Nomination In Cooperative Society

on in Nomination

Nomination Rules for Housing Societies | Nomination of persons - Maharashtra Cooperative Societies 

What is Nomination in Co-Operative Housing Society?

The Maharashtra Co-operative Societies Act, 1960 (“the Act”) allows a member to nominate a person or persons to whom his share and interest in the co-operative society will be transferred by the society in the event of the member’s death.

Section 25 of the Act provides that a member would cease to be a member of a society on death. However, his holding and other interests do not lapse, but they pass on to his heirs or legal representatives and the society is bound to transfer the shares or interest to them as provided in section 30 of the Act.

As a member of a cooperative housing society, it is an important aspect that every member should nominate for his flat and submit the form to society. In simple words, the nomination is an instruction given to the society as to how the relevant member’s shares should be transferred after his death.

Nomination in housing societies is a fairly simple procedure that requires to filling of the nomination form by the member and society Managing Committee to verify the documents, approve, record the minutes book, and update the nomination register.

Procedure for Nomination by a Member and its revocation /revision – Bye - Law 32

1. A Member of the Society may by writing under his hand, in the prescribed form (Form No -14), nominate a person or persons to whom the whole or part of the shares and/or interest of the Member in the capital /property of the Society shall be transferred in the event of his death. 

2. The acknowledgment of the nomination by the Secretary, shall be deemed to be the acceptance of the nomination by the Secretary. 

3. No fees shall be charged for recording the first nomination. 

4. A Member may revoke or revise his nomination, at any time, by making an application, in writing, under his hand, to the Secretary of the Society. 

5. The acknowledgment of the variation in the nomination /subsequent nomination by the Secretary, shall be deemed to be the cancellation of the earlier nomination.

6.  Every revision of the nomination shall be charged a fee of Rs. 100/-

Recording of Nomination or revocations/revisions thereof Bye – Law 33

1. On receipt of the Nomination form, or the letter for revocation of the earlier nomination, the same shall be placed before the meeting of the Committee held next after the receipt of the Nomination form, or the letter of revocation of the earlier nomination, by the Secretary of the Society for recording the same in the minutes of the Committee. 

2. Every such nomination or revocation thereof shall be entered in the register of nominations by the Secretary of the Society within 7 days of the meeting of the Committee, in which it was recorded.

Transfer of shares and interest of the deceased Member in the capital/property of the Nominee/Nominees Bye Law-34

1. Subject to the provisions of Section 30 of the MCS Act. 1960 Bye-law No. 17A or 19, on the Death of a Member, the Society shall transfer the shares and interest of the deceased Member in the Capital/Property of the Society to the Nominee/Nominees and in proportion with the shares and interest held by the deceased Member, in case property is purchased by Member and associate Member jointly. 

2. In the event of the death of the Member, Nominee/Nominees shall submit the Application for Membership, within six months from the death of a Member. 

3. If there is more than one Nominee, on the death of a Member, such Nominees shall make a Joint Application to the Society and indicate the name of the Nominee who should be enrolled as a Member.

4. The other nominees shall be enrolled as Joint/Associate Members unless the nominees indicate otherwise.

5. The nominees shall also file an Indemnity Bond in the prescribed form Indemnifying the Society against any claims made to the shares and interest of the deceased Member in the Capital/Property of the Society by any of them, in case only one nominee is indicated by the Nominees for Membership of the Society.

Note:- In case of acquiring Membership based on Nomination, such Member shall hold the flat / unit in 'trust' till all the Legal Heirs are brought on record and shall not have the right to ownership and shall not create third-party interest or alienation in any way whatsoever.

Transfer of Shares and interest of the Deceased Member in the Capital / Property of the Society to the legal heir Bye Laws-35

1. Where a Member of the Society dies without making a nomination, or no nominee comes forward for transfer, the Society shall invite within six months from the information of his death, claims or objections to the proposed transfer of Shares and interest of the deceased Member, in the capital/property of the Society, by public notice, in the prescribed form, exhibited on the notice board of the Society. 

2. It shall also publish such notice in at least two local newspapers, having wide circulation. The entire expenses of publication of the notice shall be recoverable from the value of shares and interest of the deceased Member in the capital/property of the Society. 

3. After taking into consideration the claims or objections received, in response to the said notice, and after making such inquiries as the committee considers proper in the circumstances prevailing, the committee shall decide as to the person, who in its opinion is the heir or legal representative of the deceased Member. Such a person will be eligible to be a Member of the Society subject to the provisions of the by-laws Nos. 17(a) or 19, provided that he gives an Indemnity Bond along with his application for Membership in the prescribed form, indemnifying the Society against any claims made to the shares and interest of the deceased Member in the capital/ property of the Society, at any time in future, by any person.

4. If there are more claimants than one, they shall be asked to make the affidavit as to who should become a Member of the Society, and such person, named in the affidavit shall furnish the indemnity bond as indicated above along with the application for Membership, referred to above. If however, the committee is not able to decide as to the person who is the heir/legal representative of the deceased Member or the claimants do not come to an agreement, as to who should become the Member of the Society, the Committee shall call upon them to produce succession certificate from the Competent Court. If, however, there is no claimant, the shares and interest of the deceased Member in the capital/property of the Society shall vest in the Society.