I have never seen a form at any of the flying clubs that I have used to do my bienniel flight, I have just had my log book signed.... Does this mean I am not legal to fly and if so what can I do now to get back on track?
For FAA, you are quite legal (I think).
For JAA, an examiner has to check your logbook and sign your license - more specifically the rating validity page. And you jointly fill in form SRG\1119 and send it to the CAA.
If you have a JAA license and have not sent any paperwork to the CAA in the last two years then I fear you might indeed be flying illegally. Check out LASORS to see what you need to do to become legal again.