I am residing in Mumbai. Our society is carrying out Structural repair and has appointed one of existing member as Consultant at particular fee.
Problem is few people have raised objection that we cannot hire him as consultant and member cannot earn.
Need you guidance.
I C Naik
The objecting members have not seen registered bye-laws of your housing society.
Show them your bye-law No. 116 reproduced below:
(1) No officer of the society shall have any interest, directly or indirectly, otherwise than as such Officer;
(a) In any contract made with the society,
(b) In any property sold or purchased by the society,
(c) In any other transaction of the society, except as investment made in or loan taken from the society or provision of residential accommodation by the society to any paid employee of the society.
(2) No officer of the society shall purchase directly or indirectly, any property of a member of the society, sold for recovery of the amount due from the member to the society.
“Officer” is defined in the M C S Act 1960 U/S in Clause 20 as under:
(20) “officer” means a person elected or appointed by a society to any office of such society according to its by-laws; and includes any office bearer such as a chairperson, vice-chairperson, president, vice-president, managing director, manager, secretary, treasurer, member of the committee and any other person, by whatever name called,elected or appointed under this Act, the rules or the by-laws, to give directions in regard to the business of such society;
Members are not prohibited to enter in to any Contract. But keep any close relative of an Officer away as a safe side.