Changes in authorized shares quantity of co-op hsg society
sudhakar s. yeradkar
(Querist) 06 October 2014
This query is : Resolved
Dear Sirs,
Our co-operative Hsg Society is registered being as co-op hsg society in the year 1992. The authorized share capital given by the builder at that time is Rs.100000/- as 2000 shares of Rs.50/- each share. This information is reflecting in Balance Sheet every year.
This year the AGM has decided to rectify it as 20000 shares of Rs.50/- each = Rs.1000000/-
Would like to know whether bye laws permits AGM to take such kind of decisions. If yes what is exact procedure.
Waiting for your expert advise.
Rgds
Isaac Gabriel
(Expert) 06 October 2014
It could have been done to obviate the Administrative exigencies.Amendment to this effect could be moved in the next General body meeting.
Dr J C Vashista
(Expert) 07 October 2014
GBM of the CHS is supreme and can amend its Bye-Laws, which are in consonation with the State Cooperative Societies Act.
In order to raise the funding capacity of the CHS the GBM is competent to adopt such resolution, it is valid.
However, basic share (Rs. 100/-) for the membership of CHS cannot be altered.
Hemant Agarwal
(Expert) 08 October 2014
1. Without following due procedure of law and without taking written directions from the Coop. Registrar, the "authorized share capital" of any Coop. Society CANNOT be changed (increased or decreased).
2. The Society General Body, can ONLY propose & approve a resolution for increasing "authorized share capital", BUT this can be implemented ONLY "AFTER" taking written directions from the Coop. Registrar.
Keep Smiling .... Hemant Agarwal
READ ARTICLES ON: http://hemantagarwal21.blogspot.in/?view=sidebar
T. Kalaiselvan, Advocate
(Expert) 11 October 2014
Even in my opinion, the society after passing resolution to this effect should seek permission from the registrar by enclosing a copy of the resolution and extract of the minutes of the GBM and can implement the changes after permission being granted, thus I endorse expert Mr. Hemant Agarwal's views on the subject.
