Management of a Housing Society in State of Maharashtra is regulated by Section 73 of Maharashtra Co-Operative Society Act (MCS Act) 1960. If you read the said section, you would mark that, it (i) vests management of society in a committee formed in accordance with the Act, Rules & Bylaws (ii) Confers power to exercise and imposes duty to perform. (iii) Makes jointly and severally responsible for all the decisions, acts and omission that bearing on society (iv) Mandates executing a bond by the member of committee. The act never talks about betraying the obligations that come along with the powers.
The word “Committee” has been defined by Model Bylaws as the Committee of management or board of directors or the governing body or other directing body of a cooperative Housing Society, by whatever name called, to which the management of the affairs of a Society is entrusted and vested under section 73 of the Act. The definition gives a sense of organised governance and not of a mess otherwise seen even for small concerns of yours. Getting a proper stamp over your communications to society is very basic of all and sometimes, the apathy and ignorance of office bearers get on your nerves.
An array of powers for Office bearers (Secretary /Chairman/treasurer/ Member, MC) are provided by the Society’s own bylaws subject to associated responsibilities. It is important to note that Housing Society’s own bylaws are a mere customization of Model bylaws for the state. Which in turn is subject to Co-operative Society Act of the State and which in turn cannot be in Violation of Multi State Co-operative Society Act of UoI and of course MSCS Act is reflection of spirits of Constitution of India. It is therefore, deduced that any provision of a law framed by local body/state contravening the spirits of Constitution of India will not stand judicial scrutiny. Meaning that failing to comply with the obligations of office bearers, which seek basically to ensure individual’s constitutional rights, attract charges of corruption upon the office bearers to be tried under law.
Enumeration of Manning of Management Committee
Needless to say, proper management of a Housing society requires adequate manning of Members in the management committee and contingency provisions to meet fill the inadequacy. The Housing society being a body-corporate, General body of the society elects committee members to suffice the benchmark requirement depending upon the No. of members staying in a Society.
Model Bylaw 113 of MCS is about benchmark strength of Committee & 114 is about Election of Committee. Term of original committee lasts for 5 years unless resigned or expelled. Two expert directors and two functional directors can be co-opted for proper management of society, if need be.
In the instances where the housing society has contribution of the Government towards its share capital, the members of the committee shall include two officers of the Government nominated by the State Government.
Management of Housing Society’s Affairs is a Dedicated Section of The Model Bylaws in accordance with MCS Act 1960. It is produced below as is:
XII. MANAGEMENT OF THE AFFAIRS OF THE SOCIETY
109. Subjects to the provisions of the Act, the Rules and the Bye-laws of the Society, the final authority of the Society shall vest in its General Body Meeting, summoned in such manner as is specified in these Bye-laws.
110. The Management of the affairs of the Society shall vest in the Committee duly constituted in accordance with the provisions of the Act, the Rules and the Bye-lawsof the Society.
111. Subject to the direction given or regulation made by a Meeting of The General Body of the Society, the Committee shall exercise all powers, expressly conferred on it and discharge all functions entrusted to it under the bye-law No. 137.
112. A Banking Account shall be opened by the Society in the nearest State or District Central Co-op Bank / a Scheduled Bank having awarded “ A “ Audit Class in last three consecutive years, , Nationalised Bank, and in any other mode permitted by general or special order of the State Government, as provided under section 70 of the Act and the account shall be operated upon and all acquaintances and discharges shall be signed by the Secretary jointly with the Chairman or Treasurer.
113. The Committee shall consist of *11 / 13 / 15 / 17 / 19 Members of the Society. This strength includes the reservation of seats as provided under section 73B and 73C of the Act.
Note: *The strength of the managing committee and strength of the quorum for conducting the meeting would be as under:
| No of Members of the Society | Strength of the Managing Committee | Quorum for Meeting * | |||||
| General | Reserved | Total | |||||
| Women | SC/ST | OBC | VJ/NT/SBC | ||||
| Up to 100 | 6 | 2 | 1 | 1 | 1 | 11 | 6 |
| 101 to 200 | 8 | 2 | 1 | 1 | 1 | 13 | 7 |
| 201 to 300 | 10 | 2 | 1 | 1 | 1 | 15 | 8 |
| 301 to 500 | 12 | 2 | 1 | 1 | 1 | 17 | 9 |
| 500 above | 14 | 2 | 1 | 1 | 1 | 19 | 10 |
114. a. Election of all the Members of the Committee shall be held once in 5 years, before the expiry of its term, in accordance with the provisions of Sec 73- CB of the Act and the Rules / procedure framed there under. It shall be the duty of the Committee to intimate to the State Election Authority for holding of its election before expiry of its term. On failure the Committee Members shall cease to hold office after expiry of its term, and attract action by the Registrar under section 77 A.
