Ms Sheila Kumari, a resident of South Delhi, invested in the shares of a co-operative housing society in October 2023. Even after a long six-month wait, she is yet to receive her share certificate. When asked about this, the housing society gave her weak excuses for the delay. A troubled Ms Kumari gets confused about the next course of action. Here are some valuable insights for several property owners like Ms Kumari on what to do if your housing society denies issuing a share certificate. But before delving into this, let us first know what a share certificate is, its significance and why we need it.
Why do you need a share certificate from the co-operative housing society?
A share certificate from a co-operative housing society validates one's investment and grants access to various rights and benefits outlined by the society's regulations. This vital document is significant as it is used in transactions such as selling or transferring shares. Besides, it helps ensure transparency and accountability within the cooperative housing society. But what should you do if the housing society denies giving you a share certificate? Let us find out in the next section of this article.
Legal recourse if the co-operative housing society denies issuing a share certificate
If a co-operative housing society fails to issue a share certificate despite a member fulfilling all financial obligations, the member can pursue legal recourse. Despite repeated reminders, if the member does not receive their share certificate within 15 days of sending a reminder letter, they can complain to the Deputy Registrar under Bye-law No. 174(A)(ii) and (iii). The complaint should include photocopies of all relevant documents and correspondence with the society. However, if nothing works, are there any alternatives to the share certificate? Continue reading to know.
Alternatives to a housing society share certificate
If the housing society denies issuing a share certificate, there are alternatives. One alternative is possessing a membership card provided by the society, which may contain information similar to that of a share certificate. Additionally, some housing societies may issue allotment letters or membership confirmation letters as evidence of ownership and membership rights. These alternatives can be utilised when a formal share certificate is not readily available. However, it is crucial for members to ensure that any alternative documentation obtained holds legal validity and adequately represents their rights within the housing society.
In a nutshell, a share certificate from a co-operative housing society serves as evidence of an individual's investment. It grants them access to a myriad of rights and benefits. Ensuring the issuance and proper maintenance of share certificates fosters transparency, accountability, and trust within the cooperative framework.
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