119Conflict of interest by member of school association

119 Conflict of interest by member of school association

(1)  [Section 119 Subsection (1) amended by No. 37 of 2017, s. 24, Applied:30 Aug 2017] [Section 119 Subsection (1) amended by No. 37 of 2017, s. 24, Applied:30 Aug 2017] If an officeholder in a school association has a direct or indirect pecuniary interest in a contract entered into by the school association, or a proposed contract that the school association is considering entering into, the officeholder –

(a) must disclose the conflict of interest to the school association as soon as he or she becomes aware of it; and

(b) must not take part in any deliberation or decision of the school association that relates to that contract or proposed contract.

Penalty:  Fine not exceeding 100 penalty units.

(2)  [Section 119 Subsection (2) amended by No. 37 of 2017, s. 24, Applied:30 Aug 2017] If an officeholder in a school association discloses a direct or indirect pecuniary interest in a contract or proposed contract in accordance with subsection (1) and does not take part in any deliberation or decision of the school association that relates to the contract or proposed contract –

(a) [Section 119 Subsection (2) amended by No. 37 of 2017, s. 24, Applied:30 Aug 2017] the contract may not be avoided by the school association on any ground arising from the fiduciary relationship between the officeholder and the school association; and

(b) [Section 119 Subsection (2) amended by No. 37 of 2017, s. 24, Applied:30 Aug 2017] the officeholder is not liable to account for profits derived from the contract.