Amendment status not verified — confirm the current text below against the official source.
Board of Directors - (1) There shall be a Board of Directors for every Co- operative Society constituted and entrusted with the direction of the affairs of the Co-operative Society in accordance with the provisions of the Act and the bye-laws. (2) This size of Board shall be a multiple of the term of office of its Directors. (3) The Directors of the Board shall have staggered terms such that at any point of time the vacancies arising as a result of the terms of Directors coming to an end, are less than one half of the total strength of the Board; Provided that the term of a Director shall not exceed five years: Provided further that at the first election all the Directors shall be elected at once, and their terms staggered by drawal of lots specifying different terms. (4) In addition to such criteria as may be specified in the bye-laws, a person shall be ineligible for being chosen as a Director if such person,- (a) has at any time lost the right to vote as a member or to continue as one as specified in the bye-law; (b) incurs any other disqualification specified in the bye-laws. (5) In addition to such criteria as may be specified in the bye-laws, a person shall cease to be a Director if he incurs any of the disqualifications specified in sub-section (4) or,- (a) absent himself from three consecutive Board meetings to leave or absence; (b) absents himself from General Body Meetings out of three consecutive Board meetings without leave or absence; (c) is penalised under this Act. (6) In addition to such criteria as may be specified in the bye-laws, the Directors of the Board shall incur disqualification for a period of three years for being chosen as Directors and shall be ineligible to continue as Directors of any Co-operative Society, if during their term as Directors of a Co-operative society,- (a) they did not conduct elections within the time specified in the bye-laws and before the expiry of the terms; (b) They did not conduct their annual general body meeting within six months of closure of the Co-operative accounting year, or a requisitioned meeting of the general body within the specified time; (c) They did not place the audited accounts for the preceding financial year along with the reports of the auditors before the general body at its annual general meeting. (7) In order to be eligible for being chosen as director of the Board of a Co-operative Society which has been in existence for more than two years a member,- (a) shall have been a voting member of the Co-operative Society for at least two years immediately preceding the year of election; (d) shall have attended the two general body meetings of the Co- operative Society held immediately preceding the elections. (8) Every Director and employee of a Co-operative Society while exercising his powers and discharging his duties shall,- (a) act honestly and in good faith and in the best interests of the Co- operative Society; and (b) exercise such due care, diligence and skill as reasonably prudent person would exercise in similar circumstances. (9) A Director or employee who is guilty of misappropriation, breach of trust or any other omission or commission resulting in loss to the Co-operative Society as a result thereof, shall be personally liable to make good that loss, without prejudice to such criminal action to which he is liable under the law.