Ulahannan T.V. (Export Manager) 22 August 2011

Collecting a sum by a limited co-operative society

Dear Lawyers,

I am a member of a Limited Co-operative Society in Ahmedabad having 366 tenants. The society Adminstration (nominated by the Administrator without conducting an election) issued a circular to pay 5000 per tenant to laying down the new gutter line with an agreement with AMC under a Joint venture. The society had a perfect gutter system sufficient for 366 tenants. The adjoining socieities had connected its gutter lines to its main chambers and hence all tenants facing serious problems in Monsoon.

My question is whether a Limited Co-operative Society can collect such an amount without passing a Resolution without the permission of its members? Whether they have to take any permission from any government department to collect such an amount. This is common tendency here to collect money from its members. There is another " Yuvak Seva Mandal" who is collecting 250 from its residents and 500 from the shop keepers every year during Navaratri. None of these peoples collecting money is not providing an account statement to its members and not keeping any books of accounts.

Please advice with a proper reply.

Regards,

Jose Varghese

Ahmedabad.

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3 Replies

Kanaksinh P.Boda (Educationist/Lawyer) 22 August 2011

Write to the Administrator of unauthorised collection and ger the clarification from him. For Mandal Collection, you need not contribute, as it is voluntary organisation.

V. VASUDEVAN (LEGAL COUNSEL) 22 August 2011

While the Administrator is in charge of the affairs until due elections are held, he can't usurp in the power of the members. Every proposal including the one discussed should be approved in a general body meeting duly convened by the administration. Secondly, on what basis the tentants are asked to pay also should be made known for a detailed answer

vasudevan

SAA_Bombay (Pro) 25 August 2011

Did the society committee held any Special General Body meeting for this? if no, they do not have any right to collect the money on name of society contribution. They can do so individually. Its your right to refuse for same. If they say it was discussed in meeting between committe members you can ask for minutes of that meeting & passing a resolution agreed & signed by all the committee members to collect such funds. Secondly, was this AMC decided in some meeting held by your society. here too you can ask for minutes copy. As it is a common thing in society that for profit of some will misuse the powers.