SAGAR VILLA PLOTS OWNERS ASSOCIATION KARWAR

Bye-Laws of Sagar Villa Plots Owners’ Association (SVPOA)

DEFINITIONS, OBJECTS & MEMBERSHIP

CHAPTER I

SHORT TITLE AND APPLICATION

These bye-laws may be called the bye-laws of Sagar Villa Plots Owners’ Association (SVPOA)

All present/future owners, original buyers/owners whose Villa Plots are yet to be registered, tenants, employees of owners/tenants and future tenants, any other person who might use the facilities of Sagar Villa Plots Complex in any manner, are subject to the regulations set forth in these bye-laws.

The mere acquisition or rental or taking on licence of any of the Dwelling units/Villa Plot hereafter referred to as “units”, in SVP or mere act of occupancy of any of the said units will signify that these bye-laws are accepted, ratified, and will be complied with.

DEFINITIONS. In these bye-laws, unless the context requires otherwise:

“Act” means the Karnataka Societies Registration Act, 1960 (Karnataka Act 17 of 1960) as amended from time to time.

“Allottee/Buyer/Owner” means the person to who as purchased/owns a Villa Plot in SVP, and who has or not yet registered his Villa Plot.

“Associate Member” means an owner/allottee/GPA holder of the age of 18 years and above, of a Villa Plot in SVP whose name does not appear in the first position in the Villa Plot’s share certificate. This classification is made only for identification at General Body Meeting.

“Association” means the Association of all Plot owners, constituted by such owners for the purpose of management of SVP Complex.

“Board” means Board of Managers (BOM), consisting of not more than eleven persons, all of whom shall be owners of Villa Plots in SVP and members of SVPOA, residing in SVP.

“Viill Plots/Buildings” means the Villa Plots/buildings in property No._____ Ward No.____ BMP located at SY.NO ________and ________, ______________ Village, Karwar - 560___-- known as “Sagar Villa Plots” and includes the land forming part thereof.

“Declaration” means the declaration, which has been executed and registered with Sub- Registrar, Karwar

Financial Year means year commencing on 01 April and ending on 31 March of the succeeding calendar year.

He/She- Words importing the masculine gender also include the feminine gender and vice versa.

Sagar Villa Plots: (SVP) The area of _______ acres in SY.No ______ and _____, ________________ Village, Karwar-560______ layout purchased by M/S __________________ from M/S _____________ dated __ August 20`1 registered with Sub Registrar, Karwar and developed under a self financing Villa Plot complex for serving and retired personnel of the Defence Services and widows of Defence Personnel consisting of ____ Villa Plots and associated areas and facilities by M/S _______________, Karwar.

“Majority of Owners” means majority in a duly constituted general body meeting where not less than 25% or 15 members are present.

“Member” means an owner of the age of 18 years and above whose name appears in the first position of the share certificate of his Villa Plot. This is a classification to enable identification at General Body Meeting.

“Owner” or “Villa Plot Owner” means the person or persons owning an Villa Plot and having an undivided interest in the common areas and facilities in SVP whose Villa Plot is duly registered with the authorized Sub Registrar viz. Sub Registrar, Karwar When more than one name appears in the sale deed under “purchasers”, all such persons shall be considered as joint owners, including the person at position one in the list of purchasers.

“Registrar” means the Jurisdictional Registrar.

“Resident” is one who legally occupies a unit either as owner, GPA holder or tenant duly authorized by the owner.

“Section” means a Section of the Karnataka Societies Registration Act 1960, (Karnataka Act 17 of 1960) as amended from time to time.

‘Unit” means a Dwelling unit i.e. an Villa Plot in the SVP, together with undivided share in common areas and facilities.

VILLA PLOT OWNERSHIP: The Villa Plot located at SVP, SY.No _____ and _____, ____________Village, Karwar – 560______ forming part of Sagar Villa Plots are submitted to the provisions of the Act.

OBJECTS OF THE ASSOCIATION: The objects of Association shall be: -

To be and to act as the Association of the Villa Plot Owners of the Sagar Villa Plots located at SVP, SY.No _____ and ____, _________________ Village, Karwar - 560______

To provide for and do all and any of the matters provided in Section (3) of Karnataka Societies Registration Act of 1960.

