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Home Cooperative Queries

CHS: Monthly funds for functions and welfare

Rohit Gupta by Rohit Gupta
June 24, 2014
in Cooperative Queries
0
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Govind Punjabi

The society have stated collecting  Rs. 300/- per month from each member (Flat) for functions and welfare of the society. The amount is collected along with the other charges in the maintenance bill. I want know that society managing committee can force to pay the monthly Rs 300/ per month from members who are not interested to attend the function. Please advice and oblige.

 

I C Naik

If we try to find out authority of the managing committee to demand funds to run the society i.e, to maintain property and provide amenities and services, we have to go through Bye-Law No. 67 TO 72 in Chapter VIII. LEVY OF CHARGES OF THE SOCIETY.

Bye-Law No 69(b) carries a mandate that “The committee shall fix in respect of every flat the society charges on the basis laid down under the bye-laws-law No. 69 (a)”

If we browse through the list of items of society charges including Contribution to Funds (Repair Fund and Sinking Fund), we do not come across any item under which

“Charges/fund for functions and welfare of the society” can be clubbed so that we can collect that from the members as a compulsory charge.

One can argue that there is a non-specific head of item of “the society charges”

namely item No. (xiv) “Any other charges : As may be decided by the general body of the society at its meeting.”

But before naming one item namely “Charges/fund for functions and welfare of the society” under (xiv) “Any other charges : As may be decided by the general body of the society at its meeting.” we will have to ensure that there is nothing in the Bye Laws that touches “upon welfare of the society”

With open mind we have to look at two other Bye Laws namely Bye-Law No 5(d) and Bye-Law No 149(b)(iii).

Bye-Law No 5(d) “To undertake and provide for, on its own account or jointly with a co-operative institution, social, cultural or recreational activities” Bye-Law No 149(b((iii)”To allocate to a common welfare fund, such part of the profit, as the annual meeting of the general body may determine, to be utilized in furtherance of the objects specified in the bye-law No. 5(d).”

Combined reading of the two clauses cited above provide an answer that voluntary welfare activities cannot be undertaken by calling upon members to make a compulsory contribution.

Tags: committeefundssocietywelfare
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