In cooperative housing societies, confusion often arises regarding the removal of office-bearers, especially the Treasurer. The legal position is clear under the Model Bye-laws: the Managing Committee has the authority to remove an office-bearer, and General Body approval is not required.
Who Appoints the Treasurer?
The General Body elects the Managing Committee members, but it is the Managing Committee that elects the office-bearers from among themselves. These office-bearers typically include:
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Chairman
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Secretary
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Treasurer
Since the Treasurer is appointed by the committee, the power to remove the Treasurer also rests with the committee.
Removal Through No-Confidence Motion
As per Bye-law 125, a Treasurer can be removed by passing a No-Confidence Motion.
The process is structured and mandatory:
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At least one-third of the total strength of the Managing Committee must submit a written notice proposing the motion.
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Upon receipt of such notice, a special meeting must be convened.
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The meeting must be conducted in the presence of the District Deputy Registrar (DDR) or an officer not below the rank of Assistant Registrar.
This ensures transparency and procedural fairness.
Voting Requirement to Remove Treasurer
For the No-Confidence Motion to succeed:
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A minimum two-thirds majority of the committee members present and entitled to vote must support the motion.
If this threshold is achieved:
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The Treasurer immediately ceases to hold office.
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There is no requirement for approval from the General Body.
What If the Motion Fails?
If the No-Confidence Motion does not secure the required two-thirds majority:
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The motion is deemed to have failed.
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A fresh No-Confidence Motion cannot be brought against the same office-bearer for a period of six months from the date of the earlier motion.
This safeguard prevents misuse of the provision for frequent harassment.
Key Legal Principles
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The General Body elects committee members, not office-bearers.
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The Managing Committee elects and removes office-bearers.
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Removal of Treasurer requires a No-Confidence Motion under Bye-law 125.
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Two-thirds majority is mandatory.
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General Body approval is not required.
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A failed motion cannot be repeated within six months.
Conclusion
The Treasurer can be removed solely by the Managing Committee through a properly conducted No-Confidence Motion. The law empowers the committee to manage its internal leadership without seeking General Body approval. However, strict compliance with procedural requirements and majority rules is essential to ensure validity of the removal.
