Issuing and transfer of shares of a CHS
When a Co-operative Housing Society of the new building is registered, then its newly elected managing committee issues share certificate to each of the flat, shop, closed garage or go-down, in the society's building.
As per new Bye-laws 2014, each of the premises, irrespective of the area or type of the premises, should be issued ten shares of Rs50 each, in one share certificate.
Share certificate issued to the member (that is, when new society is registered, and each premises of the society's building is issued the share certificate) for the first time, share certificate is freshly issued.
All fresh shares certificates are in a share certificate book, consisting of 25 or 50 or 100 share certificate each, with counter foil, in which all the details of share certificate to be issued is copied ditto.
The information of share certificate is, share certificate number, share distinctive numbers (that is, from share number x to share number y, total 10 shares), name of the flat holder/s, flat number, floor, wing, area of the flat, date if issue of the share certificate.
When share certificate is issued, signature of the share holder or first share holder (if share is held by more than one person, by virtue of buying the flat by joint agreement) is taken on the back of the share certificate's counterfoil, with date.
Rs500 (share capital value of 5 shares of Rs50 each) is collected with entrance fee Rs100 from each of the flat holder, at the time of registration of the society, by a committee, called promoters' committee, with chief promoter as its head. This is provisional committee and not the elected committee, will function till new committee is elected by election by the flat buyers.
Original share certificate is issued to the first buyer/s of the flat in the new building, by the newly elected society's committee, not by promoters' committee.
When share is issued for the first time as above, its entries are also made for the first time, in the I-form and J-form (books) of the society, in the name/s of original buyer/s of the flat.
When such original buyer sells the flat, subsequent buyer's name is written on the back of share certificate, and such change is entered in the I-form and J-form of the society.
Every time, when sale of flat takes place, there is no change made in the share certificate's counter foil, or new share certificate is not issued in place of old certificate, but its entry is made only on the back side of the original share certificate, and its changed new entries are made in the I-form and J-form of the society.
In all cases of transfer of flat, name of the original flat holder continues to remain present on front side of the share certificate, at all the times.
When the flat is sold, share certificate is transferred in the name of the buyer, after passing the transfer in the monthly meeting of the Managing Committee, and not in the AGM of the society.
AGM of the society just conforms the name change of the flat name by the committee, during the period between last AGM and present AGM of the society.
It is just a formality to know the members of the society, who are the new members of the society, by replacing the existing members, either by sale or by gift or by death.
As you say, there is no cashbook folio for the transfer of the society's share for the buyer of the flat.
For transfer of a new flat in the name of the new buyer, buyer of the flat has to fill in and submit forms, and fees as below:
(1) Appendix-2,
(2) Appendix-3 (on Rs200 Non-judicial stamp paper),
(3) Appendix-25(2) (on Rs200 Non-Judicial stamp paper),
(4) Xerox copy of the Index-2 of your sale deed,
(5) Rs500 cheque for share certificate and
(6) Rs100 cheque towards entrance fee.
Within 30 days of submission of above documents along with the fees as stated above, by the original buyer/s to the society, original buyer will be issued original share certificate in the name of the buyer/s, and an intimation of the membership letter in form Appendix-26.
A resale buyer of the flat, has to fill in and submit to the society following forms:
(1) (by seller) Appendix-20(1) and Appendix-21
(2) (by buyer) Appendix-20(2) and Appendix-23
(3) (by buyer) Appendix-3 (on Rs200 Non-judicial stamp paper),
(4) (by buyer, jointly with the seller) Appendix-25(1) (on Rs200 Non-Judicial stamp paper),
(5) Xerox copy of the Index-2 of buyer's sale deed,
(6) Rs100 cheque towards entrance fee,
(7) Rs25,000 cheque for transfer premium. and
(8) Original share certificate, which is in seller's name, to transfer it in the buyer's name by Society.
Within 30 days of submission of above documents along with the fees by the resale flat buyer/s to the society, resale buyer will be issued the share certificate (which is given to the society by the buyer) transferred in the name of the buyer/s, duly endorsed on the backside of the share certificate by the society along with an intimation of membership letter in form Appendix-26.
IMPORTANT NOTE:
Whether for getting the new share certificate or for getting transferred share certificate, if buyer of the flat or first named buyer of the flat has no independent income source, then intended member has to submit an undertaking on Rs200 Non-Judicial Stamp Paper, in the from In Appendix-4, from an earning member, who is ready to bear the cost of Society's dues for the flat to be transferred in the name of the non-earning member.
Please note: All form's Appendix numbers, are as given in Appendices of the Bye-laws of year 2014.
This is the full process of issuing the new share certificate to the newly formed society and transferring the existing share certificate when flat is resold in the society's building.
This explanation will dispel all the doubts, which you have in your mind.
[ML]
As per new Bye-laws 2014, each of the premises, irrespective of the area or type of the premises, should be issued ten shares of Rs50 each, in one share certificate.
