In cooperative housing societies, questions often arise regarding the eligibility of associate members to contest elections for the managing committee. Many societies believe that an associate member must have their name on the share certificate, but this is not a legal requirement. Section 154B-10 of the Maharashtra Cooperative Societies (MCS) Act, 1960, explicitly states that an associate member can contest elections with the prior written consent of the primary member, even if their name is not on the share certificate.
Who is an Associate Member Under the MCS Act?
The 2019 amendment to the MCS Act introduced Chapter XIII-B, which governs cooperative housing societies. Section 154B-2 defines an associate member as:
- A spouse, immediate family member, or relative (such as husband, wife, parents, siblings, children, son-in-law, daughter-in-law, nephew, niece, etc.).
- Someone admitted to the society with the written recommendation of a primary member.
- A person who can exercise rights and duties of a member with the member’s prior written consent.
Is It Necessary for an Associate Member to Be on the Share Certificate?
There is a key difference between the MCS Act and the model bye-laws:
- The MCS Act (Amended 2019) does not require an associate member’s name to appear on the share certificate.
- The model bye-laws (last updated in 2014) define an associate member as someone with ownership rights in the property, either individually or jointly, but whose name does not appear first on the share certificate.
Since the MCS Act is the primary law and was amended after the bye-laws, it overrides the old model bye-laws. Societies must update their bye-laws to align with the new legal provisions by following the amendment process outlined in Bye-law 166.
Can an Associate Member Contest Elections by Paying ₹100?
Yes. The law allows an individual to become an associate member by paying a nominal ₹100 fee, but they must have the written consent of the primary member to contest elections. The eligibility requirements are:
- Written consent of the primary member to participate in elections.
- Admission as an associate member by paying ₹100 to the society.
- Adherence to society rules and obligations as per the MCS Act.
Thus, societies cannot reject an associate member’s election nomination solely on the grounds that their name is not on the share certificate.
Process for a Society to Align Bye-Laws with the MCS Act
Housing societies should update their bye-laws to reflect the 2019 amendments. The process includes:
- Proposing an amendment in a General Body Meeting (GBM).
- Securing approval from a majority of members.
- Submitting the amended bye-laws to the Registrar for approval.
- Adopting the new bye-laws once approved.
Conclusion
An associate member can contest elections without being on the share certificate, provided they have the primary member’s written consent. The 2019 amendment to the MCS Act overrides previous bye-laws, making it mandatory for societies to follow the updated law. Societies should also amend their bye-laws to align with legal changes.
