Open Forum has no legal standing*


*Open Forum has no legal standing*


• An open forum or informal gathering in a Cooperative Housing Society (CHS) does not have any legal standing to make binding decisions. 

• Only decisions made during a formal, legally constituted meeting of the General Body or the Managing Committee are valid and enforceable. 


*General Body Meeting vs. Open Forum*


• General Body Meeting (AGM or SGBM) is a formal meeting of members to discuss issues and take decisions.


• Open Forum is an Informal Gathering.


*Legal Authority*


• General Body meeting has legal authority. It is the supreme decision-making body of the society, acting under the Cooperative Societies Act, Rules, and society's own bye-laws.


An Open Forum has no legal authority. It is an unofficial discussion that does not have the power to pass binding resolutions.


*Notice and Agenda*


• In a General Body meeting a formal notice with a clear agenda must be sent to all members within a specified time frame.


• In an Open Forum - No formal notice or agenda is legally required.


*Quorum*


• A General Body requires a minimum number of members (quorum) to be present for the meeting to be valid.


• In a Open Forum - No quorum is necessary, as it is just a informal discussion.


*Minutes*

• In General Body meeting, formal minutes of the meeting must be recorded and signed to document the resolutions passed.


• In a Open Forum, no official minutes are recorded, making any agreements difficult to enforce.


*Voting*


• In GB meeting, decisions are made by voting, with resolutions requiring a simple or special majority to pass.


• In Open Forum, there is no official voting, so any agreement is non-binding.


*Binding Decisions*


• In a GB, any decision or resolution passed is binding on all society members, whether they attended the meeting or not.


• In a Open Forum, any consensus or outcome is not binding and cannot be legally enforced by the Managing Committee.


*Importance of following proper procedure*


1) Relying on informal "open forum" discussions for major decisions is a bad practice that can lead to conflict and legal disputes. 


2) For a decision to be valid and enforceable, the Managing Committee must follow the proper procedure:

• Give a formal notice to all members.

• Ensure the required quorum is present.

• Take up matters from a pre-defined agenda.

• Formally pass a resolution by a vote.

• Record the decision in the official meeting minutes. 


*Members responsible*


• Society Managing Committee members try to hood wink members by holding Open Forum meetings.

• Members who are more often than not, are not aware of the byelaws, rules and regulations and hence are gullible to manipulation.

• *It is the duty of all members to become aware of the basic byelaws of the society, else, they are themselves responsible if the MC manipulates them.


• *A good and transparent Managing Committee will never hold Open Forums for important issues.

It should always call GB meeting to discuss issues and take decisions.


Dayanand Nene.

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