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sanjay (nil)     10 February 2010

Associate Member signing Agreement Deed

Ours is a commercial society registered under the Maharashtra State Cooperative Act, and situated in Mumbai, consisting of chawl type structures. Our society has recently entered into a Development Agreement with a Developer. One of the signatories to the Deed, from the society, is an Associate Member, who does not hold any gala(shop) in his name, but has been an Associate Member of the society for over 5 years. Will his signature on the Development Agreement be valid?



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 7 Replies

Daksh (Student)     10 February 2010

Dear Sanjay,

There are two limbs to your query under reply. One is the competence of the Associate Member to do or not to do a particular act by and on behalf of your society - which could be evident from the perusal of the Articles of Association and or modalities of mandate if any for this purpose by the office bearer of the society.

Secondly even if express authority is not vested there is no bar that whatever act has been done by such member can get ratified by the society in its meeting.

I hope your query stands satisfied.

Best Regards

Daksh

V. VASUDEVAN (LEGAL COUNSEL)     10 February 2010

 Associate Members' signature is NOT VALID for the purpose of the above agreement.

vasudevan

Daksh (Student)     10 February 2010

Mr.V Vasudevan,

I would really be appreciable if you may kind enough to let us know the reason for the same?

Best Regards

Daksh

sanjay (nil)     10 February 2010

The reason is that the Associate member holds the position of the Chairman and other than the existing committee members, no other member is willing to take the post. Also, the said associate members wife has a shop in her name in the said society.

sanjay (nil)     10 February 2010

In that case, what are the options with the society. The Associate member is the Chairman of the society and the associate members wife has a shop in her name.

Also, there is lack of members willing to take the post of chairman.

V. VASUDEVAN (LEGAL COUNSEL)     10 February 2010

 As per the definications - Section 2(19(a) of the Mah.Co-op Societies Act, "member" means a person joining in application for the registration of a coop society ...or a person duly admitted to membership of a society after registration and includes a nominal, associate .. (b_ "associate member" means a member who holds jointly a share of a society with others, but whose name does not stand first in the share certificate. Hence I don't understand how an associate member's name is not found the society's records. Secondly, the associate member can only vote at the meetings (in the absence of the 1st named member) and as for transfer of any rights, all the joint-members/holders has to jointly execute the relevant documents. hence the development agreement cannot be executed by an associate member alone. vasudevan

Anil Agrawal (Retired)     17 February 2010

Well explained Mr. Vasudevan. 

 

(b)   The associate/nominal member may have a right to occupy the flat with the consent of the member and permission of the society, subject to the conditions set out by the society.

(D)    Restrictions on Rights of Associate and Nominal Members

25.    No associate member shall have any rights or privileges of a member except as provided under Section 27(2) of the Act.


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