What is the role of an Administrator?
The members of a cooperative housing society are in full control of its financial and operational management. Since it follows a democratic model, the members elect their representatives to a decision-making group called the managing committee. This committee is then responsible to keep the society up and running.
If for some reason, this committee is unable to form or perform its duties when elected, an external representative comes into the picture for a brief period. This individual is expected to carry out the same functions as that of a managing committee but in a restricted manner. In this article, you will understand who this individual is, when such a requirement arises, and what are their fundamental responsibilities.
So, who is this external entity? It is The Administrator.
Who is an Administrator?
An administrator is an external, government-appointed entity that holds a temporary position in society office and looks after the upkeep of a cooperative housing society in the event a managing committee is unable to fulfill the set role.
An Administrator is never a member of the society and is appointed by the Deputy Registrar from a set panel of officers.
What is the duration of Administrator’s appointment?
Since the appointment of an administrator is a temporary arrangement focused on ensuring consistency in governance, the appointment duration has an upper cap. An administrator can be appointed for a maximum period of 6 months which may further be extended by a maximum period of 3 months.
The primary duty of the administrator during this duration is to conduct elections for the society and regulate its working in the meanwhile.
When and Why is an Administrator appointed?
The simplest explanation is that the Administrator is appointed in the absence of a compliant managing committee. The absence is a result of two scenarios i.e. the current committee is out of power and the new committee can’t be elected.
This causes a substantial time gap with no one in the office and hence, an administrator becomes essential. But what are the reasons that give rise to either or both of these scenarios?
Problems with Current Committee
The absence of current committee can arise due to:
- Abrupt resignation by the whole committee or enough members for the committee to dissolve
- End of a 5-year tenure with no intention to stand for reelection
- Suspension of the whole committee or some members for
- committing financial defaults
- committing prejudicial (biased/unfair) act towards the committee or some member
- misusing society funds
- failing to maintain appropriate records
- failing to fulfill society’s duties
- failing to comply with the management guidelines set in the applicable Act, Rules or Bye-Laws
Problems with New Committee
The absence of a new committee occurs when not enough members are ready to be a part of the managing committee. Why the members refrain from being in the governing body could be an outcome of a combination of the following reasons:
- Complex legal problems of society
- Long-standing society issues
- Lack of funds
- Internal member fights
- Ungratefulness of society members
What are the responsibilities of an Administrator?
The Administrator is a stop-gap arrangement and must mainly focus on:
- Ensuring that society election takes places
- Solving the reason stated in the appointment
- Doing activities essential for society’s smooth functioning
Other than these core responsibilities, the administrator is expected to function within the set guidelines and hence must carry out the following as well:
- Take all society members into confidence while taking charge of the office.
- Issue circular or call SGM to convey how transparency will be maintained
- Work under Registrar’s guidelines and regularly report to them on working
- Work towards the appointment purpose i.e. fix the defects/errors outlined in the appointment order
(Example: incomplete record, incomplete accounts, not taking elections, etc.) - Work as a coordinator between the Registrar’s office and the society in a way to settle any dispute cordially
- Prepare voter list and conduct elections at the earliest so that the process is completed before the expiry of the administrator’s tenure
- At the general body meeting before tenure end, submit an expenditure report of all the expenses incurred during their time in office.
- Attach and submit the expenditure report with their working report to the Registrar at the end of the term
Fulfilling these basic responsibilities and duties will ensure that the society is run smoothly and that the core principles of cooperation remain intact even in the absence of a managing committee.
What must an Administrator not do?
As are the duties of an Administrator defined, so are the things that the Administrator should refrain from. Since they only replace the managing committee for a brief period, the powers of an administrator don’t exceed that of a managing committee.
As a result of this, the administrator:
- cannot enroll new members.
- must avoid appointing anyone by paying them an amount that the society cannot bear.
- shall not negotiate with the builder/developer in case of society’s redevelopment
- shall not take any major decisions or even implement any major decision until a regular general body comes into existence.
- shall avoid collecting any contribution on their own and must refrain from taking policy decisions.
(Example: incurred expenditure for major repairing works, executing an agreement for redevelopment, selling T.D.R/F.S.I. cancellation of membership, withdrawing the cases filed by the society or compromising in the cases against society)
These points are reinforced by the Registrar to ensure that the presence of an administrator doesn’t affect the long-term governance of a cooperative housing society.
Due to a clear definition of the reason, the duties, and the power boundaries of an administrator, it becomes easier for a particular society to navigate through this temporary change while protecting itself from any undue or unfair malpractice. The provision of an administrator exists only to immediately control the current situation at hand while ensuring a proper handover from one committee to another in the background.