Revoke share certificate
Mahesh Mirchandani
(Querist) 09 August 2013
This query is : Resolved
Sir
I WOULD LIKE TO UNDERSTAND CAN A MANAGING COMMITTEE OR A SECRETARY HAS POWERS TO REVOKE A SHARE CERTIFICATE JUST BECAUSE ITS BEEN ISSUED 30 YEARS AGO TO A GARAGE WTHOUT ME OWNING A RESIDENCIAL OR OFFICE PREMISES IN THAT SOCIETY
V R SHROFF
(Expert) 09 August 2013
NO, WITHOUT DUE PROCESS OF LAW
prabhakar singh
(Expert) 09 August 2013
Right!as is the question so is the answer.
Mahesh Mirchandani
(Querist) 09 August 2013
SORRY Mr SINGH I DID NOT UNDERSTAND YOUR REPLY AS THE QUESTION SO THE ANSWER PLEASE BE KIND TO ELEBORATE
Rajendra K Goyal
(Expert) 09 August 2013
The relative rules(Society and State) are to be looked into. If Rules permit, it can revoke by adopting process of law.
ajay sethi
(Expert) 09 August 2013
you cant have share certificate issued for a garage . it has to be for a flat . the issue of share certificate itself was wrong . society can issue you show cause as to why certificate should not be revoked . consider your reply and after hearing you pass a reasoned order .
you are at liberty to challenge the order before cooperative court
Mahesh Mirchandani
(Querist) 09 August 2013
Dear Mr Ajay Sethi
Acoording to the MCS ACT a garage can be issued a share certificate
Please verify your facts before giving a statement
with due respects for you and the profession
Guest
(Expert) 09 August 2013
Mr. Mahesh,
Please quote the relevant section of the MCS Act.
ajay sethi
(Expert) 09 August 2013
can you point out specific provision wherein for garage separate share certificate can be issued by the society
Mahesh Mirchandani
(Querist) 09 August 2013
MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1960
The Maharashtra Co-operative Societies Act, 1960 and the Model Bye Laws
The object of the Maharashtra Co-operative Societies Act, 1960
The object clause of the Maharashtra Co-operative Societies Act, 1960 states that the Act was promulgated to consolidate and amend the law relating to Co-operative societies in the state of Maharashtra. The Act further states that it was necessary to amend law in a manner so that there was an orderly development of the co-operative movement in the State of Maharashtra in accordance with the relevant directive principles of the state policy as laid down in the Constitution of India.
Eligibility criteria for becoming a member of a co-operative society
As per Section 22(1) of the Maharashtra Co-operative Societies Act, 1960, the following persons are eligible to become member of a Co- operative Society.
a. An individual who is competent to contract under the Indian Contract Act, 1872.
b. A firm, company or any other body corporate constituted under any law for the time
being in force, or a society registered under the Societies Registration Act, 1860.
c. A society registered, or deemed to be registered under the Act.
d. The State Government or Central Government.
e. A local authority.
f. A public trust registered under any law for the time being in force for the registration
of such trusts.
Refusal by Co-operative Society for membership to any person
As per Section 23(1) of the Maharashtra Co-operative Societies Act, 1960, no society shall without sufficient cause, shall refuse membership to any person if he is otherwise duly qualified for membership under the provisions of this Act and the Approved Bye-Laws of the Co- operative Society Limited.
Time limit for refusal of membership of the society
Section 22(2) of the Maharashtra Co-operative Societies Act, 1960 lays down that where a person's application for membership to a society has been rejected, he should be intimated about the same with reasons, within fifteen days of the date of the decision or within 3 months from the date of receipt of the application for admission, whichever is earlier. If the society fails to communicate the decision to the applicant, within three months from the date of the receipt of such application, he shall be deemed to have been admitted as a member of the society.
Fees payable for adding an extra name in a share certificate issued by a society
When any person, who is eligible to be an associate member, wishes that his name is added in a share certificate, as a member, he has to pay an entrance fee of Rs. 10/- towards addition of his name as an additional member. This entrance fee is chargeable towards every additional name included in a share certificate to the society. This has been laid down in Model Bye-law No. 21 of the Model Bye-laws framed for a Co-operative Housing Society Ltd.
MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1960
Procedure for transfer of shares in a Co-operative Housing Society
The procedure for transfer of shares in a Co-operative Housing Society is laid down in the "Model Bye- law No. 40 of Bye-Laws Of The Co-operative Housing Society Limited". As per Model Bye-Law No. 40(a), a member of a co-operative housing society desiring to transfer his shares and interest in the property of a society has to give 15 days' notice to the Secretary of the society in the prescribed form (Appendix 19) intimating that he intends to transfer his shares, right and interest in the property of the society, indicating the name of the intended transferee and the amount of consideration. The consent of the proposed transferee in the prescribed form (Appendix 20) accompanies the notice of member. The notice of the member will be considered by the Managing Committee of the society to decide whether the member is eligible to transfer his shares/interest. A member is not eligible to transfer his shares/interest in society if he has held such shares or interest for less than one year (Sec 29(2)(a) of the Act). As per Model Bye-law No. 40(c) the decision of the ineligibility for transfer shall be communicated to the member within 3 days of the decision of the Managing Committee. If the member is found eligible to transfer his shares in the property of the society he is called upon to submit his application for transfer of shares in the prescribed form [Appendix 21(1) for individuals and 21(2) for corporate bodies] with the share certificate along with an application for membership by the transferee in the prescribed form
(Appendix 22 for individual and Appendix 23 for corporate bodies.) The Member has also to pay the transfer fee and give an undertaking to discharge all the liabilities which may become due on transfer of shares. For a detailed list of documents required for a transfer of a flat, please refer to Annexure No XVIII on page 99 of this book.
