Re: Election of Managing Committee Members

[Ramesh Prabhu]

Dear Mr. Kirit Dhruv,

Wish you a very happy and wonderful day,

Regarding the voting in respect of two flats and their holding and membership, I want to clarify as under. 

Even if you have ten flat in one name, there will be single vote as the membership is one. The Principle of co-operative society is to one man one vote. 

If the first flat is in the name of wife and another is in the name of husband, then there will be two vote irrespective of the fact that they are of the same family but indviduals are different.

In case, the first flat is in the name of wife as the first owner and the husband is the second owner and in another flat the husband is first owner and the second owner is wife, in that case there will be two votes as the first members are two

In case, both the flats are in the joint name of husband as the first owner and wife as the second owner being an associate member, then there will be single vote as for both the flats the membership is one and the associate member is the same.

In case, they want to have two votes for two flats, the husband and wife in respect of one flat have to give an application along with affidavite and indemnity bond stating that in respect of the flat No______ though husband is the first owner, it has been mutually decided to consider the second holder of the flat as the first member in the society record and first holder to make as the associate member. and the society may consider such application , admit the second holder of the flat as the first member and do proper endorsement in the share certificate and in all registers. Once such formalities are completed, then they can exercise two votes and also both can contest the election separately.

With lot of love and commitment to serve the humanity. 

On Thu, Jan 29, 2015 at 8:06 AM, kiritdhruv <kirit...@yahoo.com> wrote:

Dear Mr. Ramesh Prabhuji,

Clarification on the two flat holder.
Two members in our society are having two flats in their name singly, no associate member.
In this case they have right to give two votes in election.
Thanks n Regards,
Kirit Dhruv



Ramesh Prabhu <rspra...@gmail.com> wrote:

Dear MR. Kirit Dhruv,

Wish you happy and wonderful day,

1. Associate member can stand in Managing Committee Election by giving Appendix - 10 A as per Bye Law No. 117 ( d ).

Ans: Yes provided the associate member name is appearing in the share certificate. As per the election rules all the members as per the records of the society is considered as active member. In the next election, the associate member who is not holding the flats jointly with the member will not be allowed to participate in the election. This is because, the  new model bye-laws says, active member is one who is the owner of the property and even the definition of active member has been modified to say , that a person who is owning the flat with others jointly

2. Power of Attorney Holder can stand in Managing Committee Election .

Ans: No power of attorney holder can vote, attend or context the election. Co-operative Society is member participation and not the authority holders.

Pls do visit our website www.ahwoi.org  of Affordable Housing Welfare Organisation of India has been formed by the like minded professionals to make it possible to provide affordable housing to any citizen who is willing to contribute 1% of the estimated cost of the house. A unique concept with complete transparency and through bank transactions only.

With love and commitment to serve the humanity

Ca.Ramesh Prabhu

President of Affordable Housing Welfare Organisation of India ( www.ahwoi.org)  

On Sat, Jan 24, 2015 at 9:00 AM, kiritdhruv <kirit...@yahoo.com> wrote:

Dear Mr. Ramesh Prabhu,
Clarification on the following -
1. Associate member can stand in Managing Committee Election by giving Appendix - 10 A as per Bye Law No. 117 ( d ).
2. Power of Attorney Holder can stand in Managing Committee Election .
Thanks n Regards,
Kirit Dhruv
Samruddhi CHS Ltd., Borivali

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With Best Regards

 

CA. Ramesh S. Prabhu

Chairman, Maharashtra Societies Welfare Association

A2-302, Laram Center, S.V. Road, Opp: Railway Station

Andheri(W), Mumbai- 400 058

Tel: 9820106766/ 022- 42551414

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With Best Regards

 

CA. Ramesh S. Prabhu

Chairman, Maharashtra Societies Welfare Association

A2-302, Laram Center, S.V. Road, Opp: Railway Station

Andheri(W), Mumbai- 400 058

Tel: 9820106766/ 022- 42551414

[Ramesh Prabhu]

Dear Mr. Dinesh Prabhu

I with lot of sense of responsibility and deep study and humbly submit that considering the co-operative sector as my bread and butter, I would like to give my comments as under:

The section of the article  regarding Rule 56M is not relevant and has been deleted in the MCS (Amendment ) Rules, 2015 published on 30th Aug, 2014  The following part of the artilce is irrelevant and redundant and is not in operation with effect from the amendment done on 30.8.2014

 Quote  " 

As per the Rule 56M of MCS Rules, 1961 and Section 2(19) (b) of MCS Act, 1960, an associate member can only cast his votes and participate in the election process but never become an office bearer in the society, where his name appears as an associate member in the society register. 

This further renders the Appendix – 10 A of the model bye-law of Co-operative Housing Societies redundant as Rules 56M prohibits such associate members from being nominated for election. Provision of Appendix – 10 is in direct conflict with Section 56 M of the MCS Rules, 1961, which renders the said appendix ineffective. 

As per Section 56-M, any joint holder whose name appears after the first holder in the share certificate – whether he has paid for the flat or not - also stands disqualified to be appointed as an office bearer. 

All joint owners, co-owners, associate member, nominal members whose name does not appear first in the share certificate cannot be appointed as office bearers.

Unquote "

Election of all the societies with effect from 14.2.2013 has to be done by the State Co-operative Election Authority constituted under section 73CB of  the MCS Act, 1961.

The final Rules ie. MCS ( election to Committee ) Rules, 2014 is also notified and published on 11.9.2014 and all the election has to be done by the MCS (Election ) Rules, 2014 and all the relevant provisions made in the MCS Rules, 1961 were deleted by making an amendment to MCS Rules, 1961. 

