"Bye Laws – Co-operative Housing Society Rules and Regulations"

Q. What are bye-laws for housing society?

Society Bye-laws are rules formed by residential societies to self-regulate their activities and to control the actions of their members. Housing society by laws is provided and approved by higher authorities (government bodies, legislative authorities). Society Laws could vary from one state to another in their particulars, yet the basic framework and nomenclature remain the same. Let’s briefly explore distinctive categories for each component of the functioning of a society. These are broad categories that cover every aspect of housing society rules and regulations, be it holding a meeting, issuing shares to members, collecting dues from them, conducting Elections, allotting parking spaces, or putting out a circular on the notice board.

Purpose of housing society bye-laws

The managing committee of an Apartment Owners Association (or Residents Welfare Association) must have bye-laws to ensure adequate upkeep of the apartment building and to swiftly and effectively address the problems residents encounter. Escaping the problems is difficult. Convincing society to accept the chosen laws and regulations is a challenging endeavor. A set of regulations known as the bye-laws provides a solution to all associated problems. The bye-laws are adopted by each apartment building as soon as it registers. The bye-laws are regarded as the apartment complex’s constitution and regulate how it operates daily.

Q. Why should you know about the model housing society bye-laws?

The answer to any question you have about the functioning of your society can be found in the model bye-laws of housing society. They may seem verbose or cumbersome, but they should be on your ‘essential reading list’ as they are your ‘set in stone’ legal chaperones that cannot be refuted by any society under any circumstances. As part of a society, you’d be remiss if you were not aware of your basic rights and duties, your society’s foundational policies, its management, and the guidelines that dictate its decisions. A lot of homeowners harbor an approach of ‘we’ll cross that bridge when we get to it’ concerning the rules of society, thinking all is accomplished once they have occupied their residence inside it. Be that as it may, to avoid being misinformed or manipulated by dishonest committee members, to stop the violation of your rights, or simply to be aware of the workings of the community you’re part of, familiarising yourself with model bye-laws of housing society is necessary. Cooperative society bye-laws are easily available online to peruse in your own time. Otherwise, as a member, you have the right to ask for a copy from your society.

List of housing society bye-laws

1. Preliminary- Name and Address

This section informs us about the procedure for naming, change in name, classification, address change procedure, and exhibiting the Name Board of the society.

2. Interpretations

The meaning of the nomenclature, i.e. the exact definition of commonly used terms (common areas, sinking fund, active member) is given to legally distinguish common usage of words in the context of a housing co-operative.

3. Area of operation, objectives, affiliation

To define the locality of the society within a municipality and to define the main objects of the society as well as declare it as a Member of the Co-op Housing Federation of the District / Ward / Taluka, the District Central Co-operative Bank of the district.

4. Raising of funds and their utilization

Cooperative society bye-laws lay down rules on modes of raising money such as issuing shares, taking loans, voluntary donations & deposits, etc., and explain how to issue shares to members and limit liability for the society. How the funds are utilized is also described, such as reserve fund, repair and maintenance, emergency fund, and training fund. 

5. Rights & duties of member

This section describes the eligibility, conditions, and procedure of obtaining membership in a society and distinguishes between active, non-active, associate, and nominal members. The rights of members elaborated under bye-laws of the society include the right to inspect records, get a copy of RWA bye-laws, right to Occupation of Residence, conditions for and acceptance of Resignation by Members, procedure for Nomination by a Member and its revocation/revision, procedure and requisite documents for Transfer of Shares and interest from a member to another in the Capital/Property of the Society, Transfer of Shares and interest of the deceased Member, and rules on Exchange and Sub-letting of residences.

6. Responsibilities and liabilities of members

This section details the duties of the member, including applying for permission to make additions and alterations in a flat, allowing examination of flats, and reporting about repairs, so as not to cause inconvenience to other members. It also entails the grounds for expulsion from the society and its procedure, circumstances under which a person ceases to be a member and the follow-up action taken by the society, rules on holding multiple flats, liability limited of members to the unpaid amount on shares.

7. Society charges

Bye-laws of society describe the composition and break-up of the society charges, including  Property Taxes, Water Charges, Common Electricity Charges, contributions to the Repairs and Maintenance Fund, and expenses on Repairs. Operation and Maintenance of the lifts contribution to the Sinking Fund, Service Charges, Car Parking Charges, Interest on the defaulted charges, Repayment of the Loan, Installment and Interest, Non-occupancy Charges, Insurance Charges, Lease/Rent, Non-agricultural Tax, Education and Training Fund, Election Fund, and any other charges.

8. Duties and powers of the society

These are rules specific to the common seal and incorporation of the society as holding the power to acquire, hold, and dispose of the property, to enter into contracts and other legal proceedings. It also pertains to having a charge on the shares and/or interest of a Member, policy for allotment of flats and cancellation of flats, handing over possession of flats, society’s duty to carry out Structural Audit,  allotment of parking lots and its restrictions, marking of parking lots and their eligibility, along with payment of charges for parking of vehicles.

9. General Meetings (First General Meeting, Annual General Meeting & Special General Meeting)

This section gives detailed and specific rules on how to conduct society meetings, including general, annual, and special body meetings. Rules regarding the agenda of the first general meeting, the duties of the provisional committee and its handover to the newly elected committee,  the functions of the annual general body meeting, rules for special general body meetings, period of notice and quorum of a general body meeting, voting rights of members, recording of the minutes of the meeting, holding of the adjourned General Body Meeting, among others are explicitly stated. 

