Section 39 in Punjab Self-Supporting Co-operative Societies Act, 2006
39. 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.
