Table of Contents
- Annual General Body Meeting (AGM) in Maharashtra
- When is AGM Held?
- Attending The AGM
- Preparation and Finalization of AGM Minutes
- Actions in Absence of Quorum at AGM Meeting
- Conducting AGM of a Housing Society
- Topics Requiring Proper Notice for Discussion in AGM
- What Are the Consequences if a Member Fails to Attend the AGM?
- Eligibility of Attendees at Society AGM: Power of Attorney Holder, Nominee, and Co-Owner
- Conclusion
- Faq's
Annual General Body Meeting (AGM) in Maharashtra
The Annual General Body Meeting (AGM) mandated by the Maharashtra government, as per its model Bylaws, plays a pivotal role in the functioning of cooperative housing societies. This meeting serves as a comprehensive platform to review and discuss all the activities and events that have transpired throughout the year within the society.
During the AGM, members are provided with detailed updates on various aspects of the society, including financial matters, major projects undertaken, maintenance activities, and any other significant developments. This ensures transparency and accountability in the management of the housing society's affairs.
Additionally, the AGM is an opportunity for members to raise concerns, provide feedback, and participate in decision-making processes that impact the collective welfare of society. It fosters a sense of community and collaboration among the residents, reinforcing the cooperative spirit that underpins such societies.
When is AGM Held?
According to the model bylaws for cooperative housing societies in Maharashtra, every housing society must conduct an Annual General Meeting (AGM) each year, with the deadline set before September 30.
The responsibility of issuing the notice for the AGM lies with the society's secretary, who must ensure that a notice period of at least 14 days is provided to all members. This 14-day period excludes both the day the notice is issued and the day of the meeting itself.
Once the AGM is convened, it holds legal validity and cannot be considered invalid unless a specific order from the cooperative court declares it as such. This underscores the importance of adhering to the prescribed procedures and timelines in conducting the AGM.
The AGM serves as a critical platform for members to come together, review the society's performance, discuss important matters, and make decisions that impact the collective welfare of the housing society. It is a cornerstone of transparent governance and active participation within cooperative housing communities.
|
Point |
Details |
|
Frequency of AGM |
Every housing society must hold an AGM annually before September 30. |
|
Notice Issuance |
The AGM notice must be issued by the society's secretary. |
|
Notice Period |
A minimum notice period of 14 days must be given to all members before the AGM. |
|
Exclusion in Notice Period |
The day of issuing the notice and the day of the AGM are excluded while computing the 14 days. |
|
Validity of AGM |
Once an AGM is convened, it holds legal validity unless declared invalid by the cooperative court. |
|
Importance of AGM |
AGM serves as a platform for reviewing society's performance, discussing key matters, and making collective decisions. |
Attending The AGM
Attendance at the AGM of a housing society is subject to the quorum requirement, which is the minimum number of members needed to conduct the meeting's business. As per the law, a quorum constitutes a minimum of two-thirds of the total number of members, with a maximum cap set at 20 members.
It can sometimes be challenging for smaller housing societies to meet the quorum requirement, while larger societies may easily fulfill it with even a small proportion of their total members.
Before the AGM commences or after its conclusion, all attending members must sign their attendance against their respective flat numbers. This process helps maintain an accurate record of who participated in the meeting.
Attending the AGM
|
Attendance at AGM of Housing Society |
Details |
|
Quorum Requirement |
Minimum two-thirds of total members, with a maximum cap of 20 members, needed to constitute a quorum. |
|
Challenges for Small Societies |
Small societies may find it difficult to ensure the quorum due to their limited number of members. |
|
Quorum for Big Societies |
Even a small proportion of total members can easily meet the quorum requirement for larger societies. |
|
Attendance Record |
Members must sign their attendance against their flat numbers before or after the AGM. |
Preparation and Finalization of AGM Minutes
Following the AGM of the housing society, the committee is responsible for preparing and finalizing the draft minutes within three months from the date of the meeting. These draft minutes should then be shared with all society members within 15 days for review and feedback. Upon receiving acceptance from all members, the final minutes will be prepared.
