n Maharashtra, societies re governed by the Maharashtra Cooperative Societies Act. This Act provides the rules and regulations governing Cooperative Housing Societies also.
Like in corporate firms, the total authorized Share Capital of a Co operative Society is fixed by the Registrar of Co op Societies at the time of registering the Society. This share capital is divided into shares of Rs, 50/- each. In housing societies, each member has to pay for 5 shares (in commercial societies 10 shares), which is the limit of his share in the liability of the Society, like in corporate firms. The paid up capital of the society need not always be equal to the authorized capital as the latter is kept higher, for future eventualities. Thus, a member owns 5 (or 10) shares in the society, for which the society issues a share certificate, giving details of the name of the member, the premises no.,share certificate no., and the distinctive nos. of the shares and the amount paid (Rs. 250 or 500).. Thus, share cert. no. 1 will be for share nos. 1-5, share cert. no 2 for shares 6-10 etc. This certificate is the only proof of the ownership of the premises by the member, as in Maharashtra, all premises are owned by the Societies and the flats are allotted to members on the basis of the share certificate only. In case of sale/transfer, after proper procedure, the share certificate is transferred in the name of the buyer from the seller and thereafter the seller has no right in the premises, as he ceases to be a member of the Society. The share certificate has to be retained by the owner of the premises as his membership is dependent on that.