Back to Index Maharashtra Co-operative Housing Society Bye Laws

VI. FUNDS RAISING, THEIR UTILISATION AND INVESTMENT

A) Raising of Funds
7.Modes of raising the funds of the society. The funds of the Society may be raised in one or more of the following ways:
(a) by entrance fees,
(b) by issue of shares,
(c) by loans and subsidies,
(d) by deposits,
(e) by voluntary donations, ( but not from Transferor and Transferee;)
(f) by contributions towards cost of building or buildings,
(g) by fee on transfer of shares, along with the occupancy right,
(h) by premium on transfer of occupancy rights over the flats, [ As per G.R.]
(i) by any other mode permitted under these bye-laws.
(j) by corpus fund from the Developer. (However, such fund cannot be taken while transferring tenament, flats, and right of society to the capital)
(k) by way of statutory requirement.
(B) Share Capital.
8.Authorised share capital of the society:
The authorised share capital of the Society shall be Rs _________ divided into __________ shares of Rs. 50 each.
9.Issue of share certificates to the members of the society.
A share certificate, prescribed in bye-laws, bearing distinctive number and indicating the name of the member, the number of shares issued and the value paid thereon, shall be issued by the society to every member for the shares subscribed by him, within a period of six months of the allotment of the shares.
10.Society's seal and signatures of office bearers on every share certificate.
Every such share certificate shall bear the seal of the society and be signed by the Chairman, the Secretary and one member of the Committee, duly authorised by the Committee in that behalf. The same shall be issued by the Secretary of the society.
(C) Limit of Liabilities
11.Restriction on incurring liabilities by the society.
Deposits from members and loans may be received by the society for such period and at such rate of interest and up to such amount and on such terms and conditions as may be determined by the committee, provided that at no time, the total amount of such liabilities shall exceed the limit prescribed under Rule 35 of the MCS Rules 1961
(D) Constitution of the Reserve Fund
12.How the Reserve Fund shall be constituted.
(I) The Reserve Fund of the society shall comprise of-

(a) The amounts carried to the said fund, from year to year, out of the net profit of that year, subject to the provisions of Section 66 (1) and (2) of the Act;
(b) all entrance fees received by the society from its members;
(c) all transfer fees received by the society from its members on transfer of the shares, along with the occupancy rights;
(d) all premium received by the society from its members on transfer of their interest in the capital or property of the society;
(e) all donations received by the society, except those received by it for the specific purpose.
ii)Appropriation of amount to the Reserve Fund of the society. The society shall, while finalising the account for the preceding Co-operative year, appropriate all amounts referred to in the bye-law No.12 (i) (b) to (e) to the Reserve Fund of the society.
(E) Creation of Other Funds
13.Other Funds to be created by the society.
The society shall create and establish the following funds by collecting contributions from its members at the rates mentioned hereunder:
(a) Creation of the Repairs and Maintenance Fund by the society.
The repairs and maintenance Fund, at the rate fixed at the meeting of the general body from time to time, subject to the minimum of 0.75 per cent per annum of the construction cost of each flat for meeting expenses of normal recurring repairs. (b)Major repairs fund
Major repairs fund, as and when required and decided by the general body at the rate fixed on area basis. (c)Creation of the Sinking Fund by the society.
The sinking Fund at the rate decided at the meeting of the general body, subject to the minimum of 0.25per cent per annum of the construction cost of each flat, excluding the proportionate cost of the land.
(F) Utilisation of the Funds by the Society
14.The society may utilise its funds in the manner indicated below:
(a) Reserve Fund: The reserve fund of the society may be utilised for the expenditure on repairs, maintenance and renewals of the Society's property.
(b) Repairs and Maintenance Fund: The Repairs and Maintenance Fund may be utilised by the committee for meeting the expenditure on maintenance of the society's property and repairs and renewals thereof.
(c) Sinking Fund: On the resolution passed at the meeting of the General Body of the society the Sinking Fund may be used by the society for reconstruction of its building/buildings or for carrying out such structural additions or alterations to the building/buildings, as in the opinion of the society's Architect, would be necessary to strengthen it/them or for carrying out such heavy repairs as may be certified by the Architect and on approval of General Body.
(d) The society may create and utilise the corpus fund by making Rules with the approval of the general body. However, such fund cannot be taken from the person transferring flat/tenement/right to share/share capital in the society.
(e) Notwithstanding anything contained in any other bye-laws a member may be paid remuneration at such rate, as may be decided by the general body meeting for the services rendered by him to the society.
(f) Utilisation of major repairs funds with the prior permission of General Body.
(G) Investment of Funds
15. The funds of the society, when not employed in its business, may be invested or deposited as required under Section 70 of the Act. Provided that the sinking fund collections shall be invested on long term basis, along with the interest earned thereon by one of the modes permitted under the said section.