In cases where conflicts arise over resolutions passed by the managing committee or the general body during the AGM, these disputes will be addressed and resolved before the cooperative court. This legal recourse ensures that any disagreements or discrepancies in the decisions made during the AGM can be properly reviewed and resolved fairly and transparently.
Actions in Absence of Quorum at AGM Meeting
If the required quorum is not met within half an hour of the appointed time, according to society AGM meeting rules, the meeting will be adjourned. It can be adjourned to a later hour on the same day or to a subsequent date, which must be at least seven days but no more than 30 days from the original AGM date.
During the adjourned meeting, there is no requirement for a quorum to conduct the meeting. However, it's important to note that the presence of only one person at the adjourned meeting does not constitute a valid meeting. Therefore, a minimum of two members must be present even at the adjourned meeting for it to proceed and conduct business effectively.
|
Absence of Quorum in AGM Meeting |
Details |
|
Initial Meeting Adjournment |
If quorum is not met within half an hour, the meeting is adjourned to a later hour or a subsequent date. |
|
Adjourned Meeting Timeline |
The adjourned meeting must be scheduled within 7 to 30 days from the original AGM date. |
|
Quorum Requirement at Adjourned Meeting |
No quorum is required for the adjourned meeting, but a minimum of two members must be present for it to proceed. |
Conducting AGM of a Housing Society
The Annual General Body Meeting (AGM) of a housing society plays a crucial role in ensuring transparency, accountability, and effective governance within the community. Here's an overview of how to conduct an AGM and the key matters discussed during the meeting:
Financial Matters
- Adoption and Approval of Annual Accounts: The primary purpose of the AGM is to have the members adopt and approve the annual accounts of the society. This involves a detailed review of the financial statements, including income, expenses, assets, and liabilities.
- Annual Report: Members receive an annual report detailing the affairs of the society, which provides insights into the overall performance, achievements, challenges, and plans.
Appointment of Auditors
- The AGM is the platform where auditors of the society are appointed. This ensures an independent and professional audit of the society's financial records and compliance with regulatory standards.
Other Matters Discussed in AGM
- Open Discussion: Apart from financial matters, the AGM can address various other issues crucial to the well-being and functioning of society.
- Improvements and Complaints: Members can raise concerns and suggestions regarding improvements in society, such as maintenance, cleanliness, parking, and behavior-related issues.
- Staff Matters: Discussions may include matters related to staff employment, salaries, and performance.
- Events and Plans: Planning and organizing events within the society, as well as discussing plans like building repairs, implementing green initiatives such as solar panels, or upgrading infrastructure like lift systems.
- Election Dates: AGMs often set the stage for discussions and decisions regarding upcoming elections for the society's governing body.
Postponement of AGM Business
- If the AGM agenda is only partially completed due to time constraints or other reasons, the meeting can be adjourned to another date decided by the members present. However, this adjourned meeting should not be later than 30 days from the original AGM date.
By addressing these key aspects in an AGM, housing societies can foster a sense of community participation, address important issues, and plan for the sustainable development and management of their shared spaces.
Topics Requiring Proper Notice for Discussion in AGM
Certain matters cannot be discussed in an AGM unless proper notice is given, ensuring all members have adequate time to review and prepare for deliberation. These matters typically involve significant decisions or changes that require careful consideration and adherence to legal procedures. Here are the specified topics:
- Expulsion of Members: Discussing the expulsion of members from the society requires prior notice to ensure transparency and fair procedures. This is a crucial matter that impacts individual members' rights within the community.
- Amendment of Bylaws: Any proposed amendments to the bylaws of the society, which govern its internal regulations and operations, must be included in the meeting notice. Members need time to review proposed changes and understand their implications before voting or making decisions.
- Bifurcation, Amalgamation, or Division of the Society: Decisions related to the structural changes of the society, such as bifurcation (splitting into separate entities), amalgamation (merging with another entity), or division, require careful consideration and legal compliance. Proper notice ensures all members are informed and have the opportunity to discuss and vote on such significant matters.
