122AManager must disclose beneficial relationship with supplier

122A Manager must disclose beneficial relationship with supplier

(1) For the purposes of this section, a manager has a beneficial relationship with a supplier of goods or services if the supplier is—

(a) the manager; or

(b) an associate of the manager; or

(c) a body corporate of which the manager, or an associate of the manager, is a member; or

(d) a corporation over which the manager (either individually or jointly with associates), or an associate of the manager, can exercise control; or

(e) a corporation of which the manager, or an associate of the manager, is an executive officer; or

(f) in the case of a manager that is a corporation—an executive officer of that corporation or an associate of an executive officer of that corporation; or

(g) the trustee of a discretionary trust of which the manager, or an associate of the manager, is a beneficiary; or

(h) a member of a firm of which the manager, or an associate of the manager, is also a member.

(2) The manager of an owners corporation must disclose any beneficial relationship with a supplier with whom a contract is proposed to be entered into for the supply of goods or services to the owners corporation.

(3) Disclosure required under subsection (2) must—

(a) be given by written notice to the chairperson of the owners corporation; and

(b) subject to subsection (4), be given—

(i) immediately upon the manager becoming aware that the proposed contract is with a supplier with whom the manager has a beneficial relationship; and

(ii) before the contract is entered into by the owners corporation.

(4) If, because of an emergency situation, it is necessary for the manager to enter into a contract for the supply of goods or services and it is not reasonably practicable for the manager to disclose a beneficial relationship in accordance with subsection (3), the manager must disclose the beneficial relationship to the chairperson of the owners corporation as soon as practicable after the contract is entered into.

(5) A manager who fails to disclose a beneficial relationship in accordance with this section is taken to breach the duty of a manager under section 122(1)(c).

(6) Subsection (5) does not apply if the manager—

(a) was not, and could not have reasonably been expected to be, aware of the beneficial relationship with the supplier before the contract was entered into; and

(b) disclosed the beneficial relationship to the chairperson of the owners corporation immediately after becoming aware of the beneficial relationship.

(7) In this section—