Mrs. Shashibalakumar
Our society had gone for a redevelopment in Mumbai, two years back. The structure is ready. It was found that builder had split one member’s flat into two with the connivance of the concerned member, without any knowledge of the society. When society seen the building plan they came to know and wrote letter to the builder to explain the discrepancy.
Builder so far did not give any reply. The builder had never taken any approval from the society for the amended plan. Now the concerned member asked the society to approve the split and issue NOC by making his share certificate into two (half each).
We would like to know, whether, the member can do the same without prior approval of the society. What are the rules or regulations in this regard? Society is in no mood to approve it as it is a breach of trust. Can it deny and what would be the consequences? Please suggest.
I C Naik
The Society can ignore the split. Continue recognizing the original member.
How to get documents from a Director who has resigned
Alok chopra ,Board of Director
Ours is a multi-state cooperative society. Recently five board of directors from one state have sent their resignation letter, and it was accepted by board.
Now we requested them to submit bank statement, expenditure statement, members list etc., but for past one month they have not submitted anything.
So how can we get the relevant documents from them who have resigned? Please give your opinion.
I C Naik
Director’s resignation is not subject to acceptance. These are positions members have occupied because they had accepted their offer. If a director wants to withdraw, by not accepting resignation he can not be forced to continue by the Society .
Where a director has been assigned any responsibility in the management he is duty bound to discharge that before resignation and has to give time to management to make alternate arrangement.
In a situation like this the continuing directors did not take care to collect the concerned documents before conveying the acceptance.
Subject to any specific provision the Bye Laws about taking records from out going society directors, in an extreme situation provisions concerning taking possession of records in a some what similar situation is provided in Section 54 of the Multistate Cooperative Societies Act 2002.
Section 54. Securing possession of records, etc
(1) if- • the records, including registers and books of account of a multistate cooperative society are likely to be tampered with or destroyed or the funds or other property of such society are likely to be mis-appropriated; or
• the board of a multi-state cooperative society is reconstituted at a general meeting of the society; or
• a multi-state cooperative society is ordered to be wound up under section 86 and the outgoing members of the board refuse to handover charge of the records and property of the society to those having or entitled to receive such charge, the Chief Executive may apply to the magistrate within whose jurisdiction the multi-state cooperative society functions for securing the records and property of the society.
