Society AGM meeting rules in Maharashtra

• 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.
• The notice for convening the AGM, has to be signed by the secretary of the society.

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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. 

What are the society AGM meeting rules?

• 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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What are the sequence of steps followed in housing society AGM ?

1. Wait for the quorum to be formed.
2. The chairman of the housing society welcomes all the members.
3. Maintain attendance of all members by taking their signatures in the society register.
4. Discuss the points decided before hand in the AGM.
5. Close the AGM with vote of thanks.

Once the AGM is over, the minutes of the meeting is circulated to all members and it is ensured that all members are aware about decisions taken in the AGM.

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. 
• In the AGM, the committee with the help of a balance sheet explain to the society members the income and expense account for the year. The financial documents should be in line with the directives mentioned by the registrar.

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.

Committee report

The committee should also present a compiled report that has the chairman’s signature to prove its validity.

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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

See also: How much can housing societies charge as society transfer charges?

Who can attend society AGM?

Only the owner of the house can attend the AGM.

Can a co-owner attend society 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.

Can power of attorney holder attend AGM of society?

No 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 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.

No. A society cannot charge absentee fee from any active or inactive member because of not attending the AGM.

Can society charge penalty for not attending AGM?

No. A society cannot charge absentee fee from any active or inactive member because of not attending the AGM.

Can inactive members vote in society 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 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 addressed before the cooperative court.

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AGM vs SGM: Key differences

In cooperative housing societies in Maharashtra, Annual General Meetings (AGMs) and Special General Meetings (SGMs) serve distinct purposes and operate under different guidelines:

Frequency:

• AGM: Held once annually, typically before September 30th.
• SGM: Convened as needed to address urgent matters that cannot wait until the next AGM.

Purpose:

• AGM: Covers a broad agenda, including reviewing annual reports, financial statements, elections, and future planning.
• SGM: Focuses on specific urgent issues requiring immediate attention.

Initiation:

• AGM: Mandatory and scheduled by the management committee as per statutory requirements.
• SGM: Can be called by the chairman, a majority of the committee, or upon a written requisition by at least one-fifth of the society’s members. 

Notice Period:

• AGM: Requires a minimum of 14 clear days’ notice to all members.
• SGM: Requires at least 5 clear days’ notice; in emergencies, a shorter notice is permissible if the committee unanimously agrees. 

Quorum:

• Both Meetings: A quorum is constituted by two-thirds of the total members or 20 members, whichever is less.

AGM related queries asked by readers

Draft of AGM MoM is circulated sometimes 6 months after 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 be formed by 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, 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.

Are decisions taken by managing committee in absence of minimum quorum legal?

See also: Maharashtra housing society bye-laws

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