Conditions for firm or a company to become member

By Legal Bureau

Terms and conditions for firm or a company to become member of a society : The government Maharashtra has lays down the following terms and conditions subject to which the firm or a company may be admitted as member of a society which is federal or urban society or which conducts or intends to conducts as industrial undertaking namely :-
(1) The applicant of the firm or company for admission to the membership of the society is made as provided by rule 19 of the Maharashtra Co-operative Societies Rules, 1961 and is signed by the person duly authorised in that behalf by the firm or company, as the case may be.
(2) The head office or branch of the firm or company, is within area of operation of the society.
(3) Firm or company carried on its business within the area of operation of the society; and
(4) The firm or company purchases at least 5 shares of such society ; and
(5) The aims and object of the firm or company are not contrary to those of the society :
Provided that in the case of an urban society which is a housing society the following special terms and conditions shall apply subject to which a firm or company may be admitted as a member of such society, namely :-
(a) the bye-laws of the society concerned do not contain any provision prohibiting the firm or the company from becoming its member;
(b) the firm or the company concerned is a corporate body or registered body;
(c) the memorandum and the articles of association of the firm or the company concerned provide for the provision of dwelling houses by them to their employees;
(d) the firm or the company concerned holds land or building only for the purpose of providing residential accommodation to its employees ;
(e) the memorandum and the articles of association (if any) allow the firm or the company, as the case may be, no utilise its funds for providing its employees with dwelling houses and the firm or the company agrees to pay out if its own funds the full cost of willing houses to be allotted to its employees;
(f) the firm or company concerned pays to or deposits with the society in advance, the whole of the proportionate cost of construction and other charges.
(g) The firm or company concerned gives an undertaking to the society that it shall not allow any of its employees to occupy or to continue to occupy any tenement from time to time, unless the employees makes an application through such firm or company and is admitted as a nominal member and continues to be such member of the society. – Order No. CHS 1791/CR-148/14-C, dt.10-3-1995.
Care taker flats : Such a registered firm or company must hold land or building only for the purpose of providing residential accommodation to its employees.
When a firm or a company is admitted as a member in the housing co-operative society, it nominates a person who occupies the flat of a company. He is a care taker of such flat or a representative of a company. Or firm. Such a person is a nominal member of the co-operative society. He has no right to vote and also not eligible for contesting election of the society or cannot become a member of the managing committee.