Short Answer

If the society opens a shop in the common area, all members do not automatically share profits or get votes.

Detailed Explanation

Rule 78 of the Gujarat Cooperative Societies Rules, 1965 governs the utilization of common areas by cooperative societies. This rule states that common areas can be used for specific purposes as per the by-laws of the society. If the society decides to open a shop in the common area, it must be in accordance with the by-laws and approved by the general body of the society. In such cases, the profits generated from the shop may not necessarily be distributed among all members unless the by-laws specifically provide for such profit-sharing.

In practice, the decision to open a shop in the common area and the allocation of profits would typically be determined by the society's managing committee or general body. The by-laws of the society play a crucial role in governing such activities and should clearly outline the rights and responsibilities of members regarding the utilization of common areas for commercial purposes.

Real-world Scenarios

• Scenario 1: A cooperative housing society decides to lease out a portion of the common area for setting up a convenience store. The profits generated from the store are utilized for maintenance and upkeep of the society's common facilities as per the by-laws.

• Scenario 2: In another society, the members collectively agree to open a small cafe in the common area. The profits earned from the cafe are used for organizing community events and welfare activities benefiting all members.

Overall, the utilization of common areas for commercial purposes like opening a shop should be done in compliance with the society's by-laws and with the approval of the general body to ensure transparency and fairness in profit-sharing arrangements.

References

• Rule 78 of the Gujarat Cooperative Societies Rules, 1965: Official PDF