b. The Committee of the Society may co-opt two “Expert Directors” relating to the objects and activities under taken by the Society. The number of such co-opted Members shall not exceed two in addition to the strength of the committee as provided in bye-laws No. 113., such co-opted Members shall not have the right to vote in any election of the Society in their capacity as such Member or to be eligible to be elected as office bearers of the committee.
c. The Committee of the Society may co-opt two “Functional Directors”, such Members shall be excluded for the purposes of counting the total numbers of the committee and shall have no right to vote.
d. In respect of housing society having contribution of the Government towards its share capital, then the members of the committee shall include two officers of the Government nominated by the State Government, which shall be in addition to the number of members specified as above, and as provided under section 73 AAA of the Act.
e. The Election of the Society shall be conducted by the State Cooperative Election Authority under section 73CB
115. No Officer of the Society shall have shall have any interest, directly or indirectly, otherwise than as such officer: ( a ) In any contract made with the Society.( b ) In any property sold or purchased by the Society. ( c ) In any other transaction of the Society, except as investment made in or loan taken from the Society for provision of residential accommodation by the Society to any paid employee of the Society.
116. No person shall be eligible for being elected as a Member of the Committee or co-opted on it, if :
a. he / she has been convicted of the offence, involving moral turpitude, unless the period of six years has elapsed since his conviction;
b. he /she defaults the payment of dues to the Society, within three months from the date of service of notice in writing, served either by hand delivery or by registered post, demanding the payment of dues;
c. he /she has been held responsible under Section 79 / 88 / 147 of the Act or has been held responsible for the payment of the costs of enquiry under Section 85 of the Act;
d. In case of an Associate Member, non-submission of the no-objection certificate and undertaking, as prescribed under these bye-laws, by the Member;
e. he is not an Active Member;
f. he has without previous permission in writing has sublet his flat or part thereof or given it on leave and license or care taker basis or has parted with its possession in any other manner or has sold his shares and interest in the society.
117. In a General Election of Members of the Committee of a Society, on the election of two-thirds or more number of Members, the Returning Officer or any other Officer or Authority conducting such election shall within seven days after the declaration of results of the election of such Members, the committee has, for whatever reason, has not been so far constituted, forward their names together with their permanent addresses to the Registrar, who shall, within fifteen days from the date of receipt thereof by him, publish or cause to be published such names and addresses by affixing a notice on the Notice Board or at any prominent place in his office; and upon Constitution of the Committee such publication, the Committee of the Society shall be deemed to be duly constituted. In determining two-thirds of the number of Members, a fraction shall be ignored.
118. a. A person shall cease to be the Member of the Committee, if:
i) he has incurred any of the disqualifications mentioned under the byelaw No. 116 or;
ii) he has failed to attend any three consecutive monthly meetings of the Committee, without leave of absence.
b. If a Member of the Committee attracts any of the disqualifications under the bye-law no. 118 (1), the Committee shall record the fact in the minutes of its meeting and the Secretary of the Society shall inform the Member and Registrar accordingly. Such Member shall cease to be the Member of Managing Committee on the order of the Registrar
119. No Member of the Committee shall be present at the consideration of any matter, in which he is directly or indirectly interested.
120. The period of office of the Committee elected under the bye-law No. 114(a) shall be for 5 years from the date of assuming the office.
121. a. The first meeting of the newly elected jointly with outgoing Committee shall be held within 30 days from the date of constitution of the new committee as per bye-law No. 117 and the provisions of Section 73AAA.
b. Subject to the provisions of the bye-law No. 121(a) the Secretary of the outgoing Committee shall issue notice of the first meeting to the Members of the newly elected Committee and the outgoing Committee thereof. On the failure of the Secretary of the outgoing Committee to convene the joint meeting, the Chairman of the outgoing Committee shall call it. On the failure of both, the registration Authority may call such a meeting.
