Bill to Amend Maharashtra Cooperative Societies Act of 1960 got passed and got gazzetted on 20.06.2019
Salient features of New Housing Chapter in MCS Act 1960.
1. Elections to the housing societies for less than 250 members to be conducted internally by the society
2. Concept of new members like Joint and provisional members introduced
3. Concept of Coop Hsg Association introduced to facilitate the formation of association of less than 5 societies for conveyance or Deemed conveyance matters .
4. Penalty of Rs.5000 max on Management committee introduced for not allowing inspections of certain documents u/s 32.
5.Scope of Sec.32 in inspection of documents widened .
6.Role of Housing federations widened .
7. HUF is specially included as person in the definition which was not included earlier .
8. Defaulter is specifically defined now in the Act itself.
9.Transfer or Transmission of shares to be effective only if the Dues are paid* to the society.
10. Various terms like Allottee, Promoter, Dues, Corpus Fund, Tenant Co-partnership etc.are specifically defined now.
11.Associate member to have right to vote and contest* the Elections *subject to* authority from Original member
12.The reserved posts if vacant then these vacant posts will not be counted for deciding the strength of the managing committee for the purpose of the quoram for the meeting.
13. A member , if he/she carries on business of letting, subletting and selling of flats*
in the housing society of which he is a Member, then he is *not eligible to contest* the elections.
14. Slight Amendments in section related to Investments of funds*
15. Wordings of Sec.101 changed to include dues for Repairs , construction cost under clause 154B-29
CA Shilpa Shinagare
9820053395/53495
ssca28@rediffmail.com
Member of Hsg Chapter Committee of Ministry of Coop .MH
Salient features of New Housing Chapter in MCS Act 1960.
1. Elections to the housing societies for less than 250 members to be conducted internally by the society
2. Concept of new members like Joint and provisional members introduced
3. Concept of Coop Hsg Association introduced to facilitate the formation of association of less than 5 societies for conveyance or Deemed conveyance matters .
4. Penalty of Rs.5000 max on Management committee introduced for not allowing inspections of certain documents u/s 32.
5.Scope of Sec.32 in inspection of documents widened .
6.Role of Housing federations widened .
7. HUF is specially included as person in the definition which was not included earlier .
8. Defaulter is specifically defined now in the Act itself.
9.Transfer or Transmission of shares to be effective only if the Dues are paid* to the society.
10. Various terms like Allottee, Promoter, Dues, Corpus Fund, Tenant Co-partnership etc.are specifically defined now.
11.Associate member to have right to vote and contest* the Elections *subject to* authority from Original member
12.The reserved posts if vacant then these vacant posts will not be counted for deciding the strength of the managing committee for the purpose of the quoram for the meeting.
13. A member , if he/she carries on business of letting, subletting and selling of flats*
in the housing society of which he is a Member, then he is *not eligible to contest* the elections.
14. Slight Amendments in section related to Investments of funds*
15. Wordings of Sec.101 changed to include dues for Repairs , construction cost under clause 154B-29
CA Shilpa Shinagare
9820053395/53495
ssca28@rediffmail.com
Member of Hsg Chapter Committee of Ministry of Coop .MH
Reference your post dated 02.07.2019 on ‘Salient features of Amended MH Coop Soc Act 1960’. I invite your attention on feature no. 5 - ‘Scope of Sec.32 in inspection of documents widened’
ReplyDeleteBelow I have quoted relevant parts from 4 different documents concerning Section 32. Kindly advise in what way scope of Section 32 has been widened by 20.06.2019 Bill in comparison to the Section 32 as given in the Act.
Section 32 MCS Act:
32. Rights of members to see books, etc.—
(1) Every member of a society shall be entitled to inspect, free of cost, at the society's office during office hours, or any time fixed for the purpose by the society, a copy of the Act, the rules and the bye-laws, the last audited annual balance sheet, the profit and loss account, a list of the members of the committee, a register of members, the minutes of general meetings, minutes of committee meetings and those portions of the books and records in which his transactions with the society have been recorded.
(2) A society shall furnish to a member, on request in writing and on payment of such fees as may be prescribed therefore, a copy of any of the documents mentioned in the foregoing subsection within one month from the date of payment of such fees.
Ordinance 30.10.2018:
154B-8. (1) Every Member of a society shall be entitle to inspect free of cost at the society’s office during office hours or any time fixed for the purpose by the society, copy of the bye-laws, all the records and books of accounts and entire correspondence of society excluding personal information of other Members and the correspondence between them and society.
(2) A society shall furnish to a Member, on request in writing and on payment of such fees at such rate as may be decided by the Registrar, from time to time, the copies of any documents mentioned in the foregoing subsection within one month from the date of payment of such fees.
