208Declaration of interest

208 Declaration of interest

208 Declaration of interest

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

Maximum penalty—$24,000 or imprisonment for 2 years, or both.

(2) 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.

(3) If a director becomes interested in a contract with the co-operative 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.

(4) 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 of a stated entity; and

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

is a sufficient declaration.

(5) A director of a co-operative 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 (6), declare at a meeting of the board of directors the fact and the nature, character and extent of the conflict.

Maximum penalty—$24,000 or imprisonment for 2 years, or both.

(6) A declaration required by subsection (5) 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 whichever is the later of the following—

(i) the person becomes a director;

(ii) the relevant facts as to holding the office or having the interest come to the person’s knowledge; or