Section 33 in The M.P. Swayatta Sahakarita Adhiniyam, 1999
33. Board of Directors.
(1)There shall be a Board of Directors for the management of every co-operative registered under this Act. The Directors shall be elected in accordance with the provisions of the bye-laws. Subject to the provisions of sub-section (4) of Section 30 the management of every co-operative constituted in accordance with the provision of this Act and the bye-laws shall vest in a board :Provided that in the case of a co-operative newly registered under this Act, the persons who have signed the application for the registration of the co-operative may appoint a promoter board, for a period not exceeding one year from the dale of registration, to direct the affairs of the co-operative and it shall cease to function as soon as a regular board is constituted in accordance with the provisions of this Act and the bye-laws :Provided further that in the case of a Co-operative Society registered under the; Co-operative Societies Act and the elected members of its board, whose term has not expired at the time of registration of co-operative under Section 5 shall be deemed to be the promoter board, with the same term and responsibilities as in the first proviso for a period not exceeding one year from the date of registration.(2)The promoter board appointed under the first provision to sub-section (1) or deemed to be promoter board under the second proviso thereto, as the case may be, shall conduct the election of directors within the period mentioned therein.(3)Every director while exercising the powers and discharging duties shall :-(a)act honestly and in good faith and in the best interests of the co-operative; and(b)exercise such due care, diligence and skill as a reasonably prudent person would exercise in similar circumstances.(4)A director who is guilty of misappropriation, breach of trust or dishonestly resulting in loss or shortfall in revenue of the co-operative shall be personally liable to make good that loss or shortfall, without prejudice to any criminal action to which the director may be liable under any law.
