Co-operative housing society share certificate

Namrata (Querist) 03 June 2021 This query is : Resolved
Hi

I live in a society that is 12 years old, but the Society Handover and GBM happened 5 months ago. We are in process of share certificate distribution. In the 12 years when we weren't yet a registered co-operative housing society, several flats were resold.

In this case, will the share certificate be issued in the name of the original owner who bought the flat 12 years ago and then transferred to the current owner? Or can it be prepared directly in the name of the current owner? Would appreciate any guidance in this regard.

Thanks.

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Quick Summary

This discussion addresses how share certificates should be issued in a co-operative housing society, particularly when flats have been resold before the society's registration. The consensus is that the share certificate should initially be issued in the name of the original owner who purchased the flat. The current owner can then apply to have the share certificate transferred to their name, which may involve a transfer fee. Issuing the certificate directly to the current owner could lead to legal complications.

kavksatyanarayana (Expert) 03 June 2021
Share Certificate shall be issued to the original owner and then he can transfer to the buyer. If it is prepared directly to the current owner leads to legal complications.

T. Kalaiselvan, Advocate (Expert) 04 June 2021
Whether the society was formed or registered later, the original buyer of the flat is entitled for the hare certificate and the new buyer can apply for transfer of the share certificate to his/her name subsequently.Hence you may collect the details of the original owners/members and issue the share certificate to the original owners' names alone, let the new owner pay the transfer fee to the society and get it transferred to his name subsequently.

Dr J C Vashista (Expert) 04 June 2021
There was no Cooperative society till the date it was registered and came into existence.
Accordingly the persons purchased flat(s) during the period would be part of unregistered, unrecognised and non-est association, hence they may purchase flat but can not be termed as "member/ shareholder" of Cooperative Society.

Consequently the flats purchased and sold by such person(s) (termed as "original purchaser" ) has no relation to the Cooperative Society especially qua holding or transfer share certificate of the Society stated to have been registered recently.

ashok kumar singh (Expert) 04 June 2021
agreed with views of earlier experts, therefore no further comments, so far.
thanks

P. Venu (Expert) 04 June 2021
The shares needs to be issued in the names of the flat owners who have originally constituted the Society.

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