100Declaration of interest

100 Declaration of interest

100 Declaration of interest

(1) A director of a society who is or becomes in any way (whether directly or indirectly) interested in a contract, or proposed contract, with the society must declare the nature and extent of the interest to the society’s board under this section.

Maximum penalty—50 penalty units or imprisonment for 2 years, or both.

(2) Subsection (1) does not apply to a contract to provide financial accommodation if the provision of the financial accommodation does not contravene section 103 (Financial accommodation to directors and associates).

(3) In the case of a proposed contract, the declaration must be made—

(a) at the meeting of the board at which the question of entering into the contract is first considered, or

(b) if the director was not at that time interested in the proposed contract—at the next meeting of the board held after the director becomes interested in the proposed contract.

(4) If a director becomes interested in a contract with the society after it is made, the declaration must be made at the next meeting of the board held after the director becomes interested in the contract.

(5) For the purposes of this section, a general written notice given to the board by a director to the effect that the director—

(a) is a member or officer of a specified entity, and

(b) is to be regarded as interested in any contract which may, after the giving of the notice, be made with the entity,

is a sufficient declaration.

(6) A director of a society who holds an office or has an interest in property whereby, whether directly or indirectly, duties or interests might be created that could conflict with the director’s duties or interests as director must, under subsection (5), declare at a meeting of the society’s board the fact and the nature, character and extent of the conflict.

Maximum penalty—50 penalty units or imprisonment for 2 years, or both.

(7) A declaration required by subsection (6) in relation to holding an office or having an interest must be made by a person—

(a) if the person holds the office or has the interest when he or she becomes a director—at the first meeting of the board held after—