The chairman of our society is facing a defamation suit from a member. He called for an SGM and forced a decision that all legal expenses must be borne by society. Is it legal?
I C Naik
Society’s funds can be deployed for attaining objects of the Society’s approved under registered bye laws of the CHS. You would find this in your Bye Laws also. GBM resolving to use funds of the society must quote the bye law which allows the GBM to deploy any funds on the concerned object. In the absence of this the GBM resolution is void. Few members may file a dispute in Cooperative Court against the Chairman and the Society for passing an illegal resolution.