Gujarat Co Operative Societies Act 1961, Section 17 to Section 20 talks about Amalgamation, Transfer, Division or Conversion of Societies.

In this article we will discuss only in relation to Division of Society.

Reasons to Divide an Existing Society

Members of a society can request for division of society. Some of those reason for such request can be

  • Large society : Difficult to manage under one society
  • Society having residential and commercial space (office/shops) but managed under one society.
  • On the Direction of Registrar

Points to Consider

  1. Common amenities distribution
  2. Parking space
  3. Common Expense distribution
  4. Bore, Storage, Water supply and drainage lines
  5. Funds distribution
  6. Different electric meters
  7. Separate entry and exit.

Process for Division of Society

  1. Prepare a draft scheme for division of society and place the same before an extraordinary general meeting of its member (EGM)
  2. Resolution passed by 2/3 majority of members present and voting.
  3. Copy of the passed resolution to be forwarded to Registrar requesting him to give his sanction to the proposal
  4. If registrar gives approval, proceed further to Division of society as per Sec 17.

Taxation

Resolution of society will be considered sufficient for conveyance to vest the asset and liability of the original society.

Relevant Court Ruling.

  1. Harekrishna K Vadhwani Vs. Vasupujya Smruti Co-Operative Housing Society

Post Division

  1. Cancellation of share certificate of members moving to new society.
  2. Informing registrar for change in number of members in society.
  3. Formation of new society for divided part by completing documentation formalities.
  4. Issuance of Share Certificate to the members.
  5. Formation of new committees to manage society.
  6. Registration of PAN, TAN, GST etc
  7. Opening new bank account, informing vendors
  8. Apply for change in name in various licences (Lift, Fire etc)

Reference

  1. Gujarat Co operative Societies Act, 1961
  2. Transfer of Property Act, 1882 (IV of 1882)
  3. Indian Registration Act, 1908 (XVI of 1908)

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