How to Conduct an AGM in Maharashtra Housing Societies

Managing a cooperative housing society in Maharashtra requires adherence to specific regulations, particularly regarding the Annual General Meeting (AGM). The Maharashtra government has established clear guidelines to ensure transparency and accountability in housing society operations. This comprehensive guide covers everything you need to know about AGM rules in 2025.

What is an AGM in Housing Societies?

An Annual General Meeting (AGM) serves as the primary platform where society members collectively review the past year's activities, discuss financial matters, address concerns, and make important decisions for the society's future.

The AGM creates transparency by:

• Providing detailed reports on society finances
• Reviewing completed and upcoming projects
• Addressing maintenance issues
• Allowing members to voice concerns
• Facilitating democratic decision-making

This annual gathering ensures that all operations within a Cooperative Housing Society (CHS) remain transparent and accountable to its members. For more insights on society management, check out why societies should consider self-redevelopment for a better future.

AGM Timeline and Notice Requirements

To ensure proper governance, Maharashtra's Model Bye-Laws for cooperative housing societies specify:

• Mandatory deadline: Every AGM must be conducted before September 30th each year
• No extensions: Section 75(1) of the Maharashtra Co-operative Societies Act provides no provision for extending this deadline
• Notice period: The society secretary must issue notices with a minimum of 14 days and maximum of 21 days before the AGM
• Notice calculation: When calculating the 14-day minimum, exclude both the date of notice issuance and the meeting date
• Legal validity: Once properly called, an AGM is legally valid unless specifically invalidated by a cooperative court order

Adhering to these timelines is crucial as non-compliance can lead to administrative and legal complications. For those interested in how regulations impact housing societies, MahaRERA's success story provides valuable insights on regulatory frameworks in Maharashtra.

Maharashtra Cooperative Housing Society AGM: Key Facts

Rules for Conducting a Housing Society AGM

Quorum Requirements

For an AGM to proceed, it must have a minimum quorum:

• Two-thirds of total society members, capped at a maximum of 20 members
• For example, in a society with 250 members, while the two-thirds calculation equals 167 members, only 20 need to be present to constitute a valid quorum
• All present members must sign the attendance register against their flat numbers

This quorum rule presents challenges in both large and small societies:

• In large societies, a small percentage of members (just 20) can make decisions
• In small societies, achieving two-thirds attendance can be difficult

Handling Absence of Quorum

If the required quorum isn't present within 30 minutes of the scheduled time:

• The meeting must be adjourned to a later time on the same day or to a future date
• The rescheduled meeting cannot be earlier than 7 days or later than 30 days from the original date
• The adjourned meeting doesn't require a quorum, but must have at least 2 members present

Minutes of Meeting (MoM)

Proper documentation of AGM proceedings is essential:

• The committee must draft minutes within 3 months of the AGM
• Members have 15 days to provide feedback on the draft
• After incorporating feedback, the final MoM is distributed to all society members
• Any disputes regarding resolutions are addressed by the cooperative court

Understanding your legal rights within a housing society is crucial. For more information on legal aspects of property ownership, check out inheritance laws in India and joint property rights and benefits.

Step-by-Step Guide to Conducting an AGM

A well-organized AGM follows these steps:

• Verify quorum: Ensure sufficient members are present
• Chairman's welcome: Official start of the meeting
• Record attendance: All members sign the register
• Agenda discussion: Address all points mentioned in the notice
• Additional matters: Discuss any permitted additional items
• Closing: End with a vote of thanks

Key Matters Discussed in an AGM

1. Previous Minutes

• Review and confirm minutes from the previous AGM
• Discuss minutes from any Special General Meetings (SGMs) held during the year

2. Financial Reports

• Detailed review of society's financial statements
• Analysis of income, expenses, assets, and liabilities
• Presentation of the annual report highlighting:
  • Projects completed during the year
  • Society achievements
  • Challenges faced and solutions implemented

For a deeper understanding of financial management in housing societies, read about society maintenance charges in India.

3. Auditor Appointment

• Selection of a qualified auditor to verify:
  • Financial records
  • Compliance with regulatory standards
  • Proper fund management

4. Budget Planning

• Discussion and approval of the budget for the upcoming financial year
• Planning for major expenses and investments

5. Official Communications

• Review of communications from:
  • Statutory auditors
  • Registering authorities
  • Government bodies
  • Municipal corporations
  • Other relevant entities

6. Other Important Matters

With the chairperson's permission, additional topics may include:

• Society improvements (parking, cleanliness, security)
• Staff matters (hiring, salaries, performance)
• Community events planning
• Infrastructure upgrades (painting, lift renovation, solar installation)
• Election scheduling for managing committee positions

If all agenda items cannot be completed in one session, the meeting may be adjourned to another date within 30 days.

