Nescessity of M-20 Bond

By Legal Bureau

The Managing Committee members must execute bond after their appointment within 15 days of their assuming the office under the Maharashtra Co-operative Societies Act 1960. The provision is important because if the bond is not executed within 15 days of his assuming the office or if the member fails to execute the bond he shall be deemed to have vacated his office as a member of the Managing Committee.
Under the provisions of new Model Bye-laws no. 138 and after amendment Section 73(1AB) of the Maharashtra Co-operative Societies Act 1960 is reproduced below :
“The Members of the Committee shall be jointly and severally responsible for all the decisions taken by the committee during its term relating to the business of the society. The members of the committee shall be jointly and severally responsible for all the acts and ommissions detrimental to the interest of the society. Every such member shall execute a bond to that effect within fifteen days of his assuming the office, in the form as specified by the State Government by general or special order. The member who fails to execute such bond within the specified period shall be deemed to have vacated his office as a member of the committee.”
Under Rule 58-A of the Maharashtra Co-operative Societies Rules 1961 “The bond must be made as per the format of Form M-20 on Rs. 100 stamp paper purchased in the Society’s name.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.”