1)you can call EGM to elect members of MC for period of 5 years
2) in case elections are challenged regsitrar would direct you to call for fresh elections and elect MC
3) regsitrar may appoint administrator for the association till new MC is elected
What are the legal implications of electing an apartments complex' MC against bye-laws in Karnataka?
Our apartment complex association is registered with certain bye-laws under Karnataka Societies Registration Act, 1960. Sections in bye-laws define the process of MC election as follows: - MC is elected by association members in an AGM - Office bearers are elected by MC themselves We are out of time to announce and conduct an AGM. We want to use an EGM to do the elections to manage time. 1. Can such a process (not following AGM as specified in bye-laws) be legally challenged, before or after the EGM, by any party e.g. an association member, or any third party like a bank that we do business with, in a court of law, to the point of deriving it as legally unrecognizable? 2. If so, what are further legal implications, if any, for the office bearers in the MC elected as such, and how can they avoid them? 3. If there are legal implications, is there any legally recognized document that we can attach to/generate in the EGM, which would avoid legal implications/repercussions?
Asked 8 years ago in Civil Law
11 Answers
1. Yes any activity taking place beyond the bye-laws can be challenged.
2. If the same is challenged then the election can be held to be void and as such re-elections can be ordered by the appropriate authority.
3. In my opinion there is noway by which you may escape the AGM and use EGM
Regards
4. Let's say we are doing a certain transaction with our bank and they ask us to produce AGM MoM as a proof of MC election. However; since we went with an EGM, could we pass a resolution in the EGM and present that to the bank as the proof, even if we don't have a valid AGM MoM?
Asked 8 years ago
yes you can pass resolution in EGM and furnish it to the bank
2) the minutes of EGM should suffice
3) what is important is that resolution has been passed in EGM
If the resolution has been passed in the EGM then the same will suffice for the purpose of the banking transaction.
Regards
Sir,
The AGM and EGM are for different purposes as specified by the apartments act.
Bank need an AGM mandate for certain services and EGM will not serve the purpose.
A copy of the same is submitted to the Registrar along with the minutes of the meeting.
For the election of the MC members AGM is mendetory with procedures as laid down in the act and any MC selected will be declared vide and invalid to hold the management of the society.
Any member may complain to the Registrar and get the direction for the operation of society till the election of the MC.
Dear Client,
Special General Meetings must have a specific purpose. The most common is to consider changes to the constitution.
A Special General Meeting can be called by the Chairman of the Co-operative or by majority of the members of the Managing Committee. Members too can requisition for such a meeting if 1/5 th of the total members of the Society endorse this requisition. The Notice for this Meeting should have at least 15 days notice duly served.
The minimum notice period for special General meeting is 5 days
1. Any body can challenge your forming of committee through EGM and not through AGM within the specified time but you are left with no other alternative.
2. In case of any challenge you can contest the same in support of your convening EGM on the ground that it was required to convene the SGM since the time to convene the AGM had lapsed on account of preoccupation of the members or for any other reason.
3. Moreover, there will be hardly anybody or Institution who shall have locus standi for challenging the MC so formed after convening the SGM in place of AGM.
1. Bank will not ask for evidence of your convening the AGM to form the MC.
2. The Bank will seek the letter from the Chairman/Secretary of the MC for opening the Bank account for the Society./
Dear Sir,
Your issue requires a research work and requires lot of time. Simply answering your question may not be useful for you. If you are interested you may come with relevant documents that is bye-laws etc, then only I can give you concrete legal opinion.
The bye laws are just guidance to the administration of the apartment and not exactly legal hence there is no legal impediment even if the election is conducted by a EGM
There is no legal infirmity in that hence the election of the MC and the office bearers are legally valid.
You can draw the agenda for this special purpose for the conduct of proposed EGM which will protect the interest.
Let's say we are doing a certain transaction with our bank and they ask us to produce AGM MoM as a proof of MC election. However; since we went with an EGM, could we pass a resolution in the EGM and present that to the bank as the proof, even if we don't have a valid AGM MoM?
The bank cannot insist the AGM minutes to be produced before it, it may insist the proof of newly elected members
The bank shall be concerned only by the resolution passed by the association which is a legally valid meeting