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?
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
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?.
Asked 4 years ago
Would the issuance of a duplicate Share certificate be allowed?
Asked 4 years ago