Query of Vishal from Maharashtra

Myself living in Maharashtra is facing an issue as described below :

Facts:

a) My mother is a sole owner of the flat and have right to vote and elect in MC.

b) I am not holding even a single %age in the property

c) She has never attended any pre-society meeting as of now and I am attending on her behalf. (Attached is the representation letter taken on her behalf)

d) People have elected me on a post of Treasurer in the pre AGM

Query :

a) If I as Associate Member can hold this position as good ? If yes, then please suggest certain case laws to substantiate the point.

b) Do I need to acquire any %age in the share of property to become an Associate Member?

I C Naik

Membership of CHS is evidenced by name(s) of the person(s) in the share certificate issued by the society. First named person is a member (main) rest of them are Associate members. As per the MCS Act 1960 main member must own a flat in his / her name, but Associates need not. In the course of discussion on proposed Bye-Laws make sure that the definition of member as given in the model Bye-Laws at Cl (xxiv) of Bye-Law No 3 is substituted by the following which is aligned to latest definition of member as per Cl (19) of Section 2 of the MCS Act 1960:

(xxiv) Member’ means a person joining in an application for the Registration of Co-operative Society which is subsequently registered, or a person duly admitted to membership of a Society after Registration and includes an Associate and Nominal member

(a) “Active member” means a member:

who attends at least three Annual General Meetings of the Society out of the five consecutive meetings and
who attends at least three Special General Body Meetings out of five consecutive meetings and

iii. who has made timely payment of society dues and unpaid dues if any, had not even once in a continuous period of five years’ exceeded the amount equal to the last 12 months’ demands raised under these Bye-Laws.

Explanation 1 : Notwithstanding anything provided in the Act or Rules no request for condoning any lapse shall be entertained;

Explanation2: For removal of any doubt it is clarified that failure to fulfill any of the three criterion specified above shall instantly render the concerned member non-active and any delay in completing the formality to officially recognize the changed status of Non-active member shall not affect the date of change in the status

(b) “Associate Member’ means a member who holds jointly a share of the Society with others, but whose name does not stand first in the share certificate.

Provided however that, where the context so requires, such Associate Member shall be referred to as Co- Owner & Associate Member whose name also appears in the flat purchase agreement referred to in Bye-law No 19(vii) subsequent to the name of the first party thereto,

Provided also that the aforesaid Proviso shall not apply in cases where the Associate member having his name in the flat purchase agreement, does not belong to the undivided family to which the original member belonged.

(c) “Nominal Member” means a person admitted to membership as such after registration as such member in accordance with the Bye-laws

Under Bye-Law No 27 of this Model Associate member has only one right of attending general body meeting in the absence of a member. Substitute that Bye-Law with following.

“27. Rights and Privileges of the Original member to be exercised by the Associate Member under these Bye Laws instead of the Original member exercising them are as under:

(A) Associate member shall have a voting right as provided under Section 27(2) of the Act. i.e. 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.

(B) Associate Member being a Co-owner of the flat as he is also a party to the agreement referred to in Bye Law No 19(vii) shall be referred to as Co-Owner Associate Member and

(i) Shall be entitled to contest the election to the managing committee or eligible to be co-opted by the managing committee in accordance with provisions of these Bye Laws.

(ii) Shall be entitled to hold an office in the same way as the Original Member in accordance with provisions of these Bye Laws.

Explanation: In case of the Co-Owner & Associate Member joining the Committee, responsibility of fulfilling the criteria of the member retaining the status of Active member shall be taken care by the Associate member and in an event of his failure the original member shall lose the status of Active member and Co-Owner & Associate Member shall cease to be the member of the Committee.

(iii) Shall be entitled to be admitted as original member, in case of member’s death. who has not filed nomination as permitted under Bye-Law No 34 against application made in the prescribed form and payment of prescribed entrance fees.

Provided that in case where there are two or more Co-Owners and Associate members claiming the membership, the member whose name appears second on the share certificate shall be eligible to apply for membership.

(iv) Shall have a right to nominate a person of his choice who should belong to the same undivided family to which original member belong by depositing a nomination form as provided in these Bye-Laws.

(C) The Associate member may occupy the flat with the consent of the member and permission of the Committee, subject to the conditions set out by the society, if any.

Once the CHS is registered the authority letter issued by your mother will not help as proxies are not allowed in general body meeting.