• Election of the managing committee of a co-op housing society

Our Housing Society has 19 flats. Historically, since its inception, the Managing Committee of the Society is constituted through a process of nomination (proposed by one Member and seconded by another). The decision is then, endorsed by the General Body. The practice is followed primarily because there are no contenders. Members have to be persuaded to accept positions. 

Some months ago, during discussions with the Society’s Legal Counsel on another matter, we learnt that 
1.	the Maharashtra Cooperative Societies Act mandates that a Housing Society must elect its Managing Committee with the participation of the Registrar of Societies. 
2.	Since the current committee is not so elected, it is invalid. 

As an immediate response to the above advice, the Secretary resigned. The Treasurer (who had earlier resigned but was holding office at the MC’s request), has restricted his functions only to signing cheques. 

We were initiating measures to conduct elections, with the involvement of the Registrar of Housing Societies, when we learnt through a newspaper announcement that amendments to the Act/ an Ordinance was soon expected, exempting societies with less than 100 flats, from the election-provision.

We could not find any mention of the word “invalid” in the Housing Society Bye-Laws

We need advice on how the affairs of the Society are to be managed until a new Committee duly elected, is formed (post the notification of the expected amendments to the Act) 

1.	Can the General Body of the Society take a decision to
a.	Allow the present Committee to induct an Acting-Secretary and continue, subject to all decisions being endorsed by the GB? 
b.	Can the Chairman continue with the existing Committee (without the Secretary) subject, again,to all decisions being endorsed by the GB? 
c.	Hold internal elections, reconstituting the MC?

Alternatively,

2.	Can all issues be referred to and decided by the General Body with only the current Chairman being functional?

If yes, can such committee continue to address all functions including the sanction of expenses or, the issuance of a duplicate Share- Certificate? 

If ‘NO’ what is the alternative?

Note: It is possible for us to get all decisions endorsed/ratified by the GB.
Asked 4 years ago in Property Law
Religion: Hindu

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9 Answers

if all the decisions and other matters have to pass the test of being ratified by the general body of members in a society meeting, then what is the harm?

the members who are entitled to vote, put their respective votes to the resolutions put up for sanction by general body of society members, and after getting majority votes, resolutions are accordingly passed and implemented

so it is not that resolutions are being passed unilaterally by the current MC. So I dont see any harm

Yusuf Rampurawala
Advocate, Mumbai
6880 Answers
79 Consultations

5.0 on 5.0

If you are by laws is approved you have to give me a notice to register to conduct the general elections for the Managing committee

The registrar of the society will advise you to nominate election officers to conduct the Management Committee elections by participation of all the members through a wallet. The members elected byju's president Vice-President secretary and Treasure among themselves and notify the register for the formation of Management Committee this is a valid process to notify the register and open bank account are doing day to day Bank transactions and paying other obligations of the society through banking channel

If there is no approved by law the society has to governed by the model bye laws set as per the act in this regard

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

1) inform the Registrar that term of present MC has expired .

2) elect new MC in presence of election officer appointed by registrar

3) GB cannot permit present committee to induct acting secretary

4) chairman cannot continue with present committee

5) internal elections would be invalid

6) present committee should not incur any major expenses till fresh elections are held

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

It does not take more than 2 to 3 months fir fresh elections to be held

2) the present committee can continue but not take major decisions

3) you woukd receive notice from registrar office to elect new committee

4) your option is not to take major decisions till amendment is issued or elections are held

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

You can issue duplicate share certificate but have decision ratified in AGM

Ajay Sethi
Advocate, Mumbai
87917 Answers
6207 Consultations

5.0 on 5.0

Maharashtra Cooperative Societies Act, 1960 has been amended on 13th August, 2013. As per the amended provisions of Section 73CB(1), State Cooperative Election Authority has been constituted. The Elections of all the Cooperative Societies have to be conducted as per the provisions of Maharashtra Cooperative Societies (Elections to Committee) Rules, 2014.

Since you are bracing up for an election in the immediate future, you may ask the present committee to function as caretaker committee which apart from notifying the elections may be in charge of the routine functions of the society.

All these issues can be resolved in the general/special meeting of the society.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

You have stated that Chairman cannot function with present Committee. Again you have stated that present Committee should not incur any major expense. There is a contradiction. Also, if the amendment is soon expected, and if we do not want to go to the Registrar (small societies are fighting this provision because of the expense and the hassle involved) what is the option?.

The amendment is already in force.

The Housing Societies have been classified in two categories under the amended Rules:

i. Housing Societies having 200 or more members as on 31st March of the preceding year in ‘C’ Type.

So the caretaker committee is having limited powers in respect of the expenses to be carried out.

ii. Housing Societies having less than 200 members as on 31st March of the preceding year in ‘D’ Type.

Both type of Societies which are due for election has to submit the information in E-2 Format of the aforesaid Rules.

So the caretaker committee is having limited powers in respect of the expenses to be carried out till the elected body takes over.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

Would the issuance of a duplicate Share certificate be allowed?

The important functions shall be carried out by the regular committee only.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

Hi,

The general body of society can take a decision to appoint temporary president, secretary for efficient functioning of the society and allows the present committee to act for the time being. It can also hold elections.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

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