In a housing society or cooperative society, office-bearers such as the treasurer play a crucial role in maintaining the financial integrity of the organization. The treasurer is entrusted with the management of the society’s funds, accounting, financial reporting, and maintaining transparency. But what happens when a treasurer tenders their resignation and the managing committee refuses to accept it? Can the treasurer be relieved of duties without committee approval?
Resignation of Treasurer – What the Law Says
According to Bye-Law No. 131 of the Model Bye-Laws applicable to cooperative housing societies in many Indian states, a treasurer cannot be relieved from their responsibilities unless the managing committee accepts the resignation and ensures proper handover of all financial records and duties.
In the case in question, the treasurer has submitted a resignation, but the managing committee has not accepted it, insisting that the treasurer continue till the end of the financial year. As per the legal framework and society bye-laws, the resignation is not effective until it is formally accepted by the committee. This means the treasurer remains liable and responsible for all financial matters until that point.
Mandatory Conditions for Acceptance
The managing committee must assess whether:
- The books of accounts are updated and accurate
- All relevant records, receipts, and vouchers have been maintained
- There is a smooth transition plan to hand over financial responsibilities to a new treasurer
- A competent successor has been identified and elected or nominated
- The society’s accounts and audits are not in jeopardy due to the change
Only once these conditions are met can the resignation be accepted, and the treasurer formally relieved of duty.
Importance of a Formal Handing Over Process
To protect the interests of the society and its members, a formal handover note should be prepared and signed by both the outgoing and incoming treasurers. The note must list key documents, bank accounts, passwords (if applicable), ledgers, and any pending financial tasks. This not only ensures accountability but also prevents future disputes or financial mismanagement.
What If the Treasurer Refuses to Continue?
While the committee can delay the acceptance of resignation for practical reasons, the treasurer cannot be forcibly held if they refuse to continue indefinitely. However, until formal relief is granted through committee acceptance and successful handover, the treasurer remains legally responsible for the financial operations of the society.
Conclusion
To summarize, no, a treasurer cannot be relieved without the managing committee accepting the resignation. The law mandates proper acceptance and handover procedures, especially for financial positions like the treasurer. This ensures that the society’s financial health is not compromised, and there is continuity in operations.
