How To Form An Apartment Owners Association in Chennai?
Apartment Owner Association is an authority that protects the rights of the apartment owners, maintains the amenities in the apartment and works for the welfare of the residents of the apartments by conducting events or awareness programs. A person owning an apartment in a society has an undivided interest in facilities and common areas of the society. All the owners are the members of the association by default; however, the people who are residents but not the owners need to have a letter in writing from the owner to get a right to vote.
Why is it important to register an Apartment Owners Association?
When you live in a community, petty disputes are bound to arise. If a court is approached for such small issues it might take several months or even years to resolve such disputes as the court will have a hundred other bigger disputes to take care of. If you have a registered apartment owner’s welfare association, it will help work as a mediator and helps in resolving the dispute without any legal interference. Even if there is a need for legal affairs to be involved, only a registered association enjoys the legal benefits and has the authority to sue or defend any legal action.
How to register the Apartment owner’s association?
Apartment owners association can be registered under Tamil Nadu Societies Registration Act, 1975 (to find the Pdf please click here) and Tamil Nadu Co-operative Societies Act, 1983. Previously, a minimum number of seven persons was needed to form an association; however the number has been brought down to five persons as per the provision of the Tamil Nadu Apartment Ownership Act, 1994. The registration involves the drafting of memorandum and bye-laws.
- A memorandum should contain the name of the society, objects of the society, names, addresses and occupations of the members of the committee. The memorandum has to be signed by at least five members of the committee.
- Byelaws are a set of rules containing provisions for subjects relating to the Association.
Details:
The byelaws have to contain the basic particulars relating to the Association, like the name of the Association, date of formation, address, jurisdiction aspects, etc. along with particulars like the objects and the activities of the Association and the business hours of the Association.- The name and other particulars of the person who can sue on behalf of the association or can be sued are to be mentioned in the byelaws. The particulars of the persons who can be enquired regarding the business issues are also to be mentioned.
- Clause regarding qualification of members, restrictions and enrolment of members, the entrance or any other fee to be collected from the members is to be included.
- It is important to mention the rights and privileges of members. Another important clause is regarding the circumstances under which a member can be removed and other penalties to be imposed in case of delay in payments etc.
- A clause regarding the business of the association should be included. It should state the maintenance fee and other charges to be collected from the residents and how the funds of the association are to be used. The qualification of the officer and the term and conditions of their service can be included.
- Clause regarding how amendments could be done in the byelaws and particulars relating to dissolution or winding up of the Association is advisable to be included.
Records:
- It is important for every association to maintain records of accounts, transaction of day to day affairs, particulars relating to employment of staff etc. The members discuss the issues in the general meetings of the Association; so particulars regarding general meetings have to be kept in the records for reference.
Transparency:
- To maintain the transparency of the whole process, it is important to keep a set of books containing byelaws, books containing details of account, minutes of meetings etc. in the Registrar’s office of the association during business hours. These books can be referred by the members if required.
What are the Duties and Powers of the Apartment Owners Association?
The members other than owners are known as associate members and owners are known as members. General body consists of both members and associate members and elects the management committee which consists of a President, Vice-President, Secretary, Treasurer and members.
Management Committee works for the welfare of the residents. It is responsible for organizing social and cultural facilities, for protecting the rights and interests of the residents, for managing accounts and keeping all the documents related to land, building and license issued, safe in its custody. The management committee should be addressed by conducting meetings regularly to discuss problems and provide adequate solutions.
President: He/she is the one who can be sue or defend any legal action against the association. So, it is his/her responsibility to keep a check on the records and work for the welfare of the members of the association.
Treasurer: He/She is responsible to operate income and expenses of the association by maintaining funds and the bank account. It is his/her duty to maintain all the records regarding day-to-day transfer of money as well as to maintain cash in the account required for the maintenance of the apartment.
Secretary: The secretary plays a very vital role in the functioning of the association as he/she is responsible for conducting meetings, taking and maintaining a record of the minutes of the meetings and collecting and analyzing the information from members.
Members: Members have the right to vote and should attend meetings. Their duty is to bring to the notice of the association, any issues they face in the apartment and also pay their dues on time.
