Amendment status not verified — confirm the current text below against the official source.
Board: 1) There shall be a Board for the management of every Co-operative Society registered under this Act. The Directors shall be elected in accordance with the provisions of the Bye-Laws. The management of 584 every Co-operative Society constituted in accordance with the provisions of this Act and the Bye-Laws shall vest in the Board. Provided that in the case of a Co-operative Society newly registered under this Act, the persons who have signed the application for the registration of the Cooperative Society may appoint a promoter board for a period not exceeding one year from the date of registration to direct the affairs of the Co-operative Society and it shall cease to function as soon as regular Board is constituted in accordance with the provisions of this Act and the Bye-Laws. 2) The Promoter board appointed under the proviso to sub-section (1) shall conduct the election of Directors within the period mentioned therein. 3) Every Director while exercising the powers and discharging duties shall act honesty and in good faith and in the best interests of the Co- operative Society and exercise such care, diligence and skill as a reasonably prudent person would exercise in similar circumstances. A Director who is guilty of misappropriation, breach of trust or dishonest resulting in loss or shortfall in revenue of the Co-operative Society and is found guilty after an inquiry or Inspection under Section 82 and Section 83 or after Audit under Section 76 shall be personally liable to make good that loss or shortfall without prejudice to any criminal actionto which the Director maybe liable under any law.