No Confidence Motion

   25-05-2019 -       UMESHCHANDRA YADAV -       no comment.

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1. On what circumstances the administrator is appointed on the co. operative housing society?
Ans:  A. If prima facie it is revealed that the managing committee has committed mismanagement then an administrator can be appointed on the society by giving 15 days notice under section 78 to the managing committee and by hearing their say and after consideration of the remarks of the housing federation.

B. If a member of the managing committee is not in position to take charge of the office for any reason or if the claim those two separate managing committees elected is made and if such a claim is pending in the co-operative court then under section 77(A), an administrator can be appointed on the society. Appointment of an administrator can be made in exceptional circumstances under this section by publishing a notice on the notice board of the society without giving it to the members of the managing committee and by mentioning the reasons for such an appointment.

C. If it is explicated that the managing committee of the society is procrastinated in starting the process of election in such way that before expiring the tenure of the managing committee, the new managing committee will be constituted by completing the election process, then by nullifying the managing committee under section 73H, the administrator can be appointed.

D. If some members holds ineligibility under section 73FF, 73(1) A or for the matters mentioned in other sections or some any other reasons and consequent to that quorum is not fulfilled and therefore managing could not look after the working of the society, and if such situation arise then the administrator can be appointed.

E. If for reasons that of not taking annual general body meeting under section 75(5) or not presents financial statement before general body meeting, the managing committee is ineligible then administrator can be appointed by taking action under section 78 on the society.

2.  What is a procedure to moved no-confidence motion against office bearers of the Housing society?

Ans: No confidence motion against the office bearers of the housing society can be move under section 73 I. D. (1) (2).

Its procedure is as follow:

A. It is necessary to give no confidence motion in the format 1-18 prescribed under rule 56(A)(1) under co-operation law by signing at least 1/3 members of the managing committee members to the office of the concerned Dy./Asst. Registrar.

B. After receiving such no confidence motion then it is necessary that the registrar have to issue orders for calling meeting of managing committee on the motion by appointing authorizing officer under provision in law.

C. It is obligatory on the part of the officer appointed to organized that said meeting within 15 days from the date of notice under section 73 I.D.(3). In this meeting the no confidence motion should be passed by 2/3 majority of the number of members. This meeting could not be postponing for any reasons.

D. It is obligatory that the officer appointed for this meeting should have to give his decision the no confidence motion in M-19 format prescribed under 57(V)(7) of co-operative law. If no confidence motion is rejected then no-confidence motion cannot be moved for at least next 6 months.

3.  If the managing committee of the housing society is nullified by deciding ineligible then by which section of the cooperation law the decision taken, work done till the period of expelling then from the office are decided as illegal, invalid?

Ans: The decision taken by the managing committee & working done before the period of their explanation due to some reason under section 77(1)(2) of the co-operative law, cannot become illegal/invalid for the only reason of ineligibility.

4. Who should give charge of the office to new managing committee elected after elections? And what is its procedure?

Ans: After chairman was elected by the new managing committee then it is necessary and obligatory that the chairman of the old committee should have to give charge of the records of the society as per list prepared by the old secretary of the society to that chairman.

5. In which format the financial statement of the society should be prepared?

Ans: The financial statement, profit and loss statement, reconciliation statement should be in form N prescribed under Rule 62(1) of co-operative law.

6. What is a provision regarding preparing financial reconciliation statement by the society?

Ans: It is obligatory to prepare financial statement within 45 days after end of financial year 31st March (up to 15th May) by the housing society. Thereafter annual General Body Meeting within 3 month period (up to 14th august) should have to be called. If it was not possible to call Annual General Body meeting before 14th August then extension upto 14 November can be taken by making request to the Dy/Asst. registrar. However it is obligatory to submit financial statement to such extension taken Annual General Body Meeting. Similarly, if it is not possible to prepare financial statement upto 15th May as per rule 61, then it is necessary on the part of the managing committee of the society to inform the reasons of that to the concerned Dy/Asstt. Registrar and to take extension for preparing financial statement.

7.  What is the provision for submitting M-20 bond by the managing committee of the Housing society?

Ans: It is obligatory on the managing committee members of the housing society to prepare bond individually in format M-20 as prescribed in rule 56 and under section 73(A) & 73(A) (B) within 45 days from the date of taking charge of the office (from the date of first meeting of newly elected managing Committee) and keep it in the society’s office and to inform concerned registrar office accordingly otherwise by presuming that the posts are vacant administrator is elected. The format of the bond is as follow:

(Form M-20) See Rule 58-A

I, Shri/Smt._______________________________ age ______ residing at __________________ elected on the managing committee and its term am ________________ years. I have stared the working of the office from this date. I, today means _______ dt. ___________________ declared I will be jointly and individually responsible for those decisions taken by the society in its tenure which are related with working of the society. I. will be responsible for all such acts and disacts which cause damage to the interest of the society and for which provision is made in Section 71(1) (ab) of the Act. Sd/Seal of the society



Signature of the witness (Secretary /Chief executive officer)

The Bond letter should be executed on the stamp paper under Mumbai Stamp Act 1958.

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