Associate & Nominal Membership in Housing Society

As per MCS Act, & Bye Law

As per Section 22 and as applicable to any Society, “Member” as an individual, who is competent to contract under the Indian Contract Act, 1872.

After amendment to MCA Act in 2019, as per Section 154B (18) “Member” means a person joining in an application for the registration of a housing society which is subsequently registered, or a person duly admitted to Membership of a society after its registration and includes associate or joint or provisional Member ;

As per Bye Law 3(xxiv) a "Member" means a person who holds the right, title and interest in the property individually or jointly.

After amendment to MCA Act in 2019, as per Section 154B (18)

(a) “Associate Member” means husband, wife, father, mother, brother, sister, son, daughter, son-in-law, daughter-in-law, nephew, niece a person duly admitted to Membership of a housing society on written recommendation of a Member to exercise his rights and duties with his written prior consent and whose name does not stand in the share certificate ;

(b) “Joint Member” means a person joining in an application for the registration of a housing society jointly, which is subsequently registered or a person who is duly admitted to Membership after its registration and who holds share, right, title and interest in the flat jointly but whose name does not stand first in the share certificate ;

(c) “provisional Member” means a person who is duly admitted as a Member of a society temporarily after death of a Member on the basis of nomination till the admission of legal heir or heirs as the Member of the society in place of deceased Member ;

Bye Law 3 (xxiv) (c) "Nominal Member" means a person who does not hold the right, title and interest in the property individually or jointly admitted as such member whose membership is accepted as nominal member after the registration of the society according to Bye Laws.

Section 24 of MCS Act: NOMINAL, ASSOCIATE AND SYMPATHISER MEMBER

(1) a society may admit any person as a nominal, associate or sympathiser member.

(2) A nominal member or sympathiser member shall not be entitled to any share in any form whatsoever in the profits or assets of the society as such member. A nominal or sympathiser member shall ordinarily not have any of the privileges and rights of a member, but such a member, or an associate member, may, subject to the provisions of sub-section (8) of section 27, have such privileges and rights and be subject to such liabilities of a member, as may be specified in the by-laws of the society.

Associate Membership in Housing Society

After amendment to MCA Act in 2019 a new Chapter “CHAPTER XIII-B” was introduced for housing society in Maharashtra and many issues have been sorted out. As regards Associate Membership in Housing Society, new section 154B (18) (a) has been introduced clarifying that henceforth only close relatives can become Associate Member in the housing Society and they are husband, wife, father, mother, brother, sister, son, daughter, son-in-law, daughter-in-law, nephew & niece. Thus no outsiders like Caretaker, Estate Broker, Lawyer or CA can be an Associate Member on behalf of the Member. Government has restricted Associate membership only to close family member and have removed professional agitators like Estate Brokers, Lawyers etc. who used to obstruct the smooth functioning of the society.

Rights, obligations & termination of Associate Member

Rights, obligations & liabilities of member thus passed on to Associate Member and he enjoys all the rights and is responsible for all liabilities of a member while acting as Associate Member. He can contest Election and can become office bearers like Chairman, Secretary, and Treasurer etc. These are described in details in Bye Laws 22, 25, 28, 45,46,47,48,49,52,55 & 56.

Nominal Membership in Housing Society

A Sub-lettee, a licensee or a care taker, or occupant of the flat is eligible to be Nominal Member of the society. Such person has to apply through the member of the society for nominal membership and pay entrance fees of Rs. 100/- (Rupees One Hundred Only) and may be admitted as a nominal member by the Managing Committee of Society. Name of the Nominal member will not be endorsed on the Share Certificate and he will have no right to participate in the election of Managing Committee.

A person occupying the flat on behalf of a corporate member such as a Partnership Firm, a Company, and a Corporate Body has to apply for Nominal membership of the society in the prescribed form and may be admitted as Nominal member by Managing Committee as such

A Nominal member will cease to be the member of the society on his resignation through the corporate body to which he represents in the society for occupying the flat and in case of a Nominal member who is a licensee, will cease to be Nominal member on expiry of license or his resignation or his death.

Rights, obligations & Liabilities of Nominal Member

Usually, nominal members are sub-lettees, tenants or licensed caretakers (such as agents), etc. As the name suggests, a nominal member only has the right to occupy the residence and live in the society by following the bye-laws, but they do not have to attend general body meetings and cannot stand for election or vote and do not have a say in the workings of the Managing Committee but are treated as the rightful residents of the society.

Specific rights are Getting Copy of the Bye-Laws, Inspection of Books and Records, Occupation of Flat etc.

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