The person who is not a shareholder along with the original member of co op.hsg society and becomes a member only paying Rs100/- for membership. Has the said member got a right to vote or can such member become a committee member?
I C Naik
There is fears controversy on this in housing cooperatives in Maharashtra.
The State Co-operative Regime has also added its share to make it controversial by allowing Associates to contest election issuing a misconceived circular in 2015.
Accurate Position is as under:
Section 24(2) of MCS Act 1960 allows cooperative societies to specify in their bye-laws what rights of a main member can be exercised by the Associate Member. So please consult your society’s registered bye laws. If your society has registered any of the Model Bye-laws (1984,2001,2009 or 2014) without any modification then as per all these Models Associate Member has only one right of attending members’ meeting where original member is absent. Except 1984 Model all Models have another bye law which allows Associate to contest election with prior written permission of the concerned main member. If so elected to Committee he can also contest to be elected as Chairman or Secretary by the Committee. But this being a conflicting provision any defeated original member can challenge election of the Associate member he will unseat such member as the conflicting bye-law will not rescue the Associate Member. If Associate is elected unopposed then there is no issue as no one might challenge.
Bye Laws 2014 Model has removes Associate Membership of a person not being a joint purchaser of the Flat. This is in conflict with Act itself because the Act does prescribe condition of being a joint purchaser. His name on share certificate after main member is enough. If Model 2014 is challenged because it is in conflict with the Act it will have to remove the condition.