MANAGEMENT AND ACCOUTING SYSTEM OF A CO-OP- HOUSING SOCIETY

What is Co-operative Society?

"Co-operative housing society" means a co-operative society

Housing co-operative is a legal entity usually a corporation that owns real estate, consisting of one or more residential buildings. Each shareholder in the legal entity is granted the right to occupy one housing unit, sometimes subject to an occupancy agreement, which is similar to a lease. co-ownership co-operative housing society" means a co-operative society known as "house building" or plotted society in which the land is held either on lease-hold or free-hold basis by the co-operative society and the houses constructed on it are owned or to be owned by its members Multi-purpose co-operative housing society" means a society formed with the object of undertaking multifarious activities for the economic and social development of its members, particularly of slum dwellers and economically weaker sections of the people, in addition to providing better housing accommodation and better environment to improve their quality of life. "Internal repairs" means such repairs as are not external repairs. "National Housing Bank" means the National Housing Bank established under the National Housing Bank Act, 1987 (53 of 1987).

In co-operative housing society members should appoint a secretary for generating meetings and various functions in the society.

Transfer fee means fee payable to transfer the membership of a member to another person in a co-operative housing society as provided in section 91.

Outgoing means ground rent, if any, municipal and other local taxes, cases, charges, water charges, electricity charges, revenue assessments, expenses of management and maintenance, repairs to or replacement of any property, insurance premium, other like expenses in respect of the co-operative housing society on recurring or non-recurring basis;

There are two main types of housing co-operative financing methods, market rate and limited equity. With market rate, the share price is allowed to rise on the open market and shareholders may sell at whatever price the market will bear when they want to move out.

In many ways market rate is thus similar financially to owning a condominium, with the difference being that often the co-op may carry a mortgage, resulting in a much higher monthly fee paid to the co-op than would be so in a condominium. The purchase price of a comparable unit in the co-op is typically much lower.

Co-ops are more commonly known as "flats" in India. This type of housing is very common in big cities like Mumbai (Bombay) but not very popular in rural India. Actually, they are registered as "co-operative housing society" rather than condominiums in that the owners actually have a share of the co-op and not the actual real estate itself. Owners can sell the "share" in the open market, but they have to get the approval of the co-op to complete the transaction.

Maintenance fund means periodical payments which are made by the members or occupants of house or flat to meet the expenditure incurred by a housing co-operative society towards providing of cleanliness, watch and ward, landscape, water supply, lifts, maintenance services for sanitary, electric fittings, drains, fire fighting system, generation sets, intercom systems, etc. within the complex fixed annually by the general body meeting of the members as a budget provision.

In larger co-ops, members of a co-op typically elect a board of directors from amongst the shareholders at a general meeting, usually the AGM. In smaller co-ops, all members sit on the board.
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Each resident or resident household has membership in the co-operative association. Members have occupancy rights to a specific suite within the housing co-operative as outlined in their "occupancy agreement or "proprietary lease" which is essentially a lease.

As a legal entity, a co-op can contract with other companies or hire individuals to provide it with services, such as a maintenance contractor or a building manager. It can also hire employees, such as a manager or a caretaker, to deal with specific things that volunteers may prefer not to do or may not be good at doing, such as electrical maintenance. However, as many housing cooperatives strive to run self-sufficiently, as much work as possible is completed by its members.

sub-allottee" means an individual or body of persons, whether incorporated or not, in whose favour the possession of the dwelling unit or part thereof is transferred for a period of not less than ninety days, and includes a tenant, licensee, paying guest and caretaker thereof;

"co-partnership co-operative housing society" known as group housing means a cooperative society in which land and buildings are held by the co-operative society on leasehold or free hold basis and members are allotted flats or such other premises in such buildings with a right to occupy the same in accordance with terms of lease, Government's guidelines and the bye-laws of such group housing;

The cooperative has legal personality and limited liability and the objective is the general benefit of the community and the social integration of citizens.

Voting is one person one vote. This is known as co-operative society; and same defined in the act.

MEANING OF A CO-OPRATIVE HOUSING SOCIETY:-

The term co-operation is derived from the Latin word co-operari, where the word co
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Means with and operari means to work. Thus, co-operation means working together. So those who want to work together with some common economic objective can form a Society termed as co-operative society. It is a voluntary association of persons who work together to promote their economic interest. It works on the principle of self-help as well as mutual help. The main objective is to provide support to the members.

It registered under Maharashtra Co-operative societies act, 1960 and also it has common objects for promotion of economic interests and general welfare of members.

FEATURES OF CO-OPRATIVE SOCIETY: -

VOLUNTARY ASSOCIATION:A Voluntary association or union is a group of individuals who enter into an agreement as volunteers to form a body to accomplish a purpose. "...where two or more persons are bound together for one or more common purposes by mutual undertakings, each having mutual duties and obligations, in an organization which has rules identifying in whom control of the organization and its funds are vested, and which can be joined or left at will."

ACCOUNTING SYSTEM:Every society shall keep the accounts and books as required by the Act, rules and the byelaws. Within forty-five days of the close of the co-operative year annual statement of accounts are required to be prepared. The accounts shall disclose accompanied by a complete list of members. The accounts shall be open to inspection by any member of the society. The statement of accounts shall be presented at the annual general meeting of the society.

CASH BOOK, GENERAL LEDGER, PERSONAL LEDGER, STOCK REGISTER, PROPERTY REGISTER, REGISTER OF AUDIT OBJECTIVES AND THEIR RECTIFICATION. THESE BOOKS WERE TO BE MAINTAINED BY THE SOCIETY. A banking account shall be opened by the society into which all moneys received on behalf of the society shall be paid. The secretary may retain in his personal custody a sum not exceeding Rs.50/- for petty expenses. All payments above Rs.20/- shall be made by cheques, signed by the secretary and one member of the committee. Every member shall have a passbook in which the secretary shall enter amounts paid to or received from such member.

OPEN MEMBERSHIP: The membership of a Co-operative Society is open to all those who have a common interest. A minimum of ten members are required to form a co-operative society. The Cooperative society Act does not specify the maximum number of members for any co-operative society. However, after the formation of the society, the member may specify the maximum number of members.

