Short Answer

Old shares in a cooperative society do not automatically convert to new shares in the case of redevelopment or structural repairs of a building.

Detailed Explanation

Section 35 of the Gujarat Cooperative Societies Act, 1961 governs the issue of shares in a cooperative society. This section states that the shares of a member in a cooperative society are transferable in the manner provided by the by-laws of the society. When a cooperative society undergoes redevelopment or structural repairs resulting in a new building, the old shares held by members do not automatically convert to new shares in the redeveloped property. The members are required to follow the procedures laid down in the society's by-laws for the issuance of new shares corresponding to the new building.

Furthermore, Rule 75 of the Gujarat Cooperative Societies Rules, 1965 provides detailed guidelines on the transfer of shares in a cooperative society. According to this rule, any transfer of shares must be made in accordance with the procedure prescribed in the society's by-laws. In the context of redevelopment or structural repairs, members must adhere to the rules and regulations set forth by the cooperative society regarding the issuance of new shares for the new building. This process typically involves the submission of an application for the transfer of shares, approval by the society's managing committee, and the issuance of new share certificates reflecting the member's ownership in the redeveloped property.

Practical Examples

• Scenario 1: Mr. Patel is a member of a cooperative housing society that is undergoing redevelopment. As part of the redevelopment project, a new building will be constructed in place of the old structure. In this case, Mr. Patel will need to apply to the society for the transfer of his old shares to new shares corresponding to the new building.

• Scenario 2: Ms. Shah holds shares in a cooperative society that is carrying out structural repairs to strengthen the existing building. Even though the building's structure is being improved, Ms. Shah's shares will not automatically convert to new shares. She must follow the society's procedures for obtaining new shares reflecting the enhanced property.

References

• Section 35 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 75 of the Gujarat Cooperative Societies Rules, 1965: Official PDF