REDEVELOPMENT OF HOUSING: ASSOCIATE MEMBERSHIP IN HOUSING SOCIETY
The issue of Associate Membership and this is the trickiest area where it is found that most of the Societies are ill-driven over the issue and construe this term according to their suitability.
Associate member is not termed as an "Owner" of the property, in any sense and "Associate Member" has no rights under any law on the ownership of the property by sharing percentage with the First Registered Member whose name appears in the Sale Agreement.
Only the First Registered Member of the Society can appoint or nominate an "Associate Member" giving a "Representation Power" by awarding and executing “Simple Power of Attorney". The Second or subsequent Registered Member if any, does not have any power to nominate an "Associate Member".
However, the tenure of Associate member is co-terminus with the death of the First Registered Member. The Second Registered Member cannot replace the First Registered Member and bestow any "Representation Power" or “Simple Power of Attorney" to that Associate member at any point of time.
The Associate Member can vote, contest elections and attend the AGM/SPGM with prior consent of the First Registered Member in writing. This pleasure is valid till his Associate membership is continued and it is invalided if the First Registered Member decides to withdraw or cancel the Associate membership.
It is mandatory for the Managing Committee to include the name of the "Associate Member" in the share certificate and mention the word "Associate Member".
Upon receiving the proposal from the First Registered Member in prescribed form, the Managing Committee of the Society has no right to refuse (whether relative or in broad term as non-relative) to admit as an Associate Member unless having a blemish record being a convicted criminal, under-age person or a mentally unfit person as defined in the Contract Act.
The First Registered Member can apply for cancellation of the "Associate member" and change or reapply for Associate membership as many times he wishes to by submitting the Requisite Form + Fees" as applicable, for Associate Membership and the Society is bound to change the Associate Membership in the share certificate accordingly.
Dilip Shah & Associates
Senior Counsellors and Analysts for Redevelopment of Housing Societies
www.redevelopmentofhousingsocieties.com
dilip7shah@gmail.com, 9819825752, 3241153
