The General body at an EGM has passed a resolution allowing all associate members specially those whose name doesn’t stand as co-owner in the share certificate who have basically become associate members by payment of RS 100/- shall be allowed to contest elections furthermore they shall be allowed to vote and attend meetings . This is subject to the approval by the registrar.
The same has been conveyed to the registrar. Our question is will this be accepted by the registrar and is it legally binding upon the registrar. Would like to have your opinion in this regard. Am asking this in relation to a society based in South Mumbai
I C Naik
The frequent visitors to www.indianooperative.com must have observed very frequent reference to Associate Membership issues as that is number one area of confusion encompassing all- cooperators, committee members Office Bearers, Registrars, SACEA and Cooperative Department of State of Maharashtra. The issues are still unresolved. The Result is any CHS does anything about Associate as they like.
If you go through chapters on members’ rights of all Models of bye-laws (1984,2001,2009 and 2014 ) you will come across a clause which provides as under:
|1984||27||No associate member shall have any rights or privileges of a member except as provided under Section 27(2) of the Act.
|2001||25||No associate member shall have any rights or privileges of a member except as provided under Section 27(2) of the Act.|
|2009||25||No associate member shall have any rights or privileges of a member except as provided under Section 27(2) of the Act.|
|2014||25||No associate member shall have any rights or privileges of an active member except as provided under Section 27(2) of the Act and the fulfill of the conditions of Bye Law No 22(a)
Section 27(2) confers the right on Associates as under:
“27(2) Where a share of a society is held jointly by more than one person, the person whose name stands first in the share certificate, if present, shall have the right to vote. But in his absence the person whose name stands second, and in the absence of both, the person whose name stands next, and likewise, in the absence of the preceding persons the person whose name is next on the share certificate, who is present and who is not a minor, shall have the right to vote.”
As far as the general body meeting conferring rights of members on the Associate Member, the resolution passed by your CHS is not in consonance with the provision of Section 24(2) “an associate member, may, subject to the provisions of sub-section (8) of section 27, have such privileges and rights and be subject to such liabilities of a member, as may be specified in the by-laws of the society.
The right to Associate members is the only one and that of representing main shareholder (whether the flat purchase agreement has his name as joint owner o not) in his absence.
The Registrar comes in to picture if your Housing Society in general body meeting amends the aforesaid Bye-law No25 conferring any other right of a member to the Associate member.
As you have mentioned Housing Society has conveyed the information that general body meeting has given right to the Associate member to contest election is not binding because the bye-laws are still providing for No rights to Associate except attending general body meeting in the absence of a main member.
I hope this will help you to convince your Housing Society Committee that no Associate can contest election to the Management Committee on the strength of general body meeting conferring that right.