DISTRIBUTION OF SURPLUS: Every co-operative society in addition to providing services to its members also generates some profit while conducting business. Profits are not earned at the cost of its members. Profit generated is distributed to its members not on the basis of the shares held by the members (like the company form of business); button the basis of members participation in the business of the society. For example, in a consumer co-operative store only a small part of the profit is distributed to members as dividend on their shares; a major part of the profit is paid as purchase bonus to members on the basis of goods purchased by each member from the society.

SERVICE MOTIVE:Co-operative societies are not form to maximize profits like other forms of business organization. The main purpose of a co-operative society is to provide service to its members.
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DECLARATION OF DIVIDEND:Out of the profits made by the society, the society can declare a dividend which is the amount paid to a member in proportion to the shares held by the members [sec.2(11)] no society shall pay dividend to its members at a rate exceeding 12% , accept with the prior sanction of the state government (sec.67).

REGISTERATION OF CO-OP HSG SOCIETY

In the previous point we have analyzed that a society with the object of promotion of economic interests or general welfare of its members, or the public, in accordance with cooperative principles or a society established with the object of facilitating the operations of any such society may be registered under the act.

PROCEDURE:1. Application
An application shall be made to the registrar of co-operative societies in the prescribed form and shall be accompanied by four copies of the proposed or model bye laws of the society along with the registration fee. The application shall be accompanied by list of persons who have contributed to the share capital, a certificate from the Bank stating the credit balance, a scheme explaining how the working of the society will be economically sound with registration fee. (RULE 4).

2. Bye-Laws
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The promoters are required to fill a copy of the bye-laws with the application for the registration of the society. The society may form bye-laws for all or any of the matters provided in RULE 8 of the Maharashtra co-operative societies rules, 1961. After registration, the laws become the first bye-laws of the society (RULE 9). The member who joins the society is presumed to have accepted the bye laws.

3. Registration
If the registrar is satisfied that a proposed society has complied with the provisions of the act and the rules and that contrary to the act or the rules thereto, within two months from the date of the registration, the registrar shall register the society and its bye laws. The register shall issue a certificate of registration containing the registration number and the date of its registration, which shall be conclusive evidence that the society is dully registered (SEC.10).

4. Registered Address
Every society shall have address, registered in accordance with the rules, to which all notices and communication may be sent. The society shall send notice in writing to the registrar of any change in the said address within 30days thereof (SEC.37&RULE 31).

MINIMUM MEMBERS:U/S 6 of the Act, the following is the conditions which have to be complied with for the registration of the society:[1] A person shall have minimum of 10 persons, except in the case of lift irrigation of the society, where the required minimum number is 5 and maximum is 10. [2] Each of the person should be a member of a different family.
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[3] Each member should be qualified under the Act, i.e. he should be competent to contract under the Indian Contract Act, 1872. [4]Membership is open to all irrespective of their caste, color, creed and religion. At least 10 adults are required to form a society.

TYPES OF MEMBERS
INTRODUCTION:-

A person who joins in an application for the registration of a co-operative society, after the society is registered is called a member. Before registration of the society such a person is called promoter or founder member of the society. After registration of the society a person who is duly admitted to the membership of a society becomes a member of that society.

WHO MAY BECOME A MEMBER OF THE SOCIETY:The following persons may be admitted as members of the society:
1. An individual, who is competent to contract under the Indian contract Act, 1872. No

individual, however, can seek admission to a society exclusively formed for the benefit of students of a school or college.
2. A firm, company or any other body corporate registered under any law or a society

registered under the societies Registration Act, 1860. 3. A society registered under this act. a. The state government or the central government. b. A local authority.
c. A public trust registered under the law for the registration of such trusts [SEC.22 (1)].

Types of Members are as follows:8

1.

Active member: - Active Member has been defined to ensure the members active
participation in the affairs of the Co-operative Society. Time bound decision by the Co-operative Society for admitting members is proposed to prevent delay in the admission of members in co-operative societies. Admission of members is to be done by the elected Board. In the case of superseded societies administrator may admit new members.

2.

Nominal Member: - Notwithstanding anything contained in clause (d) of section 20,

a cooperative society may admit any person as a nominal or associate member in accordance with its bye-laws. A Sublette, or licensee or a caretaker may also be admitted as a nominal member of the society, a nominal member has no right to vote and he shall not be eligible to be a member of the committee and shall not be eligible for appointment as a representative of the society. A nominal member entitled to any share in the profit or assets of the society.

3.

Associate or joint member: -A member who holds jointly a share in the society
with others, but whose name is not first on share certificate is cold an A associate or join member. A society may admit joint members provided they make a declaration in writing that the person whose name stands first in the share certificates shall have the right to vote.

4.

Original Member: - A person who is admitted for a membership of society is known

as original member of the co-operative society. A member can be individual or joint member of the Co-operative Society.

5.

Sympathizer member: - A person who sympathies with the and objects of the
society may be admitted as a sympathizer of the society [sec.2 (19) (c)] sympathizer member will not be entitled to any shares in the profits of assets of the society. Ordinarily the sympathizer member shall not have any privileges and the rights of the member.

MEETINGS OF SOCIETY:First General Meeting: - Every society shall within three months from registration hold a
general meeting of its members called the first general meeting by giving fourteen days notice. The President of the society is elected along with other committee members. The statements of accounts are received, auditors are appointed and limits of borrowing are fixed.

Therefore, there are 4types of meetings. 1. ANNUAL GENERAL MEETING. 2. EXTRA-ORDINARY GENERAL MEETING. 3. MANAGING COMMITTEE MEETING. 4. CLASS MEETING.

TYPES OF MEETINGS:-

1. ANNUAL GENERAL MEETING: - Within three months after the date fixed
for making up the accounts a general meeting of the members by giving not less than ten days notice is to be held. A short notice will be given in case of emergency. If the society fails to so convene the meeting, the Registrar may call the general meeting.

