To provide accountability for running the co-operative housing society (CHS) effectively in Maharashtra, the state government has mandated housing societies to hold the annual general body meeting (AGM) according to its Model Bye-Laws.
The AGM should be held in a housing society every year before September 30, as per the Model bye-laws for co-operative housing societies in Maharashtra. Under Section 75(1) of the Act, there is no provision for an extension of time to hold the AGM. In this guide, we focus on rules of the AGM such as eligibility of attendees, quorum requirements, the discussions that can happen with and without notice, etc.
What is AGM in housing societies in Maharashtra?
The housing society AGM in Maharashtra is a platform that takes into account all activities that happened in a year, reviews, discusses, and updates members on all developments in the society, especially the ones that have financial implications such as major projects rolled out, maintenance, etc. The AGM helps keep all operations in a CHS transparent.
The AGM of a housing society also provides members with a platform to raise their concerns, give feedback on how the society is being managed, and participate in the decision-making process that gives a 360-degree approach to the working of a housing society.
What is the notice time period to be given to society members before holding AGM?
As per the Model bye-laws for co-operative housing societies in Maharashtra, an AGM should be held in a housing society every year before September 30. Under Section 75(1) of the Act, there is no provision for an extension of time to hold the AGM.
The notice for the AGM should be issued by the housing society’s secretary, and members should be given a maximum notice period of 21 days to attend it. The AGM of the society cannot be convened unless a minimum notice of 14 days is given to the members. Note that while computing the 14 days, the date on which the notice is issued and the date of the meeting shall be excluded.
Once an AGM is called, it is legally valid and cannot be treated as invalid unless an order declaring the meeting to be invalid is passed by the cooperative court. This reinstates the fact that it is important to follow the timelines when conducting an AGM.
Maharashtra co-operative housing society AGM: Quick Facts
| Timeline to hold the AGM | Before September 30 every year |
| Post that issues AGM notice | Secretary |
| Notice period for holding AGM | Maximum 21 days, minimum 14 days |
| Validity of AGM | Once AGM is convened, it is considered valid. |
| Quorum of AGM | 2/3rd of the members subject to a maximum of 20 members |
| If quorum not achieved | • Meeting postponed on the same day • Meeting cannot be held until seven days are passed from the original AGM date. • Meeting has to be held before 30 days from the original meeting date. |
| Should there be a quorum in adjourned AGM? | • No, a quorum is not needed, but only one person cannot attend it. Minimum two people have to attend the AGM. |
What are the rules for conducting a housing society AGM?
- To have a successful AGM, as per the bye-laws, a minimum number of members need to be present, called the ‘quorum’ of the meeting.
- A minimum of two-thirds of the total number of members, subject to a maximum of 20 members, should be present to constitute the quorum for the AGM. So, for instance, if there are 250 members in a housing society, the minimum quorum is 167 members, but the AGM can be held if there are 20 as that is the maximum number of members required to start proceedings of the AGM. A downside of this rule is that in big societies, a small portion of members add up to 20 and constitute a quorum, but in small societies, it is difficult to achieve the quorum to hold the meeting.
- Before the AGM begins or once it is over, all members present have to sign their attendance against their flat number.
Rules for absence of quorum in AGM
- In case the required quorum is not present within half an hour of the appointed time, the meeting shall be adjourned to a later hour on the same day or to a subsequent date, which cannot be earlier than seven days and not later than 30 days from the original date of the AGM.
- At the adjourned meeting, there is no requirement to have a quorum. However, the mere attendance of one person at the adjourned meeting shall still not constitute a meeting, and therefore, a minimum of two members have to be present even at the adjourned meeting.
Importance of minutes of meeting (MoM) of AGM
- The committee should draft the minutes of the meeting (MoM) within three months from the date of holding the AGM. This draft should then be shared with society members who have to revert within 15 days with their views and feedback on the MoM. Once received, the final MoM will be shared with all the members of the society.
- Any dispute over the resolutions passed by the managing committee of the housing society or the general body will be solved by the cooperative court. The final society AGM minutes to be circulated will be done on acceptance from all members. Conflict over resolutions of the managing committee and the general body will be addressed before the cooperative court. With this, any dispute that has happened during the AGM will be reviewed and legally solved.
How to conduct AGM of a housing society in Maharashtra?
The AGM plays an important role in the governance and transparent operations of a housing society.
Here are the steps followed while an AGM is being conducted:
Step 1: Wait for the quorum to be formed.
Step 2: The chairman of the housing society welcomes all the members.
Step 3: Attendance of all members is maintained by taking their signatures in the society register.
