Section 59 in Mizoram Cooperative Societies Act, 2006
59. Punishment for the Board of Director for being disloyal to the co-operative.
(1)The member of board of directors or management committee by virtue of holding the office of director of a co-operative, as and when acquires an opportunity of misusing properties and funds, which otherwise should have belonged to the co-operative for himself or his relatives including full blood and half blood relations shall be liable for all damages caused to the and must account for double the cost or profit which otherwise should have occurred to the co-operative by refunding the same provided that the said board of director shall be given a full and complete opportunity to defend his case before awarding such punishment.(2)If the said board of directors are found willfully or knowingly vote for or assent to patently unlawful acts or found guilty of gross negligence or bad faith in directing the affairs of the co-operative or acquire any personal or pecuniary interest in Conflict with their official duty, shall be made severally, collectively and jointly liable for all damages or profits resulting to the co-operative or its members or other persons.
