Short Answer

Yes, members may need to pay additional share capital if new additional flats are given to the developer in a redevelopment or structural repair project.

Detailed Explanation

Section 22 of the Gujarat Cooperative Societies Act, 1961 empowers cooperative societies to issue shares to their members. Share capital represents the ownership interest of members in the cooperative society. When new additional flats are provided to the developer in a redevelopment project, it may lead to an increase in the share capital requirement. This is because the new flats would need to be allocated shares equivalent to their value, and members acquiring these new flats may be required to contribute additional share capital to the society.

In practice, the society's board of directors would determine the amount of additional share capital required from members based on the valuation of the new flats. Members receiving these new flats would be notified of the share capital amount they need to contribute. Failure to pay the additional share capital may result in consequences as per the society's by-laws.

Real-world Scenarios

• Scenario 1: In a cooperative housing society undergoing redevelopment, the society decides to provide additional flats to the developer in exchange for construction rights. Members who opt to acquire these new flats are informed by the society's board of directors about the additional share capital they need to pay based on the market value of the new flats.

• Scenario 2: A cooperative society undertakes structural repairs and adds new floors to the existing building. Members interested in acquiring flats on the new floors are required to pay additional share capital corresponding to the value of the newly constructed units.

Reference

• Section 22 of the Gujarat Cooperative Societies Act, 1961: Official PDF