Step 4: Discuss the points decided beforehand and issued in the notice by the secretary in the AGM.
Step 5: Discuss any point that was not mentioned in the notice.
Step 6: Close the AGM with a vote of thanks.
The key matters discussed in an AGM are as follows:
MoM
The AGM of the housing complex will start by reading the minutes of the meeting of the last held AGM and any special general body meeting (SGM) if held in between.
Financial matters
- The main purpose of the AGM of a society is for the members to approve the annual accounts of the society. This involves an in-depth review of the housing society’s financial statements that will include income, expenses, assets, and liabilities.
- Members will get an annual report that will talk about the projects undertaken by the housing society, achievements of the housing society, and the challenges faced by it.
Appointment of auditor
An auditor who audits the society’s financial and compliance records, which have to be in sync with the regulatory standards, is appointed during the AGM.
Annual budget for the next financial year
The AGM will place the annual budget for the next financial year for consideration.
Discussions on communications from various authorities
The AGM can consider discussions on any important communications that it has received from the statutory auditor, registering authority, government, collector, local municipal body, etc.
Other matters to be discussed in AGM
In addition to the above business, the AGM can take up any other matter, even if it is not included in the notice. This can be done after taking permission from the chairperson. These include:
- Improvements that can be done in the society. These can include complaints regarding members’ conduct, car parking, open spaces, cleanliness, etc.
- Matters regarding the staff working in the society, such as employment, salary, etc.
- Events to be planned and held in the co-operative housing society. The managing committee can also discuss any future plans like painting the building, renovation of the lift system, implementing solar panels, etc.
- Election agenda and dates regarding the society’s managing committee can be held in the AGM.
If the business on the agenda of the general meeting of the society is only partly transacted, then the meeting can be postponed to any other date decided by the members present in the meeting, which should not be later than 30 days from the original AGM.
See also: How much can housing societies charge as society transfer charges?
What cannot be discussed in AGM unless proper notice is given?
- Expulsion of members of the society: As this includes individual member’s rights, discussion on expulsion of a member from the society requires a notice.
- Amendment of the bye-laws of the society: Any amendment of bye-laws must be included in the notice as the members need time to think about it and make informed decisions.
- Bifurcation, amalgamation, or division of the society: Any discussion pertaining to structural changes in the society has to be legally compliant. If this is mentioned properly in a notice, members can get more information about this and vote properly.
- Transfer of property of the society: Any issue related to the transfer or property of the society, like buying, selling, or renting, should be mentioned in the notice that announces the holding of the housing society AGM. This maintains transparency in financial transactions and safeguards society people’s interests.
Who can attend the housing society AGM in Maharashtra?
- Only the first owner of the house can attend the AGM.
- If an apartment has co-owners, the person whose name is mentioned first on the share certificate can attend the AGM. In case he is unable to attend, the person whose name comes second can attend the AGM with written permission from the first co-owner.
- No proxy person or person with power of attorney is eligible to attend an AGM as a society member.
- A nominee is not allowed to attend the AGM of a housing society. He also cannot propose any resolution or vote for any resolution in the society’s AGM.
See also: All about non-occupancy charges in co-operative housing societies
Can inactive members vote in society AGM?
In August 2021, the Maharashtra government removed the ‘inactive member’ provision in Section 26 of the Maharashtra Co-operative Societies Act, 1960, thus allowing all eligible members of the society to cast their vote in society elections held on or before March 31, 2022, irrespective of them attending the general body meetings.
With this modification, the 2018 ruling that ‘inactive members’ cannot cast their votes or contest housing society elections does not hold true anymore. In 2018, the Maharashtra government had made an amendment to Section 26 of the Maharashtra Co-operative Societies Act, 1960, which stated that any member of the society who had not attended five successive general body meetings would be termed an ‘inactive member’. As a result, he would lose his membership rights, including contesting elections and casting votes.
Also, a society cannot charge an absentee fee from any active or inactive member because of not attending the AGM.
Are AGM decisions without a quorum legal?
According to Bye-Law 126, decisions taken by the AGM without a quorum are illegal and can be challenged by members of the housing society. However, as per Section 77 of the Maharashtra Co-operative Societies Act, 1960, any decision taken by the AGM with good intent and which has had a positive impact on the members of the society may be considered valid in court.
Are sub-committees also elected?
No. Sub-committees do not require the involvement of society members and can be formed by the managing committee members. However, any violations committed by sub-committees will be considered the direct responsibility of the managing committee.
How many members form the managing committee in a housing society?
