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Tags: Application, Associate Membership, CHS, cooperative question

Application for Associate Membership


Posted on 01 April 2014 by akshaykumar
Gince Skariah
I am Secretary of a CHS in Mira Road. My query is:
Mother and Son are joint owners of their flat. Both these members are staying in their flat. Mother wants to make her husband as Associate Member of
the society (intention is to create nuisance along with his friends). Should we accept her application to make her husband as Associate Member? Is
there a provision in laws to reject the application?
I C Naik
Application for Associate Membership cannot be rejected if a person is eligible to become member.

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Tags: Associate Membership, CHS, cooperative

Issue of associate membership of a co-op


Posted on 02 September 2013 by akshaykumar
Roma Sirkar
I am a member of a co operative society in Mumbai.My query is as under:
Can any member of the family be given associates membership?
If yes what is the procedure and also let me know whether the associate member will become the member after the death of the original member.
I C Naik
1.Any member of the family can be given associates membership in the cooperative housing society
2.Associate Member of a cooperative society is defined in the M. C. S. Act 1960 and Bye Laws as under:
Section 2.(19) (a) member means a person joining in an application for the registration of a cooperative society which is subsequently registered, or a
person duly admitted to membership of a society after registration and includes a nominal, or associate member;
3.A per Bye Law (Model 2009) No. 2(xxiv) Associate Member means a member who holds jointly a share of the Society with others, but whose name
does not stand first in the share certificate
4.An individual, who is competent to contract under the Indian Contract Act, 1872 and who has made an application in the prescribed form [as per
Schedule 7 or 8 as may be applicable, ] for such membership, along with the entrance fee of Rs. 100 could be admitted as such member by the
Committee.
a.Form 7 is to be filed for Associate Membership by an Individual, who desires to hold shares jointly with another person, who is already admitted to
membership of the society.
b.Form 8 is to be filed for Associate Membership by an Individual, where both the person apply for associate membership at a time.
5. Application in either form is to be signed both and it requires acceptance of the terms and conditions the vital conditions of which are as under.
a. We will be jointly and severally liable to discharge the present and future liabilities to the Society.
b. The right of attending and voting at general body meetings of the society will ordinarily be exercised by
Shri*Shrimatiwhose name should stand first in the share certificate. The name of
Shri*Shrimati..shall stand second in the share certificate and he*she (associate member) shall have no rights privileges of a
member except attending general body meetings of the society and voting at them provided the member whose name stands first in the share
certificate is absent at such meetings.
6.Most members carry an impression that upon death of Member Associate member steps in his/her shoes. That is no so. As per Bye Law No 58 the
person shall cease to be the associate member of the society, when the original member ceases to be the member of the society (upon resignation as
member or transfer of his/her interest in capital/property of the society i.e the flat, or on death.
7.In order to step in his/her shoes upon death of original member Associate Member should get nominated to become member upon his/her death.
Nomination procedure as per the Bye Law No 32 requires filing a Nomination form as per Appendix 14 in Triplicate.
8.Member is advised to Make sure that the Committee takes Nomination on Society record by way of a resolution of the Committee. An entry is also
required to be made in the Nomination Register required to be maintained as per Bye Law No 142(xi) within 7 days of the meeting of the committee. It
is advisable that copy of the minutes are obtained and copy of the entry in the Nomination Register is obtained from the Secretary upon payment of
copying costs prescribed under Bye Law No 172(5). Registered Nomination can be varied by filing another one but this time a fee of Rupees 100 is
levied.

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Tags: Associate Membership, CHS, cooperative, Maharshtra

