Changes to the Model Byelaws of Co-operative Societies 2009

New model bye-laws 2009 for co-operative societies have some changes incorporated as compared with the bye-laws of 2001. These bye-laws have been printed in English by the Mumbai District Co-operative Housing Federation Ltd. after approval of the Commissioner for Cooperation and Registrar Cooperative Societies, Maharashtra State, Pune given vide letter dated 24.12.2010. Some of the changes made are given below.

Under the new bye-laws sinking fund of the society can be used by the society for reconstruction of its building or for carrying out such structural additions or alteration to the building as in the opinion of the society’s architect would be necessary to strengthen it or for carrying out such heavy repairs as may be certified by the architect. This needs to be approved by the general body only as against prior permission of the registering authority which was also required under the earlier byelaws.

Under the new bye-laws one of the conditions to be eligible for membership of a society is that an individual has to hold at least 10 fully paid shares of Rs 50 each and a firm, company or other body corporate has to hold at least 20 fully paid shares of Rs 50 each while under the earlier bye-laws an individual was required to hold at least 5 fully paid shares of Rs 50 each and a firm, company or other body corporate was required to hold at least 10 fully paid shares of Rs 50 each.

To strengthen the hands of the society for recovering dues on the death of the members, it is now provided in the new bye-laws that on the death of a defaulting member, the dues of the society can be recovered from the legal heirs of the deceased member or from the occupant of the flat.

Under the new bye-laws a bank account can be opened by the society in a State or District Central Co-op. Bank or its branch or in any Scheduled Co-op. Bank. A “Scheduled Co-op. Bank” has been included in the new bye-laws which was not the case under the earlier bye-laws. It is further provided that a society can also open an account in a nationalised bank with the prior permission of the registering authority.

Further if the paid up share capital of the society is more than Rs10,000 then election to the committee is to be held by secret ballot.

It was provided in the earlier bye-laws that in the event of vacancies caused in the committee on account of death, resignation, disqualification or removal of members of the committee, the committee can fill up such vacancies by co-option of any other members eligible to be on the committee. It has been now added in the new bye-laws that such filling of vacancies by co-option shall not be more than two.

Bye-law no. 161 has been substantially amended to include the following:
(A) The society shall insure its building against risk of fire, earthquake and flood. (B) The managing committee of every housing society shall chalk out an emergency planning scheme which shall include the following details in respect of the society and the surrounding area: (i) Probability of danger and analysis thereof, (ii) Evaluation of risk in pursuance of the probable danger, (iii) Response machinery, (iv) Important telephone numbers including emergency numbers of each and every member and numbers of officers of the Government machinery concerned with emergency management, (v) The managing committee shall hold discussions with all members in the general body meeting over the plan prepared as aforesaid and shall inform the members of the same. Such plan shall also be displayed on the notice board of the society.

Bye-law nos. 161 (C), 161 C(1), and 161 C(2) deal with child labour. It is prohibited to employ child labour for household work and other works. The managing committee of the society shall display such legal provisions on the notice board and shall create awareness in the minds of all the members for eradication of the said evil. If any member is found to have employed child labour, the managing committee shall immediately contact the office of the Labour Commissioner or the Police Station or the concerned voluntary organisation and shall inform to that effect in writing to the Labour Commissioner.

Further as per new byelaw no. 161 (D), the managing committee shall take certain precautions to see that no injustice is done to any widow in the co-operative housing society. After the death of a member of the society, while transferring the flat wherein his widow is residing, to her name, after checking the nomination letter/succession certificate, etc. only after her lawful right to the said property is established, appropriate action shall be taken as per the provisions of the Act and Rules.

Bye-law no. 176 has been added which deals with redevelopment of the buildings of the co-operative housing societies. It is provided that the redevelopment of the vacant space/ buildings owned by co-operative housing societies shall be made as per the provisions of the resolution of the Government of Maharashtra dated 3rd January, 2009 under section 79 (A) of the Maharashtra Cooperative Societies Act, 1960.