122. All records of the Society shall be kept at its premises, convenient to the secretary, with the approval of the Committee of the Society.
123. When the new Committee is elected, the Secretary of the outgoing committee shall prepare the list of papers and property of the Society in his custody and hand over the charge thereof to the outgoing Chairman. The retiring Chairman shall hand over the charge of the office of the Committee and all papers and property of the Society, in his possession to the Chairman of the new Committee, as per provisions contained in Section 160 of the MCS Act 1960.
Note : The word ‘Paper’ used in this bye–laws and any other bye-laws shall mean all and / or any items mentioned in the bye-laws nos.141 and 142, and data / information in digital form.
124. a. Every Committee, at its first meeting, after its election shall elect a Chairman, Secretary and Treasure from amongst the Members of the Committee.
b. The Officer of the Society shall hold office for the period of 5 years from the date on which he is elected to be the Chairman as the case may be the Secretary and Treasurer but not beyond the expiry of term of the Committee. Provided that he shall cease to be the Officer, if the motion of No Confidence is moved in the special meeting of the Committee called and presided by the Registrar or such officer not below the rank of a Assistant Registrar upon the notice given by 1/3rd Members of the Committee and the motion of No confidence is passed by the 2/3rd Members present at such meeting, who are entitled to vote at the election of such Chairman, Secretary or Treasurer.
Provided further that another motion of No Confidence shall not be brought against the Chairman or as the case may be the Secretary or Treasurer of the Society unless the period of 6 months has elapsed from the date of preceding motion of the No Confidence.
125. The Committee meeting shall be normally held in the premises of the Society. The quorum for committee Meeting shall be as mentioned in Bye-law No. 113. It shall not be competent for the Committee to transact any business unless there is the quorum at the time of consideration of every item on the agenda of the meeting of the Committee.
126. a. The Committee shall meet as often as necessary but at least once in a month.
b. in case of emergency, the Committee may place a resolution and get the same passed by the committee Members, however the same be placed before the next subsequent meeting.
127. The Committee may fill a casual vacancy on the Committee by nomination out of a same class of Active Members in respect of which the casual vacancy has arisen as per section 73 CB and as per the instruction issued by State Cooperative Election Authority.
128. The period of office of the co-opted Member of the Committee shall be coterminous with tenure of Office of the Committee.
129. A Member of the Committee may, by a letter addressed to the Chairman of the Society, resign his Membership of the committee. The resignation shall be effective from the date it is accepted by the Committee or on expiry or the period of one month from the date of the receipt of the letter or resignation by the Chairman or the Secretary of the Society, whichever is earlier.
130. a. The Chairman of the Society may resign his office as Chairman by a letter addressed to the Secretary of the Society;
b. The Secretary or Treasurer of the Society may resign his office as Secretary or Treasurer by a letter addressed to the Chairman of the Society.
c. Chairman/Secretary/Treasurer’s resignation will be effective only after its acceptance and handing over the charge to the newly elected Chairman/Secretary/Treasurer, as the case may be.
d. The Committee may accept the resignation of the office of the Chairman/Secretary/Treasurer only after it is satisfied that the Chairman or as the case may be the Secretary or Treasurer of the Society has brought up to date the work entrusted to him and has produced the entire papers and property of the Society, in his possession, before the Committee.
e. In case entire committee intends to resign, the resignations of the committee shall be placed before the General Body and such resignations shall be effective from the date of acceptance of such resignations by the General Body. This fact of acceptance of resignations of the entire Committee by the General Body, shall be communicated to the Registrar by the outgoing officers and Registrar may take necessary action as provided under section 77 A of the Act. However, the existing Committee shall continue to carry on with only routine functioning of the Society, till alternate arrangement is made by the Registrar.
131. The Secretary of the Society shall give 3 clear day’s notice of meetings of the Committee to all the Members of the Committee which shall state the date, time and place of the meeting and the business to be transacted there at, in consultation with the Chairman of the Society. Where the Secretary of the Society fails to issue such a notice and agenda of any meeting of the Committee, the Chairman of the Society shall issue it. If the Chairman and the Secretary of the Society fail to issue a notice and agenda of any meeting of the Committee, the concerned Housing Federation, of which Society is affiliated, on its receipt of such information and request may call such a meeting.
