Ravi Sathyamurthi
Dear Sir,
1.Can an Associate member whose name does not stand first in the share certificate be a chairman/secretary or managing committee member?
2.The first member has not given them form 10-A , neither have they submitted it to the Society.
3.A member nominated her son that after her death the flat should be in her son’s name & the society nominated him on 14th Jan 2014 and the son sold the flat to some other member in the same society on Feb 28th 2014. Now the society is not transferring the flat on the new member the reason being in Form 21-A he has declared that he held the flat for more than one year on this ground they are saying that you have given a false declaration.
I C Naik
RESPONSE
1.The answer to number 1 is in the negative, though using the confusion under Bye-Law No 117(v)of (Model 1984) and 118 of (2001/2009 Models) some societies do elect/co-opt such Associates on the managing committee and also appoint office bearers.
2.Section 29 (2) of the M C S Act 1960 provides that “ A member shall not transfer any share held by him or his interest in the capital or property of any society, or any part thereof, unless–
(a) he has held such share or interest for not less than one year;
The Committee’s hands are tight on account of this statutory restriction.
If provisions of Bye law No 40 have been complied prior to finalizing the deal, the embarrassment could have been avoided.
40 (a) A member, desiring to transfer his shares and interest in the Capital/Property of the society, shall give 15 days’ notice of his intention to do so to the Secretary of the society in the prescribed form, along with the consent of the proposed transferee in the prescribed form.
(b) On receipt of such notice, the Secretary of the society shall place the same before the meeting of the Committee, held next after the receipt of the notice, pointing out whether the member is prima-facie eligible to transfer his shares and interest in the Capital/Property of the society, in view of the provisions of Section 29(2)(a) of the Act.
So here also Secretary cannot help you even if he wanted.
A WAY OUT
So on compassionate ground as the member lost her mother recently, the Committee can accept your request to sub-let the flat to the buyer for the unexpired period of one year. The financial implications for the transferor will be a charge of NOC. The buyer may pay no rent at all. The buyer will be admitted to membership after one year. The membership of the son will remain in force till one year is over. The incumbent transferee can pay maintenance on behalf of the member. It’s a matter of trust transferee can hold in the transferor. If not, the transfer deal has to be reversed.