Transfer Of Shares And Interest In The Capital/Society

Part 2

v     Action at the level of the society

(1)   Upon getting the transfer application from the transferor in the form prescribed and the membership application from the transferee in the form prescribed along with the required accompaniments, the Hon. Secretary of the society has to thoroughly examine the documents received by him and see whether they have  been correctly and properly filled in and also to satisfy himself whether the following have been  complied with :

(a)    Whether the transferor has discharged his liability to the society in full.

(b)    Whether the transferor has paid the transfer fee of Rs. 500/- as mentioned in Bye-law No. 38(e)(7)

(c)    Whether the transferee has paid the entrance fee of Rs. 100/- as required under Bye-law No. 38(e)(8)

(d)   Whether the transferor has held the shares and interests in the capital or property of the society for a period of not less than one year.

(e)    Whether the transferor and the transferee have given declaration under Section 27 of the Urban Land (Ceiling and Regulation) Act, 1976, in the prescribed form.

(f)     In case of admitting a firm/company to the membership of the society, whether the limits for membership of firms and companies and the specification for the holding of flats as well as any other conditions laid down in orders issued by the govt. have been complied with.

(2)   If the Hon. Secretary finds that there is any deficiency in the compliance to be made by the transferor and/or the transferee, the Hon. Secretary should bring this to the notice of the transferor and/or transferee and advise them to comply within a reasonable period to be allowed by the society. In case, the transferor and/or the transferee do not make the required compliance within the time allowed , the Hon. Secretary should place the case before the meeting of the Managing Committee, to be held next year after the expiry of the period allowed for the compliance and act according to the decision of the Managing Committee.

(3)   If the Hon. Secretary finds that the requirements for the purpose of transfer have been fully complied with, he should place the case before the meeting of the Managing Committee held next after the receipt of the application for transfer.

If the Managing Committee in whom the power of admitting new members is vested, decides to reject the transfer application, the Hon. Secretary has to communicate to the transferor and the transferee the reasons for the refusal of the application within a period of 15 days of the decision or within 3 months of the date of receipt of application, whichever is earlier, as provided under Section 22[2] of the Maharashtra Co-operative Societies Act, 1960.

(4)   If the application of transfer is rejected, he may exercise his right to make an appeal to the Registrar under Section 23 of the Maharashtra Co-operative Societies Act, 1960. it may further be noted that an application for transfer cannot be rejected on any grounds other than non-compliance of the requirements mentioned in Section 29 of the Maharashtra Co-operative Societies Rules, 1960, Rule 24 of the Maharashtra Co-operative Societies Rules, 1961 and Bye-laws of the society, the non-furnishing of a declaration under Section 27 of the Urban and (Ceiling and Regulation) Act.

(5)   On approval of transfer by the managing committee, the necessary resolution to the effect should be recorded in the minutes. The Society should write a letter to the transferor.