• Associated Member in share certificate

Dear Sir/s, 

I'm interested in buying one flat. But the owner has lost share certificate. 

In agreement he has his own name but in the Xerox copy of the lost certificate we came to know that his late father's name was also mentioned as 'Associated Member' 

Agreement was made in the year 1988 and 'Associated Member' was added in 1994. But flat owner and the society don't have any record (or lost) of addition of name in the share certificate! In this case what is the solution if we want to go ahead with the purchase of property with all it's title clear. 

Although owner has done all the formalities suggested by society's lawyer for issuing new / duplicate share certificate. 
He went ahead and even did legal heir formality with news paper Ad. And accordingly society has recently issued a duplicate share certificate to him. But still his late father's name appears as 'Associated Member' (as mentioned was in lost certificate). Behind the share certificate society has now written only his name with current issue date.


Now my queries are; 

1. What's the meaning of 'Associated Member' ? Does 'Associated Member' or it legal heir have any right over property? 

2. After receiving new / duplicate share certificate is it still important for me to obtain name adding proof in share certificate? Or in absence of the same any other legal formality required?
Asked 4 years ago in Property Law
Religion: Other

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7 Answers

Dear Client,

An associate member is defined to mean “a member who holds the right, title and interest in the property individually or jointly with other but whose name does not stand first in share certificate”. This mean he shall be co owner.

He hold joint ownership up to 50% and after his death, his share will transfer in his legal heir by equal share. This mean if his son is only surviving heir and non else alive than only son is absolute owner. Otherwise for selling the flat, others involvement will also required.

After father death, share certificate will transfer in nominee. I don`t feel this certificate valid.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

section 2 (19) (b) of The Maharashtra Co-operative Societies Act, 1960 (‘the Act’) defines associate member to mean “a member who holds jointly a share of a society with others but whose name does not stand first in the share certificate”

2) such associate member not holding any right, title and interest in the property individually or jointly with other.as his name is not reflected in the sale deed

Ajay Sethi
Advocate, Mumbai
87911 Answers
6207 Consultations

5.0 on 5.0

1. Associate member has no legal right in the flat

2. he is added only for the purpose of society meeting and voting rights

3. merely by being added as associate member in share certificate, he cannot claim any legal right or share in the flat

4. since society has issued duplicate share certificate to seller, seller has also done all formalities for lost original certificate and his name also appears as owner in registered document, his title to the flat is clear

5. you can go ahead with the deal

Yusuf Rampurawala
Advocate, Mumbai
6880 Answers
79 Consultations

5.0 on 5.0

1. Associate Member is a simple addition to the SECOND membership of the Society, by filing Form no. 10 of the Society bye-laws and fee of 100/- (under the MCS Act).

2. By above process, Associate Membership is not conferred any Title-Ownership under the Transfer of Property Act.

3. You can execute a Sale Deed with the Registered Owner (as defined in Index-II) and also take a Indemnity Bond (500/-) annexed with the Sale Deed. This will be more than sufficient for all futurist legal purposes.

Keep Smiling .... Hemant Agarwal

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Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

A associate member is “a member who holds jointly a share of a society with others but whose name does not stand first in the share certificate”.

He independently doesn't have claim right over the property ask the seller to get the duplicate share certificate and see the last certified copy of the sale deed and based on that get the property registered to you and the certificate can be updated.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. What's the meaning of 'Associated Member' ? Does 'Associated Member' or it legal heir have any right over property?

Answer: Associate member is one who in the absence of the original member can attend to the society meetings and complete formalities on behalf of the original member. He has voting rights but can or cannot be a owner (depending on the agreement or POA);

2. After receiving new / duplicate share certificate is it still important for me to obtain name adding proof in share certificate? Or in absence of the same any other legal formality required?

Answer: The share certificate in duplicate is also considered valid. The same can be used in place of the lost one. After you become the new owner the mutation entry of your name will be accordingly made.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

1. Any person, or persons, other than the owner, who is wholly residing, occupying or otherwise in lawful possession of any apartment in complex becomes an Associate member of the association. The Associate member pays maintenance charges to use common facilities, but does not have right to vote, unless authorized by the owner of the flat in writing.

Basically the society's share certificate is not a title document hence the associate member also is not the owner of the property.

2. The duplicate share certificate if issued under the seal and stamp and signature of the secretary or any other authorised signatory then it is very much valid even without the name of of the associate member in it.

T Kalaiselvan
Advocate, Vellore
78070 Answers
1543 Consultations

5.0 on 5.0

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