A. CONVENED BY

SOCIETY: - Every society shall, within a period of three months next

after the date fixed for making up its accounts for the year, call a general meeting of its members. The registrar may by order extend the period for holding annual general meeting by a further period not exceeding three months. [SEC.75 (1)]. The accounts are required to be prepared within 45 days of the close of every co-operative year (RULE 61). Co-operative year ends on 31st day of March of each year [SEC. 2(10-a3). So the annual general meeting is to be called by 15th August of each year.
B. NOTICE

OF GENERAL MEETING: - In case of Annual General Meeting not less

than 10days notice and in the case of a Special General Meeting not less than 5days notice shall be given. In case of emergency, committee may unanimously direct shorter notice.
C. CONVENED

BY REGISTRAR: - If the society fails to call the general meeting within

the above time or extended time, the Registrar may call such a meeting and that meeting shall be deemed to is a general meeting duly called by the society. The expenditure incurred in calling such a meeting shall be paid out of the funds of the society (SEC.75 (1) & RULE 63).
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2. EXTRA-ORDINARY GENERAL MEETING: - A extra ordinary general

meeting may be called at any time by the chairman or by a majority of the committee and shall be called within one month. * On a requisition in writing of one-fifth of the members of the society or of members the number of which is specified in the bye-laws, whichever is lower. This is called a Requisitioned Meeting. * At the instance of the Registrar. * In the case of society, this is a member of a federal society, at the instance of the committee of such federal society [SEC.76 (1)]. A special / Extra ordinary general meeting shall not transact any business other than that mentioned in the notice convening the meeting. If within half an hour, after the time appointed for the meeting, quorum is not present, the meeting if convened upon the requisition of the members shall be disallowed.

3. MANAGING COMMITTEE MEETING: - The meetings of the committee

members for managing the day-to-day affairs of the society are held regularly by a notice given by the secretary of the society to all the committee Members. Such meetings are held at such time and place as specified in the notice. President of the society presides over the committee Meetings. Committee transacts the business as specified in the agenda to the notice. Resolutions are passed by a majority of the committee Members present and voting on each item of agenda. Chairman shall have a second or casting vote. Proceedings of the committee meetings are recorded in the register kept for the purpose called committee Members Meetings Minute Book. Three members present in a committee meeting shall be a quorum. The meeting at which quorum is present shall be competent to exercise all or any of the authorities and powers. Chairman of the committee shall preside over Committee Meetings. If chairman is absent, members of the committee present shall elect one from their member to be the chairman for the occasion. No committeeman shall be present at a meeting or vote in a matter in which he is personally interested.

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4. CLASS MEETING: - It is a meeting of a particular class of shareholders, convened

when necessary share holders. It is generally held to pass resolution that will bind only the members of the class concern. These class meetings must be convened, whenever it is necessary to alter or change the rights or privileges of that class as provided by the articles.

1. QUORUM
No business shall be transacted at any general meeting, except the declaration of a dividend or the adjournment of the meeting, unless the number of members required to form a quorum as specified in the bye-laws are present [RULE 60(2)]. Quorum for Annual General Meeting shall be three-fifth of the total number of members of the society or 20members of the society, whichever number is less. The quorum that is required to hold the meeting as valid is stated in the Articles of Association. However the minimum required is 20members in case of a private company and in case of a public company.

2. RESOLUTION
A formal proposal put to the members in a meeting of the society is called resolution. There are three kinds of resolution, which may passed by a society. They are
(1) Ordinary resolution:

When a motion is passed by simple majority of the members voting at a general meeting it is said to have been passed by an ordinary resolution. In other words the votes cast in favor of the resolution are more than the votes against the resolutions some of matters requiring ordinary resolution are as follows: 1. Issue of shares at a discount 2. Alteration of share capital 3. Adoption of statutory report 4. Adoption of profit and loss account balance sheet along with report of directors an auditors
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5. Appointment of auditors and fixation of their remuneration. 6. Appointment of first directors who are liable to retire by rotation 7. Appointment of managing directors 8. Voluntary winding up of the company 9. Register an unlimited company as a limited company

(2) Special resolution: When a motion is passed by not less than three-forth majority of the members at the meeting. Generally matters are so important and outside the ordinary course of the companys business, that majority of the needed to members approving of them. Matters requiring special resolution are: 1. Alteration of the registered office clause from one city/town/village to another from state to another. 2. Alteration of the object clause 3. Alteration of the articles 4. To create reserve capital 5. To reduce the share capital 6. To commence new business 7. To pay interest out of the capital 8. To appoint auditors under certain circumstances 9. To appoint inspectors investigate the affair of the company 10. To permit directors etc. to hold office of profit
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11. Investment exceeding the prescribe limit 12. To have the company bound up by the tribunal 13. Winding up of the company voluntarily

(3)Resolutions requiring: Special notice: a resolution requiring special notice means a notice of at least 14days, to move the resolution has to be given to the company by the shareholder. The company on a receipt of the notice shall issue a notice to its shareholder in this regard, not less 7 days before than meeting. The company if so desire may instead of serving notice on the share holder, may be given an advertisement in the newspaper or may adopt any other appropriate manner. Matters requiring resolution with special notices are: (a) Appointment of auditor other than the retiring one. (b) Removal of directors before expiry of the term and appointment another in the place of the removed directors. (c) Appointment of certain person, who can be appointed in the ordinary course as director.

SHARE CAPITAL & CORPUS FUND

INTRODUCTION:The capital raise by limited company is called the share capital. This capital used to following senses:
(a) Authorized capital: it is also called as nominal or registered capital. This is the amount

specified in the memorandum of association this is the maximum amount of the company is authorized to raised by issue of shares.

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(b) Issued capital: it is the part of the capital that has been issued by the company for

subscription.
(c) Subscribed capital: It is the amount of the shares, that has been subscribe by the public. (d) Called-up capital: it is that parts of the nominal capital amount of subscribe capital, which

has been demanded from the subscriber for payment.

(e) Reserve capital: it is that the part of the companys uncalled capital, which shall be called

except on winding up.

(f) Paid up capital: it is that part of called up capital which is paid y the share holders on

whom the call was made. This amount is actually paid on shares by the members of the company.

