sec.16Effectiveness of acts by board members [CA, s 201M ]

### sec.16 Effectiveness of acts by board members [CA, s 201M ] An act done by a board member of a distributor-retailer is effective even if their appointment, or the continuance of their appointment, is invalid because the distributor-retailer or board member did not comply with a provision of the Act or a participation agreement. However, an act done by a board member is not effective if, when the act is done, the members of the board know the board member’s appointment, or the continuance of the board member’s appointment, is invalid. Subsection (1) does not deal with the question of whether an effective act by a board member— binds the distributor-retailer in its dealings with other people; or makes the distributor-retailer liable to another person. (sec.16-ssec.1) An act done by a board member of a distributor-retailer is effective even if their appointment, or the continuance of their appointment, is invalid because the distributor-retailer or board member did not comply with a provision of the Act or a participation agreement. (sec.16-ssec.2) However, an act done by a board member is not effective if, when the act is done, the members of the board know the board member’s appointment, or the continuance of the board member’s appointment, is invalid. (sec.16-ssec.3) Subsection (1) does not deal with the question of whether an effective act by a board member— binds the distributor-retailer in its dealings with other people; or makes the distributor-retailer liable to another person. - (a) binds the distributor-retailer in its dealings with other people; or - (b) makes the distributor-retailer liable to another person.