Housing Society Bye-laws are the rules and regulations laid down for the proper and peaceful running of the co-operative housing societies. Co-operative society bye-laws are approved by the government authorities and are formed with the intention to help the societies self-regulate themselves.
MODEL BYE-LAWS OF COOPERATIVE HOUSING SOCIETY
VII. MEMBERS, THEIR RIGHTS, RESPONSIBILITIES AND LIABILITIES
II. RIGHTS AND DUTIES OF MEMBERS
(G) Transfer of Shares and Interest in the Capital/Property of the Society
Bye Law No 38(a) Notice of transfer of Shares and interest in the capital/property of the Society
A Member, desiring to transfer his shares and interest in the capital/property of the Society shall give 15 days’ notice of his intention to do so to the Secretary of the Society in the prescribed form, along with the consent of the proposed transferee in the prescribed form.
Bye Law No 38(b) Secretary to place such notice before next Committee Meeting
On receipt of such notice, the Secretary of the Society shall place the same before the meeting of the Committee, held next after the receipt of the notice, pointing out whether the Member is prima-facie eligible to transfer his shares and interest in the capital/property of the Society, in view of the provisions of Section 29(2)(a) of the Act .
The Maharashtra Cooperative Societies Act 1960
Chapter: III – MEMBERS AND THEIR RIGHTS AND LIABILITIES
Section 29 – Restrictions on transfer or charge of share or interest
(2) A member shall not transfer any share held by him or his interest in the capital or property of any society, or any part thereof, unless–
(a)he has held such share or interest for not less than one year;
Bye Law No 38(c) Informing ineligibility within 8 days
In the event of ineligibility (in view of the provisions of section 29(2)(a) & (b) of the act) of the Member to transfer his shares and interest in the capital/property of the Society, the Committee shall direct the Secretary of the Society to inform the Member accordingly within 8 days of the decision of the Committee.
The Maharashtra Cooperative Societies Act 1960
Chapter: III – MEMBERS AND THEIR RIGHTS AND LIABILITIES
Section 29 – Restrictions on transfer or charge of share or interest
(2) A member shall not transfer any share held by him or his interest in the capital or property of any society, or any part thereof, unless–
(a)he has held such share or interest for not less than one year;
(b)the transfer is made to a member of the society or to a person whose application for membership has been accepted [by the society, or to a person whose appeal under section23 of the Act has been allowed by the Registrar; or to a person who is deemed to be a member under sub-section (1A) of-section 23.].
Bye Law No 38(d) No Objection Certificate not required but if required may be issued within 1 month
“No Objection Certificate” of the Society is not required to transfer the shares and interest of the transferor to transferee. However in case such a certificate is required by the transferor or transferee, he shall apply to the Society and Committee of the Society may consider such application on merit, within one month.
Bye Law No 38(e) Documents to be submitted by the Transferor/Transferee.
The Transferor / Transferee shall submit following documents and fulfill compliance as under:
| i. | application in the prescribed form, for transfer of his shares and interest in the capital / property of the Society, along with the Share Certificate; |
| ii. | application in the prescribed form for Membership of the proposed Transferee; |
| iii. | resignation in the prescribed form Member / Transferor; |
| iv. | Registered Agreement with Stamp Duty paid; |
| v. | valid reasons for the proposed transfer; |
| vi. | undertaking to discharge all the liabilities to the Society by Transferor; |
| vii. | payment of the transfer fee of Rs. 500/- |
| viii. | remittance of entrance fee of Rs. 100/- payable by the proposed Transferee; |
| ix. | payment of the amount of premium at the rate to be fixed by the General Body Meeting but within the limits as prescribed under the circular, issued by the Department of Co-operation / Government of Maharashtra, from time to time. No additional amount towards donation or contribution to any other funds or under any other pretext shall be recovered from transferor or transferee. |
| x. | submission of ‘No Objection Certificate’, required under any law for the time being in force or order or sanction issued by the Government, any financing agency or any other authority; |
| xi. | the undertaking / declaration in compliance with the provisions of any law for the time being in force, in such form as is prescribed under these bye-laws. |
Note: The condition at sr. no. (ix) above shall not apply to transfers of shares and interest, of the transferor in the capital / property of the Society to the Member of his family or to his nominee or his heir / legal representative after his death and in case of mutual exchange of flats amongst the Members.
Bye Law No 39(a) Disposal of transfer applications
The procedure for disposal of applications for transfers of shares and/ or interest of Members in the capital/property of the Society as laid down under the bye-law No. 62 shall be followed by the Secretary and the Committee of the Society.
Bye Law No 39(b) Committee / General Body not to ordinarily refuse any application for Membership or transfer of Shares
A meeting of the Committee or the General Body, as the case may be, shall not refuse any application for admission to Membership of transfer of shares and interest in the capital/property of the Society except on the ground of noncompliance of the provisions of the Act, the Rules and the Bye-laws of the Society or any other law or order issued by the Government in exercise of the statutory powers vested in it.
Bye Law No 39(c) Deemed to have been Admitted if not communicated within three months
If the decision of the Committee/General Body meeting as the case may be, on the application for transfer of Shares and/or interest in the capital/ property of the Society is not communicated to the applicant within three months of its receipt, the transfer application shall be deemed to have been accepted and the transferee shall be deemed to have been admitted as a Member of the Society as provided under Section 22(2) of the Act.
The Maharashtra Cooperative Societies Act 1960
Chapter: III – MEMBERS AND THEIR RIGHTS AND LIABILITIES
Section 22 – Person who may become member
(2) Where a person is refused admission as a member of a society, the decision (with the reasons therefore) shall be communicated to that person within fifteen days of the date of the decision, or within three months [from the date of receipt of the application for admission, whichever is earlier. If the society does not communicate any decision to the applicant within three months from the date of receipt of such application the applicant shall be deemed to have been [admitted] as a member of the society.] [If any question arises whether a person has become a deemed member or otherwise, the same shall be decided by the Registrar after giving a reasonable opportunity of being heard to all the concerned parties.]
Bye Law No 39(d) Unauthorised transfer-null and void
Any transfer made in contravention of the Act, Rules or the Bye-laws shall be void and not effective against the Society
Bye Law No 40. Rights of Membership when to be exercised by the transferee
The Transferee shall be eligible to exercise the rights of Membership on receipt of the letter in the prescribed form from the Society or order under section 22 or 23 of the Act from the Registrar; subject to the provisions of the MCS Act 1960, Rules and Bye-laws.
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