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Member of co-operative housing society: What it means

Saturday, December 09, 2017

Almost everyone of us are a part of co-operative housing societies. But, what exactly are the roles and responsibilities of a CHS member? Ramesh S. Prabhu explains in detail

A co-operative can be described as an organisation set up for the benefit of its members. Each member plays important role in the functioning of the organisation. If we look at a housing co-operative society, we can say that it is a small housing association run along co-operative principles. It is owned and managed by the members of the co-operative. Being a key person in this co-operative organisation, one should know the concept of a co-operative society member in details.

A. MEMBERS IN A CO-OPERATIVE HOUSING SOCIETY ARE MAINLY CLASSIFIED INTO FIVE TYPES:
(1) Member:
Who has right, title and interest in the flat or property of the society. Normally, the agreement for purchase of flat is in their name and share certificate is also issued in his name for 10 shares of Rs 50/- each. They are also called original member, primary member, first member.

(2) Associate member: Whose name stands second or third and so on in the share certificate. As per Model bye-laws approved by the commissioner in 2014, to become an associate member, he should have interest in the flat as joint owner. Prior to 2014, the societies used to admit any relatives of the member as associate member by accepting entrance fees of Rs.100/-

(3) Nominal Member: Whom the society admits on the recommendation of the member by accepting entrance fees of Rs.100/- and whom the flats are given on rental basis. They do not have any rights of member or associate member. They cannot attend the general meeting and also cannot contest the election.

(4) In order to get the voting rights, the member should be classified as Active member.

a) “Active Member” can be described as below :

(i) One who has purchased or holds occupancy right of a Flat in the Society and holds the shares and interest in the capital and property of the society

(ii) One who attends at least one General Body Meeting of the Society in the previous five consecutive years. Provided that nothing in this clause shall apply to the members whose absence has been condoned by the General Body Meeting of the Society;

(iii) Who has paid the Society Maintenance Service and other charges regularly. (A member who makes the full and final payment of dues to the society within 3 months from the date of service of notice in writing demanding the payment of dues)

(5) Non-Active member: A member who does not fulfill any of the above conditions shall be classified as non-active member. Non active members will not be allowed to vote in any of the meetings till such member is reclassified as active member.

B. RIGHTS OF MEMBERS AND ASSOCIATE MEMBERS:
(1) To receive the notice and attend the Annual General Body meeting and the Special General Body meeting.

(2) To contest the election to become the member of the managing Committee. Associate member whose name appears in the share certificate second can contest the election by taking the No objection certificate in form No.10A from the member.

(3) To Occupy the flat

(4) To nominate ormake the will

(5) To transfer the flat and the shares

(6) To get the Copy of the Bye-laws, Audit Report & Inspection of Books & Records and getting copies thereof.

(7) A Member may resign from Membership, after giving three months notice in the prescribed form to the Secretary of the Society as provided under Rule 21(1) of  the MCS Rules, 1961

(8) Members have right to Exchange the Flats.

(9) Members may sub-let or give the flat on care taker basis.

C. DUTIES OF THE MEMBER AND THE ASSOCIATE MEMBER:
(1) To pay the entrance fees of Rs.100 and the share capital amount of Rs.500/- towards the 10 shares of Rs.50/- each and also pay any additional contribution towards the share capital as and when decided to raise share capital.

(2) To attend the General body meeting.

(3) Every Member shall keep his flat / unit/ tenement in good maintenance.

(4) Pay the maintenance and dues of the society regularly.

(5) Repair the leakage from the flat flowing to another flat.

D. RESTRICTIONS ON THE MEMBERS:
(1) No Member of the Society shall assign, mortgage or create any charge on his occupancy right in the flat without the previous permission in writing of the Society.

(2) No Member shall, without the previous permission of the Committee in writing, make any additions to or alterations in his flat.

E. A MEMBER MAY BE EXPELLED FROM THE MEMBERSHIP OF THE SOCIETY IF SUCH A MEMBER:
(a) has persistently failed to pay the charges due to the Society,

(b) has willfully deceived the Society by giving false information,

(c) has used his flat for immoral purposes ormisused it for illegal purposes habitually,

(d) has been in the habit of committing breaches of any of the provisions of the bye-laws of the Society, which, in the opinion of the Committee, are of serious nature,

(e) has furnished false information or omitted to furnish the material information to the Registering Authority at the time of registration of the Society.

(f) A Non-Active Member who has continued as such non-active member for the period of ten years ormore as provided in the third provison to section 26(2)(b) of the Act.

(Ramesh S. Prabhu is Chairman, Maharashtra SocietiesWelfare Association)

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