Living within a cooperative housing society offers a unique blend of individual home ownership and collective responsibility. The cornerstone of a well-functioning society is its set of rules and regulations, formally known as the Model Bye-Laws of the Cooperative Housing Society.
Building Bye-Laws of a Cooperative Housing Society
The bye-laws act as the constitution for your community, outlining the rights and duties of members, the management structure, and the procedures for various aspects of society life. This comprehensive guide delves deeper into these essential guidelines, providing a detailed understanding of how they shape your living environment.
I. Laying the Groundwork: Preliminary Matters and Interpretation
The initial sections of the Model Bye-Laws establish the fundamental identity of the society. Bye-law 1 deals with the name of the society, the procedure for changing it, and its classification. It also covers the society’s address, the process for changing it, and the requirement for exhibiting a name board. Crucially, Bye-law 3 focuses on interpretations of the words and terms used throughout the document. This ensures that all members have a common understanding of the terminology, preventing potential ambiguities. Furthermore, Bye-law 4 defines the area of operation of the society.
II. Purpose and Connections: Objectives and Affiliation
Understanding why the society exists and its broader connections is important. Bye-law 5 outlines the objects of the society, which typically centre around providing housing and managing the related amenities for its members. Bye-law 6 addresses the affiliation of the society to other cooperative institutions, which can provide support, resources, and guidance on regulatory matters.
III. The Lifeblood of the Society: Funds, Their Use, and Investment
A significant portion of the bye-laws is dedicated to the financial management of the society. This ensures transparency and accountability in handling members’ contributions.
(A) Raising of Funds: Bye-law 7 details the different modes of raising the funds of the Society.
(B) Share Capital: Bye-law 8 specifies the authorised share capital of the Society, and Bye-law 9 outlines the issue of share certificates to the members. Bye-law 10 mandates the use of the Society’s seal and signatures of office-bearers on each share certificate.
(C) Limit of Liabilities: Bye-law 11 places restrictions on incurring liabilities of the Society.
(D) Constitution of the Reserve Fund: Bye-law 12 describes how the Reserve Fund shall be constituted and the appropriation of amounts to it, acting as a financial safety net for unforeseen expenses.
(E) Creation of Other Funds: The bye-laws mandate the creation of specific funds for essential purposes:
- Bye-law 13(a): Creation of the Repairs and Maintenance Fund for the upkeep of the society’s property.
- Bye-law 13(b): Creation of the Major Fund, likely for significant repairs or replacements.
- Bye-law 13(c): Creation of the Sinking Fund, typically for long-term capital expenditure like building repairs or redevelopment.
- Bye-law 13(d): Creation of the Education and Training Fund for member awareness and training.
(F) Utilisation of Funds by the Society:Bye-law 14 clearly defines how each fund can be used:
- Utilisation of the Reserve Fund.
- Utilisation of the Repairs and Maintenance Fund.
- Utilisation of Sinking Fund.
- Utilisation of Education & Training Fund.
(G) Investment of Funds: Bye-law 15 specifies the modes of investment of funds of the Society, ensuring they are managed prudently.
IV. The Heart of the Society: Members, Their Roles, and Responsibilities
The bye-laws meticulously define the different types of members and their associated rights and obligations.
(A) Classes of Members: Bye-law 16(A) outlines the different classes of members within the society.
(B) Eligibility for Membership: Bye-law 17 details the eligibility criteria for individuals, including minors and persons of unsound mind, and also mentions the potential need for the collector’s approval in certain cases. Bye-law 18 specifies the eligibility of Corporate Bodies for membership.
(C) Conditions of Membership: Bye-law 19 sets out the conditions for individuals, associate members, and corporate bodies desiring to become members. Bye-law 20 outlines the conditions for nominal membership, and Bye-law 21 describes the procedure for disposal of application for membership.
(II) RIGHTS AND DUTIES OF MEMBERS:
(A) Rights of Members: Bye-law 22(A) broadly outlines the rights of members.
(B) Getting Copy of the Bye-laws, Audit Report: Members have the right to obtain copies of these crucial documents. Bye-law 23 further elaborates on the rights of inspection of documents and getting copies thereof, including the inspection of books of records.
(C) Occupation of Flats: Bye-law 24(a) details the rights of occupation of flats.
(D) Restrictions on Rights of Associate and Nominal Members: Bye-law 25 clarifies that associate members have no rights of membership except under Section 27(2) of the Act, and Bye-law 26 states that nominal members have no right of membership.
(E) Resignation of Membership: Bye-laws 27, 28, 29, and 30 outline the specific procedures for resignation by different classes of members, including the requirement for full payment of society charges before resignation acceptance. Bye-law 31 concerns the acquisition of shares and interest of the member upon resignation or cessation.
