When you are planning to buy your dream home, it is imperative that you must check out if the co-operative society where you plan to reside is registered.
Flat owners who reside in societies which have not been duly registered face lots of problems. Society formation is important for residents to run the society, else for every problem they will have to approach the builder and it is quite possible that the builder will not be inclined to look at your demands at all times.
Society registration is necessary for the security of the society, to pay the electric bills and maintain proper lifts, lighting, water supply, garbage cleaning, and make the residents feel comfortable and secured.
To register a society minimum 12 members are required, and the law of one member one vote regardless of the number of flats apartments owned by the individual must be followed. There should be an annual general meeting held every year, and the accounts of the society duly audited by the chartered accountant must be presented for the scrutiny of the members at the annual general meeting.
All the issues pertaining to the society, all transfers of flats, elections of the managing committee must be discussed with all the members, and proper minutes and agenda must be maintained.
The funds collected by the society must be handled carefully and proper accounts must be maintained for the same. Society formation is a legal way of binding people together for a common cause and it is formed under a statute, it has the character of acting as a person, though not as human like you and me. Society formation acts as an umbrella for all its members as it is a legal entity to protect you and your dream home.