Q. I wish to nominate my two children in the society records. Hence, I want to know whether firstnominee holds any special rights over the second or they are entitled to equal rights? Shekhar N, Kandivali
A.
Under the Maharashtra Co-operative Societies (MCS) Act, 1960, the MCS Rules, 1961, and the model bylaws of the co-operative housing societies, a member is entitled to nominate one or more persons in the society’s records. The member’s shares and/or interest in the property shall be transferred to the nominee/s upon the person's death. Bylaws 32 to 34 specifically govern the nomination procedure. They clearly state that a member may nominate more than one person and may also specify the percentage of shares, rights, title and interest to be transferred to each nominee.
The nomination form, in the prescribed format given in appendix 14 to the bylaws, is required to be submitted in triplicate to the secretary. Where multiple nominees are appointed, the member has the discretion to indicate the proportion in which the rights and interests are to be distributed. Importantly, neither the MCS Act nor the MCS Rules or model bylaws confer any special rights, preference or superiority on the first nominee over the second. The order of nomination does not create hierarchy or priority.
All nominees are entitled to rights strictly in accordance with the percentage or manner specified in the nomination form. In the absence of anyspecific percentage, the nominees would generally be treated as having equal entitlement for the limited purpose of society records. All such nominees will be admitted as joint members upon completion of the formalities andsubmission of the documents. In case of joint members, the first member is considered as the contact point for all practical purposes and has a right to vote.
In his/her absence, the person whose name stands second shall have a right to participate and vote in the general meetings and also contest election in the first member's absence. It is also pertinent to note that nomination does not create ownership rights. As per section 154B-1(18)(c) of the MCS Act, a nominee is admitted only as a “provisional member” after the nominator's death, pending the admission of the legal heir or heirs. Further, section 154B-13 provides that the ultimate transfer of shares, rights, title and interest in the property is to beeffected in favour of the legal heir or heirs on the basis of a will, succession certificate, legal heirship certificate, family arrangement or other valid testamentary or succession documents in accordance with law.
Accordingly, if you nominate your two children and specify equal percentages, bothof them will enjoy equal rights for the purpose of the society records.
Q. If there are no reserved category members in a society, shall the quotas in the managing committee be filled with the general category members? Aneesh Acharya, Dadar A.
Section 154B-20 of the MCS Act provides for reserved seats as may be notified by the state government or by special order from time to time. Currently, for societies having more than 50 members, it is mandatory to have three members from SC/ST, other backward class and nomadic tribes, and two women members in the managing committee. However, if a society does not have members from these categories to elect them to reserved seats as provided in section 154B-20 and 154B-21, such seats shall not be counted for the committee quorum to conduct meetings. They will remain vacant as there is no provision to fill such quotas by electing or coopting members from the general category.
The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat. The questions, in brief, may be sent to mpanchayat@gmail.com
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