(F) Nominations by Members: Bye-laws 32, 33, 34, 35, 36, and 37 detail the procedure for nomination and its revocation, the recording of nominations, and the transfer or payment of shares and interest of a deceased member to their nominee or legal heir.
(G) Transfer of shares and interest in the Capital/ Property of the Society: Bye-laws 38, 39, and 40 lay down the rules for the transfer process, including notices, document submission, and the committee’s role. Importantly, Bye-law 39(b) states that the Committee/ General Body should not ordinarily refuse any application for membership or transfer. Bye-law 40 clarifies when the rights of membership can be exercised by the transferee.
(H) Exchange of Flats: Bye-laws 41 and 42 cover the application process and disposal for the exchange of flats between members.
(I) Sub-letting etc. of Flats: Bye-law 43(a) clearly states that sub-letting is not permissible except under the Society’s permission, and Bye-law 43(b) outlines the application process for obtaining such permission. Bye-law 44 places restrictions on assignment of occupancy right in the flat.
(VIII) RESPONSIBILITY AND LIABILITIES OF MEMBERS:
(A) Maintenance of Flats by Member: Bye-law 45 mandates that the flat must be kept clean, and Bye-law 46 requires Committee’s permission for additions and alterations. Bye-law 47 outlines the procedures for examination of flats for repairs and the notices to be given to members for carrying out repairs at their own or the society’s cost. Bye-law 48 places restrictions on storing certain goods and prohibits actions causing inconvenience, nuisance, or annoyance to other members, with Bye-law 48(b) stating the Committee’s power to act on complaints.
(B) Expulsion of a Member: Bye-law 49 lists the grounds for expulsion, and Bye-law 50 details the procedure for expulsion and the forfeiture of shares. Bye-laws 51, 52, 53, and 54 cover the effect of expulsion on membership, handing over possession, acquisition of shares, and eligibility for re-admission.
(C) Cessation of Membership: Bye-laws 55, 56, 57, and 58 outline the circumstances under which different types of membership cease, and Bye-law 59 details the action by the Committee in such cases.
(D) Restrictions on Holding more than one flat: Bye-law 60 addresses the rules regarding holding of flats by a member.
(E) Liabilities of a Member and the Past Member: Bye-law 61 limits a member’s liability to the paid-up share amount, and Bye-law 62 addresses the liability of past and deceased members.
(F) Other Matters: Bye-law 63 concerns the disposal of applications, and Bye-law 64 deals with the payment of the value of shares and interest of a member or past member.
V. Sharing the Load: Levy of Charges of the Society
Fair and transparent collection of maintenance and other charges is crucial. Bye-law 65 details the composition of the charges of the Society, and Bye-law 66 provides a break-up of the service charges. Bye-law 67 specifies the sharing of the Society’s charges by the members, and Bye-law 68 clarifies which repairs and maintenance are to be carried out by the Society. Bye-law 69 outlines the payment process, while Bye-law 70 covers the review of default cases, and Bye-law 71 specifies the interest on defaulted charges.
VI. The Society as a Legal Entity: Incorporation of Duties and Powers
This section defines the society’s operational framework. Bye-law 72 covers incorporation, and Bye-law 73 concerns the common seal. Bye-law 74 deals with charges and set-off in respect of shares and interest of a member. Bye-law 75 includes important provisions such as flats being deemed allotted upon purchase, the policy of allotment of flats, cancellation of allotment, handling over possession, and the crucial point that change of user is not permissible without the committee’s sanction. Bye-law 76 mandates the Society to carry out Structural Audit, and Bye-law 77 requires obtaining a certificate of possession from the allottee. Bye-laws 78, 79, 80, 81, 82, 83, and 84 detail the policy and procedures for allotment and use of parking slots, including restrictions and charges.
VII. Decision-Making Forums: General Meetings
Member participation in key decisions is facilitated through general meetings.
(A) First General Meeting: Bye-laws 85 to 93 outline the procedures for the holding, calling, functions, minutes, record handover, powers, and tenure of the Provisional Committee that governs the society before the first elected committee.
(B) Annual General Body Meetings: Bye-laws 94 and 95 specify the period within which the annual general body meeting should be held and its functions.
(C) Special General Body Meetings: Bye-laws 96 and 97 define when a Special General Meeting should be called and the process for fixing its date, time, and place, especially when requisitioned by members.
Bye-laws 98 to 109 cover crucial aspects of all general body meetings, including the notice period, quorum, adjourned meetings, postponement, the role of the Chairman, restrictions on proxies, voting rights (One Member One vote as per Bye-law 106), decision-making processes, recording of minutes, and the cancellation of previous resolutions. Bye-law 110 emphasizes that the general body meeting is the supreme authority.
