Financial Intermediaries Act 1996
sec.114Financial accommodation to directors
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sec.114 Financial accommodation to directors
A society must not provide financial accommodation to a director unless it is— provided in the ordinary course of business; and subject to the terms normally imposed by the society in similar dealings; and approved by a majority of at least two-thirds of the directors present and voting on the matter at a meeting of the board at which a quorum is present. Maximum penalty—800 penalty units. A director must not obtain financial accommodation given in contravention of subsection (1) . Maximum penalty—800 penalty units or 4 years imprisonment. In this section, a reference to— the provision of financial accommodation to a director; or the obtaining of financial accommodation by a director; includes a reference to a provision of financial accommodation to, or an obtaining of financial accommodation by, the director jointly with another person. (sec.114-ssec.1) A society must not provide financial accommodation to a director unless it is— provided in the ordinary course of business; and subject to the terms normally imposed by the society in similar dealings; and approved by a majority of at least two-thirds of the directors present and voting on the matter at a meeting of the board at which a quorum is present. Maximum penalty—800 penalty units. (sec.114-ssec.2) A director must not obtain financial accommodation given in contravention of subsection (1) . Maximum penalty—800 penalty units or 4 years imprisonment. (sec.114-ssec.3) In this section, a reference to— the provision of financial accommodation to a director; or the obtaining of financial accommodation by a director; includes a reference to a provision of financial accommodation to, or an obtaining of financial accommodation by, the director jointly with another person.
- (a) provided in the ordinary course of business; and
- (b) subject to the terms normally imposed by the society in similar dealings; and
- (c) approved by a majority of at least two-thirds of the directors present and voting on the matter at a meeting of the board at which a quorum is present.
- (a) the provision of financial accommodation to a director; or
- (b) the obtaining of financial accommodation by a director;