Managing committee of a co-operative society

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Dhruv Gaglani (Querist)

20 September 2012 Dear All,
A company is the owner of a flat in a Co-operative Housing Society Limited(CHSL). A director of that company is residing in the flat. He now wishes to become a memebr of the Managing Committee. My Query is as under:

1. As far as I am aware, only employees of the company can reside in a CHSL flat owned by the company. A director, not an employee, is he entitled to reside at the said flat?

If the answer to the above query is Yes then my second query is as under:

2. The company has given all the authorizations u/s 187 to represent the company. Is such authorization only restricted to voting in the meetings of the Society or does the said authorization empower the director to contest the elections for the Managing Committee?

Amol S Joglekar

Amol S Joglekar (Expert)

20 September 2012 Company is given Associate Membership in co operative society and as such not eligible to contest the election.

Dhruv Gaglani

Dhruv Gaglani (Querist)

21 September 2012 Dear Sir,
Thank you for your reply. But I am unable to comprehend your reply. The company is the sole owner of all the shares of the flat, then how is the company an Associate Member?

Amol S Joglekar

Amol S Joglekar (Expert)

21 September 2012 The intent of societies act is to provide associate membership to "firm" or "company" This way they are restrained from creating sort of monopoly, if any in buying the flats. They are also not allowed to contest the election. In some societies, regular membership is given to such entities. This is against the intent of the Act.

Dhruv Gaglani

Dhruv Gaglani (Querist)

21 September 2012 Dear Sir,
As far I am aware, the companies can become member of the Society. IN fact under Maharashtra Co-operative Societies Act, there is a form (Appendix-6) for application by a company to be a member of the Society. I think there is a cap on the percentage of firm/body corporate/trust members in a Society. But as far as the company objects are not contrary to the objects of the Society, it gives certain undertakings to the Society, and the Society bye-laws do not expressly prohibit from company becoming members o the Society, I think a company has all the rights to become a member.

Amol S Joglekar

Amol S Joglekar (Expert)

21 September 2012 Thanks for the information. The office of the company should be in the area of operation of the society.

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