Therefore, with due respect to the correspondent or the writer of the article, he has tried to mix up the issues.

Now let me clarify the position of associate member and the voting rights as under:

All associate members whose name has been recorded in the share certificate as the associate member and the associate member name is appearing in the statutory registers like " I" form register of members , J form, list of members, Share register, Share transfer register etc will considered as associate member as per section 2(19) (b) as per the MCS Act and the same has been given the article.  Before the adoption of New Bye-laws 2014 by the societies, if any person has paid Rs.100/- and without having any right in the property has become the associate member by submitting form No. 7 with the consent of first member  and his name has be incorporated in the share certificate and statutory registers unless such member resigns or gets expelled under the new provision of not being an active member for a period of 10 years willl continue to be the assocaite member. 

If you go through the MCS ( election to the Committee)Rules, 2014, it states all the persons who are in the roll of the society as on the date of the election happening under the new rules shall be considered as active member irrespective of the provisions in the bye-laws. Thus all such associate member whose name appears in the share certificate as second holder by paying Rs.100/- will be active member for the purpose of voting and contesting til they are expelled may be after 10 year being not active or resign. If their names do not appear in the share certificate, then they are not associate member as per section 2(19)(b).

Now comes, after the adoption of new Model bye-laws 2014 approved by the commissioner and put on the Govt webiste and also published by Maharashtra Socieiteies Welfare Association , to become an associate member, such applicant should have interest in the property as per the definition of assocaite member given in the bye-laws itself.

Therefore, new associate membership is not possible, if such applicant does not have share in the flats.

One may take a gift of 1% of the property from the first member, get such gift deed registered and obtain the associate membership and then contest and vote.

Secondly as per bye-law on cessation of membership considered to ceased, if the member does not have any interest in the property. After the adoption of new bye-laws, if the committee wish to terminate such associate members who do not have rights, interest and title in the flat, may invoke this provision given in the Model Bye-laws, Issue show casue notice to such associate member who had paid only Rs.100/- and terminate the membership or expell the membership of associate members and get it passed in the General Body as provided under secition 35 and Rules, 28 and 29. With the approval of registrar the same can be done.

And the new committee also after adoption of new bye-laws can exercise such rights to remove assocaite member who are not having such rights. Till such procedure is adopted , the assocaite member shall continue to be there even after the adoption of new bye-laws as he will be treated as active member for the pupose of electin as per the eleciton rules.

I hope, I have tried to clarify the matter and if still any one has any doubt or would like to add in my views, you are welcome and all such suggestion are welcome

W e also need to appreciate that the new provisions unless and untill settled by the  court or judiciary will not accepted by the persons having different views.  There can be as many views as possible considering the angle in which each one of us look at it and the we will be seeing the object depending on the colour of glass that we were.

So this could be my views and there may be others having their view and different opinions are possible. 

With lot of love and commitment to serve the humanity

CA.Ramesh Prabhu

On Thu, Jan 29, 2015 at 9:23 AM, Dinesh Prabhu <dinesh....@gmail.com> wrote:

Dear Mr. Ramesh Prabhu,

As I mentioned, this is a debatable subject.

Can you comment on below article appeared in TOI?

Quote:

Associate member cannot be part of managing committee

Saturday, July 19, 2014

Legal Issue

There is widespread ignorance among Cooperative Housing Society members all across the state when it comes to the issue of associate members contesting managing committee elections. To set the record right: An associate member is not eligible to be part of a managing committee.

Maharashtra Cooperative Societies Rules, 1961, Rule 56-M that details conditions on nomination of candidate for election. Rule 56-M (1) states that any person may be nominated as a candidate for election to fill a seat, if he is qualified to be chosen to fill that seat under the provision of the Act, these rules and the bye-laws and if his name is entered in the list of voters:

Provided that, in case of joint or associated member only the member whose name stand first in the share certificate shall be eligible to be nominated as candidate for election. 

Now, the law is relaxed when it comes to individuals belonging to categories provided under subsection 3 of Section 73 B of the Maharashtra Cooperative Societies Act. Where the seats are reserved on the committee as provided under Section 73B of the Maharashtra Cooperative Societies Act, any individual belonging to the categories provided under sub-section (3) of Section 73B shall be eligible for being nominated as candidate even if his name does not appear on the voters’ list.

The provisions in the Maharashtra Cooperative Societies Act and Maharashtra Cooperative Societies Rules clearly state that the nomination of an associate member for election gets disqualified if his name does not appear first in the share certificate and such member cannot contest an election. Maharashtra Cooperative Societies Act’s Section 2(19)(b) clearly defines that the associate member, as a member who holds jointly a share of a society with others, but whose name “does not stand first in the share certificate”. 

As per the Rule 56M of MCS Rules, 1961 and Section 2(19) (b) of MCS Act, 1960, an associate member can only cast his votes and participate in the election process but never become an office bearer in the society, where his name appears as an associate member in the society register. 

This further renders the Appendix – 10 A of the model bye-law of Co-operative Housing Societies redundant as Rules 56M prohibits such associate members from being nominated for election. Provision of Appendix – 10 is in direct conflict with Section 56 M of the MCS Rules, 1961, which renders the said appendix ineffective. 

As per Section 56-M, any joint holder whose name appears after the first holder in the share certificate – whether he has paid for the flat or not - also stands disqualified to be appointed as an office bearer. 

All joint owners, co-owners, associate member, nominal members whose name does not appear first in the share certificate cannot be appointed as office bearers.

Unquote:

Regards

Dinesh Prabhu

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