Recent changes in Maharashtra Co-Operative Society Act 1960
Recent changes in Maharashtra Co-Operative Society Act 1960
Following are some of the important
changes done in the MCS Act, 1960 and also in the Model Bye-laws of Cooperative
Housing societies.
Condition
for membership –
Applicant to take 10 shares of Rs.50
each as against 5 shares. Bye law No.22 on rights of membership talks about the
right to receive the notice of demand from society if there is increase in
minimum contribution of member in share capital.
Definition of
Associate member –
Ownership in the property
individually or jointly with others is must and whose name does not stand first
in the share certificate.
Education
and training of Co-operative members, committee members, officers and employees
–
Education and Training fund of Rs.10
per member per month to be collected as against Rs.3 per member per annum.
Regarding
use of Sinking Fund –
Sinking fund can be utilised by the
society and no permission of the Registrar is needed. General body permission
however, is must.
Transfer
of Property:
NOC of society for transfer of flat
or property is not required.However, Rule 24 and Bye law No.38 on transfer of
shares and interest wants the transferring member to give 15 days notice to the
society of his intention to do so alongwith the consent of the transferee
member.
Management
Committee Elections:
Elections of management committee
must be notified six months in advance and to be held under the supervision of
the newly constituted State Co-operative Election Authority (SCEA).
Sec.73CB: Casual vacancy in management committee to be informed
to Election Authority and co-option is not allowed.
Sec.77-A
& 78: Strength of Management
committee and Reservation of seats for Women and for members of SC,ST & OBC
category with Expert and Functional Directors appointment possible subject to
conditions.
Sec.73AAA
& bye law No.113: Last date for conducting AGM
is 30th Sept as against 14th August.
Appointment
of Auditors, their Remuneration, Rights and Responsibilities, removal etc.
Auditor should be a panel auditor
and maximum appointment for consecutive three years and maximum 20 audits
excluding for societies with paid capital of less than Rs.1 lac. Additional
responsibility to file FIR if misappropriation, etc is provided. Special & Specific
Reports to be filed with Registrar
Sec.81/R-
69/Bye law 150-152: Cash expenses limit Rs.1500/-
as against Rs.4500/-in Bye laws.
Bye
law No.144 /R-107D: Cash in Hand at the close of
the day limit increased from Rs.300 to Rs.5000/-
Bye
law 143/R-107C: For encroachment of common areas by
members to be charged at 5 times the monthly maintenance charges for the period
of such encroachment.
Bye
law No.168: Applicability and adoption of
Accounting standards prescribed by state government and by ICAI-Sec.81 &
notification dtd. 29th Oct.2014. Filing of Annual Mandatory Returns with the
Registrar.
Sec.79(1A)
& 79(1B): Penalties prescribed for
various offenses and consolidated penalty for all defaults to be Rs.5000/-
maximum in any financial year.
Bye
law No.164(a): Concept of Emergency Planning
Scheme and Fire Safety Audit introduced.
Bye
law No.75: The Maharashtra Fire
Prevention and Life Safety Measures Rules, 2009, made it mandatory for building
owners and residents to conduct half – yearly fire safety audits and submit the
report to the fire department. As per the directive of Directorate of
Maharashtra Fire Services, the safety audit has to be conducted by the
‘Licensed Agency” approved by them.
Other
Important bye law provisions auditor should know:
o
Structural Audit has to be done
once in 5 yrs for building ageing 15-30 years and once in 3 years if
building ageing more than 30 year by BMC approved structural engineers.
o
One time limit for repairs and
maintenance expenses management committee can decide is Rs.1 lac Max. else
General Body permission must.
o
Cheques should be signed by
Secretary And Chairman/Treasurer and same with the vouchers.
o
Mandatory filing of Annual returns
and auditors appointment should be insisted for.
o
Security bond for holding cash from
the employee and officer -500 and 1000 if paid up capital is less than 1.50
lacs and Rs.1000 & 2000 if it is more than 1.50 lacs
o
The word “Administrator” has been
removed and now the term is “Authorized Officer”
o
Audit rectification memo needs to be
submitted to Registrar in O form within 3 months from the date of the audit
report and even auditor has to give remarks on that.
o
Dismissal of committee if the
election due date is not intimated or mandatory returns are not filed & non
submission of audit rectification report etc.
o
Copy of Bye laws, list of members to
be kept open for inspection to public free of charge
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