To create and maintain a Residents’ Current Account into which all contribution from members as also surplus are credited, to invest these funds in deposits schemes of scheduled banks and public sector undertakings earning interest on behalf of each member. Profits and income if any will be used to promote the objects of Society and the payment of any dividend or distribution of any income or profits among the members of Sagar Villa Plots Owners Association is prohibited.

To establish and carry on – on its own or jointly with individuals or institutions – educational, physical, social and recreational activities for the benefit of the residents and their welfare.

Employment of child labour in Sagar Villa Plots Villa Plot Owners Association is prohibited.

To frame rules, with the approval of the general body of SVPOA, for the management of SVP.

To raise funds for creation of the required and viable assets within SVP complex.

If considered necessary, the SVPOA may become a member of any Federation of Villa Plot owners in the locality in which SVP is located, subject to approval of the AGM.

The Association shall not act beyond the scope of its objects without duly amending the provision of these bye-laws for the purpose.

To do all things necessary for the attainment of the objects specified in these bye-laws.

MEMBERS OF THE ASOCIATION:

Original members: All persons who were allotted or purchased a Villa Plot in the SVP and who have registered the said Villa Plot with the Jurisdictional Registrar and executed respective declaration under Section 5 submitting their Villa Plots to provisions of the Act shall automatically be members of the Association. They shall pay Rs.1000/- (Rupees One Thousand Only) each as Entrance Fee including Rs 100/- (Rupees One Hundred Only) being the price of one share. A copy of bye- laws is made available on payments of Rs.100/-.

Membership on Purchase of an Villa Plot: Upon any member or owner selling his Villa Plot, the purchaser is obliged to become a member of the Association by fulfilling the following: -

Pay Rs.1000/- to the SVPOA as Entrance Fee cum Share Transfer Fee.
Have the Villa Plot registered and submit a copy of the sale deed to the Secretary, SVPOA. The first name on the sale deed is to be admitted as a member and other names on the sale deed as associate members.

Pay the Association Long Term Maintenance Fund/Club Premiership Charges as one time non-refundable contribution at the rate of 2% (two percent) of the Registrar’s valuation figure or of the price on the sale deed, whichever is higher.

Submit a Declaration under Section 5 of the Karnataka Apartments Ownership Act, 1972.

The Share certificate held by the seller (Villa Plot owner/member) shall be transferred to the purchaser on fulfilling the above conditions. The first name on the Sale Deed shall be placed in the first position of the share certificate.

Sums indicated at paragraphs 1.5.1 and 1.5.2 are subject to revision by resolutions of the AGM/SGBM

1.5.4 Transfer of Membership on the Death of an Owner: On the death of a member, the person whose name appears in the highest position of the share certificate, next to the deceased member, shall be regarded as a member of the association. All responsibilities of a member will thereafter devolve upon him.

1.5.4a On the death of an Villa Plot owner, the legal heir or heirs may take appropriate steps at the concerned government agencies/court to have the ownership of the Villa Plot transferred to his/their name(s). Upon receipt of documents pertaining to transfer of ownership, the name of the new owner or owners as the case may be, is to be entered in the Register of Villa Plot Owners required to be maintained and updated by the Secretary.

JOINT VILLA PLOT OWNERS:

Where an Villa Plot is purchased by two or more person jointly, they shall be jointly entitled to the Villa Plot and the share of the Association shall be issued in their joint names, but the person whose name stands first in the share certificate shall alone have the right to vote. The order of names on the share certificate can be changed by the joint owner whose name appears in the fist place on the Sale deed by an application to the SVPOA office for a change and by then signing on the reverse of the certificate.

A person whose name appears on the share certificate in position other than position one; shall, as joint owner, be termed Associate Member of the Association. He does not have the right to vote.

HOLDING OF ONE SHARE COMPULSORY: It is mandatory for an Villa Plot owner to hold one share of the Association. Joint owners will hold only one share jointly. Holding of share singly or jointly is limited to one share only

GPA Holders: - A person who holds Power of Attorney of an owner, but whose name does not appear in the sale deed of the Villa Plot, shall be termed Associate Member of the Association. He shall not have the right to vote.

CHAPTER II

VOTING, QUORUM AND PROXIES (IN AGM/SGM)

VOTING. Each Villa Plot is entitled to only one vote. The first named in the share certificate shall alone have the right to vote, except for provision under Sub – para 2.3 below.