Associate Membership in CHS


Posted on 11 August 2013 by ram
Jairam Kadam

Mumbai
How a husband of a female member being a joint holder of shares (second name) in cooperative housing society can become a member/office bearer
of the committee?
I C Naik
Associate members have been getting a raw deal all along the inception of the M. C. S. Act 1960.
Associate member means a member who holds jointly a share of a society with others, but whose name does not stand first in the share certificate
(Section 2(19)(b) of the M. C. S. Act 1960 and Bye Law No 3 (xxiv)(a))
An individual competent to enter in to contract under the Indian Contract Act, 1872 can be admitted as an Associate Member of the CHS in either of the
two ways.
Person whose name appears as a joint owner in the agreement executed under section 4 of the Ownership Flats Act, and by making a joint application
along with the original member in the prescribed form and paying entrance fee of Rs 100.[Bye Law No 19A and Appendix No 8]
Person whose name does not appear in the agreement referred to above, by making the application in a form prescribed for such a person to be
admitted as Associate member and to make him a joint holder of shares. This application has to accompany a written recommendation of the first
member, entrance fee of Rs 100 and the share certificate [Bye Law No 19 (B) Form in Appendix 7]
As per Bye Law No 19(A) and (B) all applications of Individuals for admission as associate members are to be considered and decided upon by the
managing committee.
As per Bye Law No 68 (a)(g) such applications are to be disposed off within three months and in case of failure the applicant automatically becomes an
associate member.
Rights of associate members
Bye Law No 25 of Model Bye Laws 2001/2009/2013 (Under Approval *) and Bye Law No 27 of 1984 Model reads as under:
No associate member shall have any rights or privileges of a member except as provided under Section 27(2) of the Act.
In other words right of an Associate member as provided under Section 27(2) of the M. C. S. Act 1960 is of voting in the general body meeting in the
absence of an original member. He can not become member of the Committee.
(*) http://sahakarayukta.maharashtra.gov.in/SITE/PDF/Rules_Acts_Bylaws/Maharashtra_Co-operative_Societies_Act_1960.pdf
One can see this Model in a Draft form on this website.
There is a strange gate way against Bye Law No 25.
Bye Law No 118 [of Model Bye Laws 2001/2009/2013 ] indirectly concedes the right to Associate to contest the election or to get co-opted to
committee by way of laying down 5 conditions which disqualify associate to become a Committee member. This Bye Law reads as under:
No person shall be eligible for being elected as a member of the Committee or co-opted on it, if :
(i)-(iv) being not relevant not reproduced.
(v) In case of an associate member, non-submission of the no-objection certificate and undertaking, as prescribed under these bye-laws, by the
member
Form of NOC and Undertaking of the original member referred to above is prescribed at Appendix 10A of the Bye Laws of both the Models.
By executing this form the original member surrenders all his voting rights in favour of the associate member enabling him/her to contest election to the
managing committee, and to hold the office of the committee if elected by signing a declaration that he will not participate in any manner in the general
body meetings of the society or in election matters till such time the Associate member continues to hold the office.
It is important to bear in mind that the older cooperative housing society incorporated prior to 2001 having registered the Bye Laws as per Model 1984,
will not be able to accept an Associates request to contest election as the Bye Law No 117 of such society does not prescribe the negative condition
quoted above. In order to concede such right to Associate members of such older societies it should adopt the latest Model bye laws.
RIDER
Note that this right is not available for the first two years of every new member, since voting on society affairs by a new member is prohibited under
Sub-section 3A of the M. C. S. Act 1960.This restriction was imposed under the M. C. S. (Amendment) Act 2000.
Not many societies are aware that in exercise of power conferred upon the State Government under section 157 of the Maharashtra Co-operative
Societies Act 1960, the government has excluded co-operative housing societies from the provision in section 27 (3) of the Maharashtra Co-operative
Societies Act, 1960. This was announced in the Gazette of Government of Maharashtra, Co-operation, Marketing & Textile Department, Mantralaya,
Mumbai, vide Notification No. VIPRAAA-2001/16593/PRA.KRA.163(A)/15-S The Maharashtra Co-operative Societies Act 1960 Dt. 29th October, 2003.
Strange ways of cooperative Department
It may be of interest to know that, though definition of member under Section 2 (19)(a) of the M. C. S. Act 1960 says member includes a nominal,
associate or sympathizer member; no voting rights were conferred on either of the three categories under sub-section 8 of section 27 of the M. C. S.
Act 1960. This restriction was partly lifted by deleting the word associate from this sub-section (8) under Maharashtra Cooperative Societies
(amendment) Act 1969 which now reads as under:
(8) No nominal [associate] or sympathizer member shall have the right to vote and no such Member shall be eligible to be a member of a committee or
for appointment as a representative of the society on any other society].

We can see that the Legislature of the State had cleared the deck for an Associate Member to occupy responsible position as a member of the
Committee and to become an office bearer, way back in 1969, thereby he could take active part in the management of his society. But the Department
did nothing for three decades till it woke up in 2001 when the Model Bye Laws as approved by the Commissioner of Cooperatives Societies conceded
this right for the first time.
Ironically the confusion is carried forward even after taking a corrective step in an indirect manner, as afore said, Bye Law No 25 as per 1984 Model is
carried through all along till the latest Model of 2013. The reason for repeated questions on this important aspect of cooperative housing societies lies
in the casual approach of the Cooperative Department. When will the Department wake up and approve a coherent Model is a moot question.
Now that the Registrar and Commissioner of Cooperatives Societies is conferred wholly arbitrary right to specify Bye Laws which the Societies are
compelled to adopt, it is all the more desirable that error free Bye Laws are specified. (See Second Proviso to Section 14 of the M. C. S. Act 1960 as
amended) .
No wonder we have hardly any discipline in cooperative housing societies. There are incidents of older societies conceding this right to members
although they continue to be governed by Model 1984 Bye Laws, thanks to members indifference towards assuming responsibility of management.