132. The Chairman of the Society shall preside over all the meetings of the Committee, provided that if at any meeting of the Committee, he is absent, those Members of the Committee present shall elect one of them to be the Chairman, for that occasion, who shall preside over the meeting.
133. Every Member of the Committee shall have one vote. However, in case of equality of votes the chairman of the meeting will have a second or casting vote. All decisions shall be taken by majority of vote.
134. On a requisition by 1/3rd of the Members of the committee, the Secretary of the Society shall convene a special meeting of the Committee within 7 days of the date of receipt of the requisition to discuss the matter mentioned in the requisition to discuss the matter mentioned in the requisition. On the failure of the Secretary of the Society to convene such a meeting within the time stipulated the procedure laid down under the bye-laws No. 131 shall be followed
135. The Secretary of the Society shall attend every meeting of the committee and record its minutes and place the same for confirmation before the next meeting of the committee, after the minutes are signed by the Secretary of the Society and the chairman of the meeting in the absence of the Secretary the Chairman of the Society shall make alternate arrangement for recording minutes of the meeting.
136. The Members of the Committee shall be jointly and severally responsible for all the decisions taken by the committee during its term relating to the business of the Society. The Members of the committee shall be jointly and severally responsible for all the acts and omissions detrimental to the interest of the Society.
Powers and Duties of Management Committee: List
137. Subject to the bye – law 111 the Committee shall exercise the powers and discharge the functions and duties as mentioned hereunder.
| Sr.
no.
|
Items of the powers, functions and duties | The bye-law no. under which the Power, Function or Duty falls |
| 1. | To consider acceptance of deposits from Members and raising of funds | 11 |
| 2. | To consider and recommend to the meeting of the general body, the rates of contribution | 13 (a) and 13 (c) |
| 3. | To consider all matter relating to the creation, investment and utilization of the Repairs & maintenance, Reserve Fund and Sinking Fund. | 12(i) and (ii) 14 (a) (b) and (c) 15 |
| 4. | To consider and decide the resignations received form Member, Associate Members & Nominal Members. | 27 to 30 |
| 5. | To ensure that nomination and revocations thereof are recorded in the minutes of the committee. | 32 |
| 6. | To take action on the report of the Secretary on inspection of the Flats. | 46 (b) |
| 7. | To take action on cases of cessation of Membership, including associate and nominal Membership | 58 |
| 8. | To consider and decide the applications for various purposes received by the Society | 62 |
| 9. | To Consider and decide cases of refund of shares and interest in the capital/ property of the Society where the shares and interest in the capital / property are acquired by the Society | 63 |
| 10. | To fix the rate of insurance premium in respect of commercial use of flats. | 66 a) (xi) |
| 11. | To fix in respect of every flat the Society’s charges on the basis of the proportion laid down under the bye-law | 69 (a) 66 (b) |
| 12. | To review the position of recovery of the charges due to the Society from Members and to initiate action against defaulted charges of the Society | 69 |
| 13. | To verify compliance of the provisions relating to charging of interest in defaulted charges of the Society | 69 |
| 14. | To authorise a Member of the Committee to attest deed of conveyance, share certificates and any other documents to which the seal of the Society is affixed. | 72 |
| 15. | To issue letters of allotment of flats to those who have purchased flats from the Promoter (Builder) | 74 |
| 16 | To make available papers of the Society for perusal if asked for by the Members | 23 |
| 17. | To ensure holding of every annual meeting of the general body are kept on the agenda of the meeting | 93 |
| 18. | To ensure that all matters required to be considered at an annual meeting of the general body are kept on the agenda of the meeting | 93 |
| 19. | To call a special meeting of the general body when required | 95 |
| 20. | To arrange for election of a new Committee prior to the expiry of the period of the existing Committee. | 114 |
| 21. | To ensure that after elections new committee is duly constituted | 117 |
| 22. | To elect office – bearers of the Society | 124 |
| 23. | To ensure that a meeting of the committee is held once in a month | 126 |
| 24. | to fill in vacancies of the Committee | 127 |
| 25. | To consider resignation of a Member of the committee | 129 |
| 26. | To consider resignation of an office bearer of the Society | 130 |
| 27 | To obtain securities from the paid employees of the Society | 146 |