VIII. Managing the Society’s Affairs: The Committee
The day-to-day management of the society is entrusted to the Committee. Bye-law 111 states that the Management of the Society vests in the Committee, which exercises its powers as per Bye-law 112.
Bye-law 113 covers the opening of Banking Accounts, and Bye-law 114 specifies the strength of the Committee. Bye-law 115 deals with the election process, and Bye-law 116 prohibits being interested in the Society in certain ways.
Bye-law 117 lists disqualifications for being elected on the Committee, while Bye-law 118 concerns the constitution of the Committee. Bye-law 119 details the cessation of a Committee member, and Bye-law 120 restricts participation in matters where a committee member has an interest.
Bye-law 121 defines the period of Office of the elected Committee.
Bye-laws 122 to 137 cover the procedures for committee meetings, including the first meeting, custody of records, handover of charge, election of office bearers, quorum, frequency of meetings, filling casual vacancies, resignation of members and office-bearers, notice of meetings, the Chairman’s role, voting, special meetings, the Secretary’s functions, and the joint and several liability of committee members.
Bye-law 138 comprehensively lists the powers, functions, and duties of the committee, while Bye-law 139 outlines the Power of the Chairman, and Bye-law 140 details the Function of the Secretary.
IX. Maintaining Transparency: Books of Account and Registers
Accurate record-keeping is essential for accountability. Bye-law 141 lists the books of accounts, registers, and other books to be maintained, and Bye-law 142 specifies other records to be maintained separately. Bye-law 143 assigns the responsibility to the Secretary to maintain and keep these records up to date. Bye-laws 144 and 145 set limits for cash on hand and mandate payments beyond a certain limit by cheques. Bye-law 146 concerns the finalization of accounts, and Bye-law 147 addresses security by the Employees.
X. Sharing the Profits (If Any) and Dealing with Losses: Appropriation of Profits and Writing Off Dues
Bye-law 148 details the contribution to the Statutory Reserve Fund and the distribution of any remaining profit. Bye-laws 149 and 150 outline the amounts which could be written off as irrecoverable dues and the procedure to be followed.
XI. Ensuring Financial Health: Audit of Accounts
Regular auditing ensures financial accountability. Bye-law 151 concerns the appointment of Auditors, and Bye-law 152 mandates the Secretary to produce all necessary records to the auditors. Bye-law 153 requires the preparation of an Audit Rectification Report.
XII. Ownership and Upkeep: Conveyance, Repair, and Maintenance of Property
This section deals with the society’s most valuable asset. Bye-law 154 outlines the necessary steps for Conveyance / Deemed conveyance, the finalisation of the Deed of Conveyance, and its execution. Bye-law 155 establishes the Committee’s responsibility to maintain the Society’s Property, and Bye-law 156 allows for inspection for repairs. Bye-law 157 mandates the Committee to execute repairs and maintenance. Bye-law 158 addresses Work on Repairs and Redevelopment. Bye-law 159 differentiates between repairs carried out by the society at its cost and those by members at their cost. Bye-law 160 concerns Building Insurance, and Bye-law 161 addresses Trees in the compound.
XIII. Staying Connected and Addressing Issues: Other Miscellaneous Matters and Redressal of Complaints
This section covers various other important aspects of society life. Bye-law 162 details the modes of communication of notices, resolutions, etc. Bye-law 163 specifies the Accounting Year, and Bye-law 164 concerns the Notice Board. Bye-law 165 outlines Penalties for breaches of bye-laws, and Bye-law 166 describes the process for Alteration/Amendment of Bye Laws. Bye-laws 167 to 171 cover the operation of lifts and solar heaters, restrictions on playing games, prohibition on letting out common spaces, temporary use of terrace, and fees for document copies. Importantly, Bye-laws 172, 173, and 174 detail the process for redressal of members’ complaints, including submission to the society and escalation to various authorities like the Registrar, Co-operative Court, Civil Court, Municipal Corporation, Police, General Body Meeting, or Federation if the society fails to act within a stipulated period.
XIV. Planning for the Future: Redevelopment of Building
Recognising the need for renewal, Bye-law 175 addresses the Redevelopment of the Property/Building of the Society, emphasizing adherence to government directives. It also covers scenarios where the Development Agreement is not executed and the procedure for increasing authorised share capital after redevelopment.
Conclusion: Your Guide to Harmonious Living
The Model Bye-Laws of your Cooperative Housing Society are not just a set of rules; they are the framework that ensures a harmonious and well-managed community. By understanding these detailed guidelines, every member can actively participate in the society’s functioning, exercise their rights responsibly, and contribute to a positive living environment.
Familiarising yourself with these bye-laws, and referring to them when needed, is crucial for a smooth and fulfilling experience in your cooperative housing society. Remember to consult the official Model Bye-Laws document of your specific society for precise details and clauses.