Associate member in cooperative housing society- can he be a member of managing committee ?
saby031965
(Querist) 21 July 2012
This query is : Resolved
Situation 1 - We have one flat with names of 2 persons in the purchase agreement. person whose name is recorded as 1st owner in share certificate, second person name is added as the associate member, after filling form 10-A, under Bye Law 118(v) of Maharashtra and once original member surrenders his rights. As per my knowledge such Associate Member can contest elections ?
Situation 2 - We have one flat with names of only one person in the purchase agreement.His son became an Associate Member by paying an entrance fee of Rs.100 and his name is added as an Associate Member in the share certificate. After filling form 10-A and surrendering of rights by the original member, , under Bye Law 118(v) of Maharashtra. Can such associate member contest elections and be a part of MC ??
Please guide what exactly holding joint shares means ? Can someone be called holding joint shares, just by adding name in share certificate and contest elections ?
ajay sethi
(Expert) 21 July 2012
Sec. 2 (19) (b) defines "Associate Member" as a member who holds jointly a share of the Society with other, but whose name does not stand first in the share certificate. One has to ensure that in case of a joint ownership share certificates issued by the society should include both names
such associate member can atned the meetings in the absence of first member and can also stand for elections
Sec. 27(2) has put some restrictions on the right to vote. It states, "The person whose name stands first in the share certificate, if present, shall have the right to vote. But in his absence, the person whose name stands second, and in absence of both, the person whose name stands next, and likewise, in absence of the preceding person whose name is next on the share certificate, who is present and not a minor, shall have the right to vote.
* To stand for election and if elected, work as a committee member
saby031965
(Querist) 21 July 2012
Thanks Sethi Sir,
However my query is not resolved, Sir, anyone who is not a joint owner in the property and become a associate member and subsequently fills for 10-A, under 118 (v) of bye laws, can he participate in elections ?? Please guide what exactly holding joint shares means ? Can someone be called holding joint shares, just by adding name in share certificate and contest elections ? Sir the concerned property/Flat is registered in the name of one person only.
Sir, your expert advise will be of great help. Regards. Sabarwal 9892700100
ajay sethi
(Expert) 22 July 2012
Sec. 27(8) specifically states "No nominal or sympathiser member shall have the right to vote and no such member shall be eligible to be a member of a committee or for appointment as a representative of the society on any other society".
significantly there is no such restriction on associate member . once society has admitted a person as associate member , added his name to share certifcate he can stand for elections . he may not be joint co owner but he has been added as associate member .
ajay sethi
(Expert) 22 July 2012
in short such associate member can with consent of the member stand for elctions be elected to the committee
saby031965
(Querist) 24 July 2012
Thanks a lot Ajay Sir, I got the clarity, however, while going through CHS manual,paragarph relate to associate member is reproduced verbatim,Pl. last sentence means what ?? In addition sir, in case original member expires then what will be the status of such Associate member if he is elected?
"Even though there is not mentioned the name as a owner in the purchase deed, the Associate Membership can get by paying only admission fee and with the consent of the original member. In the absence of original member and with his consent
associate member can attend the annual general body meeting, the associate member can take part in the election as a voter/ candidate. In case the associate member gets elected as a committee member, he becomes office bearer also. A person, who became an Associate member by paying only admission fee, shall not get any rights in voting or election behalf the original member. It is necessary for the Associate member that his share/name is included in the ownership of property for holding share jointly.
