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Procedure & Checklist for Transfer of Flats under Maharashtra Co-op Society Act n its Bye laws

An application for transfer of shares and interest in the capital or property of the society should be made in the prescribed form, along with the share certificate An application for membership of the proposed transferee should be made in the prescribed form Valid reasons for the proposed transfer should be furnished All the liabilities of the society should be discharged Transfer fee should be paid Entrance fee of the proposed transferee should be paid Premium (to be fixed at the general body meeting) has to be paid.

This will not apply to transfer of shares and interest of the transferor in the capital or property of the society to a member of his family, his nominee or his legal representative  after his death and in case of mutual exchange of flats amongst the members or a registered gift deed executed by the member. No objection certificate required under any law, an order or sanction issued by the government or a financing agency should be furnished The managing committee or the general body cannot refuse any application for admission to membership or transfer of shares and interest in the capital or property of the society except on the grounds of non-compliance of the provisions of the Act.

If the decision of the committee or general body meeting, on the application for the transfer of shares and interest in the capital or property of the society is not communicated to the applicant within three months of its receipt, the transfer application will be deemed to have been accepted and the transferee will be deemed to have been admitted as a member of the society .

Any transfer made in contravention of the Act, rules or the bye-laws will be void and will not be effective against the society. The transferee will be eligible to exercise the rights of membership on receipt of a letter in the prescribed form from the society. 

“No Objection Certificate” of the Society is not required to transfer the shares and interest of the transferor to the transferee. However in case such a certificate is required by the transferor or transferee, he shall apply to the society and committee of the Society may consider such a application on merit within one month. [Bye Law No. 38(d)]

DOCUMENTS REQUIRED FOR TRANSFER OF A FLAT

  1. Notice of Intention to transfer shares in the prescribed form 20(1) [15 days Notice of Intention as per Bye law 38(a)]
  2. Letter of consent of the proposed transferee in the prescribed form 20 (2) [under Bye law No. 38(a)]
  3. Application, for transfer of shares and interest in the capital/property of the society, in the prescribed form. [ (Form No. 21 ] . The application should contain valid reasons for the proposed transfer. As per MCS Act 1960 Section 29 (2) it is necessary that the transferor should hold shares or interests in the society for at least a period of one year. 
  1. Application for membership of the proposed transferee in the prescribed form No.23 (being an individual).
  2. Resignation in the prescribed form [as per Bye law no.27 (a) Appendix No.13]
  3. Transfer Form along with Transfer Fee Rs. 500/- &  payment of amount of Premium at the rate fixed by the general body meeting but within the limits as prescribed under the circular, issued by the Department of Co-operation/Govemment of Maharashtra from time to time. No additional amount towards donation or contribution to any other funds or under any other pretext shall be recovered from transferor or transferee [Form No. 21 (1) ]
  4. Payment of Entrance Fee Rs. 100/-.
  5. Declaration by the Transferor for not holding immoveable property in any Urban Agglomeration, specified under the provisions of the Urban Land Ceiling and Regulation Act, 1976, exceeding 500 Sq.Meters.[ Form No. 25]
  6. Declaration by the Transferee for not holding immoveable property in any Urban Agglomeration, specified under the provisions of the Urban Land Ceiling and Regulation Act, 1976, exceeding 500 Sq.Meters.[ Form No. 26 ]
  7. Undertaking to discharge all the liabilities to Society by transferor.
  8. Undertaking to be furnished by the prospective Member to use the flat for the purpose for which it is allotted. [(Form No. 4)]
  9. Stamp duty paid Agreement copy along with Copy of N.O.C. issued by Appropriate Authority Income Tax, if applicable.(as per section 269AB of the Income Tax Act) (Above 75,00,000 Agreement). 
  10. Original Share Certificate.
  11. Certified True Copy of Registration Receipt.
  12. Proof of payment of Stamp Duty.
  13. Copy of Possession Letter issued by the Transferor to the Transferee, that the Transferee has been put Peaceful, vacant & physical possession. (Possession Letter)
  14. Obtaining No Dues Certificate from the Society.
  15. Letter to the Electricity Department to transfer the Electric Meter.
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List of statutory registers to be maintained under the Companies Act, 2013

Sr. No.