FEATURES OF SHARE CAPITAL:1 .Long term in nature: share capital provides funds for long term needs of a company. Ts is used for the purpose of purchasing fixed assets, such as land buildings, plant and machinery, etc 2. Owned Capital: Share is owned capital. This is because the shareholders are the owners of the company. 3. There is no fixed return on equity shares. The returns depend on the profit made by the company. If there is loss or low profit, the company may not declare dividend for that year. However, the dividend on preface share is fixed. 4. Types of share capital: The share capital is of different types. A company has its authorized capital. The authorized capital can be divided into two types, i.e., issued capital and unissued capital. The issued capital can be divided into subscribed and unsubscribed capital. The subscribed can be further divided into called-up and uncalled. The called-up capital can be paid up capital and calls-in-arrears.

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5. Raised by companies limited shares: The shares capital can be raised only by companies limited bye shares. Companies limited guarantee and unlimited companies cannot raise share capital. However, redeemable preference share have a fixed period. 6. State in memorandum: the share capital of a company is stated in its memorandum of association. Every company limited by shares must states in its memorandum, the amount of share capital with which the company is to be registered. 7. Period of Finance: The equity shares capital provides life-time capital to the company. There is no fixed period for equity share capital. However, redeemable preference shares have a fixed period. 8. Legal procedure: There is definite legal procedure to obtain share capital to be followed by companies. The companies must follow the legal formalities to raise share capital.

VARIOUS FUNDS MAINTAINED BY SOCIETY

1.

RESERVE FUND:-

1) Every society shall carry at least one-fourth of the net profits each year to the reserve fund and such reserve fund may. Subject to the rules made in this behalf, if any, be use in the business of the society or may, subject to the provisions of sections 70, be invested, as the state government may by general or special order direct, or may, in the previous sanction of the state government, be used in part for some public purpose likely to promote the objects of this act, or for some such purpose of the state, or local interest. Provided that, the registrar may, having regard to the financial position of any society or class of societies fixed the contribution to be made to the reserve fund under this sub section at lower rate, but not lower that one-ten of the net profits of the societies concerned.

2) A profit earning society has to maintain a reserve fund form its transactions. The society shall carry at least one-fourth of its net profits from its transaction, the reserve fund. Such fund may be
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utilized in the business of the society if permitted by rules or may be utilized in furtherance to the object of this act with permission of the government. If a register having regard to the financial opinion that the reserve fund should be created lower than statutory requirement, may fix a lower rate but not lower the one-tenth of the net profits.

3) If the employer is a co-operative society, item 4 of the third schedule to the bonus act is applicable for deduction sums which have been carried forward in respect of the relevant accounting year to the reserve fund is deductible from gross profit. Thus reserve fund created under section 66 is deductable under item 4 of the third schedule to the bonus act.

2. SINKING FUND:Any building require some or the other kind of repairs after every 6-10 years. Depending upon the nature of the repairs to be undertaken, the cost may start from about Rs 1 lakh to Rs 2 lakh and can go as high as Rs 15 lakh to Rs 20 lakh. While the funds for a small repair job can raised, sometimes members may have a problem raising funds for serious structural repairs. Standard bye laws sec 13 provides for creation of funds by societies. Main headings are repair and maintenance fund, major repair fund and sinking fund. Section 14 provides for procedure to be followed in utilization of these funds. Members though, do have a reprieve if the society is unable to raise funds. Under the Cooperative Societies Act, all cooperative housing societies should collect a sinking fund, so that, when the society's building is in need of repair or reconstruction, the society can use money from the sinking fund. As per bylaw no 14 (c), when there is a need to withdraw money from the sinking fund, it is necessary to get a prior permission of the registering authority. To do this: 1. Firstly, an architect should be appointed at a general body meeting to inspect the building and to specify the nature of the structural repairs. 2. Then, the society should enter into a contract with the architect subject to the terms and conditions approved by the general body meeting. The architect should prepare plans and estimates, with specifications of structural changes required to be carried out.
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3. On receiving the report which includes the plan estimates and specifications from the architect the managing committee of the society should invite tenders for the works in consultation with the architect. The committee should then examine the tenders received and make its recommendations on which tender should be accepted. 4. The plans, the estimates with specifications, the tenders received and the committees report should now be placed before a general body meeting. The general body can now authorize the committee to make an application to the registering authority for permission to draw the required amount from the sinking fund and to create additional charge on the sinking fund investment, to the extent required. The society can then enter into a contract with a contractor whose tender has been accepted on the terms and conditions set out by the general body. With rising costs, most society members oppose increase in major repair funds that includes plastering and painting, cost of which are going up every year. Society buildings come up for plastering and repainting every 6-8 years depending upon climatic conditions. Under statute all society buildings are compulsorily required to be insured against fire and natural vagaries like earth quake. Well maintained buildings hardly collapse. With paucity of funds under repair and maintenance and major repair fund, societies can exercise option to use sinking fund with permission of registrars. This is where corruption is comes in. it has been reported that sanction for using sinking fund comes with 0.5 to 1 % bribe paid to office of registrar through contractor. They will close their eyes and allow you to even paint buildings from sinking fund by manipulation of estimates and nature of repairs. This is a sad provision. All funds raised by societies should be under control of its general body federation and not the registrar. Such controls by government authorities always result in corrupt practices.

3. REPAIRS FUND:The repairs and Maintenance Fund may be utilized by the committee for meeting the expenditure on maintenance of the societys property and repairs and renewals thereof.

4. BUILDING FUND:"Building fund" means a fund created by the collection of contributions from member 18

(i) The purchase and or acquisition of land; or (ii) The land development; or (iii) The construction of dwelling units in a complex or buildings; or (iv) For the purpose of providing any other common amenities to achieve the objectives of the cooperative housing society; (d) "Building maintenance fund" means a fund created by collection of the contribution from its members at such rate as may be determined by the general body meeting of the members annually as a part of budget provision for carrying out repairs or structural additions, improvements or alterations to the property of the co-operative housing society which is likely to increase the life of such property and to maintain the property of the said society in good and habitable conditions at all times;