Share certificate issued to the member (that is, when new society is registered, and each premises of the society's building is issued the share certificate) for the first time, share certificate is freshly issued.
All fresh shares certificates are in a share certificate book, consisting of 25 or 50 or 100 share certificate each, with counter foil, in which all the details of share certificate to be issued is copied ditto.
The information of share certificate is, share certificate number, share distinctive numbers (that is, from share number x to share number y, total 10 shares), name of the flat holder/s, flat number, floor, wing, area of the flat, date if issue of the share certificate.
When share certificate is issued, signature of the share holder or first share holder (if share is held by more than one person, by virtue of buying the flat by joint agreement) is taken on the back of the share certificate's counterfoil, with date.
Rs500 (share capital value of 5 shares of Rs50 each) is collected with entrance fee Rs100 from each of the flat holder, at the time of registration of the society, by a committee, called promoters' committee, with chief promoter as its head. This is provisional committee and not the elected committee, will function till new committee is elected by election by the flat buyers.
Original share certificate is issued to the first buyer/s of the flat in the new building, by the newly elected society's committee, not by promoters' committee.
When share is issued for the first time as above, its entries are also made for the first time, in the I-form and J-form (books) of the society, in the name/s of original buyer/s of the flat.
When such original buyer sells the flat, subsequent buyer's name is written on the back of share certificate, and such change is entered in the I-form and J-form of the society.
Every time, when sale of flat takes place, there is no change made in the share certificate's counter foil, or new share certificate is not issued in place of old certificate, but its entry is made only on the back side of the original share certificate, and its changed new entries are made in the I-form and J-form of the society.
In all cases of transfer of flat, name of the original flat holder continues to remain present on front side of the share certificate, at all the times.
When the flat is sold, share certificate is transferred in the name of the buyer, after passing the transfer in the monthly meeting of the Managing Committee, and not in the AGM of the society.
AGM of the society just conforms the name change of the flat name by the committee, during the period between last AGM and present AGM of the society.
It is just a formality to know the members of the society, who are the new members of the society, by replacing the existing members, either by sale or by gift or by death.
As you say, there is no cashbook folio for the transfer of the society's share for the buyer of the flat.
For transfer of a new flat in the name of the new buyer, buyer of the flat has to fill in and submit forms, and fees as below:
(1) Appendix-2,
(2) Appendix-3 (on Rs200 Non-judicial stamp paper),
(3) Appendix-25(2) (on Rs200 Non-Judicial stamp paper),
(4) Xerox copy of the Index-2 of your sale deed,
(5) Rs500 cheque for share certificate and
(6) Rs100 cheque towards entrance fee.
Within 30 days of submission of above documents along with the fees as stated above, by the original buyer/s to the society, original buyer will be issued original share certificate in the name of the buyer/s, and an intimation of the membership letter in form Appendix-26.
A resale buyer of the flat, has to fill in and submit to the society following forms:
(1) (by seller) Appendix-20(1) and Appendix-21
(2) (by buyer) Appendix-20(2) and Appendix-23
(3) (by buyer) Appendix-3 (on Rs200 Non-judicial stamp paper),
(4) (by buyer, jointly with the seller) Appendix-25(1) (on Rs200 Non-Judicial stamp paper),
(5) Xerox copy of the Index-2 of buyer's sale deed,
(6) Rs100 cheque towards entrance fee,
(7) Rs25,000 cheque for transfer premium. and
(8) Original share certificate, which is in seller's name, to transfer it in the buyer's name by Society.
Within 30 days of submission of above documents along with the fees by the resale flat buyer/s to the society, resale buyer will be issued the share certificate (which is given to the society by the buyer) transferred in the name of the buyer/s, duly endorsed on the backside of the share certificate by the society along with an intimation of membership letter in form Appendix-26.
IMPORTANT NOTE:
Whether for getting the new share certificate or for getting transferred share certificate, if buyer of the flat or first named buyer of the flat has no independent income source, then intended member has to submit an undertaking on Rs200 Non-Judicial Stamp Paper, in the from In Appendix-4, from an earning member, who is ready to bear the cost of Society's dues for the flat to be transferred in the name of the non-earning member.
Please note: All form's Appendix numbers, are as given in Appendices of the Bye-laws of year 2014.
This is the full process of issuing the new share certificate to the newly formed society and transferring the existing share certificate when flat is resold in the society's building.
This explanation will dispel all the doubts, which you have in your mind.
[ML]
I (Mr. Y) bought in a flat no "B18" (Building B Flat 18) in Pune in 2000 from Mr. X in Pune. After that the back side share certificate shows information that Flat "A" is transferred from Mr. X to Mr. Y.
ReplyDeleteIn 2013, the Society where I bought a flat was reconstructed. After reconstruction, the Building name is changed to Varadvastu. My flat new flat no is Varadvastu 304.
Now society is giving me a new certificate which will mention the new Flat Number.
My question here is, the new share certificate should have old transfer history? i.e. Flat "A" is transferred from Mr. X to Mr. Y.