Share certificate

n Maharashtra, societies re governed by the Maharashtra Cooperative Societies Act. This Act provides the rules and regulations governing Cooperative Housing Societies also. 
Like in corporate firms, the total authorized Share Capital of a Co operative Society is fixed by the Registrar of Co op Societies at the time of registering the Society. This share capital is divided into shares of Rs, 50/- each. In housing societies, each member has to pay for 5 shares (in commercial societies 10 shares), which is the limit of his share in the liability of the Society, like in corporate firms. The paid up capital of the society need not always be equal to the authorized capital as the latter is kept higher, for future eventualities. Thus, a member owns 5 (or 10) shares in the society, for which the society issues a share certificate, giving details of the name of the member, the premises no.,share certificate no., and the distinctive nos. of the shares and the amount paid (Rs. 250 or 500).. Thus, share cert. no. 1 will be for share nos. 1-5, share cert. no 2 for shares 6-10 etc. This certificate is the only proof of the ownership of the premises by the member, as in Maharashtra, all premises are owned by the Societies and the flats are allotted to members on the basis of the share certificate only. In case of sale/transfer, after proper procedure, the share certificate is transferred in the name of the buyer from the seller and thereafter the seller has no right in the premises, as he ceases to be a member of the Society. The share certificate has to be retained by the owner of the premises as his membership is dependent on that. 

Thanks for your reply.

Since I plan to sell my flat, can I obtain an allotment letter in lieu of share certificate from the society as the share details must already be recorded in the society register?

The conveyace deed is necessary between society and builder. Only after coveyance society can issue share certificate. If you want to sell flat there are other alternative in place of share certificate. If the flat is sold to you by builder then allotment letter is not the substitute.

Dear Sir,

Thanks for your reply.

What are the other alternatives in lieu of a share certificate. I understand that the bank demands  the share certificate if the buyer wishes t to take a loan.

(1) Do I have to approach the builder for the share certificate since conveyance has still not be handed over to the society?

(2) How long does it take for the conveyance deed to be handed over to the society. What is the normal time frame?

(3) If there is undue delay in handing over the conveyance deed to society, then whom should the society approach to speed up the process?

Awaiting your response.

Thanks for your kind help.

In Maharashtra for commercial spaces - Are the number of shares issued to each owner based on the square footage owned or is it a fixed number for each member of society regardless of area under ownership. Thanks.

If registererd gift deed occur between father and son before society registration then how society could release the share certificate....... society chairman is demanding 25000 as transfer fees..... Please suggest what needs to be done?

Hello! this complex question. Here it is necessary to think...

safeswiss

Hello! this complex question. Here it is necessary to think...

safeswiss

Hi,

 if a society issuing Share certificate without conveyence is invalid, isnt it ?

 

regards,

vinob

 

Hi Team, Society registration is done but conveyance deed is not done yet by the builder. 1. Society committee distribute the share certificate is this valid. 2. they did not show/ verified in committee meeting. 3. Also I read that apart from chairman/ Sec third person from committee should sign and that should be authorised by committee in meeting. but this is not followed is this valid?