REVIEW OF LITERATURE
INTRODUCTION:It is a term and a concept easily taken for granted; few would find fault with the sentiment it expresses. However, if thoughtfully addressed to the needs of an aging society, it begins to take on far greater significance. For hidden deep in this simple clich are implications of comfort, security, family, friendships, happiness, and independence. In 1993 approximately 30 percent of all non-institutionalized older adults lived alone. However, the percentage of women living alone was substantially higher than that of men; 43 percent of women as compared to 18 percent of men. Even more significant perhaps is the fact that the number of older persons living alone increased by 68 percent between 1970 and 1994, about one and one-half times the growth rate for the older population in general (AARP & AoA, 1994). In recent years, the focus in the area of housing for older adults has been on maintaining what already exists and to make better use of existing housing resources through home-sharing, accessory apartments, and home equity conversions. The trend was to meet older people's housing needs through adapting existing communities and neighborhoods rather than through expensive housing programs (Newcomer, Lawton & Byerts, 1986). The lack of adequate, affordable housing is a serious problem for the older adult, particularly those who live in rural areas (Rowles, 1984). Census data indicates that 44 percent of the sub-standard housing in rural America is occupied by persons 65 years of age and older. In addition, at least 60 percent of older persons living in rural communities occupy homes that were
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built prior to 1920 (U.S. Department of Commerce, Bureau of Census, U.S. Department of Housing and Urban Development, 1991).

The housing requirement for older adults, in general, are significantly different than young adults, due to the progressive limitations of the mobility, physical, social, and mental characteristics of older adults over time (Golant, 1992). This creates seemingly contradictory needs and demands, with the ability to maintain an active life. Cooperative housing is an alternative for older adults who need and want comfort, security, family, friendships, happiness, and independence. Older adults who move gracefully to retirement communities tend to be pragmatic planners who see the change as a necessary new beginning (Blank, 1988; Brand & Smith, 1974). Much of the following review of literature relating to the "whys" older adults move to communities boasting of better retirement characteristics support the theory that older adults want to make their own decisions, relieve their relatives of responsibility and eliminate worry about future health and home care. Consequently, they reap new freedom to pursue activities they love, new friends and often better health (Bull, 1993). Theorist Ponsioen (1962) suggests that a society's first responsibility is to meet the basic survival needs of its members, including biological, social, emotional, and spiritual components. Each society, or the dominant group in each society, identifies a quality of life level below which no individual or group should fall. These levels will change over time. Within this framework, social needs exist when some communities have a service or opportunity while other communities do not. Maslow (1968) took a slightly different view and proposed the existence of a hierarchy of need. Consequently, an individual becomes aware of needs in a prescribed order from the lower level of a pyramid progressing upward. Only when the lower needs are satisfied can a higher need be addressed. A person cannot be overly concerned with safety and security until physiological survival needs of food and shelter are met. Only when all levels of needs are achieved can attention be directed to the need for love and self-actualization. The need for achievement is manifested in the individual's tendency to strive to accomplish particular tasks in order to generate personal satisfaction and contentment (Maslow, 1987). It involves continued struggle for knowledge and skills, and for exploration and mastery of the environment. Older adults exhibit a need for self esteem or self-actualization to exercise their influence about later life decisions. Addressing the concerns of these early theorists has offered a number of useful insights to assessing the needs of older adults. The needs of our aging society are diverse because of the very nature of the aging process and due to the diverse profile of the older population. Lifespan studies
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suggest that older people are more unlike each other than younger populations. Not only do people become more different from each other as they age, but there are significant differences among the older adults in this population called aging. The young-old, 65, are quite different from the oldold, 85+, in personality, health, vigor and emotional stability. Therefore, to address the quality of life and basic needs of all older adults demands a clear understanding of the diverse physical, mental, social, environmental attributes of the individuals in later life (Altman, Lawton & Wohlwill, 1984). The needs of the older adult also vary with the particular group studied. Are the older adults rural or urban, married or never married, male or female, low socio-economic or high socioeconomic, high school education or no high school education, with children or without children? Furthermore, the older adults in the current population are healthier, better educated, more active and more involved in community leadership roles than those counterparts twenty-five years ago and will probably be just as different from those in the year 2020 (Stevens-Long & Commons, 1992).

Managing committee:Meaning:The management of every society shall vest in a committee, constituted in accordance with the act, the rules and the bye-laws. The committee means the committee of management or the board of directors or other directing body, by whatever name called, in which the management of the affairs of a society is vested under section 73. [Sec. 2(7)]. The committee member is the officer of the society. Officer means a person elected or appointed by a society to any office of such society according to its bye-laws and includes a chairman, vice-chairman president, vice-president, managing director, manager secretary, treasurer member of the committee and any other person elected or appointed under the act, the rules or the bye laws to give directions in regard to the business of the society [sec.2 (20)]. The committee shall exercise such powers and perform such duties as may be conferred or imposed by the rules and the bye-laws [sec.73 (1)].

The members of the committee shall be jointly & severally responsible for all the decision taken by the committee during its terms relating to the business of the society and for all acts and omissions detrimental to the interest of the society. Any member of the committee, who does not
21

agree with any of the resolution or decision of the committee, may express his dissenting opinion. Such a member shall not be responsible for such decision [sec 73 (1AB)]. Any member who is not present for the meeting in which the business of the society is transacted and who has not subsequently confirmed the proceedings of that meeting, such member hall also not be held responsible for any of the business transacted In that meeting of the society.

The constitution of managing committee:The registrar may, having regard to the area of operation of the society share capital or turnover of the society or class of societies, prescribed the maximum number of members on the committee of such society or class of societies [sec.73 (2)].

The discretion has been left to the registrar to prescribe the maximum number of member of the committee of the society or class of societies. This provision does not compel the registrar nor makes it obligatory to prescribe the maximum number even where the registrar may be satisfied with the maximum number already prescribed in the bye-laws of the society (Beed District Central Co-op. bank limited. V. jaganath S. shahane ------AIR 1992 SC 1249).

Powers and duties of the managing committee:The committee shall exercise such powers and performs such duties as may be conferred or imposed by the act, the rules and the bye-laws [sec.73 (D)].

