Our society is 40 years old and wishes to go for redevelopment, but we are not getting decent offers from developers. One of the members is a numerologist and has advised to change the society's name to get better offers. Is the namechange possible, if yes, what is the procedure? Soni Kumar, Dadar
I can hardly comment upon the reason quoted for the name-change. With regards to seeking a decent offer from developer, it depends on the project's feasibility and financial viability, available and consumed FSI, scope for constructing additional flats, financial capacity of developer and other requisite clearances. The society's name may be changed in accordance with section 15 of the Maharashtra Co-operative Societies (MCS) Act, however, it should not refer to any caste or religious determination and should not be inconsistent with the society's objectives.
The name may be changed by passing a resolution at the general meeting and with the registrar's approval. Such change does not affect any right or obligation of the society or its past or deceasedmembers. Any pending legal proceedings may continue under the new name. Such name-change has to be initiated with an amendment to the bylaws and shall be notified in the gazette. A resolution with two-third majority of the members present and voting is required to amend the society's bylaws.
Subsequently, the society shall send the original registration certificate for amendment to the registrar, who shall return it after the society is duly amended. The registrar shall enter the new name in the register of societies maintained by him. (Refer rule 24 of MCS Rules, bylaw 166)
Our seven-floor building with one member on each floor is an extension of an existing building. The society has issued the share certificates to us but is neither putting our names in Form J nor including us in any activities. We have opened a joint account to collect the amount given by the seven members for the common expenses. The erstwhile building is old and they wish to go for redevelopment. Considering the issues with the managing committee (MC), we feel stuck and seek guidance. Kartik Subramanium, Matunga
Ideally, the MC should comply with the MCS Act, rules and bylaws and should not discriminate with the members of the new building. However, if things do not work amicably between the two sets of members, you may file a complaint for non-compliance with the registrar. Section 17 of the MCS Act provides for the amalgamation, transfer, division or conversion of a society. You may consider making a request to your MC to divide itself into two societies as per the MCS Rules. If your society is desirous of division, the MC should submit an application giving details about the proposed division to the registrar. After scrutiny, the registrar may give approval for division if it is in the society's interest.
Subsequently, the MC shall convene a special general meeting giving 15 clear day notice to all the members and the creditors, if any, to pass a resolution for division by two-third majority of the members present and voting in the meeting. The resolution passed should contain the purpose and full scheme indicating how the division shall be useful to the society and be given effect thereto. Such a notice should be published in at least one newspaper in circulation in the district in which the society is located and a copy thereof has to be exhibited on the notice board and the registrar’s office.
Within a month from the date of the notice to the members, creditors and other persons whose interests are likely to be affected by the division are deemed to have accepted the same if they have not exercised their option to demand payment of their shares. The society shall submit a report to the registrar of the action taken by it (in creditors' regards) and request him to give effect to its division.
On receipt of such a report, the registrar should satisfy himself that the procedure has been properly followed and subsequently cancel the registration of the existing society and register the two new societies after division. In case, you feel that the MC may not cooperate, you may request the registrar to issue directions for the division citing the reasons and supporting documents. The registrar is empowered to issue directions for amalgamation, division and reorganisation of societies if it is in the public interest or the interest of the members. (Refer sections 17 and 18 of the MCS Act and clauses 16, 17 of the MCS Rules)
The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat. The questions, in brief, may be sent to fpjchs@gmail.com
