Common mistakes made by managing committees of housing societies

Common mistakes made by managing committees of housing societies include:

• improper record keeping, 

• not following proper accounting practices, 

• misuse or misappropriation of funds,

• favoritism towards certain members,

•  neglecting maintenance issues, 

• not conducting regular audits, 

• failing to communicate effectively with residents, 

• not adhering to bye-laws, and not holding timely general body meetings, potentially leading to disputes and legal complications. 

Key points about these mistakes:

Financial mismanagement:

Not maintaining proper financial records or not separating funds for different purposes. 

Making unauthorized payments or not following proper procurement procedures. 

Failing to conduct regular audits or ignoring audit reports. 

Misappropriating society funds for personal use. 

Lack of transparency:

Not providing timely information to members about financial statements and important decisions. 

Not holding regular general body meetings or not following proper notice procedures. 

Ignoring maintenance issues:

Delaying necessary repairs or ignoring complaints about building maintenance. 

Not adequately budgeting for future repair needs. 

Discrimination and favoritism:

Applying rules inconsistently or showing preferential treatment to certain members. 

Not addressing complaints fairly or promptly. 

Legal non-compliance:

Not adhering to the society's bye-laws and relevant regulations. 

Failing to update important documents like membership records or property details. 

Poor communication:

Not effectively communicating important updates and decisions to residents. 

Not actively addressing member concerns or feedback. 

How to avoid these mistakes:

Establish clear guidelines:

Ensure the managing committee follows the society's bye-laws and adheres to all legal requirements. 

Regular financial reporting:

Maintain transparent financial records, conduct regular audits, and present detailed financial reports to members. 

Active communication:

Keep residents informed about important society matters through regular updates and open communication channels. 

Fair decision-making:

Ensure all decisions are made impartially and in the best interest of the entire society. 

Professional expertise:

Consider seeking professional advice from lawyers and accountants when necessary.

Dayanand Nene