Quorum. The presence of fifty members, inclusive of members of the Board shall constitute a quorum, except as provided for in para 3.6.1. below.

VOTE IN PERSON OR BY PROXY. Normally, votes are to be cast in person by each member. In case of inability to attend GBM/SGM a member may give a specific authorization in writing (called PROXY) on the format specified by the Secretary SVPOA to a Joint Owner of the Villa Plot, spouse or another member who is himself not disqualified to vote, to represent him in that particular meeting and vote on his behalf. Such authorization should be received by the Returning Officer at the Office of the SVPOA at least seven working days prior to the said meeting. No individual can accept more than one proxy.

Disqualification:

A member shall not be entitled to vote on any resolution or in the elections for the posts of President, Vice President, Secretary, Jt Secretary, Treasurer and / or other members of the BOM if there are any SVPOA dues against him on the date of scrutiny.

A disqualified member is neither entitled to vote in any GBM/SGM nor contest an election to the BOM. He may only attend a GBM/SGM.

A member who has violated the Bye-Laws /Rules of the Association may be disqualified at a General Body Meeting after: -

The BOM has issued a notice to him on his violation of bye-laws/rules

Obtained his reply to such notice and examined the same. If no reply is received within the stipulated timeframe, it will be presumed that the member has nothing to state.

BOM has thereafter recommended his disqualification and

He is heard again by the GBM.

Majority vote for disqualification by the GBM

CHAPTER III

ADMINISTRATION

POWERS & DUTIES OF ASSOCIATION:

The Association shall have the responsibility of administering the SVP Complex. To this end the Association shall, through the BOM, convene annual meetings, and special meetings of the General Body when required, to approve the annual budget and decide upon policy matters affecting the members. The Association may frame RULES to amplify these Bye laws and these rules shall be applicable to all members/residents after they are passed by a majority in any AGM/SGM. In the event of doubt, the Bye laws shall prevail over the Rules.

All resolutions of the Association shall require the approval of a majority of eligible members present at the meeting. No resolution can be passed on the sale, transfer or mortgage of any immovable property of the Association that constitutes Common Areas.

PLACE OF MEETINGS: Meetings of the Association shall be held at a suitable place in SVP, as decided by the BOM.

ANNUAL GENERAL BODY MEETING: The annual meetings of the Associations shall be held on a day, on or before the 31 of December, as decided by the BOM, each year. At such meetings members shall elect by voting a Board of Managers as per para 4.5 below. Members may also transact other lawful business of the Association, brought before the meeting.

SPECIAL MEETING: The BOM shall call a special meeting of the Association as directed by a resolution of the Board or upon a petition by at least fifty (15) members having been presented to the office of the Association. Notice of any special meeting shall state the time and place of such meeting and the purpose thereof. Such meetings shall be scheduled within fifteen working days of the Board resolution or receipt of the petition at the office. No other business shall be transacted at a special meeting, without the consent of a majority of the members present.

NOTICE OF MEETINGS: The BOM shall mail, email on SVP Yahoo Group, or paste on SVPOA Website or send a notice of each annual or special meeting, stating the purpose thereof as well as the time and place where it is to be held, to each member, at least twenty one days but not more than thirty days prior to such meeting. All notices required to be sent by post shall be sent under a certificate of posting and those sent by hand to residents at SVP shall be duly acknowledged the member’s Villa Plot. The mailing or sending of a notice by electronic means shall be considered notice served.

ADJOURNED MEETINGS:

If any AGM/SGM cannot be conducted because of a lack of quorum, the BOM may adjourn the meeting by twenty-four hours from the time the original meting was called. If at such adjourned meeting also, no quorum is present, the members present in person being not less than twenty five (15), including proxies and members of the BOM, shall form a quorum.

ORDER OF BUSINESS:
1. AGM-The order of business shall be as follows;

Roll call
Obituaries, if any
Proof of notice of meetings or waiver of notice;
Passing of minutes of preceding meeting/meetings;
Reports of officers;
Report of Committees, if any;
Unfinished business, if any
New Business as per Agenda which should include Adoption of Audited Accounts, Appointment of Auditors and Fixing of Maintenance Charges.
Election of Board of Managers.

