What is a Society Share Certificate? Meaning, Rules, and Importance in Housing Societies!
As a legally binding record of membership and share ownership, a Society Share Certificate is a crucial document for housing societies. It indicates that the member possesses a specific quantity of society shares, which is essential for taking part in activities related to the society, such voting and getting dividends.
Meaning of a Society Share Certificate
Membership in the cooperative housing association is evidenced by the share certificate. Upon joining the society, an individual is granted a certain quantity of shares, which are verified by the share certificate. In addition to the signatures of authorized authorities, the certificate bears the society’s seal, the member’s name, the quantity of shares owned, and the certificate number.
Rules Governing Society Share Certificates
Cooperative society acts in each state and nation, as well as the society’s bylaws, usually control the issuance and regulations of share certificates for housing societies. The procedures for transferring shares, issuing certificates, and member rights about their shares are all governed by these rules.
Issuance: Shortly after a member becomes a member, usually within six months, the society is required to provide the share certificate to the member. Only the authorized signatories of the society may sign the certificate.
Share Transfer: The society must get the society share certificate back from a member who wants to transfer their shares. Thereafter, the transferee will receive a fresh certificate from the organization.
Duplicate Certificates: Members may obtain a replacement share certificate in the event of loss or damage by completing an application and sending it with the required costs and an affidavit.
Importance of a Society Share Certificate
For a housing society to operate properly, the society share certificate is crucial:
Legal Proof of Ownership: It serves as a proof of ownership and eligibility for any legal or financial activities, confirming the member’s position in the community.
Engagement in Society Matters: Access to society meetings, resolution voting, and management committee election is restricted to members holding a valid share certificate.
Inheritance and Transfer: When transferring membership through a sale or inheritance, the share certificate is essential to the process. The absence of it may lead to a convoluted and legally difficult procedure.
What is a Society Share Certificate in housing society?
In housing societies, a member’s ownership of shares is attested to by their Society Share Certificate, which is an essential document. In addition to being a piece of paper, this certificate is crucial for the members to claim their rights and advantages inside the cooperative housing association.
The Importance of Having a Society Share Certificate!
As official documentation of ownership of shares within the housing society, a society share certificate is an essential document for each member. To vote at society meetings, take part in major decisions, and facilitate membership transfers, one must have a housing society share certificate. It is imperative that each member have this certificate since without it, they may find it difficult to exercise their rights and participate in important social events.
Checklist for Issuing a share certificate of housing society
Checklist for Issuing a Share Certificate of Housing Society
Approval of Membership: Verify whether the society’s governing committee has given the membership application the green light.
Share Allocation: Check the amount of shares that the member will get in accordance with the bylaws of the organization.
Confirmation of Payment: Verify the member’s payment of the necessary share capital, entry fees, and any other relevant costs.
Information about the Member: Make sure that the member’s name, address, and other pertinent information are accurately recorded so that it may be included in the share certificate.
Certificate Number: The share certificate should be given a special certificate number.
Seal: On the share certificate, affix the official society seal.
Signatures: The Chairman, Secretary, and Treasurer are usually the authorized signatories of the society. Make sure they sign the share certificate.
Date of Issue: The share certificate should prominently display the date of issuance.
Register Entry: Enter the certificate number and member details, together with other details, in the society’s Share Certificate Register for the issued share certificate.
Delivery: Upon membership acceptance, provide the member their housing society share certificate as soon as possible, usually within six months.
Extra Copy: Keep a duplicate copy of the issued society share certificate for the records of the society.
Acknowledgement: Upon distribution of the share certificate, request an acknowledgement receipt from the member.
Transfer of Society Share Certificate in case of flat resale
In order to guarantee the official transfer of ownership within the housing society when reselling an apartment, it is essential to transfer the society share certificate. This is the way to handle this procedure:
Get a NOC: To move forward with the transfer, obtain a No Objection Certificate (NOC) from the housing society.
File Transfer Application: The transfer of the housing society share certificate requires a joint application from the buyer and the seller.
Pay Transfer costs: As needed by society’s regulations, make sure the necessary transfer costs are paid.
Original Share Certificate Surrender: The seller is required to turn in the original Society share certificate to the organization.
Verification by Society: Prior to authorizing the transfer, the society will check all supporting documentation and outstanding balances.
Issue of New Share Certificate: The society will issue a new share certificate in the buyer’s name as soon as it has been authorized.
Update Records: To reflect the new ownership, the society will make necessary updates to its records.
How to obtain a duplicate Society Share Certificate?
If the original society share certificate is missing, destroyed, or lost, you must obtain a copy. This is the method to follow:
Send in an Application: In order to get a duplicate housing society share certificate, the member must send a formal application to the housing society.
Offer an Attestation: Provide an affidavit attesting to the circumstances surrounding the original certificate’s loss or damage, supporting your request for a duplicate.
File a FIR: Report the missing original share certificate by filing a First Information Report (FIR) at the local police station. Enclose a copy of the FIR with your application.
Notice to the Public: Announce in a local newspaper that the original society share certificate has been lost and that a replica will be issued. This lessens the likelihood of false claims.
Pay Fees: In accordance with the regulations of the organization, pay the required fee for the issuing of a duplicate certificate.
Verification by Society: After examining the documentation, the housing society will handle the request. The managing committee may also be approached for permission.
Copy Issue: Upon verification, the housing society will issue a duplicate share certificate that is clearly marked as “Duplicate” to differentiate it from the original.
Update Records: The society will add information about the loss of the original certificate to its records, along with the issue of the duplicate one.
FAQs
1. Is a share certificate proof of ownership?
Yes, a housing society’s share certificate acts as official documentation attesting to the ownership of the shares held by the owner. It attests to your cooperative membership and stake, enabling you to take part in social issues like voting and dividend payments.
2. What is the importance of share certificates in a housing society?
In addition to enabling you to vote in society elections and serving as legal verification of your housing society membership, the society share certificate is necessary for any real estate transactions, such as the sale or transfer of an apartment.
3. How do I obtain a share certificate from the society?
You must first become a member by completing the membership application and paying the necessary fees in order to get a share certificate from the housing society. After that, the society has a deadline—typically six months—by which to grant the certificate.
4. What happens if the society does not transfer share certificates?
Legal issues may arise if the society fails to transfer the society share certificate, particularly in the context of real estate transfers. To settle the matter, you might need to speak with the managing committee of the society or take legal action.
5. When can the society issue share certificates?
Once the membership application has been accepted, all fees have been paid, and the membership has been legally acknowledged by the management committee, the society may issue share certificates. After entering the society, this usually occurs a few months later.
6. What happens if there are objections to my duplicate share certificate?
The society has the right to delay the certificate until the objections are addressed if there are concerns about issuing duplicate society share certificates. In order to get the replica, you might need to resolve the issues, maybe through legal procedures.
7. If I am the nominee for the house my father owns, do I become the owner once my father passes away?
A house does not instantly become yours just because you are its candidate. You will need to get the housing society share certificate upon your father’s death, but this is contingent upon the society’s acceptance and legal requirements—particularly if there are other heirs involved.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