Powers of managing committee:1. General power:The management of the business of the society shall be vested in the committee. in addition to (his powers & authority expressly conferred on the committee by the act, rules & bye-laws, the committee may exercise all such powers and do all such acts and things as may be exercised or done by the society.
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2.

general powers:-

In addition to general powers, the committee shall have power:

1. To scrutinize and place before the general body all the application for membership.

2. To check the account of secretary or treasurer and to examine the register and account books and to take steps for the recovery of sums due to the society. 3. To sanction working expenses, count the cash balance, and deal with the other miscellaneous business;
4. To see that the cash book is written up promptly & signed daily by one of the members of

committee authorize in his behalf: 5. To hear and deal with complaints

6. To deposit the funds of society in any bank or banks approved by registrar & to authorize

by the written resolution, members of their body not exceeding three to draw upon the accounts, any two signing jointly, as may be laid down in the resolution, to buy, sell or otherwise deal with the securities; 7. To appoint, suspend, remove or discharge all officers(except the auditors), solicitors, manager, architects, surveyors, accountant, agents, servants & employees of every descriptions & fixed their duties & remunerations & require them to give security to the approval of committee;

8. To compromise & settle or contest either in a court of law or by arbitration any suit, debt liability or claim by or against the society; 9. To convene all meetings of society according to bye-laws thereof subject to provisions herein before contained as to a special general meeting;

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10. To provide proper books for entering the accounts of all business carried on, behalf of the society & the minutes of all the meetings thereof & of their own proceeding & for making all such entries s are hear by required or as any general meeting may direct; 11. To provide such forms as are necessary in the consequence of the provision of the rules or the bye-laws & for same being kept, made up or use in such manner as in their description they thing desirable;

Duties of the managing committee:1. To observe the provision of the act rules and bye-laws; 2. To maintain true and accurate accounts and records all particulars of receipts and expenses; 3. To maintain detailed particulars of assets of the society; 4. To maintain prescribed books of accounts; 5. To record the names and particulars of share holding of all the members of the society in the register of members, including transfer and transmission of shares, 6. To get the accounts of the society audited and placed the same before the general body meeting ; 7. To comply with the directions of the registrar in accordance with the inspection report to the registrar and auditors; 8. To convene general body meeting and special general meeting in accordance with the act, rules and the bye-laws;
9. To hold elections of committee members before the expiry of its term;

10. To maintain muster books of general meetings and committee meetings.

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The members of the committee shall be jointly and severally responsible for making good the lass which the society may suffer on account of their negligence or omissions to perform any of the duties and functions cast on them.

Delegation of powers:The committee may delegate any of the powers to a subcommittee of its own members consisting of two or more members. Meetings & proceedings of subcommittee shall be regulated in the same manner as that of the committee.

Responsibility of committee to hold elections:It shall be the duty of committee of every society to arrange for holding the elections of its members before the expiry of its terms. Where there is a willful failure on the part of the committee to hold elections to the committee before the expiration of its term, the committee shall cease to functions on the expiry of its term & the members thereof shall cease to hold office. The registrars may himself takeover the management of the society or appoint an administrator. The administrator shall not be from amongst the members of the committee the term of which has so expired. The registrar or the administrator shall hold elections within a period of 6 months in the committee shall be constituted before the expirations of that period (sec. 73.H).

Removal of managing committee:A committeeman may be removed from office at any time by a resolution carried by two-third of votes given there on at a general meeting. The general body may thereupon proceed to fill his place by a resolution carried by a majority of the votes given thereon.

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BOOKS AND DOCUMENTS TO BE MAINTAINED BY SOCIETY:

THE MAIN BOOKS AND DOCUMENTS MAINTAINED BY SOCIETY.

1. The society shall maintain in I form, prescribed under Rule 32 of the Rules. 2. The list of members in J form, prescribed under Rule 33of the Rules. 3. The cash book. 4. The General Leger. 5. The property Register. 6. The share Register. 7. The Sinking Fund Register. 8. The Audit Rectification Register in O form, prescribed under Rule 73 of the rules. 9. The Investment Register. 10. The Personal Register. 11. The Nomination Register. 12. The loan Register (if loan is raised). 13. The Mortgage Register (if the property is mortgaged). 14. The Minutes book for the meetings of the committee of the society. 15. The Minutes book for the meetings of the general body of the society. 16. Register of deposits made with the local Authority, the Electricity supply company and any other Authorities. 17. The Register of Furniture, Fixtures and other equipments. 18. The Register of Library books. 19. The register of Allotment of Flats. 20. Structural Audit Register (wherever Applicable).

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THE OTHER RECORDS TO BE MAINTAINED BY SOCIETY:THE SOCIETY SHALL MAINTAIN SEPARATE FILES FOR THE FOLLOWING ITEMS:(1). Applications for membership. (2). Applications for associate membership. (3). Applications for nominal membership. (4). Letters of resignations of membership including associate and nominal membership. (5). Cases of Expulsion of members. (6). Nominations made by members including revocations thereof. (7). Correspondence with the Registering Authority. (8). Separate file for correspondence entered into with each member.

(9). Notices and Agenda of the meetings of the general body of the society. (10). Counterfoils of cheques issued.

MINUTES: - Minutes are record of the business transacted at meeting. The minutes must
contain a fair and correct summary of the proceedings. The minutes are maintained in the MINUTE BOOK, which have the pages numbered. Minutes must be entered within 30 days of the conclusion of the meeting concerned. The minutes are the evidence are the proceedings. The member has the right to inspect free of cost the minutes of the general meeting of the company. Also copy can be obtained on payment of the prescribed fee. The copy shall be furnished within seven days of requisition.

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VARIOUS FORMS:-

FORM J:
FORM J See Rule 24(14) Sale Voucher for the seller Book No Serial No Name of Market Date of auction .. Name of Kacha Arhtiya .... Address of seller Name of seller .. ... Name of Commodity Name of Buyer Weight Rate Total Incidental Charges
28

Net amount Paid Signature of seller, his agent or representative 2* Note:-Where the agricultural produce, being vegetable or fruit, is delivered, it shall not be necessary to fill in column 2 relating to Name of the Buyer. Signature of Kacha Arhtiya _____________________ 1. 2. Substituted vide No.GSR-230/PA-23/61/S 43/Amd(3)/63 dated 5.10.63 The words his agent or representative inserted vide No.GSR-167/PA-23/61/S-43/Amd (7)/6-1 dated 3.7.64

