Why Members should attend Society “Annual General Meeting” (AGM)

Written by: Hitesh Kachru | TGI | September 01, 2024

In compliance with the Maharashtra Cooperative Societies (MCS) Act, 1960, it is mandatory for our housing society to hold its Annual General Meeting (AGM) before 30th September each year. The AGM is an essential forum for reviewing the society's financial standing, discussing key management decisions, and planning future activities. It plays a vital role in maintaining transparency and ensuring accountability in the society's operations.

Key Benefits of Conducting the AGM:

1. Financial Transparency: The AGM allows the managing committee to present audited financial statements, budgets, and other financial reports, keeping members informed about the society's financial status.
2. Informed Decision-Making: Members can voice concerns, propose changes, and vote on significant issues such as maintenance fees, auditor appointments, and upcoming repairs or projects.
3. Accountability: The AGM provides a platform to assess the managing committee’s performance and hold them accountable for their decisions and actions throughout the year.
4. Active Member Engagement: The AGM encourages members to participate in discussions, propose amendments to bylaws, and contribute to decisions that affect the society's future.
5. Legal Compliance: Conducting the AGM by 30th September ensures that the society adheres to the MCS Act, 1960, avoiding legal and financial consequences.

Consequences of Not Holding the AGM by 30th September:

1. Legal Penalties: Failing to conduct the AGM on time may lead to fines or penalties imposed by the Registrar of Cooperative Societies.
2. Loss of Eligibility for Government Benefits: Non-compliance with the MCS Act may result in the society losing access to government schemes, grants, or financial assistance.
3. Risk to the Managing Committee: The Registrar has the authority to suspend or dissolve the managing committee if the AGM is not conducted as per legal requirements.
4. Delay in Critical Decisions: Key decisions, including budget approvals and maintenance planning, could be delayed, affecting the smooth operation of society.
5. Loss of Member Rights: Without an AGM, members miss the opportunity to review the society’s progress, raise issues, and ensure that their concerns are addressed.

Filing the ITR on time ensures transparency in financial matters, safeguards the society from potential penalties, and keeps our records updated with the tax authorities.

Consequences of Missing the ITR Filing Deadline:

Penalties: Delay in filing the return may attract late filing fees and interest on any due taxes.

Loss of Exemptions: Missing the deadline may lead to the society losing out on certain tax exemptions that are applicable to housing societies.

Scrutiny Risk: Non-compliance or delay in filing can increase the chances of the society being scrutinized by the tax authorities.

It strongly encourages all members to attend the upcoming AGM, as your participation is crucial for the society's overall well-being and proper functioning.

Conducting the AGM