According to Bye-Law No 114, the strength of the managing committee depends on the number of flats in the housing society. According to Ramesh S. Prabhu, chairman, Maharashtra Societies Welfare Association, the total committee members for co-operative housing societies up to 50 members is seven. Out of these seven, two are reserved for women. The quorum for the managing committee is 3. Note that while the number mentioned for women and other reserved categories is minimum, more members can be added to the society managing committee.
Strength of the managing committee in Maharashtra as per Bye-laws
| Number of Flats (Members) in the Housing Society | Number of Members | Total |
| 101 to 200 | General: 8 Women: 2 SC/ST/OBC/VJ, NT, SBC: 1 each |
13 |
| 201 to 300 | General: 10 Women: 2 SC/ST/OBC/VJ, NT, SBC: 1 each |
15 |
| 301 to 400 | General: 12 Women: 2 SC/ST/OBC/VJ, NT, SBC: 1 each |
17 |
| 401 to 500 | General: 14 Women: 2 SC/ST/OBC/VJ, NT, SBC: 1 each |
19 |
Note that while the number mentioned for women and other reserved categories is the minimum, more than that count can be added as part of the society managing committee.
Housing.com POV
An Annual General Meeting (AGM) ensures transparency and accountability and serves as a platform to take key decisions regarding the society’s operations- finances and future developments. With the notice sent by the secretary of the housing society clearly mentioning the discussions to be made in the AGM, the members of the society will be prepared to engage in healthy discussions and taking informed decisions helping in the progress of the housing society. While it is not mandatory to attend the AGM of a housing society, it is the duty of a member of a society to attend the AGM and participate in making decisions to uphold the functionality and integrity of the housing society.
FAQs
For a registered housing society in Mumbai having 30 members, what is the minimum number of general meetings that a managing committee member and the chairman of the society need to attend to not get disqualified?
For all CHS, whether less than 30 members or more than 30 members, the managing committee should conduct a meeting every month and an AGM before September 30 of every year for approving the previous year’s accounts, mentions Ramesh S. Prabhu, chairman, Maharashtra Societies Welfare Association.
Can a subcommittee be formed by the managing committee without inviting society members to be part of it?
According to Prabhu, as per Section 73 of the Maharashtra Co-operative Societies Act, 1963 and Bye-law No. 111, it is up to the committee to decide to form the sub-committee or task force to implement its decision. There is no provision in the Act, Rules, or in the Bye-laws that to form such a committee/task force, the managing committee has to follow a certain procedure or invite the members to be part of such sub-committees or taskforces. Prabhu added that any decision taken by such a sub-committee/task force will be taken on behalf of the committee by virtue of delegation of its powers, and for any violation, as per Bye-law No. 137, the managing committee members will be held jointly and severally responsible and accountable for the loss caused to the society.
Are decisions taken by the managing committee in the absence of a minimum quorum legal?
According to Bye-law No. 126, it is not competent for the committee to transact any business unless there is quorum at the time of consideration of every item on the agenda of the meeting of the committee. This is a mandatory provision and not a directive provision. Therefore, any decision taken in the committee meeting where there is no quorum is illegal. The aggrieved member has to obtain the certified copy of the minutes and the certified copy of the attendance record for such a meeting and then challenge the same.
Can the AGM be video recorded as per the law?
According to Ramesh Prabhu, AGM video recording has been canceled according to a circular dated May 4, 2023.
How is the date for the First General Body Meeting decided?
When the developer hands over the society to the members, it calls for the First General Body Meeting (FGBM). The FGBM is decided by the Registrar office for society formation. All relevant notices and details should be shared by the developer with the society members before the FGBM.
Who can file for nominations and are eligible for voting in the FGBM?
Only members who are physically present can file for nominations and are eligible for voting in the FGBM. Members who are not present physically cannot participate in the process.
If there are co-owners, who is eligible for attending the FGBM?
In the case of co-owners, the first owner is eligible to attend the meeting, and only he can attend. In case the first gives away the voting and nomination rights to the co-owner, then only the co-owner is eligible to attend.
How many times can an AGM be held in a year in a housing society?
An AGM will be held once a year before September 30.
Can tenants attend AGM?
No, only the person whose name is mentioned first on the sale deed can attend the AGM.
Is it mandatory to attend AGM?
While it is not compulsory to attend an AGM, it is a good practice to attend one.
Who presides the AGM?
The chairman of the housing society presides over the AGM.
Whose responsibility is it to ensure the AGM is held on time?
It is the responsibility of the managing committee of the housing society to ensure that the AGM is held within the prescribed period.
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