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Society bye laws - associate members

(Querist) 13 August 2014 This query is : Resolved 
Dear Sir,

Thanks for responding our my request in past and it really helped me to understand better.

I just wanted a clarification, if an associate member can become part of Managing committee?

Please refer to the below with further details?


The provisions in the Maharashtra Cooperative Societies Act and Maharashtra Cooperative Societies Rules clearly state that the nomination of an associate member for election gets disqualified if his name does not appear first in the share certificate and such member cannot contest an election. Maharashtra Cooperative Societies Act’s Section 2(19)(b) clearly defines that the associate member, as a member who holds jointly a share of a society with others, but whose name “does not stand first in the share certificate”.

As per the Rule 56M of MCS Rules, 1961 and Section 2(19) (b) of MCS Act, 1960, an associate member can only cast his votes and participate in the election process but never become an office bearer in the society, where his name appears as an associate member in the society register.

ajay sethi (Expert) 14 August 2014
byelaw 118 ( v) mentions that no associate member can be elected as member of MC if NOC is not given by the member . Apendix 10 A of model bye laws mentions that NOC can be given by original member to enable assoc member to be member of MC . there is an apparent conflict between provisions of act rule 56M and bye law 118(v)
Kishor Mehta (Expert) 14 August 2014
Sir,
Cited hereunder are the regulations governing the rights and responsibilities of an Associate member of a CHS

Good Luck,
Kishor Mehta
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Associate Membership in Housing Society

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"

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.
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M V Gupta (Expert) 14 August 2014
With due respect to Mr. Sethi, I have to state that there is no conflict between By law 118 (iv) (not (v) as mentioned by Mr Sethi) and the provisions of Rule 56M and other provisions cited by the querist. Rule 56 M applies to notified Societies only and not to all. Rule 56M is part of Chapter VA of the MCS Rules whose heading reads : "Election to Notified Societies Etc." The notification should have been issued under Section 73IC. To the extent I could verify, housing societies are not notified under that Section. The resultant position is that an Associate Member can be nominated to contest the election to MC if the Member concerned has given NOC as required under Bye law 118 (iv).
T. Kalaiselvan, Advocate (Expert) 19 August 2014
I endorse the views of expert Mr. Gupta on the subject issue.


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