SGM The order of business shall be as follows;

Roll call
Obituaries, if any;
Proof of notice of meeting or waiver of notice;
Passing of minutes previous SGM, if any, pending;
Business as per Notice of the SGM;
New business, if any, in accordance with para 3.4 above.

SEATING ARRANGEMENT:

The seating arrangement shall be such that persons who are entitled to vote, inclusive of proxy holders, are segregated and seated together in one section of the hall.
The other section of the hall may be occupied by associate members present as observers, none of whom is entitled to vote. A clear physical separation shall be made between the two sections to avoid confusion in the voting process and on the status of a participant.
Before election activity commences, the Returning Officer shall ensure clear separation between voting members and others authorized to attend such meetings.

CHAPTER IV

BOARD OF MANAGERS (BOM)

BOARD OF MANAGERS: The affairs of the Association shall be conducted by a Board of Managers, duly elected by the General Body.

POWERS AND DUTIES OF BOARD: The BOM shall have the powers and duties necessary for the administration of the affairs of the Association as imposed by these bye laws and/or by resolutions of the General Body.

OTHER DUTIES: In addition, the Board shall be responsible for the following: -

Care, upkeep SVP complex and associate areas and facilities.

Timely collection of maintenance charges and other authorized charges, from owners/residents/licensees.

Management of personnel necessary for the maintenance and operation of SVP complex including their recruitment, terms and conditions of employment, remuneration, welfare, discipline and termination of their services.

Maintenance of accounts up to date and their audit annually by Chartered Accountant appointed by the General Body.

Effective control on all expenditure. Expenditure is not to be incurred outside the available sanction of the bye-laws and the General Body.

Inspection of the accounts kept by the Treasurer and to take positive steps for recovery of dues to the Association.

To entertain and dispose of complaints if any.

ESTATE SUPERVISOR. The Board may employ an Estate Supervisor for the Association at a remuneration fixed by the Board to perform duties assigned by the board.

ELECTIONS AND TERM OF OFFICE:

The General Body shall elect the President, Vice President, Secretary and Treasurer as principal officers and eight managers for a duration of one year. Total strength of the BOM shall not exceed twelve. Only members residing in SVP shall be elected to the BOM. Further a member elected to the BOM while residing in SVP shall automatically cease to be a member of the BOM if he subsequently shifts his residence out of SVP.

Four principal officers and three mangers shall be elected only from among members. Remaining managers may be elected either from members or from joint owners, duly authorized by the respective member to contest the election. If the said joint owner is elected to the BOM, the concerned member shall immediately (within three working days) transfer his membership of the Association to the joint owner by transferring the name of the said joint owner to the first place on the share certificate. If an associate member fails to have his name transferred to the first position of the share certificate within seven working days, he shall automatically lose his place in the BOM. Further only one person from any unit is entitled to contest the election for the BOM.

A member will not be on the Board continuously for more than two years. However, he can stand for election after a cooling period of two years

If no candidate from among members offers himself for the posts of Principal Officers and the three posts reserved for members, the candidature of other joint owners shall be considered for these posts, ensuring that

Only one person from any unit is entitled to be a member of the Association and to contest for a post in the BOM.

That the joint owner, if elected, will, within three working days, get his name transferred to the first position of the share certificate.

Nominations are to be invited for the posts of President, Vice President, Secretary and Treasurer and three managers from members and for remaining four managers from members/joint owners. However, nomination from joint owners who are associate members may also be accepted for the first seven posts only to cater for the eventuality where no nomination for any particular post is received from members. A Returning officer, appointed by the Board for the specific election, should invite nominations. Returning officer shall be a member of Association. Letters inviting nominations are to be dispatched to all members irrespective to their place of residence. (Whether in SVP or outstation). The SVP office shall supply to the returning officer a list of disqualified members at least ten working days before the General Body Meeting.

Nominations should be on prescribed form, which will be made available by SVPOA office. One nomination form is to be used for one post. All nominations should be sent to the Returning Officer, c/o SVPOA office and acknowledgement obtained from the office.

Last date for filing nomination shall be two working days prior to the GBM.

Returning officer shall publish the list of valid nominations received, at least one working day prior to the scheduled date of the GBM.

A member cannot propose or second names of more than one member to the Board. Consent of the nominee on nomination form is mandatory.