10. Management of society affairs

Rules under this category include opening up of bank account for operations, strength (in numbers) of the Managing Committee, guidelines for Election, First Meeting of new committee, duration of holding office, conditions for cessation of membership of the Committee, and Resignation of Committee Member/Office bearer. There are detailed lists of all the required functions of the Managing Committee, Chairman, and Secretary of the society.

11. Book-keeping

Detailed lists of maintaining books of accounts, records, and registers are specified, including but not limited to cash books, ledgers, Sinking Fund, Investment, Nomination, Loan Registers, Minutes Books, Applications for membership, resignations, correspondences received from within the society or from external agencies related to property tax, conveyance, electricity, vouchers and counterfoils of share certificates and issued cheques, periodical statement of accounts, audit memos, election papers, service staff payment records.

12. Profit distribution

Rules on how to distribute funds (after paying interest on loans/deposits and after making such other deductions) are prescribed clearly in bye-laws of cooperative society. The allocation includes a percentage of the amount to be deposited in the Reserve Fund, in dividends of shares to shareholders, compensation paid to office-bearers, and towards the Common Welfare Fund. 

13. Writing off dues

This section prescribes the conditions under which the Society is allowed to write off its irrecoverable charges due from the members, the expenses incurred on recovery, and the accumulated losses.

14. Society accounts audit

The basic procedure for conducting an annual financial audit of the society is described in detail, including the appointment of a registered Auditor/CA, the timeframe to conduct the audit, and the steps for completing an Audit Rectification Report before the Annual General Meeting. 

15. Conveyance, redevelopment, and repair/maintenance 

This section gives details of getting the deed conveyance under the society’s name through an advocate and proceeds to list rules on renovation and repair. Member’s contributions towards repair are stated, along with the procedure of inviting tenders from architects/ developers, and a step-by-step guide to the entire redevelopment process is given. Guidelines on emergency planning schemes, disaster management, and response machinery are prescribed as well.

16. Other miscellaneous matters

Minor yet important rules regarding day-to-day operational activities are mentioned in the bye-laws of residential society. These include sending and displaying notices at general meetings and their resolutions, how to fix the Notice Board and what to display on it, penalty amounts for member breaches against the society, regulating the services, and amenities as per members’ convenience, fixing timings and rules for use of common areas such as parks, staircases, etc, making available spaces for members to install solar energy electrical systems, making copies of the documents required by the members and the charge per page. 

17. Committee redressal of member complaints

Based on the complaint type, the society bye-laws give a list of relevant authorities to approach. They describe the types of complaints handled at the Society’s General Body Meeting. Other than that a variety of complaints are handled by the Registrar, Co-operative Court, Civil Court, Municipal Corporation/Local Authority, Police, or the District/State Federation, depending on the nature of the grievance. 

Differences between Old & New Housing Society Bye-Laws

Do I have to adopt a new set of housing society bylaws if my society is newly registered? True, your society would adhere to the old model bye-laws. If it was previously registered, the year is 2009. Bye-laws have been newly modified following the 97th Constitutional Amendment and MCS Amendment Ordinance, 2013. This includes cash-on-hand limits, active member provisions and duties, maintenance rates, AGM, society election tenets, and so on. Co-operative Housing Society Bye-laws are a set of rules and regulations that govern the internal functioning, administration, and management of a cooperative housing society. These bye-laws are formulated to ensure smooth operations, fair practices, and the well-being of all members. Here is an overview of common elements found in cooperative housing society bye-laws:

Name and Address: 

Clearly states the name and registered address of the cooperative housing society.

Objectives: 

Defines the primary objectives and purposes for which the society is formed, emphasizing cooperative principles and the welfare of its members.

Membership: 

Outlines the eligibility criteria, admission process, and rights and responsibilities of members. It may also cover issues related to membership termination and transfer.

Share Capital and Contributions: 

Describes the share capital requirements, contributions, and conditions for the issuance of shares to members.

Management Committee: 

Details the formation, powers, duties, and functions of the managing committee responsible for the day-to-day administration of the society.

Meetings: 

Specifies the procedures for conducting general body meetings, both regular (Annual General Meeting) and special (Special General Body Meeting), including notice periods, quorum requirements, and voting procedures.

Elections: 

Outlines the process for the election of managing committee members, including eligibility criteria, nomination procedures, and the conduct of elections.

Powers and Duties of the Managing Committee: 

Defines the scope of authority and responsibilities of the managing committee, including decision-making powers, financial management, and dispute resolution.

Funds and Finances: 

Details the sources of funds, financial management practices, budgeting, and auditing procedures.

Common Areas and Facilities: 

Describes the usage, maintenance, and regulations governing common areas, amenities, and facilities within the society.

Rights and Obligations of Members: 

Outlines the rights and obligations of individual members, including compliance with rules, payment of dues, and participation in societal affairs.

Amendments to Bye-laws: 

Specifies the process for amending the bye-laws, typically requiring approval from a certain 

percentage of members.

Dispute Resolution: 

Establishes mechanisms for resolving disputes within the society, often involving the Registrar of Cooperative Societies or other designated authorities.

Conversion and Dissolution: 

Covers procedures for converting the society to a different type (if applicable) and outlines the process for voluntary dissolution.
Members of a cooperative housing society need to familiarize themselves with the bye-laws, as they serve as the guiding framework for the functioning of the society and provide a basis for governance, transparency, and accountability.

FAQs on society bye laws

Q. Why are bye laws so important?

Bye laws in a housing society are very important to ensure proper maintenance of the apartment complex and to resolve issues faced by residents in the housing society effectively.

Q. What are the bye-laws of a society?

Bye laws of a society are rules framed by cooperative housing society to control the actions of its members and self-regulate their activities.