- Transfer of Property: Any discussions or decisions regarding the transfer of society property, whether buying, selling, or leasing, must be included in the meeting notice. This ensures transparency in financial transactions and protects the interests of all society members.
|
Topics Requiring Proper Notice for Discussion in AGM |
|
Expulsion of Members: Discussing expulsion requires prior notice. |
|
Amendment of Bye-Laws: Proposed changes must be included in the notice. |
|
Bifurcation, Amalgamation, or Division of the Society: Requires careful consideration and legal compliance. |
|
Transfer of Property: Discussions regarding property transfer need notice. |
Including these topics in the meeting, notice allows members to prepare, seek clarification, and participate effectively in discussions and decision-making processes. It upholds principles of democratic governance and ensures that important decisions are made with the collective input and understanding of the society's members.
What Are the Consequences if a Member Fails to Attend the AGM?
With the August 2021 amendment to Section 26 of the Maharashtra Cooperative Societies Act, 1960, the concept of 'inactive members' was removed. This change has significant implications, especially regarding attendance at the Annual General Meetings (AGMs) of housing societies and voting rights in elections.
Previously, under the 2018 ruling, members who did not attend five successive general body meetings were deemed 'inactive members' and lost certain membership rights, including the ability to cast votes for contest society elections. However, with the recent amendment, all eligible members now have the right to participate in society elections held on or before March 31, 2022, regardless of their attendance at AGMs.
This means that the previous restriction on 'inactive members' no longer applies, and all eligible members, whether they attend AGMs or not, have the right to cast their votes and participate in the democratic processes of their housing societies.
Topic | Details |
Amendment to Section 26 | The Maharashtra government removed the 'inactive member' provision from Section 26 of the Maharashtra Cooperative Societies Act in August 2021. |
Previous Rule for 'Inactive Members' | Before the amendment, members not attending five successive general body meetings were termed 'inactive members' and had restricted rights. |
Loss of Membership Rights for 'Inactive Members' | 'Inactive members' lost rights such as voting in elections and contesting for positions within the society. |
Current Rights of Eligible Members | After the amendment, all eligible members have the right to participate in society elections and cast their votes, regardless of AGM attendance. |
Eligibility of Attendees at Society AGM: Power of Attorney Holder, Nominee, and Co-Owner
- Power of Attorney Holder: Only the designated power of attorney holder is allowed to attend the AGM on behalf of a society member. This ensures that authorized representatives are present while preventing unauthorized individuals from participating in the meeting.
- Nominee's Attendance: A nominee is not permitted to attend the AGM of a housing society. Furthermore, they are not allowed to propose or vote on any resolutions during the AGM proceedings.
- Co-Owner's Attendance: In the case of co-ownership of an apartment, the individual whose name appears first on the share certificate has the right to attend the AGM. If the first co-owner cannot attend, the second co-owner can attend only with written permission from the first co-owner. This procedure ensures that AGM attendance is aligned with ownership rights and responsibilities within the housing society.
|
Attendee Type |
Eligibility to Attend AGM |
Additional Details |
|
Power of Attorney |
Yes, as the designated representative. |
|
|
Nominee |
No, not permitted to attend or participate. |
|
|
Co-Owner |
Yes, with certain conditions. |
|
Conclusion
To conclude, the Annual General Body Meeting (AGM) holds immense significance in the governance and management of cooperative housing societies in Maharashtra. It serves as a platform for transparency, accountability, and collective decision-making among society members. Key aspects such as the frequency and conduct of AGMs, eligibility of attendees, and topics requiring proper notice ensure that the AGMs are conducted in a fair, organized, and legally compliant manner.
Furthermore, recent amendments, such as the removal of 'inactive member' provisions and the expansion of voting rights, have strengthened the democratic processes within housing societies, allowing all eligible members to actively participate in AGMs and society elections. These developments reflect a commitment to inclusivity, transparency, and effective governance within the cooperative housing sector in Maharashtra.
explore further
Latest from Editorials
More from Publications
Resources
