Amendment status not verified — confirm the current text below against the official source.
Board (1) The general body of a Cooperative Society shall constitute a board in accordance with the bye-laws. (2) The size of the board shall be in accordance with the bye-laws. Chief Executive shall be an ex-officio member of the board. (3) 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 he (a) has at any time lost the right to vote as a member as specified in the bye-laws. (b) loses the right to continue as member as specified in the bye-laws, or (c) incurs any other disqualification specified in the bye-laws. (4) 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 (3), or (a) absents himself from three consecutive board meetings without leave of absence, (b) absents himself from three consecutive general body meeting without leave of absence, or (c) is penalised under this Act. (5) 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 Cooperative Society if during their term as directors of a Cooperative Society: (a) they did not conduct elections within the time specified in the bye-laws and before the expiry of their term, (b) they did not conduct annual general body meeting within four months of closure of the Cooperative's accounting year or a requisitioned meeting of the general body, or (c) they did not place the audited accounts for the preceding financial year alongwith the reports of the auditors before the general body at its annual general meeting. 19/42 (6) In order to be eligible for being chosen as a director of the board of a Cooperative Society which has been in existence for more than two years, a member (a) shall have been a voting member of the Cooperative Society for atleast two years immediately preceding the year of election, (b) shall have attended two general body meetings of the Cooperative Society immediately preceding the elections, and (c) shall not have been a director or an office-bearer of the Cooperative Society for two consecutive terms. (7) Every director and employee of a Cooperative Society while exercising his powers and discharging his duties shall: (a) act honestly and in good faith and in the best interests of the Cooperative Society, and (b) exercise such due care, diligence and skill as a reasonably prudent person would exercise in similar circumstances. (8) A director or employee which is guilty of misappropriation, breach of trust or any other omission or commission resulting in loss to the Cooperative Society, shall be personally liable to make good that loss, without prejudice to such criminal action to which he is liable under the law.