State : Maharashtra; City : Mumbai ; Reg.No. : Mum/W-K-East/Gnl(O)2655/2017-18/2017
This is with reference to the above society which is registered in December 2017 under Industrial Estate & Premises Coop Soc. Ltd, this bye laws is approved by the commissioner for cooperation and registrar dated 4-9-2006. I believe this is not the same as the latest bye laws (2014) which housing society follows.
My query is :-
While registering the society the consultant had collected Rs.1000/- as share money from both individuals and companies.
This bye laws states for individuals we need to issue 5 shares and 10 shares for companies.
Do we issue 5 shares to individuals and 10 shares for companies, then in that case for individuals & companies we need to refund the excess share money?
Or
As per new bye laws which housing society follows we issue 10 shares for individuals and 20 shares for companies.
Your help on the above will be highly appreciated.
I C Naik
Although are information gaps to make accurate assumption as to which Bye-Laws Model was registered it is not of much consequence to the answer to your questions. In December 2017 the latest Model was the one released by the Commissioner for Cooperation and Registrar of Cooperative Societies on November 1, 2013. Normally the Registering Authority does not register earlier Model.
I assume that you are on the Management Committee of the society and may be even the Hon. Secretary.
Most developers collect certain amounts from every flat buyer for the purpose of registration of the society. This amount includes share capital subscription amount and at times stated separately in the demand letter. It is an ad hoc amount as exact amount is not known. The excess amount after adjusting minimum exact capital subscription for every flat, is returned to the housing society at the time of hand over to the Provisional Management Committee constituted at the first meeting which must be held and chaired by the, is returned to the housing society at the time of hand over to the Provisional Management Committee constituted at the first meeting which must be held and chaired by the Developer within 3 months of the date of registration of the society. I assume this has happened already and now you have this question.
As we have assumed that registered bye-laws of your society are the latest Model the shares are to be issued as provided therein i.e. 10 shares each of Rs 50 each. Most housing societies fail to distinguish membership and holding of a flat. For every flat they issue 10 shares each. If a member x has bought two flats is no different as a member from the other who purchased one flat. Both are members and both need to pay for 10 shares only. A member may subscribe to more number of shares as 10 is the bare minimum number for an eligible member to become member. There is a celing on an individual holding share capital of a cooperative society under Section 28 of the M C S Act 1960 namely 1/5th of the total shares or Rs 20,000/-.
