Cap. 442 Art. 76Conduct of affairs.

(1) In the conduct of the affairs of a society, the members of the committee of management shall exercise the prudence and diligence of ordinary persons of business and shall be jointly and severally liable for any losses sustained through failure on their part to exercise such prudence and diligence or through any act which is contrary to the provisions of this Act or of any regulations made thereunder, or to the statute of the society or to any direction of any general meeting.

(2) Where the committee of management has employed 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.