As per Model Bye-Law No. 41(c), the Committee will then communicate the decision on the application for transfer of shares/interest in the property to the proposed transferee within three months of its receipt. If the decision on applications is not communicated within three months of its receipt, the transfer application will be deemed to have been accepted and the transferee shall be deemed to have become a member of the society.
Nomination
Nomination means transferring the shares and/or interest by a member in the capital/ property of a co-operative society to another person who is referred to as the nominee, in the event of the death of the member. Such a nomination is done by a member making an application in a prescribed form to the co-operative society. A nomination comes into force only after the death of the person who has made the nomination.
Nomination does not amount to transfer of rights of the member in the society to the nominee.
By nomination, the nominee is actually appointed as a trustee and the society merely transfers the share certificate in the name of the nominee on the death of the person who had made the nomination.
Separate share certificate for a garage in a co-operative society
A separate share certificate can be issued by a society for the garage in a co-operative society.
The maximum amount of transfer fee on the transfer of share certificate in a society
Under Model Bye-law No.40(d) (vii) of The Co-operative Housing Society Limited, the amount of
Raj Kumar Makkad
(Expert) 09 August 2013
There might be such share certificate issue previously but the soceity cannot withdraw it without following the due process.
Raj Kumar Makkad
(Expert) 09 August 2013
There is a provision in the Act for issuance of share certificate even for the garage so no arbitrary power can be used to revoke it.
Guest
(Expert) 09 August 2013
Mr. Mahesh,
Your question pertains to "a share certificate ......... issued ...... 'TO' a garage."
In fact there is very small difference in two small words, but a lot of difference between the terms "FOR" and "TO" for interpretation in law.
The provisions of the the MCS ACT says, "separate share certificate can be issued by a society 'FOR' the garage in a co-operative society."
But the question arises, TO WHOM share certificates are to be issued FOR the garage, whether to a person/legal body for a garage or TO a garage (in its name)?
Your question does not indicate whether these shares have been isued in your name or in the name of a garage. You should better be clear in yourself on the issue.
According to the MCS Act, the following persons are eligible to become member of a Co-operative Society.
• An individual who is competent to cont
ract under the Indian Contract Act, 1872.
• A firm, company or any other body corpor
ate constituted under any law for the
time being in force, or a society register
ed under the Societies Registration Act,
1860.
• A society registered, or deemed to
be registered under the Act.
• The State Government or Central Government.
• A local authority.
• A public trust registered under any law
for the time being in force for the
registration of such trusts.
Just see, if your garage or you fall within any one of the eligible entity who can become member and share can be issued to whom.
Mahesh Mirchandani
(Querist) 09 August 2013
Dear Mr Dhingra
The share certificate has been issue to me i am the owner of those shares for that property know as a garage
we have 2 share holdings in 2 different members names
According to the MCS Act, the following persons are eligible to become member of a Co-operative Society.
• An individual who is competent to cont
ract under the Indian Contract Act, 1872.
THIS APPLIES TO ALL MEMBER WHETHER THEY BUY A FLAT OR A SHOP OR A GARAGE
SO WE ARE COMPETENT TO CONTRACT AND WE BOUGHT THE PREMISES 35 YEARS AGO AND WE HAVE A SHARE CERTIFICATE FOR BOTH GARAGES EACH.
Mahesh Mirchandani
(Querist) 09 August 2013
Central Government Act
Section 11 in The Indian Contract Act, 1872
11. Who are competent to contract.- Every person is competent to contract who is of the age of majority according to the law to which he is subject, 3[ and who is of sound mind, and is not disqualified from contracting by any law to which he is subject.
Guest
(Expert) 09 August 2013
Mr. Mahesh,
You have not touched the point, which I raised. I have not raised any question about your competence to contract. The question is what name is shown in the share certificates in whose favour issued, whether your own name is there as the shareholder, or the "garage No. ..." etc., has been shown in place of name, whom issued?
ajay sethi
(Expert) 09 August 2013
mr mirchandani
do you have any flat in the society ? if you don't have any flat in the society society ought not to have issued you a share certificate for the garage . if a flat owner owns a flat and also a garage then society can as per the model bye law pointed out by you issue share certificate separately for the garage .
why is the society seeking to revoke issue of share certificate ? any reasons mentioned for the same ?
Mahesh Mirchandani
(Querist) 09 August 2013
The share certificate is in my name also hold the name of the garage no and i do not own any other property in that society
V R SHROFF
(Expert) 09 August 2013
========DUE PROCESS OF LAW:
OBSERVING NATURAL JUSTICE........
Co-operative court will decide your dispute, after leading Evidence and relevant Authorities/ citations and provision of Mah Co-op Soc Act/ Rules /bye- laws [Even if AGM decide it]
MC Action is ultra-vires.
They have only power to transfer share certificate, not revoke.
Guest
(Expert) 09 August 2013
What society's updated byelaws speak about the garages?
ajay sethi
(Expert) 09 August 2013
since you don't own any flat in the society then you ought not to have been issued share certificate by the society . merely for a garage society ought not to issue share certificate .
in any case society will issue you show cause notice . you can file your reply to the same . if any order is passed you are at liberty to challenge it before cooperative court