FORM NAME

NAME OF REGISTER

CHAPTER

RELEVANT SECTION & RULE

1

MGT-1

Register of Members

VII

S.88(1)(a) & R.3(1) OF COS (MANAGEMENT & ADMINISTRATION) RULES, 2014

2

MGT-2

Register of Debenture Holders/ Other Securities Holders

VII

S.88(1)(b) & (c) AND R.4 OF COS (MANAGEMENT & ADMINISTRATION) RULES, 2014

3

REGISTER

Register of Directors and Key Managerial Personnel and Their Shareholding

XI

S.170 & R.17 OF COS (APPOINTMENT & QUALIFICATION OF DIRECTOR) RULES, 2014

4

SH-2

Register of Renewed and Duplicate Share Certificate

IV

S.46(3) & R.6(3)(a) OF COS (SHARE CAPITAL & DEBENTURE) RULES, 2014

5

SH-3

Register of Sweat Equity Shares

IV

S.54 & R.8(14) OF COS (SHARE CAPITAL & DEBENTURE) RULES, 2014

6

SH-6

Register of Employee Stock Option

IV

S.62(1)(b) & R.12(10) OF COS (SHARE CAPITAL & DEBENTURES) RULES, 2014

7

SH-10

Register of Shares/Other Securities Bought Back

IV

S.68(9) & R.17(12) OF COS (SHARE CAPITAL & DEBENTURES) RULES, 2014

8

CHG-7

Register of Charges

VI

S.85 & R.10(1) OF COS (REGISTRATION OF CHARGES) RULES, 2014

9

MBP-2

Register of Loans, Guarantee, Security And Acqisition Made By Company

XII

S.186(9) & R.12(1) OF COS (MEETINGS OF BOARDS & ITS POWERS) RULES, 2014

10

MBP-3

Register of Investment Not Held In Its Own Name By The Company

XII

S.187(3) & R.14(1) OF COS (MEETINGS OF BOARDS & ITS POWERS) RULES, 2014

11

MBP-4

Register of Contracts With Related Party And Contracts And Bodies Etc. In Which Directors Are Interested

XII

S.189(1) & R.16(1) OF COS (MEETINGS OF BOARDS & ITS POWERS) RULES, 2014

 

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Currently every business organization is engaged in finalizing books of accounts and preparation of Balance Sheet for the financial year 2017-18. This financial year is divided into two indirect taxes provisions namely, pre-GST (Excise, Service Tax and VAT) and post-GST. This being the first financial year since GST implementation, it becomes important to understand the legal provisions under GST law while finalizing books of accounts and preparation of Balance Sheet. Therefore, in order to safeguard the interest of the business organizations and provide some idea regarding GST audit preparation, I am taking this opportunity to discuss the following important GST points while finalizing Balance Sheet:
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NCLAT upholds NCLT order, admitting applications filed by Power of Attorney (‘POA’) holders, on behalf of Financial Creditors u/s 7 of the Insolvency and Bankruptcy Code, 2016 (‘the Code’), against Corporate Debtor;
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Section 8 of the Arbitration and Conciliation Act, 1996 reads as:
8. Power to refer parties to arbitration where there is an arbitration agreement.—
(1) A judicial authority before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party so applies not later than when submitting his first statement on the substance of the dispute, refer the parties to arbitration.
(2) The application referred to in sub-section (1) shall not be entertained unless it is accompanied by the original arbitration agreement or a duly certified copy thereof.
(3) Notwithstanding that an application has been made under sub-section (1) and that the issue is pending before the judicial authority, an arbitration may be commenced or continued and an arbitral award made.

Whilst the provision of 8(1) exists Supreme Court has held that Consumer Protection Act, 1986 being a beneficent enactment presence of arbitration clause would not preclude taking recourse before the Consumer Forum.
Judgments laid down by the Hon'ble Supreme Court are National Seed Corporation Limited vs. M. Madhusudhan Reddy & Anr it held as follows:
"The remedy of arbitration is not the only remedy available to a grower. Rather, it is an optional remedy. He can either seek reference to an arbitrator or file a complaint under the Consumer Act. If the grower opts for the remedy of arbitration, then it may be possible to say that he cannot, subsequently, file complaint under the Consumer Act. However, if he  chooses to file a complaint in the first instance before the competent Consumer NCDRC, then he cannot be denied relief by invoking Section 8 of the Arbitration and Conciliation Act, 1996 Act. Moreover, the plain language of Section 3 of the Consumer Act makes it clear that the remedy available in that Act is in addition to and not in derogation of the provisions of any other law for the time being in force."
The Hon'ble Supreme Court in National Insurance Company Ltd. Vs. Hindustan Safety Glass Works Ltd. wherein it held as follows:
"...in a dispute concerning a consumer, it is necessary for the courts to take a pragmatic view of the rights of the consumer principally since it is the consumer who is placed at a disadvantage vis-à- vis the supplier of services or goods. It is to overcome this disadvantage that a beneficent legislation in the form of the Consumer Protection Act, 1986 was enacted by Parliament."
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General: Companies that want to venture out and start selling their shares to the public have ways to stabilize their initial share prices. One of these ways is through a legal mechanism called the greenshoe option. A greenshoe is a clause contained in the underwriting agreement of an initial public offering (IPO) that allows underwriters to buy up to an additional 15% of company shares at the offering price. The investment banks and brokerage agencies (the underwriters) that take part in the greenshoe process have the ability to exercise this option if public demand for the shares exceeds expectations and the stock trades above the offering price. (Read more about IPO ownership in IPO Lock-Ups Stop Insider Selling.)
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Apart from the deadlock or risks of litigation created by the minority block, there can be cases where the majority wants to do away with the minority shareholders in entirety in order to obtain an administrative stronghold. Thus the concept of minority “squeeze outs”, which are well recognized in the legal frameworks of many jurisdictions, becomes relevant.

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Disputes across national boundaries have become commonplace in today's commercial world. In an effort to avoid the uncertainties and complexities of foreign courts, most international agreements provide for dispute resolution through more neutral auspices of arbitration and mediation. These alternatives to national courts are known as alternative dispute resolution (ADR) techniques and are part of the specialty of law practice formally known as international litigation.

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Now many of my friend were under the impression that MOFA is still prevailing. Let us visit General Clause Act Section 6 :