I live in a co-operative housing society in a western suburb of Mumbai which has 19 members. My query is regarding rights of Associate Members of a Housing Society as follows :
1.Can an associate member take part and contest the elections.
2.Can these associate members be a part of managing committee / office bearers of the society?
There is a confusion in this regards since the Co-operative Housing Societies Manual of Maharashtra dated Date 15th October, 2011 Section 3.1 D para 3 states as follows :
“Even though there is not mentioned the name as an owner in the purchase deed, the Associate Membership can get by paying only admission fee and with the consent of the original member. In the absence of original member and with his consent associate member can attend the annual general body meeting, the associate member can take part in the election as a voter/ candidate. In case the associate member gets elected as a committee member, he becomes office bearer also. A person, who became an Associate member by paying only admission fee, shall not get any rights in voting or election behalf the original member. It is necessary for the Associate member that his share/name is included in the ownership of property for holding share jointly.
Request you to please guide me on the same also let us know the applicable law / act.
I C Naik
Associate Membership has always confused everybody and almost daily a new confusion is added. No serious attempts are made to put this burning issue at rest. Let me try one more time to make it very clear.
The cooperative societies are managed by their own members as a small group called Managing Committee. The MCS Act 1960 and the MCR 1961 regulate the functioning of this artificial judicial person Section 73(1) says:“The management of every society shall vest in a committee, constituted in accordance with this Act, the rules and by-laws, which shall exercise such powers and perform such duties as may be conferred or imposed respectively by this Act, the rules and the by-laws.”
New (effective from 14 3 2013) Section 73 AAA(1) empowers the members of every cooperative society to specify the strength of this committee (with in ceiling of 21 and subject to 5 seats reserved i.e. 2 to represent women members and 3 to represent members belonging to certain specified casts.
Members are defined to include Associate member who holds shares of the society with name after the main member. Associate member may or may not be a joint owner of the interest in the capital/property of the cooperative society (Sec. 2(19)(b). The main member has several rights in the society including a right to join the Managing Committee as aforesaid. Associate member’s rights are referred to in two Sections. Section 24(2) provides “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” Section 27(8) denies any right to nominal member and is silent about any right to Associate member. Section 27 (2) governs member’s voting rights in general body meeting. It reads: “Where a share of a society is held jointly by more than one person, the person whose name stands first in the share certificate, if present, shall have the right to vote. But in his absence the person whose name stands second, and in the absence of both, the person whose name stands next, and likewise, in the absence of the preceding persons the person whose name is next on the share certificate, who is present and who is not a minor, shall have the right to vote “
Housing societies are normally registered using the very latest Model Bye-Laws. In every Model there is a chapter called “RIGHTS OF MEMBERS” having Sub-Chapters 4 out of which are in respect of the following.
(A) Getting Copy of the Bye-laws – Bye-Law No 24
(B) Inspection of Books and Records- Bye-Law No 25
(C) Occupation of Flats-Bye-Law No 26
(D) Restrictions on Rights of Associate and Nominal Members Bye-Law No 27: No associate member shall have any rights or privileges of a member except as provided under Section 27(2) of the Act.
Section 27(2) is reproduced above.
Associate member has no other right that means he cannot contest election to the Managing Committee.
Rule 20 of the Maharashtra Co-operative Societies (Election to Committee) Rules, 2014 has been misread by even State Cooperative Election Authority when it clarified that Associate member can contest elections (Letter of 16 2 2015) Read more….
https://www.indiancooperative.com/cooperative-coffee-shop/hon-scea-please-guide-chs-do-not-confuse/
