Short Answer

No, the approval of a budget at an Annual General Meeting (AGM) does not necessarily fix the maintenance spending for the year.

Detailed Explanation

Section 74 of the Gujarat Cooperative Societies Act, 1961 empowers the general body of a cooperative society to approve the budget for the upcoming financial year at the AGM. However, this approval does not rigidly fix the maintenance spending for the entire year. The budget serves as an estimated plan for income and expenditure, but it can be adjusted or revised as needed during the year.

Rule 58 of the Gujarat Cooperative Societies Rules, 1965 provides guidelines on the preparation and approval of the budget at the AGM. It outlines the process of estimating income and expenses, including maintenance spending, but it does not restrict the society from making changes if circumstances require so.

In practice, while the AGM's approval sets a framework for financial planning, it does not mean that maintenance spending cannot be altered throughout the year. If unexpected expenses arise or if there are changes in the maintenance requirements, the society can convene a special general meeting to propose amendments to the budget.

Real-world Scenarios

• Scenario 1: A cooperative housing society approves a budget at the AGM, allocating a certain amount for maintenance expenses. However, due to unforeseen repairs or upgrades needed in the common areas, the society decides to increase the maintenance spending mid-year after obtaining approval from the members in a special meeting.

• Scenario 2: A cooperative society's budget is approved at the AGM with a specific allocation for maintenance based on the previous year's expenses. During the year, the society implements cost-saving measures that allow them to reduce maintenance spending without compromising on the upkeep of the property.

• Scenario 3: A cooperative society faces a financial crunch halfway through the year, leading them to reevaluate their budget and make cuts in various expenses, including maintenance, to ensure financial stability.

Reference

• Section 74 of the Gujarat Cooperative Societies Act, 1961: [Official PDF]

• Rule 58 of the Gujarat Cooperative Societies Rules, 1965: [Official PDF]