General Body of co-operative society is supreme ???
It is said that general body of members of a co-operative society is a supreme body to take final decision in all matters connected with the management of a co-operative society. Those members who had formed the society and who have got all the work done are having one share costing Rs.100/- only. The new members now joining after gap of several years are also becoming member by paying a fee of one share costing Rs.100/-.
Decision of General Body Meeting
In a case before the Financial Commissioner, Delhi Guru CGHS Ltd, Rohini, Delhi versus its 3 members, the Society had passed a resolution in its General Body Meeting that new members have to pay Rs.6000/-as share money to become new member of the Society.
Contest by new members
When the new members came to know that as per bye laws, cost of one share is Rs.100/- and it is essential to take one share only. Therefore, the decision of the general body to charge Rs.6000/- as share money from them is mala- fide, because the amount of Rs.5900/- will keep lying with the society for ever.
Decision of General Body meeting
Since the general body meeting of the members, overlooked, ignored bye laws, their decision was considered as illegal decision. Therefore, the general body of members, if take a decision inconsistent with bye laws or DCS Act or DCS Rules, it shall amount to illegal decision. If any member challenges in a court of law, the general body shall not be supreme authority before a court of law.
Methods to keep general body as final authority
If the Society would have consulted a person expert in co-operative matters Or would have sought permission of the Registrar of co-operative society, before taking the decision in their general body meeting, they would have taken a correct decision. It is not essential too, that if an officer of the co-operative society has sent a letter allowing the co-operative society to do any act and later on it is found that, the act is contrary to the provisions of law. That particular act of the society / general body meeting shall come illegal ab-initio and un-acceptable by law.
General body meeting of co-operative society is not always supreme or final authority. The decision of the general meeting if found contrary to provisions of laws and bye laws, then it is not final authority.
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