| 28. | To approve the audit rectification reports of statutory and internal audits and to forward them to the authorities concerned | 152 |
| 29. | To execute deed of conveyance of the land and building / buildings thereon. | 153 |
| 30. | To take steps to maintain the property of the Society in good condition and to carry out repairs to it and renewals thereof. | 154 and 157 |
| 31. | To Insure the property of the Society | 159 |
| 32. | To suggest to the general body meeting the rates of penalties for breaches of bye-laws and to issue show cause notices. | 164 |
| 33. | To regulate operation of the lift of the Society | 166 |
| 34. | To suggest to the meeting of the general body the games to be allowed to be played in the compound of the Society | 167 |
| 35. | To consider and decide any other matters provided under the MCS Act 1960, the MCS Rules 1961 and the Bye-laws of the Society, but not expressly indicated herein above | 76 to 83 |
| 36. | To regulate parking in the Society. | 77 to 83 |
| 37. | To ensure that the Society is affiliated to Housing Federation and its subscription is regularly paid. | 6 |
| 38. | To take the decision on the complaint application in the Managing Committee Meeting and inform the concerned Member of its decision accordingly. | 172 |
| 39. | To enter into contract with the Architect of the Society. | 156 (f) |
| 40. | To scrutinize the tenders, received for construction work and to submit the same along with Committee’s report to the meeting of the General Body and to enter into contract with the contractor. | 156 (i) |
138. The Chairman of the Society shall have the power of overall superintendence, control and guidance in respect of management of the affairs of the Society within the frame-work of the MCS Act 1960. Rule 1961 and the Bye-laws of the Society. In case of any emergency, the chairman of the Society may be competent to exercise any of the powers of the committee. However, while doing so he shall record the reasons thereof in writing Any decision, so taken by the chairman of the Society shall be got ratified in the next meeting of the Committee.
Powers, Functions & Duties Of a Secretary to CHS
139. The functions of the Secretary of the Society shall be those mentioned below:
| Sr.
no.
|
Items of the powers, functions and duties
|
The bye-law no. under
which the Power, Function or Duty falls |
| 1. | To issue share certificate to Members within the stipulated period and the prescribed manner | 9 & 10 |
| 2. | To deal with resignations from Members including associate and nominal Members | 27 to 30 |
| 3. | To enter nominations and revocations thereof in the Nominations Register. | 31 |
| 4. | To inspect the property of the Society. | 46 (a) |
| 5. | To issue notices regarding repairs to be carried out in flats. | 46 (b)(C) |
| 6. | To deal with cases of expulsion of Members. | 48 to 53 |
| 7. | To deal with cases of cessation of Membership including associate and nominal Membership. | 54 |
| 8. | To deal with the applications for various purposes received by the Society. | 63 |
| 9. | To prepare and issue demand notices/bills for payment to the Society’s charges. | 68 |
| 10. | To bring cases of defaults in payment of the Society’s charges to the notice of the Committee. | 69 |
| 11. | To issue letter of allotment of flats. | 76 (a) |
| 12. | To issue notices and agenda of all meetings of the general body. | 97 |
| 13. | To record the minutes of all the meetings of the general body. | 107 |
| 14. | To call the first meeting of the newly constituted committee. | 121(b) |
| 15. | To issue notices of all the meetings of the Committee. | 131 |
| 16. | To attend meetings of the Committee and to record minutes thereof | 135 |
| 17. | To attend meeting accounts books, register and other records, unless otherwise decided by the committee. | 142 |
| 18. | To finalize account of the Society in the required manner | 145 (b) |
| 19. | To produce records of the Society before different authority concerned with the working of the Society with the consent of the Chairman. | 151 |
| 20. | to prepare the audit rectification reports in respect of audit memos received from the Statutory and internal Auditors. | 152 |
| 21. | To bring breaches of the Bye-laws by the Members of their notices under instructions from the committee and Penalties there to. | 164 |
| 22 | To discharge such other functions under the MCS Act 1960 the MCS Rules 1961 and the Bye-laws of the general body meetings, as are not expressly mentioned herein above | .. |
| 23. | To place the complaint application with facts before the committee, in the coming meeting. | 174 |
The MCS Act and the model bylaws also provides a well laid mechanism, for redressal of complaints, seen otherwise missing in Housing societies. You can check the mechanism mandated under model bylaws in accordance with Maharashtra Co-operative Society Act 1960 here.