Sec 78 of Gujarat Cooperative Society Act, talks about Special General meeting (SGM).

A Special General Body Meeting is called for undertaking a particular agenda. Some reasons for calling special general body meetings are redevelopment or repair  plans, grave misconduct issues, urgent capital expenditure to be incurred which was not part of AGM, Amalgamation, transfer, division of conversion of societies, winding up etc.

Why call SGM

A Special General Body Meeting is called for undertaking a particular agenda.

When can SGM be called

  • SGM can be called at any time during the year and
  • Within a month from when a request is received

Who can call SGM

An SGM can be called on request of any of the below:

  1. In case where majority of committee members ask for it, or
  2. A written request by 1/5 of members of society or number which is specified in the byelaws for this purpose, whichever is lower. In case of Gujarat State that number is 20 members, or
  3. On order of the Registrar

Who is responsible to call SGM

Chairman of the society is responsible to call the SGM

Notice for SGM

Send notice to all members of the society

  • Notice to be sent 10 days in advance of the SGM date.
  • SGM notice to be pasted on society office notice board.
  • SGM notice has to be sent on the registered address of members available with the society.
  • SGM notice should contain SGM date, place, time and agenda.

Quorum of SGM

Act or byelaws do not specific details of quorum in case of SGM. One can assume that quorum would be same as in case of AGM.

  • Quorum: 2/5th of the total members or 25 whichever is less. Incase of no quorum, meeting to be adorned for half an hour.
  • After half an hour, whatever member of members present will be considered as quorum.

Transaction in SGM

The meeting so convened shall not transact any business, other than that mentioned in the Notice of the Meeting, fixing date, time and place for a Special General Body Meeting requisitioned.

Post SGM

Post the Special General Meeting, the minutes of the meeting to be circulated among all members and residents of the housing society. It is vital that all are made aware of the decisions taken in the SGM.

Who can Attend the SGM

In case of co-ownership of a flat/house, the first name on the share certificate is allowed to attend. In case they cannot, the second name can attend with written permission from the first name. No proxy or a holder of power of attorney or letter of authority is eligible to attend an Annual General Body Meeting of the Society on behalf of a Member of the Society.

What if the Special General Body Meeting does not take place in spite of notice?

  • Where any officer or a member of the committee, whose duty it was to call such meeting, without reasonable excuse, fails to call such meeting, the Registrar may by order declare such officer or member disqualified for being a member of the committee for such period not exceeding three years, as he may specify in such order, and if the officer is a servant of the society, he may impose on him a penalty not exceeding one thousand rupees. Before making an order under this sub-section, the Registrar shall give, or cause to be given a reasonable opportunity to the person concerned of showing cause against the action proposed to be taken in regard to him.
  • If a special general meeting of a society is not called in accordance with the requisition referred to in sub-section(1), the register or any person authorized by him in that behalf, shall have power to call such meeting, which shall be deemed to be a meeting duty called by the committee.

Regulation

As per Cooperative Society Act Sec 78

  1. A special general meeting may be called at any time by a majority of the committee, and shall be called by the committee 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 for the purpose, whichever is lower, or
    • On a requisition from the Registrar, or
    • In the case of a society, which is a member of a federal society, on a requisition form the committee of such federal society.
  2. Where any officer or a member of the committee, whose duty it was to call such meeting, without reasonable excuse, fails to call such meeting, the Registrar may by order declare such officer or member disqualified for being a member of the committee for such period not exceeding three years, as he may specify in such order, and it the officer is a servant of the society, he may impose on him a penalty not exceeding one thousand rupees. Before making an order under this sub-section, the Registrar shall give, or cause to be given a reasonable opportunity to the person concerned of showing cause against the action proposed to be taken in regard to him.
  3. If a special general meeting of a society is not called in accordance with the requisition referred to in sub-section(1), the register or any person authorized by him in that behalf, shall have power to call such meeting, which shall be deemed to be a meeting duty called by the committee.
  4. The Registrar shall have power to order that the expenditure incurred in calling a meeting under sub-section (3) shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Registrar, were responsible for refusal or failure to convene the meeting.

Reference

  1. Gujarat Co operative Societies Act, 1961
  2. Model Bye-laws

2 thoughts on “Special General Meeting of Cooperative Society

  1. I seek your expert opinion under MCS Act if a managing committee members resign and his resignation is not accepted for more than 6 months can it be termed as deemed accepted. Now the member wish to again join in managing committee can it accepted? What are the procedures as per bye law to take in the member. The member has sent letter to Registrar that he is resigning & to all the flat owners of the society.

    1. I have not gone through in detail the Maharashtra Cooperative Society Act, Rules, Registrar circular and related judgements and thus will not be position to answer the below query.

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