Election shall be by votes cast in ballot boxes. One box is to be earmarked for each post. Ballot papers, normally eleven of them, are to be distributed by the Returning Officer and his team to all eligible members at the time of polling. Members may mark their preference by a tick-mark against the chosen candidate and drop the ballot papers in the ballot boxes provided.

On completion of voting, Returning Officer shall count the votes in the General Body. If they so desire, candidates may observe the counting process.

Results are to be handed over by the Returning Officer in a signed statement to the President, who shall announce the results of the General Body.

Presence of candidates contesting the election, their proposers and their seconders, is mandatory at the GBM.

If only one nomination is received for a particular post, it should be announced in the GBM by the Returning Officer. Such a candidate would also need to be elected by majority vote.

VACANCIES. Vacancies in the Board, caused by a reason other than removal of a Manager by a vote of the General Body, shall be filled from among willing members, by a vote of the majority of the remaining Managers, in a duly constituted meeting of the Board. Each person so elected shall be a Manager until a successor is elected at the next SGM/AGM.

REMOVAL OF MANAGER. At any regular or special meeting of the Board, one or more of the managers, excluding Principal Officers, may be removed by majority vote, for absence from three consecutive meetings. A successor shall be elected, as per para 4.6 above from amongst willing members. Any manager whose removal is proposed by the Board shall be first heard at the said meeting.

ORGANISATION OF MEETING OF THE BOARD. First meeting of a newly elected Board shall be held within fifteen days of election at a place fixed by the Managers at the AGM at which they were elected. No notice shall be necessary to the newly elected Managers to legally constitute such meting, provided a majority of the whole Board shall be present.

REGULAR MEETINGS. Regular meetings of the Board, shall be held at a place and time determined, by the President. At least one such meeting shall be held each calendar month. Notice of such meetings shall be given to each Manager by the Secretary by circular, personally or by mail, email or telegraph, at least seven days prior to the day of such meetings.

SPECIAL MEETINGS. Special meetings of the Board may be convened by the President himself or on written request of at least five managers on three day’s notice to each Manager given personally, by mail, email or telegraph. The notice shall state the time, place and purpose of the meeting.

WAIVER OF NOTICE: Before any meeting of the Board, any Manager may, waive notice of such meeting. Such waiver shall be deemed equivalent to giving such notice. Attendance by a Manager at any meeting of the Board shall be a waiver of notice by him. If all the Managers are present at any meeting of the Board, no notice shall be required and any business may be transacted at such meeting.

QUORUM: At all meetings of the Board, President and five Managers shall constitute the quorum Acts of Managers present at a meeting at which quorum is present shall be acts of the Board.

CHAPTER V

PRINCIPAL OFFICERS

DESIGNATION. The Principal Officers of the Association shall be the President, Vice President, Secretary and Treasurer.

ELECTION OF OFFICERS. The Principal Officers of the Association shall be elected annually by the General Body and shall hold office at the pleasure of the General Body. See also para 4.5

PRESIDENT. Responsibilities are as under :-

Shall be the Chief Executive Officer of the Association.

Preside at all meetings of the Association and the Board.

Have the power to appoint committees and sub-committees from among the owners for specific tasks. Board shall be kept informed.

Exercise Power of Attorney on behalf of SVPOA for management of common areas or other responsibilities .

Ensure that decisions at the meetings of the Board have a backing of the majority present.

Ensure that the finances of the association are effectively managed. He shall be responsible for funds and investments of the Association.

Will not sanction any expenditure unilaterally.

Ensure that cash book is maintained by the Treasurer and is checked and signed each month on the last working day by himself or by a member of the Board, so authorized.

VICE-PRESIDENT: The Vice President shall act as the President and perform his duties whenever, the President shall be absent or unable to act. If neither the President nor the Vice-President is able to act, the Board shall appoint some other member of the Board to act as Officiating President on an interim basis. The Vice President is to carry out surprise check of cash and stock at least twice a year. The Vice-President shall also perform such other duties as are assigned to him by the Board.

SECRETARY. He shall: -

Maintain in a Master Register, detailed record of names of Villa Plot owners with Villa Plot numbers, parking space number/numbers, address of next of kin, phone/cell numbers, names of authorized representatives and any other details considered relevant by the Board. Records will be made available by the Secretary to members for verification of their own records.
Compile the minutes of all meetings of the Board and the Association.

