replace the secretary what is the process to be followed? Can a simple m.c resolution passed unanimously by 6 members & the notification letter sent to the Secretary be sufficient to remove the incumbent & replace him with another m.c member?

We are in Vashi, Navi Mumbai.

I C Naik

Secretary has lost confidence of Majority MANAGING COMMITTEE members. Tell the Secretary that this is the position and he better resigns. If he does not heed, there is a way of removing the Secretary or even Chairman if majority committee members have lost confidence.  Post 97th Constitutional Amendment the Apex Court has confirmed ouster of Chairman of Dairy giant Amul in Gujarat by majority board decision although Gujarat cooperative societies Act does not provide for such ouster. The logic is cooperative societies are democratic institutions and democratic principles recognize majority wish.

In the MCS Act 1960 fortunately there is an express provision and a set procedure though bit cumbersome, but a desperate majority should go for it. I give below the steps your CHS should follow.

An elected office bearer can be removed from office by meticulously following a detail procedure laid down in “Section 73ID of the MCS Act 1960  read with Rile 57A of the MCR 1961  It is not as simple as a majority decision of the managing committee followed by notification to the Secretary. It is a bit avoidably long drawn procedure .

Per Sub-Section  (1) of Section 73ID  an officer shall cease to be such officer, if a motion of no-confidence is passed at a meeting of the committee by two-third majority of the total number of committee members who are entitled to vote at the election of such officer and his office shall, thereupon be deemed to be vacant.

1. The requisition for such special meeting of managing committee must be be signed by at least 3 members and shall be delivered to the Registrar.
2. The requisition shall be made in form M-18 appended to the MCR 1961.

See more on http://yavatmal.nic.in/mOffice_DDR_RulesSoci.pdf

FURTHER

The requisition shall be accompanied by;-

(a) the grounds of no-confldence;

(b) the text of the motion of no-confldence to be moved;

(c) the name of the committee members who shall move the motion of

non-confidence;

(d) a list of members of the committee specifying their full names, and

address who are, for the time being, entitled to sit and vote at any meeting of

the committee;

(e) signatures of the members of the committee who are signing the

requisition duly attested by the Chief Executive Officer of the society or Special Executive Magistrate or Executive Magistrate or any Gazetted Officer of the Government.

The requisition referred to in sub-rule (1) shall be delivered in person to the Registrar. Such requisition or requisitions shall be delivered in duplicate in each case.

3. THE REGISTRAR shall
4. receive and acknowledge the requisition under his signature with date and time.
5. issue notice, within 7 days from the date of receipt of the. requisition, convening, the special meeting for that purpose specifying therein place, date, time, name and designation of the officer who shall be presiding over such meeting, to all the members of the committee, the presiding officer and the Managing Director, General Manager, Manager, Paid Secretary, Group Secretary or such employee of the society, to whom the Registrar has directed to produce minute book of committee meetings of the society. This notice of no-confidence
6. issue the Notice to the Officer or officers against whom the motion of noconfidence is being moved, and shall be accompanied by the copy of the requisition alongwith enclosures and agenda.
7. direct the Managing Director, General Manager, Manager, Paid Secretary, Group Secretary or any other employee to deliver in person the minute book Of the committee meetings on the date, time and place of the meeting, to the Presiding Officer.
8. send a notice under by registered post acknowledgement due, speed post, courier or hand delivery, as he may deem fit, to all the persons concerned. However, he shall serve or cause to be served the notice on the officer or officers against whom the motion of no-confidence is proposed to be moved through the special messenger or the officer or officers, as the case may be, or in his or their absence on any adult member of his or their families at the place of   “his normal residence or address as provided by him in the office record of the society .If for some reason it is not possible to serve the notice, the authorized person in this behalf, shall in presence of two witnesses, affix such notice on any conspicuous place of his residence.
9. Copies of this notice shall be displayed on the Notice Board of the Registrar, the Presiding Officer or the society. Such display of the notice on the notice board of the Registrar and the Presiding Officer shall be the conclusive proof that such notice has been served on all concerned.

6. If the Registrar deems it necessary, he shall require any Officer of the society to furnish any information to him and it shall be obligatory on the part of such officer to furnish such information. On failure of the officer to furnish the information, the  Registrar may get it through any person authorising in that behalf. This failure on part of the officer of the society shall be construed as non-compliance of provisions as contemplated under sub-section (1) of Section 79. However, in case of the officer  of the society who holds that office by virtue of his election, including the member of  the committee of management, it shall be construed as breach of provisions under  sub-section (1) of Section 79 and negligence of performance of duties imposed by  the Registrar as contemplated under sub-section (1) of section 78 or sub-section (1) of 78A as the case may be.

7. The time of the meeting shall be between Office hours of the authorized officer. The meeting shall be held either in the office of the society or at any other  place which may, as far as possible, be public place or any other place specified by  the District Deputy Registrar.
8. No other subject, except the motion or motions of no-confidence shall be  kept on the agenda.
9.  The Registrar or the officer authorised to preside over the meeting shall,
10. announce or cause to be announced the commencement of the meeting,
11. take possession of the minute book of the committee meetings from the officer of the society. However, for some reasons, if it is not possible for him to take possession of the minute book of the committee meetings of the society, at the commencement of the meeting, he shall record proceedings in the register kept for that purpose in his office. The text of the minutes of the meeting recorded in the minute book kept in the office of the Registrar shall be incorporated in the minute book of the society.
12. record the date, time, place, names of members of the committee present at the commencement of the meeting, in the minute book of the society or kept by him, as the case may be, in his own hand and cause all the members of the committee who are present, to sign it and it shall be obligatory on their part to do so. The signature of the members on the minute book shall be the concrete proof of their attendance.
13.  Not allow any other person to enter the place of meeting except the person or persons appointed to assist him, the officer of the society who hasproduced the minute book, the officer or officers against whom the motion of no-confidence is moved, the members of the committee who are for the time being entitled to sit and vote in any meeting of the committee, who are present at the commencement of the meeting and police officer or officers if called by him to maintain the law and order.
14. record or cause to be recorded, the proceedings of the meeting and thereafter allow those members who desire to sign the proceedings. Signature of the members on the minute book shall be the conclusive proof of their atten dance.
15. not allow the discussions on any other subject than the subject on agenda.
16. declare the motion or motions as rejected and take a note to that effect  with reasons, in the minute book under the following circumstances;—

(i) if no member of the committee present;

(ii) none of the members of the committee, who are present refuse to

sign the requisition;

(iii) 2/3rd members are not present at the commencement of the  meeting and if  2/3rd is fraction, it shall be rounded to next higher number.

1.         (i) read or cause to be read the text and grounds of no-confidence motion and allow any of the member, who have signed the requisition to move motion and to speak in support of the motion.

(ii) allow the member against whom no-confldence motion is moved or any other member on his behalf to defend.

put the motion to vote and declare the results as laid down in sub-section (6) of Section 73ID.

10.  the Presiding Officer shall
11. not speak or give any decision on the merit or otherwise of no-confidence motion.
12. issue certificate in Form M-19 in favour of the society.