Query of Sydney Roy

We are 140 members and 13 committee members with Chairman, Secretary and Treasurer. Now there has been a situation in this summer season we do not water supply sufficiently so we had to call water tankers by outsourcing.

Chairman and treasurer do not support this issue.

Secretary with Expert Director and few committee members took a decision to call water tanker to augment water supply after getting requisiion from general members we convened SGM and took decision and passed a resolution. Chairman and treasurer do not want to release money for water tankers purchased. How we can pass resolution in a meeting appropriately suitable to pass this resolution and resolve this issue.

I C Naik

THE ISSUE

The issue is of implementing a majority decision of the requisitioned General body meeting (validly held in accordance with Bye-Laws). Its implementation is being obstructed to by the Chairman and Treasurer. It is critical because it is about providing essential services to members that too in accordance with the direction of the general body of members. What is the remedy?

RELEVANT INPUT TO SUGGESTION THAT FOLLOWS

All Model Bye-Laws PROVIDE that

1.Bank account shall be operated upon and all acquaintances and discharges shall be signed by the Secretary jointly with the Chairman or Treasurer.”

2.The Officer of the Society shall hold office for the period of 5 years from the date on which he is elected to be the Chairman as the case may be the Secretary and Treasurer but not beyond the expiry of term of the Committee.

Provided that he shall cease to be the Officer, if the motion of No Confidence is moved in the special meeting of the Committee called and presided by the Registrar or Assistant Registrar upon the notice given by 1/3rd Members of the Committee and the motion of No confidence is passed by the 2/3rd Members present at such meeting.

SUGGEST FOLLOWING COURSE OF ACTION:

1.The Secretary should ask Accountant to prepare a cheque for the amount of tanker charges.

2.Ask him/ chief Executive (Manager) to get it signed by either the Chairman or Treasurer after it is signed by the Secretary.

3.If none of them signs it, ask him to put his remark about the refusal by both for signing, on the back of the chq signed by him and countersigned by the CEO/Manager reconfirming Accountant’s remark. Date and time of signing by noted by both separately by hands of both.

4.Make a few copies of the chq (both sides) Secretary certifying it as a correct copy thereof by signing all copies below the signatures of the two employees.

FILE A COMPLAIN TO THE DY REGISTRAR

5.Send one copy of the document )as per 4) to the Dy Registrar with a request to issue immediate direction to the officers for honouring decision of the special general body meeting, and also a direction to the society to recover from the Chairman and Treasurer any additional charges payable to tanker water suppliers for delay in the payment.

NO CONFIDENCE MOTION AGAINST THE CHAIRMAN AND TREASURER

METHOD ONE: DEMOCRATIC INFORMAL PROCESS

6.Collect signatures of majority members to move resolution of no confidence in the chairman/ secretary by the committee. Best would be a requisitioned GENERAL BODY MEETING but that seems difficult and time consuming.

7.Secretary shall forward self certified true copy of the above paper to Chairman AND Treasurer separately with a covering letter informing that if the wish of the majority members is not respected with in next two days a Notice will be sent to the Registrar along with the Copy of the Chk and that of attached paper requisitioning a meeting to pas “No Confidence Motion” against both of them.

FORMAL PROCEDURE UNDER Cooperative Societies Law (More realistic).

8.Relevant input is provided by

(i) Section 73ID of the MCS Act 1960 ,

(ii) Rule 57A of the MCR 1961 and M18 Form attached to Rules[1]

(iii) Applicable Bye-Law No 124(b) of (Model 1984), or 126 (b) Model 2001/2009, or125(b) Model 2014 depending on which Model was registered by your housing society.

9.Section 73ID:

(i) an elected officer of the Committee shall cease to be such officer, if a motion of no-confidence is passed at a specially requisitioned meeting of the committee by two-third majority of the total number of committee members i.e. 9 ). Requisition is signed by not less than one-third of the total number of members of the committee (i.e.5 members) prepared in M18 prescribed under Rule 57A, which lays down a lengthy procedure.

(ii) Such requisition cannot be made if a period of six months from the date of the officer entering upon his office.

(iii) The Registrar is required to send Notice within seven days , for a special meeting of the committee to take place on a date with in next fifteen days from the date of the notice.

(iv) The Registrar /Assistant Registrar shall preside but without a right to vote.

(v) The meeting called under this section shall not, for any reason, be adjourned.

(vi) The names of the committee members voting for and against shall be read out in the meeting and recorded in the minute book of committee.

Steps under Rule 57

(i) The requisition to call the special meeting of the committee shall be made in Form M-18.

(ii) 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

(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.

(iii) The requisition shall be delivered in person to the Registrar. Such requisition or requisitions shall be delivered in duplicate in each case. (Separate requisitions for Chairman and Treasurer).

(iv) The Registrar, if satisfied about procedural compliance of of the requisition ;-

(a) Is required to receive and acknowledge the requisition under his signature with date and time.

(b) Is required to 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 such employee of the society, to whom the Registrar has directed to produce minute book of committee meetings of the society.

(c) This notice of no-confidence shall also be issued, to the Officer or officers against whom the motion of no confidence is being moved, and shall be accompanied by the copy of the requisition along with enclosures and agenda.

(d) The Registrar shall direct the concerned person to deliver in person the minute book Of the committee meetings on the date, time and place of the meeting, to the Presiding Officer.

(e) The Registrar is required to 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.

(f) The Registrar is required to 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.

(g) 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.

(v) Notwithstanding anything contained in the bye-laws of the society regarding the procedure for convening and holding meeting and recording of minutes, the procedure adopted by the Registrar, the Presiding Officer and the Authorised Officer under shall be deemed to be the proper procedure under the provisions of bye-laws of the society.

(vi) 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.

(vii) The time of the meeting shall be between Office hours of the authorized officer.

(viii) 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.

(ix) No other subject, except the motion or motions of no-confidence shall be kept on the agenda.

(x) The Registrar or the officer authorised to preside over the meeting shall,

(a) announce or cause to be announced the commencement of the meeting,

(b) 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.

(c) 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.

(d) 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 has produced 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.

(e) 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 attendance.

(f) not allow the discussions on any other subject than the subject on agenda.

(g) declare the motion or motions as rejected and take a note to that effect with reasons, in the minute book under the following circumstances;—

  1. if no member of the committee present;
  2. 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.

(h) 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 the motion and to speak in support of the motion.

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

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

(i) the Presiding Officer shall not speak or give any decision on the merit or otherwise of no-confidence motion.

(j) issue certificate in Form M-19 in favour of the society.

ELECTING NEW CHAIRMAN AND TREASURER

While Rule 74 of the Maharashtra Co-operative Societies (Election to Committee) Rules, 2014 specifies a procedure for filling up casual vacancies in the Managing Committee but filling up any office getting vacated for any reason Rules have made no procedure so as these two offices can be filled up by the Committee as provided in the

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[1] https://consumerresourcesin.files.wordpress.com/2014/10/mscrulesfinal-2014.pdf

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