Society annual general body meeting rules in Maharashtra

As per the model bye-laws for cooperative housing societies in Maharashtra, every housing society has to hold an AGM, every year, before September 30. 

• The notice for convening the AGM, has to be signed by the secretary of the society.
• The AGM of the society cannot be convened unless a notice of 14 days is given to the members.
• 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 cannot be treated as invalid, unless an order declaring the meeting as such is passed by the cooperative court.

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Who can attend AGM of housing society?

For conducting the business at the AGM, the law stipulates that 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, should be present to constitute the quorum for the AGM. Consequently, small housing societies sometimes find it difficult to ensure the quorum. For big housing societies, even a small proportion of the total members may add up to 20 members being present in the meeting and constitute a quorum.

Before the AGM begins or once it if over, all members present have to sign their attendance against their flat number.

What is done in absence of quorum as per society AGM meeting rules?

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.

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How to conduct AGM of housing society? 

Financial matters

The main purpose of the AGM of a society, is to adopt and approve the annual accounts of the society by the members and to receive an annual report of the affairs of the society. The auditors of the society are also appointed at the AGM. 

Other matters to be discussed in AGM

In addition to the above business, the AGM can take up any other matter, even if the same is not included in the notice.

• Improvements that can be done in the society
• Complaints regarding members conduct, car parking, open spaces, behaviour, cleanliness etc.
• Matters regarding the staff such as employment, salary etc.
• Events to be planned and held.
• Introducing any future plans like painting of the building, repair of the lift system, implementing solar panels or changing the lift system.
• Election dates.

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.

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What cannot be discussed in AGM unless proper notice is give? 

1. Expulsion of members of the society
2. Amendment of the bye-laws of the society
3. Bifurcation, amalgamation, or division of the society
4. Transfer of property of the society

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What happens if a member does not attend the AGM?

In August 2021, the Maharashtra government removed the ‘inactive member’ provision in Section 26 of the Maharashtra Cooperative 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 Cooperative 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.

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Minutes of AGM of housing society

Post the AGM, the committee shall finalise the draft the minutes of the AGM within three months of the date of the meeting and share with all society members, within 15 days. The final minutes will be done on acceptance from all members. Conflict over resolutions of the managing committee and the general body will addressed before the cooperative court.

Can power of attorney holder attend AGM of society?

Note that no other proxy person or person with power of attorney is eligible to attend an AGM as a society member.

Can a nominee attend AGM?

A nominee cannot be allowed to attend the AGM of a housing society. He also cannot be allowed to propose any resolution or vote for any resolution in the society’s AGM.

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Can a co-owner attend 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.

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AGM related queries asked by readers

The draft of AGM/SGM minutes of meeting is never circulated to the society members but directly circulated that too six months after the AGM. Can these MoMs be challenged for their validity?

“As per Bye-law No. 108, the committee has to finalise the draft minutes of every general body meeting of the society within three months from the date of the meeting and circulate the draft minutes amongst all the members of the society within 15 days of the meeting of the committee at which draft minutes were finalised. The members may thereafter within 15 days provide their suggestions and objections to the committee on the draft minutes which may be considered by the committee while finalising minutes and get it recorded in the minute book,” says Ramesh S. Prabhu, chairman, Maharashtra Societies Welfare Association.

According to Prabhu, when the minutes have to be challenged, they need to be challenged for its facts and the decision which are in violation of the provisions of the Act, Rules, Notifications and bye-laws. For example the bye-law provides that the service charges should be charged to each flat equally, irrespective of its size or type and if resolution is passed that the service charges will be charged on square feet basis which is in violation of the provisions of the bye-laws.

Provision of bye-law No. 108 is about the procedural aspect. The procedural lapses normally will not be considered by the court to set aside the minutes. If something was decided but not recorded or certain resolution was recorded which are contrary to what was decided and if you are able to bring out in the pleadings before the court and you also mention the above procedural lapses, the court may set aside the same.

The petitioner will have to bring out those evidences in the form of affidavit signed by maximum members who attended the meetings. The days mentioned in these types of bye-laws are considered as directive and not mandatory. However, ultimately, it is the co-operative court which will decide for such lapse, the entire minutes can be considered as legal or illegal.

 

Can a subcommittee/task force be formed by managing committee without inviting society members to be part of the subcommittee/taskforce? If not, would the decisions taken by such taskforce hold any validity?

 

According to Prabhu, as per section 73 of the Maharashtra Co-operative Societies Act, 1963 and bye-law No. 111, 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-laws of the society.  Therefore, it is upto the committee to decide to form the sub-committee or taskforce to implement its decision. There is no provision in the Act, Rules or in the bye-laws that to form such committee / task force, the managing committee has to follow certain procedure or invite the members to be part of such sub-commitee or taskforce.

Prabhu added that any decision taken by such 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. Thus the members cannot challenge or question the constitution of such committee or taskforce for not inviting the society members to be part of such sub-committee or any decision taken by them will become invalid or illegal.

Latest news: Laws pertaining to AGM of housing societies in Maharashtra

Housing societies directed to maintain FD with Mumbai District Central Co-operative Bank 

The Mumbai District Central Co-operative Bank  was appointed as the Nodal Agency and coordinator between the Maharashtra Government and housing societies. According to the Maharashtra Co-operative Societies (MCS) Act, a circular was issued by the Divisional Joint Registrar, Co-operative Societies, Mumbai, on June 1, 2023. The circular mandated all housing societies to invest and maintain their Fixed Deposit (FD) investments with the Mumbai District Central Co-operative Bank Ltd., as per the relevant sections of the MCS Act.

See also: Maharashtra housing society bye-laws

 

Interest from co-operative bank exempt for housing societies in Mumbai: ITAT

Interest from investments made in co-operative banks would be exempt in the hand of co-operative housing societies in Mumbai, the Income-tax Tribunal (ITAT), Mumbai Bench has ruled. As it is, Section 80P (2)(d) of the income tax act says that in case of any income of a co-operative housing society made by way of interest or dividend with any other co-operative housing society, the entire income is allowed as deduction. However, in the past few years, the income tac department has been adopting a contrary stance.

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(The author is a tax and investment expert, with 35 years’ experience)

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FAQs

Can a non-active member vote or contest society elections?

What is the notice period for holding AGM of cooperative housing society?

The AGM of the society cannot be convened unless a notice of 14 days is given to the members.

Can a proxy attend AGM?

No proxy or a holder of power of attorney or letter of authority shall be eligible to attend the AGM of the Society.

What is the purpose of an AGM?

The main purpose of the AGM of a society is to adopt and approve the annual accounts of the society by the members and to receive an annual report of the affairs of the society.

Can a society charging an AGM absentee fee?

No, it is illegal to charge a AGM absentee fee for any member if the CHS.

How many times AGM can be held in a year in 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.

Can family members attend society AGM?

No, only a member of the CHS is allowed to attend an AGM. In case of a co-member, if member with the first name on the share certificate is absent, member with second name can attend with the written permission from first member.

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 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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