IF ANNUAL BUDGET IS NOT CONSIDERED & APPROVED
SRIPRAKASH BHATTACHARYA
(Querist) 11 September 2009
This query is : Resolved
11.09.2009
DEAR SIRS,
OURS IS LARGE CO-OPERATIVE HOUSING SOCIETY IN HAVING 264 MEMBERS. WE ARE COVERED BY THE WBCS ACT, 1983 AND WBCS RULES, 1987. EVERY THREE YEARS WE HAVE A NEW BOARD COMPRISING OF SIX DIRECTORS AND DEMOCRATICALLY ELECTED BY GENERAL MEMBERS. THE LAST ELECTION OF DIRECTORS WAS HELD ON 13.07.2008.
DURING CONDUCTION OF THE LATEST AGM ON 06.09.2009 (WITH PERMISSION OF DRCS) THE PERSONS WHO LOST THE LAST ELECTION IN 2008 ALONGWITH SOME OTHER MEMBERS DID NOT ALLOW THE SECRETARY TO READ OUT THE SECRETARY'S REPORT AND SAID THAT THEY WILL NOT CONSIDER AND APPROVE THE BUDGET. AS OUR BUILDING (14 NOS.) ARE NEARING 16 YEARS OLD AND SINCE GETTING ENTRY, NO MAJOR REPIR HAS EVER BEEN CARRIED OUT, SO THE PRESENT BORAD HAS KEPT A PROPOSAL FOR MAJOR REPAIRING AND HAS ALSO INCLUDED THE PROPOSED COST OF REPAIR IN THE BUDGET TO BE CONSIDERED AND APPROVED BY GENERAL MEMBERS.
THOUGH IN THE WBCS ACTS, 1983 IT IS SAID THAT 'IN CASE THE BOARD FAILS TO PREPARE AND PRESENT THE ANNUAL BUDGET IN THE AGM THEN THE GENERAL MEMBER TEHMSELVES WILL PREPARE A BUDGET AND APPROVE IT.
UNFORTUNATELEY NOWHERE IT IS WRITTEN IN THE ACTS NAD RULES AND IS SILENT ON THE MATTER THAT 'WHAT WILL AHPPEN IF IN CASE A BUDGET (WHICH INCLUDES PROPOSED YEARLY EXPENDITURES AS WELL COST OF PROPOSED EXPENDITURES FOR MAJOR REPAIR )PREPARED BY THE BOARD IS NOT CONSIDERED AND APPROVED BY THE MAJORITY'?
THE YEARLY PROPOSED BUDGET IS MORE OR LESS SAME OF LAST YEAR, DULY APPROVED IN THE LAST AGM.
KINDLY LET ME KNOW WHAT TO BE DONE IF IN CASE THE BUDGET IS NOT APPROIVED. REQUEST ALSO IF THERE ARE ANY CASE LAWS ON SUCH ISSUE.
SHALL BE GRATEFUL FOR A KIND AND EARLY REPLY.
Sriprakash Bhattacharya, KOLKATA
bhattacharyasriprakash@gmail.com
Mobile: 91+9836310615
riven
Adv.Aiyer VLV
(Expert) 03 October 2009
Sri Sir,
Budget is only an exercise of management to plan future expenditure, disclose information in that manner to members. There is no sanctity of budget and it does not have any relation to expenditure. The power to spend money for the objectives of the society comes from the memorandum, articles and being given the reins for carrying out the activity.
In case if anyone objects, this will get governed under ratification, under indoor management concept. Expenditure over budget are done and later brought to notice of members in similar fashion.
As long as legitimate expenditure intravires the society are being made, the members can continue to act.
Adv Lucky CS
(Expert) 03 October 2009
As regards to the Query of approval of Boards proposed budget it cannot be ratified anyways without the members as the whole.
But as Mr. VLV said you can definately carry on the legimitate expenditures.
7 further u can show them in your annual accounts before the members as EXPENDITURES & REPAIRS.
Regards
LUCKY POPLI
KRISHNUM ASSOCIATES
RASIK DAGLI
(Expert) 08 October 2009
Annual Budget is for the purpose of showing Income and Expenditure. It may not deal with any special expences.you alongwith other members should make an application to Managing Committee and request them to sanction Budget for the repairs and also make arrangment to carry out repairs etc.
If the Managing Committee do not take any action , the General Body meeting may be called ,if necessary by requisition and get the approval.
Rasik Dagli
Advocate.
