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Home Cooperative Queries

Associate Members have limited rights

Ajay Jha by Ajay Jha
January 9, 2014
in Cooperative Queries
124
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Mrs Asha R Singh

I need your advice and guidance in regard of filling associate member’s form. My mom-in-law is the 1st owner and my husband is the 2nd owner.

I had submitted form 7 duly signed by 1st owner (my mother-in-law) along with a cheque of Rs 100/- and a covering letter signed by me(as it was demanded by Manager).

Sir in reply the secretary has given this in writing. The exact content of the letter given by secretary is—

1)    Pl send covering letter signed by the 1st owner and relationship of the proposed associate member along with ID proof(Pan card /election card) as per IT rules as new member will be the joint owner of the flat.

2)   Bye law 19 requires certified copy of agreement duly stamp duty paid with the builder or transferor .

3)  Pl send share certificate for making new associate member admitted with affidavit for entry,if approved.

4)  Pl note affidavit or gift deed is required by the 1st member and 2nd member to make the new member as joint holder of the flat.

I C Naik

1. Before going further, at the outset let it be clear that as per bye laws the Associate Member’s right in the housing society are very limited.

a. The associate/nominal member may have a right to occupy the flat with the consent of the member and permission of the society, subject to the conditions set out by the society  (Bye Law No 24 (b)

b. Attend the general body meeting, where the Original member is absent. (Bye Law No  25)

2.   The Bye Laws [118(iv) ] has created confusion that  the Associate Member can contest election. Now the Maharashtra Co-operative Societies Election to Committee Rules, 2013 has made the position clear. Proviso to Sub-Rule 1 of Rule 20 Nomination of candidates reads as under: Provided that, in case of joint or associate members, only the member whose name stands first in the share certificate shall be eligible to be nominated as candidate for the election.

3.   It is also important to know that Associate membership terminates automatically upon death of the Original Member. Bye Law No.  58)

4.   A simple procedure is prescribed under Bye Law No 19(b) that an individual, a firm, a company or a body corporate, registered under any law for the time being in force, who/which is eligible to be an associate member and who/which has made an application in the prescribed form for such membership, along with the entrance fee of Rs. 100, may be admitted as such member by the Committee.

5.   Having followed the procedure in 4 above Mrs Singh should have been admitted as an associate member without writing any letter.

6.   It is necessary to clarify that by admitting a member as Associate neither the Society nor IT rules confers the joint owner ship of the flat. The Joint ownership is evidenced by a name in the agreement with the builder. There is nothing like “ownership of a flat” as regards the Society.

7.   The Society becomes a rightful owner of all flats on its registration as a cooperative society and a legal owner after “the conveyance” deed is registered.

8.   Except for depositing the Share Certificate no other paper is required by the Society to enroll her as an Associate Member.

Tags: Associate Memberscooperative questioncooperative societylimited rights
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