Firoze Wadia
My Housing Society (in Mumbai – Maharashtra) was formed way back in late ninetees and follows Bye-Laws prior to the ones released in 2001 . So no Bye-Laws have been adopted since the release of 2001 and later, not even the latest ones of 2013.
When any issue is raised, the Secretary responds saying our Bye-laws prior to 2001 apply and there is NO NEED to adopt newer bye-laws unless General Body wants it. IS THIS CORRECT? ISN’T IT MANDATORY TO ADOPT BYE-LAWS SINCE 2001?
WHICH GOVERNMENT AUTHORITY CAN ENDORSE THIS SO I CAN TAKE THIS UP WITH MY SOCIETY MEMBERS?
The issue arose when Managing Committee appointed Auditors without getting approval in General Body Meeting. When questioned, the response was our Bye-Laws does not mandate it.
I C Naik
1.Secretary is right. Adopting Bye-Laws is not mandatory.
2.Appointing auditor in annual general meeting is required under the M C S Act 1960. Sub-Section 2A of Section 75 lays down that ;
“(2A) Every society shall, appoint an auditor or auditing firm from a panel approved by the State Government in this behalf in its annual general body meeting having such minimum qualifications and experience as laid down in section 81, for the current financial year and shall also file in the form of return to the Registrar, the name of the auditor appointed and his written consent for auditing the accounts of the society within a period of thirty days from the date of the annual general body meeting :
Provided that, the same auditor shall not be appointed for more than three consecutive years by the annual general body meeting of the same society
Further Section 81(1)(f) says that
“The remuneration of the auditor or auditing firm of a society shall be borne by the society and shall be at such rate as may be prescribed.”
The appointment of Auditor in the annual general meeting is to be done under businesses described at Clause (vi) in Bye-Law No 96 namely
“to consider any other matters, specifically requiring decisions, concurrence to sanction of the general body meeting of the society, by virtue of the provisions in the Act, Rules and the bye-iaw of the society.”
Committee appointed auditor should be aware of it and if not do not allow him to conduct the audit.