Procedure to dissolve the society committee or remove the chairperson

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Dear client,
Assuming that you are from Maharashtra state.

My first advice to member of cooperative housing societies having any question about your membership right and its management, is to exercise your legal right to peruse or get certified copy of Bye-Laws conferred under section 32 of the Maharashtra Cooperative Society Act 1960 reproduced below.

Section 32 – Rights of members to see books, etc.

(1) Every member of a society shall be entitled to inspect, free of cost, at the society’s office during office hours, or any time fixed for the purpose by the society, a copy of the Act, the rules and the by-laws, the last audited annual balance sheet, the profit and loss account, a list of the members of the committee a register of members, the minutes of general meeting, minutes of committee meetings and those portions of the books and records in which his transactions with the society have been recorded.

(2) A society shall furnish to a member, on request in writing and on payment of such fees as may be prescribed there for, a copy of any of the documents mentioned in the foregoing sub-section within one month from the date of payment of such fees.

RESPONSES TO QUESTIONS

1.The Chairman of cooperative housing society can be removed by members of the managing committee as provided in Bye-Law No 126(a), which says “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 Assistant Registrar upon the notice given by 1/3rds members of the committee and the motion of ‘No Confidence’ is passed by 3/4ths members present at such meeting, having attendance of at least 2/3rd members of the committee. In other words

a.Three committee members should send a written notice to the Registrar to hold a special meeting of the Committee to consider no confidence motion against chairman and or secretary.

b.At this meeting 2/3rd (6 members) of the total strength of the managing committee must be present.

c.Out of the members voting on the motion 3/4th (5 members) must vote in its favour.

Resolution passed in the special general body meeting is no more than expression of loss of confidence of membership in the Chairman, but that is in-effective unless taking a cue from such resolution, the chairman quits on her own. She cannot be removed by that resolution, because the office bearers are elected by the committee out of the members elected by the general body of members. As yet a “right to recall” is not conferred on the membership of the cooperative society.

The Maharashtra Cooperative Societies (Amendment) Act 2013 has amended Section 83 – (Inquiry by Registrar ) conferring powers on the members whereby

“on the application of the one-fifth members of the society the Registrar by himself or by a person duly authorised by him in writing, in this behalf, shall hold an inquiry into the constitution, working and financial conditions of the society.”

Before holding any such inquiry on an application, the registrar may having regard to the nature of allegations and the inquiry involved, require the applicant to deposit with him such sum of money as he may determine, towards the cost of the inquiry.

If the allegations made in the application are substantially proved at the inquiry, the deposit shall be refunded to the applicant, and the Registrar may under section 85, after following, the procedure laid down in that section, direct from whom and to what extent the cost of the enquiry should be recovered.

If it is proved that the allegations were false, vexatious or malicious, the Registrar may likewise direct that such cost shall be recovered from the applicant. Where the result of the inquiry shows that the allegations were not false, vexatious or malicious, but could not be proved, such cost may be borne by the State Government.

Advocate Seema Vithal Mangaonkar LawRato