Have charge of and maintain such books and papers as the Board may direct.

In general, perform all the duties related to the office of Secretary, including:

Implement decision of the Board and the General Body, in coordination with respective managers. He should ensure financial propriety and effective financial control.

Oversee the working of the Estate Manager.

Be responsible for the personnel management all employees. Functional responsibility of personnel will however devolve on respective portfolio mangers.

Caution an owner/resident of any irregularity noticed in and around his Villa Plot.

Call upon an owner/resident to stop any disturbance being created by inmates or guests in and around his Villa Plot.

In consultation with the BOM suspend services normally available to owners/residents, in case an owner/resident does not adhere to the Bye laws/Rules of the Association.

Prevent the entry into the SVP of persons of ill-repute.

Coordinate activities of Managers holding other portfolios.

TREASURER: He shall: -

Be responsible for Association funds and investments.

Plan investments of the Association and get them approved by the Board of Mangers.

Keep accurate accounts of receipts and expenditures.

Keep all expenditure within the budget approved by the GBM

Incur expenditure as per procedure and financial powers laid down in Chapter VII.

Ensure that Cash Book is maintained manually or in computer and authenticate the print out of Cash Book.

Ensure proper maintenance of Bank Accounts of the Association and prepare monthly reconciliation statement.

Get all ledger Accounts updated monthly and thereafter prepare a Trial Balance by 15 of each month.

Prepare the final accounts of the Association as on 31 March each year by 15 May and have them audited by 31 May each year.

Get a Chartered Accountant appointed as the Association auditor and get his remuneration approved in the annual GBM.

Supervise financial activities listed in Chapter VII.

REMOVAL OF PRINCIPAL OFFICERS: A Principal Officer may be removed by a 75% majority vote at a meeting of the General Body. He shall be heard at this meeting before the final decision. The successor shall be elected at the same meeting from amongst other members of the Board or from amongst other members willing to contest for the post. Should a member of the Board be elected as Principal Officer, the resultant vacancy in the board would be filled up in the same AGM. The normal election process as per Para 4.5 of the Bye Laws will not apply in this case.

CHAPTER VI

ACCOUNTS OF AUDIT

FUNDS: Funds may be raised by the Association for the welfare of owners/members in all or any of following ways: -

By share purchase fee and one time contribution from purchaser of Villa Plot.

By collective contribution, deposits, license fees and donations from the residents and public.

From common profits which shall form the nucleus of the Residents’ Current Account.

By transfer of owners funds by the _________________, Karwar.

From residents and/or Public Institutions for creation of viable capital assets in SVP as approved by he General Body.

By organizing other lawful activities for the residents

The funds and income of the Association shall be utilized solely on expenditure for achievement of objectives of the Association. Income in excess of expenditure or vice-versa shall be merged into the Residents’ Current Account. Surplus fund shall not be disbursed to owner as profit/dividend/interest.

INVESTMENT:

The Association may invest its surplus funds, after the approval of the Board of managers, in one or more of the following Institutions:

Public Sector Banks
Scheduled Banks
Public Sector Institutions

ACCOUNTS

The Association shall maintain Bank Accounts as necessary, into which all money received by it shall be deposited.

The Treasurer will hold in his custody an amount specified by the Board for petty expenses.

Salary of employees may be paid by cheque as far as possible. Payments in excess of Rs. 2500/- shall be made only by cheque signed by Treasurer and President.

Those authorized to sign cheques of the Association shall not bear any blood relationship with each other.

All accounts including Registration of Villa Plots shall be maintained regularly.

Surprise checks of cash, accounts and stores are to carried out at least three times in a year by the Vice President and a report is to be put up to the BOM.

The accounts shall be audited by a Chartered Accountant ever year.

All accounts shall be closed as on 31 March every year.

PUBLICATION OF ACCOUNTS AND REPORTS

The Association shall, on or before 31 May each year, publish its audited financial statement for the previous financial year consisting of: -

Income and Expenditure A/c
Receipts and Payments A/c
Balance Sheet showing the assets and liabilities of the Association disclosing their general nature and value.

A copy of the audited financial statement and audit a report shall be kept in the Association office for perusal by members, during office hours.

AUDIT

The Association shall appoint, at its GBM, a Chartered Accountant to audit the accounts and finances of the Association. The GBM shall also fix his remuneration.

