Increase in share capital by co. op. hsg. soc.

Vinayak (Querist) 01 December 2015 This query is : Resolved
CAN CO. OP. HSG. SOC INCREASE SHARE CAPITAL ON RECONSTRUCTION OF OLD BUILDING?

NO. OF FLATS IN NEWLY CONSTRUCTED BUILDING ARE SAME IN NUMBER AS THEY WERE IN OLD BUILDING.

BUT THE COST OF BUILDING IS INCREASED (COST OF OLD BUILDING IS APPROX. 3-4 LACS, COST OF NEW BUILDING APPROX 80-90 LACS)

Follow Query

Report Abuse

P. Venu (Expert) 02 December 2015
Please state your real problem, if any.

Anupam Lahiri (Expert) 03 December 2015
The actual legal issue is not clear. Pls state the clear facts which give rise to the problem.

Rajendra K Goyal (Expert) 03 December 2015
Refer the bye-laws of the society.

Vinayak (Querist) 03 December 2015
We have a co.op. housing soc. which was reconstructed. No. of members in newly constructed society are as same as they were in old. However, Some members want to increase the share capital of the society since the cost of building has increased to Rs. 90 Lacs approx as that compared to our old building of which cost was Rs. 3-4 Lacs approx.
I have referred bye laws but there is no reference regarding maximum limit upto which share capital can be increased.

So, my question is whether co. op. hsg soc. can increase share capital. If so, whether there is any maximum limit upto which the same can be increased.?

This is the real life situation

Anupam Lahiri (Expert) 03 December 2015
The limit to which the society is able to raise its capital is mentioned in the certificate of registration. Pls refer to the certificate to get an idea of its nominal capital. Upto that capital your society can raise its capital.

Vinayak (Querist) 03 December 2015
Dear All,
with regard to my above query, facts of the situation are:

SOME MEMBERS WANT TO INCREASE THE CAPITAL ON RECONSTRUCTION OF OUR SOCIETY, BUT ONE OF THE MEMBER HAS STATED THAT CO. OP. HSG. SOC. CANNOT INCREASE SHARE CAPITAL. FURTHER, I HAVE TRIED FROM MY END BY REFERRING THE BYE LAWS , BUT I DIDNT FOUND SUFFICIENT REFERENCE REGARDING WHETHER CO OP HSG SOC CAN INCREASE ITS SHARE CAPITAL & LIMIT UPTO WHICH IT CAN BE INCREASED. THUS ONLY, I HAVE POSTED THE SAME HERE ON THIS WEBSITE. PLS DO THE NEEDFUL.

Anupam Lahiri (Expert) 04 December 2015
Why r u not getting a copy of the Registration Certificate of your society? There you would find out the nominal capital of your society.

If you find that the proposed share capital is more than that at the time of its registration, then amend the Bye Law which is permissible.