Board of Directors.

(1) There shall be a Board of Directors for the management of every self-supporting co-operative society : Provided that in the case of a newly registered self-supporting co-operative society, the persons who have signed the application for the registration of the society, may appoint a promoter Board, for a period not exceeding one year from the date of registration, to run the affairs of such society and it shall cease to function as soon as a regular Board is constituted. (2) Every Director while exercising the powers and discharging duties, shall— (a) act honestly and in good faith and in the best interest of the self-supporting co-operative society ; and (b) exercise such due care, diligence and skill as a prudent person would exercise under similar circumstances. (3) A Director, who is guilty of misappropriation or breach of trust or dishonesty, which causes loss or shortfall in revenue of the self-supporting co-operative society as determined by the general body, shall be personally liable to make good that loss or shortfall, without prejudice to any criminal action to which he may be liable under the relevant law.