3. The new note inserted vide No.GSR-167/PA-23/61/S-43/Amd(7)/64 dated 3.7.64

FORM O:
FORM O [See Clause 8 and 11] CERTIFICATE OF SOURCE FOR CARRYING ON THE BUSINESS OF SELLING FERTILISERS IN WHOLESALE/RETAIL/FOR INDUSTRIAL USE No. ........................... Date of issue............................. 1. Particulars of the concern issuing the certificate of source (a) Name and full address (b) Status: (i) State Government (ii) Manufacturer (iii) Pool handling agency (iv) Wholesale dealer (v) Importer
29

(c) If manufacturer of mixture of fertilizers, the details of certificate of manufacture of mixture of fertilizers possessed : (i) Number (ii) Date of Issue (iii) Date of expiry (iv) Grades of mixtures of fertilizers allowed to be manufactured (v) Authority by whom issued (d) Details of certificate of registration: (i) Number (ii) Date of issue (iii) Date of expiry (iv) Authority by whom issued 2. Particulars of the person to whom the certificate of source is being Issued (a) Name and full address (b) Status (i) Wholesale dealer (ii) Retail dealer (iii) Industrial dealer (c) If holds a valid certificate of registration, the details thereof : (i) Number (ii) Date of issue (iii) Date of expiry (iv) Authority by whom issued (d) Purpose of obtaining the certificate of source:
30

(i) For obtaining a fresh certificate of registration (ii) For renewal of the certificate of registration. 3. Details of fertilizer(s) to Be supplied: S. No. (1) Name of fertilizers (2) Trade mark/Brand name (3) 1. 2. 3. 4. Declaration Declared that the fertilizers mentioned above will be supplied conforming to the standards laid down under the Fertilizer (Control) Order, 1985 and, as the case may be, grades/formulations (of mixtures of fertilizers) notified by the Central/State Government and packed and marked in container as provided under clause 21 of the Fertilizer (Control) Order, 1985 Signature with stamp of the Authorized Officer
31

BYE-LAWS OF THE SOCIETY

INTRODUCTION:-

A bye laws means bye law registered under the Act and for the time being in force and includes registered amendments of such bye laws. With the application for registration of the society, a copy of the bye laws or model bye laws is required to be filled. The society may form bye laws for all or any of the matters provided in Rule 8 of the Maharashtra Co operative Societies Rules, 1961. Bye laws are binding on the members. However, the rights and liabilities of members are determined by the act and not by the bye laws. Bye-laws do not have the force of statute [Co- operative central Bank Ltd. V. Additional Tribunal, Andhra Pradesh, Hyderabad [AIR 1970 SC-245) (252)]. In Manohar v. state of Maharashtra & Ors.(5 co-op.cases-208 BHC) it was observed that having regard to the scheme of the act and the inbuilt safeguards, there is no basis to assume that the society would be able to circumvent the bar by framing bye-laws in a particular manner. Validity of the bye-laws can be challenged by the aggrieved party through it becomes final.

HOW TO REGISTER ?
When a society has been registered, the registered bye laws of the society as approved and registered by the registrar shall be the first bye-laws of the society.( RULE 9).
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Every society shall keep a register of members wherein the following particulars shall be entered into: 1. The name, address and occupation of each member. 2. In the case of society having share capital, the shares held by each member; 3. The date on which each person was admitted as member; 4. The date on which any person ceased to be a member.

CLAUSES OF BYE-LAWS:Clause (27) defines as the society which provides above registration of the society under the act and those societies which are register prior to the Maharashtra co-operative societies act, 1960 that is those societies which where register under the repealed act like Mumbai co-operative societies act 1925 are deemed to be registered under this act. The intentions of the legislature appear to create a special forum to decide co-operative societys disputes. Proposed co-operative society is not a society with the meaning of section to (27) of the act. Section 2 (27) does not include a propose society. In the instant case the respondent was a propose society and the society was registered after two impugned orders where passed. Therefore on the day of the order the society was not a society registered under the act. Therefore permission guaranteed to the proposed society on the two dates to collect milk form the primary unit in beed taluka only to the exclusion of the collection of milk petitioners. Therefore impugned orders where contrary to law an where deserve to be quashed [with district central co-operative and milk production and distribution federation v/s state of Maharashtra, 1984 C.T.J. 196 (Dom.) (D.B.)].

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AMMENDMENT TO BYE-LAWS:-

INTRODUCTION:Amendments of bye-laws of a society shall be valid until register under this act. For the propose of registration of an amendments of the bye-laws, a copy of amendments passed, in the manner prescribed, at a general meeting of the society, shall be forwarded to the registrar [Every application for registration of an amendment of the bye-laws shall be disposed of the by the register with in a period of two months from the date its receipts. (1A) Where there is a failure on the part of the registrar to dispose of such application with in the period aforesaid, the registrar shall, within, a period of a 15 days from the date of expiration of that period refer the application to the next higher officer and where the registrar the registrar himself is the registering officer, to the state government, who are which, as the case may be, shall dispose of the application within two months from the date of its receipt and on the failure of such higher officer or the state government, as the case may be, to dispose of the application with in that period, the amendment of the bye-laws shall be deemed to have been registered. (1B) No amendment of the bye- laws of a society shall be register shall have effect, if the amendments of repugnant to the policy directives, if any, issued by the state government under section (4) When the registrar register an amendments of the bye-laws of a society [or where an amendments of the bye-laws is deemed to have been registered] he shall issue to the society a copy of the amendments certified by him, which shall be conclusive evidence that the same duly registered.

ROLE OF CHIEF PROMOTERS :-

The chief promoter of the society shall, immediately after election of the office bearers of the society, at the first meeting of the provisional meeting or its nomination by registration
34

authority under the bye-law no.89 (b), handover to the chairman of the society or any members of the provisional committee authorized by it in that on behalf:1. All records of the society particularly their copy of the application for registration of the society, received back from the registering authority: 2. The copy of the bye-laws of the society registers by registering authority: 3. A certificate of registration of the society: 4. The challans of the credit of amounts into the bank: 5. The counter foils of the used cheques and the unused its forms of the cheques: 6. The bank passbooks: 7. The copies of all the agreements entered into by him with different parties. 8. The statement of accounts as prepared by him. 9. Applications for memberships. 10. The statement of the information of the promoters. 11. The vouchers for amount spent. 12. The cash balance, if any: 13. The site plan/ the scheme of construction. 14. The minutes of the first general meeting of the society 15. The files of correspondence with registering authority, the local authority 16. And all such other records and assets of the society as are in the possession living nothing with him.

