|
|
Disclosure of interest by director.
|
41.—(1) A director of a society who is in any way, whether directly or indirectly, interested in a contract or proposed contract with the society shall declare the nature of his interest at a meeting of the board of directors of the society—
|
|
| |
(a) in a case of a proposed contract, at the meeting of the directors at which the question of entering into the contract is first taken into consideration or, if the director was not at the date of that meeting interested in the proposed contract, at the next meeting of the directors held after he becomes so interested, or, if the contract is not one that will be taken into consideration at a meeting of the directors, as soon as may be, and
|
|
| |
(b) in a case where the director becomes interested in a contract after it is made, at the first meeting of the directors held after he becomes interested in the contract.
|
|
| |
(2) Subject to subsection (3), a general notice given to the directors of a society by a director to the effect that he is a member of a specified company or firm and is to be regarded as interested in any contract which may, after the date of the notice, be made with that company or firm, shall be deemed to be a sufficient declaration for the purposes of subsection (1).
|
|
| |
(3) A notice under subsection (2) shall not be of effect unless either it is given at a meeting of the directors or the director takes reasonable steps to secure that it is brought up and read at the next meeting of the directors after it is given.
|
|
| |
(4) A copy of every declaration made and notice given under this section shall, within three days after being made or given, be entered in a book kept for the purpose and this book shall be open for inspection without charge by any officer, auditor or member of the society at the chief office of the society and shall be available at every general meeting of the society, and at any meeting of the directors if any director so requests in sufficient time to enable the book to be available at the meeting.
|
|
| |
(5) Nothing in this section shall affect the operation of any rule of law restricting directors of a society from having any interest in contracts with the society.
|