For societies considering sustainable upgrades, installing a rooftop solar power system can be a smart investment to discuss at your AGM.

Matters Requiring Advance Notice

Certain significant issues cannot be discussed without prior notice to members:

• Member Expulsion: Affects individual rights, requires proper notification
• Bye-Law Amendments: Members need time to review proposed changes
• Structural Changes: Bifurcation, amalgamation, or division of the society
• Property Transfers: Buying, selling, or renting society property

Including these items in the AGM notice ensures transparency and allows members to prepare informed opinions.

AGM Attendance Eligibility

The rules governing who can attend and participate in AGMs are specific:

• First owners only: Only the primary owner of each unit can attend
• Co-owners: If a flat has multiple owners, only the person named first on the share certificate can attend
• Substitution: The second-named co-owner may attend with written permission from the first co-owner
• No proxies: No proxy representatives or power of attorney holders can attend as members
• No nominees: Nominees cannot attend, propose resolutions, or vote in the AGM

For more information on ownership and property rights, read our article on types of housing societies and registration process in India.

Voting Rights for All Members

In August 2021, the Maharashtra government made significant changes to member participation rights:

• The "inactive member" provision in Section 26 of the Maharashtra Co-operative Societies Act, 1960 was removed
• All eligible members can now vote in society elections, regardless of their attendance record at general body meetings
• The previous 2018 amendment that restricted voting rights for members who missed five consecutive meetings no longer applies
• Societies cannot charge absentee fees from members who miss the AGM

Legality of AGM Decisions Without Quorum

According to Bye-Law 126, decisions made without a proper quorum are technically illegal and can be challenged by society members. However, Section 77 of the Maharashtra Co-operative Societies Act provides an interesting exception:

Decisions made with good intentions that positively impact society members may be considered valid in court, even if quorum requirements weren't strictly met.

Managing Committee Formation

Election of Committee Members

The managing committee is elected during the AGM. Sub-committees, however, can be formed by the managing committee without involving all society members. Important to note:

• Any violations by sub-committees are the direct responsibility of the managing committee
• The managing committee bears ultimate accountability for all society operations

Committee Size Requirements

According to Bye-Law No. 114, the size of the managing committee depends on the society's membership:

The quorum requirement for managing committee meetings is 3 members.

Note: The numbers listed for women and reserved categories (SC/ST/OBC/VJ, NT, SBC) are minimums; additional members from these categories can be included in the committee.

For insights on women's rights in property ownership, read our article on smart financial moves and exclusive benefits for women in property.

Conclusion

The Annual General Meeting is the cornerstone of democratic governance in Maharashtra's cooperative housing societies. By following these guidelines, society members can ensure transparent operations, legal compliance, and effective community management.

Regular participation in AGMs not only keeps you informed about society affairs but also gives you a voice in decisions that affect your living environment and property investment. For residents and managing committee members alike, understanding AGM rules is essential for contributing to a well-governed housing society.

For more information on property rights and governance, check out MahaRERA's proposals for safeguarding homebuyers and MahaRERA's efforts to ensure transparency in real estate regulation.

Frequently Asked Questions

1. What happens if the AGM is not conducted before September 30?
The society would be in violation of Maharashtra cooperative society laws and could face penalties or administrative action from the registrar.

2. Can tenants attend the housing society AGM?
No, only registered members (owners) can attend the AGM; tenants have no legal right to participate.

3. How are votes counted in an AGM?
Each flat/unit has one vote regardless of its size or the number of co-owners; voting is typically done by show of hands unless a secret ballot is requested.

4. Can AGM decisions be challenged?
Yes, members can challenge decisions in the Cooperative Court within 60 days if they believe proper procedures weren't followed.

5. Is virtual attendance allowed for AGMs in Maharashtra?
As of 2025, Maharashtra allows hybrid AGMs where members can participate both physically and virtually, provided proper documentation is maintained.

6. Can the managing committee reject a member's proposal during the AGM?
The committee must include all valid proposals received in writing before the AGM; they cannot arbitrarily reject member proposals.

7. What is the penalty for not holding an AGM?
The registrar can take action including appointing an administrator to oversee society affairs if AGMs aren't held regularly.

8. How long can a managing committee member serve?
A managing committee member can serve for a maximum of 5 consecutive years, after which they must take a break of at least one term.