We regularly read your columns which are very helpful to shed light in areas where legal ambiguities exist and where you guide very well within the overall framework of laws. Following is a question seeking your kind guidance.
Ours is a private, purely residential, Co-operative Housing Society of 42 members. Present Managing Committee was elected by Election Authority in mid-2015. Eight members were elected; Two have resigned.
Managing Committee members being not well-versed with legalities are scared to become Office-bearers. We wish to execute following steps with information to Election Authority:
- Co-opt one person as a “Functional Director” as per Byelaw 115 (c);
- Appoint the above as “CEO” as per Byelaw 3(xxxii);
- Assign “CEO” with all duties and functions defined for the Secretary within the Byelaws, including Bank operation. This is envisaged in the Election Rules 2(4), 74, Forms E2, E3 etc.
- Similarly, co-opt another “Functional Director”, appoint as “President” & assign duties & functions defined for the Chairman within the Byelaws.
- Customary post of Chairman, Secretary will be filled from the existing committee without any burden on them.
Hope you will find this complying with overall framework of prevalent laws. Your earliest feedback will be much appreciated.
I C Naik
If you for two functional directors you violate Proviso( 2) to Sub-Section(2) of Section New 73AAA of the Mcs Act which permits one functional director in Societies having Committee Strength up to 17.
Incidentally I hope your CHS is aware that Model 2014 bye Laws are available only after they are adopted in General Meeting by 2/3 majority and registered as your Bye Laws, till such time follow your existing bye laws but subject to any changes made in MCS Rules MCS ACT and Constitutional Provisions which are Supreme. Please be careful Department People are also ill-briefed after new Act came in to force and Elections are centralized at State level.