Ordinance 09.03.2019:
154B-8. (1) Every Member of a society shall be entitled to inspect, free of cost, at the society’s office during office hours, or any time fixed for the purpose by the society, a copy of the Act, the rule and the bye-laws, the last audited annual balance sheet, the profit and loss account, a list of the members of the Committee, a register of members, the minutes of general meetings, minutes of Committee meetings and those portions of the books and records in which his transactions with the society have been recorded.
(2) A society shall furnish to a Member, on request in writing and on payment of such fees at such rate as may be decided by the Registrar, from time to time, the copies of any documents mentioned in the foregoing subsection within forty-five days from the date of payment of such fees and when the Society is assisted by the Government in the form of share capital, loan and land, the said Society shall furnish such information within thirty days from the date so requested by a member.
Bill 20.06.2019:
154B-8. (1) Every Member of a society shall be entitled to inspect, free of cost, at the society’s office during office hours, or any time fixed for the purpose by the society, a copy of the Act, the rule and the bye-laws, the last audited annual balance sheet, the profit and loss account, a list of the members of the Committee, a register of members, the minutes of general meetings, minutes of Committee meetings and those portions of the books and records in which his transactions with the society have been recorded.
(2) A society shall furnish to a Member, on request in writing and on payment of such fees at such rate as may be decided by the Registrar, from time to time, the copies of any documents mentioned in the foregoing subsection within forty-five days from the date of payment of such fees and when the Society is assisted by the Government in the form of share capital, loan and land, the said Society shall furnish such information within thirty days from the date so requested by a member.
Period is extended from 30 days to 45 days for providing the details
Delete
ReplyDeleteThe query is related to audit report / accounts.
Terms such as profit and loss 'account', 'statement' of account, etc. are used in Section 75 (4) and Rule 61 (both quoted below). Also, sometimes people use term 'profit and loss statement'.
Is there any difference in meaning and implications of the terms 'account' and 'statement' in accountancy parlance. If so please advise in detail.
Section 75 (4):
At every annual general body meeting the audited balance sheet, the audited profit and loss account, audit report of the preceding financial year submitted by the auditor appointed under section 81, rectification report of earlier audit and the committee's report, shall be placed for adoption, and such other business will be transacted as may be laid down in the bye-laws, and of which due notice has been given.
MCS Rule 61. Annual statement of accounts including balance sheet, etc.—
Within forty-five days of the close of every co-operative year, or within such extended period, as may be specified by the Registrar, in the case of any society or class of societies, the committee of every society shall prepare annual statement of accounts showing,—
(i) Receipts and disbursements during the previous co-operative year;
(ii) The profit and loss account for the year; and
(iii) The balance sheet as at the close of the year.
These statements of accounts shall be open to inspection by any member during office hours at the office of the society and a copy thereof shall be submitted within fifteen days from the date of preparation, to the auditor appointed by the Registrar for the audit of that society.
The MCS Act is aplliappli to almost 50+ types of societies do where cop.societies add running as business or profit entities then profit and loss account will come into picture
DeleteQueries related to the conduct of Statutory Audit:
ReplyDelete1. Is the Statutory Audit conducted on softcopy or hardcopy of accounts, ledgers, etc.?
2. In case of Softcopy, how the auditor certify / sign off / stamp / attest the softcopy?
3. In case of softcopy, how to ensure that the data is fool proof, does not change or is not changed afterwards?
4. In case of softcopy, how to ensure safety / security of the final certified / approved data – that data is not corrupted, lost, altered / changed / modified / doctored afterwards?
5. Is it mandatory to retain certified hardcopy of audit related documents such as accounts, ledgers, etc?
6. Is it mandatory to make this data available to Members for inspection?
7. Is it mandatory to place this for inspection prior to AGM, as is being done in the case of corporates?
Every auditor has to use his judgement and ensure that they will take mgt Representation to that effect
DeleteA classical case here. Requested for AGM Minutes copy in writing. Secretary never acknowledges or replies to letters. What is the solution in such cases. It looks funny to send a letter to Secretary by regd post ack when he stays next door. A concerned member.
ReplyDeletepl reply..
ReplyDeletethanks and regards
As per point 4 under section 32 Society is supposed to provide AGM or EGM or SGM minutes to members. A request was made in writing 2 months ago to Secretary. Secretary has not responed yet.
ReplyDeleteWhat action can a member take against Office Bearers. Am I eligible for Penalty from Managing Committee for not providing documents within 45 days of application.. Can anyone reply.
Thank you and regards...premraj
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