The auditor shall examine the annual financial statement prepared by he Board and verify the same with connected accounts. He shall thereafter sigh the statement as correct and in accordance with the law.

The accounts of the Association are to conform to the bye laws/rules of the Association in addition to the accounting regulation/laws.

Auditor shall specifically observe compliance of Association accounts with these bye laws/rules.

Concurrent audit of the accounts shall be carried out by the Auditor, monthly.
Non compliance of accounts with these bye laws/ rules as also accounting laws will specifically be brought out by the auditor in his annual report to the Board.

Reports of concurrent audit shall be rendered to the Board. The reports shall clearly bring out wrong accounting practices, if any, errors and cases requiring attention of the Board. Simultaneously he shall suggest remedial measurers for prevention of such errors and improvement of accounting standards.

The auditor shall be entitled to call for information pertaining to all financial transactions conducted by the Association and examine these papers.

FINANCIAL POWERS

Regular planned items of expenditure, in the day-to-day activities of the Association, shall not exceed the budget for the same already approved by the GBM. Non-planned expenditure will be incurred by the common consent of the President, Secretary & Treasurer. If any one of them disagrees, then the case shall be referred to the Board for decision/sanction.

Expenditure up to Rs. 2500/- per item may be proposed by the concerned Member and approved by the President.

Expenditure in excess of Rs.2500/- per item but limited to Rs. 10000/- per item shall be proposed by the concerned member through the Secretary and approved by the President

Expenditure in excess of Rs.2500/- per item but limited to Rs. 50,000/- per item shall be proposed by the Secretary and put up for approval of Board for sanction by at least 5 Managers.

Expenditure in excess of Rs.50,000/- per item shall not be incurred/sanctioned by the Board but shall be put up for prior approval of the GMB.

Every proposal shall be put up to the Treasurer for clearance, before incurring the expenditure, on availability of budgetary allocation and liquid funds. No expenditure shall be incurred without this clearance in advance.

Minimum three quotations shall be called for to meet expenditure on any item costing Rs. 10,000/- or more. Least costly quotation commensurate with quality shall be accepted.

In exceptional cases such as in an emergency, when delay cannot be accepted, the Board can sanction expenditure, which will be put up for ex-post facto sanction in the next GBM or in an SGM called for this purpose.

CHAPTER VII

MORTGAGES

NOTICE TO ASSOCIATION. An owner, who mortgages his unit, shall notify the Association, the name and address of his mortagagee and the Association shall maintain such information in “the Register of Villa Plot Owners”.

NOTICE OF UNPAID DUES. The Association shall at the request of a Mortgagee of a unit, report dues out standing from the owner of such unit. The association under no circumstances is to stand guarantee for a loan taken against an Villa Plot.

CHAPTER VIII

COMPLIANCE

COMPLIANCE. These Bye-Laws are set forth to comply with the requirements of the Karnataka Societies Registration Act, 1960 as amended from time to time. In case any of these bye-laws conflict with the provisions the said Act, it is herby agreed and accepted that the provisions of the Act will apply.

SEAL OF THE ASSOCIATION. The Association shall have a common seal, which shall be in the custody of the Treasurer. Every deed of instrument to which the seal is affixed shall be attested for or on behalf of the Association by the President of the Board in all cases and the Secretary/Treasurer as applicable.

CHAPTER IX

AMENDMENTS TO BYE LAWS

AMENDMENTS TO BYE LAWS. These Bye-Laws may be amended by the Association in a duly constituted meeting for the purpose. No amendments shall take effect unless approved by at least 75 (seventy five) percent of the total number present in the meeting.

CHAPTER XI

MISCELLANEOUS MATTERS

DISSOLUTION. In the event of dissolution or winding up of the Association, the assets remaining as on date of dissolution shall under no circumstances be distributed among member but shall be transferred to the succeeding Association/Society/Institution/Trust.

POWERS TO SUE AND TO BE SUED. The President of the Association shall be the person to sue on behalf of the Association and shall be the person sued in any suit against the Association.

The governing body shall not admit new members during the last three months of its tenure.

Yaduvanshi

Monday, September 26, 2011

SAGAR VILLAS CO-OPERATIVE HOUSING SOCIETY – KARWAR