Paresh Shah (n/a) 24 March 2012

M20 bond -cooperative society

Sir,

I have few questions.

1) Office bearers of our coop society have executed M20 bond in July 2008 but have missed out on submitting to the registrar within 15 days. They have submitted it recently in March 2012. Can you tell us what is the penalty for the delay in submission? Due to delay in submission can the decisions taken by the managing committee between 2008 and 2012 (prior to the submission) remain valid?

2) If not, can the MC members have an option to make fresh M20 bond and submit within 45 days now?

3) If not (2) above, Can the society approach for fresh election or appoint administrator and have an election?

Just as a background- we are very small society of 9 members, 3 of which are overseas. Five live in the building while the sixth one is having huge bunglow and is using his flat for office purpose illegally.

How can you assist us/

Paresh Shah

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3 Replies

ajay sethi (lawyer) 24 March 2012

Rule 58-A of the Maharashtra Co-operative Societies Rules 1961 is reproduced below :

"Every elected member of the Managing Committee shall execute a bond in Form M-20 within fifteen days of his assuming the office. Such bond shall be executed on the stamp paper as provided under the Bombay Stamp Act 1958. The expenditure on stamp paper shall be borne by the society. The Chief Executive Officer / secretary of the society shall receive such bonds and keep them on record of the society and accordingly inform the Registrar within Fifteen days from the formation of the Committee."

rhere is no provision for imposition of any penalty .the society is bound to inform the registrar of execution of bond . since th bond has been submitted after peirod of 4 years you have failed to comply with provisions of the act . under such circumstances before any member raises any question better call for fresh elections . in forthcoming annual general meeting as 4years of youtr term has already expired . members cannot submit fresh M 20 bond now .

Paresh Shah (n/a) 26 March 2012

Thank you so much for your valuable advice.

Please, can you tell me under which section it says that we have to submit M20 bond to the registrar within 4 years??

Is there also a time limit of the validity of M20 bond? We have written on the same to be valid from 2008-09 to 2013-13.

Paresh

Zulkef Colombowala (Proprietor) 09 June 2012

Is execution of M20 bond is applicable to any type of Co-operative Societies? Like Patient co-op societies or Credit co-op. societies, or workers welfare societies?