Query regarding non occupancy charges
Querist : Anonymous
The Society cannot levy NOC more than 10% of service charges.
However if Society want to charge more than what procedure should be followed with regard to call of meeting , quorum required of members and number of voting required.
Querist : Anonymous
Legal Limit on NOC:
Usually, NOC cannot exceed 10% of the service charges as per the society’s by-laws or applicable cooperative society act. Charging beyond that requires proper approval.
Procedure to Revise NOC Beyond 10%:
Call a General Body Meeting (GBM):
The managing committee must call for a general body meeting to discuss and approve the revision.
Notice:
A clear written notice about the agenda (i.e., revision of NOC beyond 10%) must be sent to all members well in advance as per the society’s by-laws (generally 7-15 days prior).
Quorum:
The quorum for such meetings depends on the society’s by-laws or relevant state cooperative society act. Typically, it could be 1/3rd or 1/2 of total members. If quorum is not met, a second meeting may be convened with a lesser quorum.
Voting:
The resolution to increase NOC beyond 10% usually requires a special resolution, meaning approval by at least 3/4th (75%) of members present and voting (or as per by-laws). The voting may be by show of hands or ballot.
Documenting the Resolution:
The resolution passed in the GBM must be recorded in the minutes book and signed by the chairman of the meeting.
Notify the Members:
After approval, inform all members about the revised charges and the effective date.
Compliance with Laws:
Ensure the revision complies with the State Cooperative Societies Act and any relevant rules.
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