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ACCOUNTING SYSTEM
Every society shall keep the accounts and books as required by the Act, rules and the byelaws. Within forty-five days of the close of the co-operative year annual statement of accounts are required to be prepared. The accounts shall disclose accompanied by a complete list of members. The accounts shall be open to inspection by any member of the society. The statement of accounts shall be presented at the annual general meeting of the society. CASH BOOK, GENERAL LEDGER, PERSONAL LEDGER, STOCK REGISTER, PROPERTY REGISTER, REGISTER OF AUDIT OBJECTIVES AND THEIR RECTIFICATION. THESE BOOKS WERE TO BE MAINTAINED BY THE SOCIETY. A banking account shall be opened by the society into which all moneys received on behalf of the society shall be paid. The secretary may retain in his personal custody a sum not exceeding Rs.50/- for petty expenses. All payments above Rs.20/- shall be made by cheques, signed by the secretary and one member of the committee. Every member shall have a passbook in which the secretary shall enter amounts paid to or received from such member.

A banking account shall be opened by the society into which all the money is received on behalf of the society shall be paid. The secretary may retain in his personal custody a sum not exceeding rupees 50 for petty expenses all payments above rupees 20 shall be made by cheques, signed by the secretary and one member of the committee. Every member shall have a pass book in which the secretary shall enter amounts paid to or received from such members.

Appointment of directors:The audit of accounts shall be conducted by the departmental auditors or by certified auditors appointed by the registrar. The registrar shall have a panel of auditors (Rule 69).

36

In addition to the government audit, the society shall appoint as its general meeting and auditors who shall audit the accounts of the society to be prepared by the committee. The auditor shall examine the annual returns and verify the same with the accounts relating thereto. The auditors hall either sign the accounts as correct or report to the society if he finds the account incorrect , or supported by the vouchers or not In accordance with law.

Powers of auditors:The auditors shall have the right to receive all the notice of every notice relating to the annual general meeting of the society and to attend such meeting and to be heard thereat in respect of any part of the business with which he is concerned as an auditor [sec.81 (5)]. the auditors shall be entitles to called for and examine any paper or document belonging to society and make a special report to the society upon any matter connected with the accounts, which appears to him to require the notice. If during the course of audit of any society the auditor is satisfied that some book of accounts o the other documents contain any incriminatory evidence against past or present officers or employee of the society, the auditor shall immediately report the matter to the register. With previous permission of the registrar, the auditor may impound the books or documents and give a receipts thereof to the society [sec 81 (5A)].

What shall an audit include?

The audit shall include examination or verification of the following items namely: 1. Over dues of debts, if any; 2. Cash balance and securities and a valuation of assets and liabilities of the societies 3. Whether loans or advances and debts made by the society on the basis of security have been properly secured and the terms on which such loans and advances are made or debt are incurred are not prejudicial to the interest of the society and its members
37

4. Whether loans and advances made by the society have been shown as deposit; 5. Whether personal has been charge to revenue accounts; 6. Whether the society as incurred or any expenditure in furtherance of its object; 7. Whether the society has properly utilized the financial assistance granted by the government or government undertakings of financial institutions for which such assistance was granted 8. Whether the society is properly carrying out its objects and obligations towards its members [sec. 81 (2)].

Appointment and powers of auditors:The registrar shall have a panel of certified auditors. In addition to the government audit, the society shall appoint the auditor in the general meeting. The auditor shall audit the accounts if the society prepared by the committee and examine the annual returns. The auditor shall have the right to receive the notice related to the annual general meting of the society and to attend the same. He has powers to call and examine Any papers or documents and make a special report. He has powers to impound the books. The auditor shall submit an audit memorandum on examination and verification of the accounts of the society is commenced.

Audit memorandum:After the verification and examination, the auditor shall submit an audit memorandum to the society and to the registrar on the accounts examine by him.

Re-audit:When it is necessary or expedient to re-audit, the registrar may order the re-audit of the accounts.

Cost audit:38

The state government may, in public interest and for ensuring management of the society order cost audit or performance audit or both. The cost audit shall conducted by the cost auditor.

Supervision by the registrar:The registrar shall have the access to all the books, documents, accounts and other papers and securities of the society. He may depute a flying squad to the society. He may carry out test audit of the accounts of the society

Inquiry and the registration by the registrar:On his own motion or the application of one third members of the society registrar may hold an inquiry in to the constitution working and financial condition of the society and that purpose he shall have powers to call for production of all books an papers related to the society. On an application by the creditors of the society the registrar may order inspection of the books of the society. The registrar may bring the defects of the society as a result of inquiry or inspection. The registrar may direct the societies to frame regulation on the items specified by him. The registrar hall have an overall power of inspecting the working of society

Authors name with their Books:The Law of Cooperative Societies In India: Central And States Legislation
(Hardcover) by

Nainta , R. P. Banking System, Frauds and Legal Control

(Hardcover) by
39

R P Nainta

Education in Primitive Societies

(Hardcover) by S. R. Vashist Ravi P. Sharma

Railways Act
(Hardcover) by P. Hari Rao's

Official Correspondence Relating To The Admission Of Montana As A State Into The Union: And Other Official Papers Comprising Correspondence With The US .
(Paperback) by R. P. Stout

Tort Law - A Complete Guide To Selling And Booking Cruise Travel

(Paperback) by Robert R. Cummins Jim P. Cummins

Business Law
(Paperback) by P R Chandra Ashok K Bagrial
40

Shalom India Housing Society

By Esther David, Jael Silliman

High-rise society: the first 50 years of the Hong Kong Housing Society
By Robin Hutcheon

Shelter and society: theory, research, and policy for nonprofit housing
By C. Theodore Koebel

Inclusive housing in an ageing society: innovative approaches

By Sheila M. Peace, Caroline Holland

Neighbourhood renewal & housing markets: community engagement in the US & UK

By Harris Beider

Housing and welfare in Southern Europe

By Judith Allen

Houses for all: the struggle for social housing in Vancouver, 1919-50
By Jill Wade

41

CONCLUSION:-

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43