Clause 63

In the conduct of the affairs of a society the members of the committee of management shall exercise the prudence and diligence of ordinary men of business and shall be jointly and severally liable for any loss sustained through failure to exercise such prudence and diligence or through any act which is contrary to the provisions of this Act or the Rules, the by-laws of the society or the directions of a general meeting.

Where the committee of management has appointed a person as a manager to administer and manage the affairs of the society, such appointment shall not absolve the committee from its responsibility for the proper direction of the affairs of the society.