109Effect of pecuniary interests

109 Effect of pecuniary interests (1) A member of the board of directors of a water corporation who has a pecuniary interest in any matter in which the water corporation is concerned must— (a) if the member is present at a meeting of the board of directors or any of its committees at which the matter is to be considered, disclose the nature of the interest immediately before the consideration; or (b) if the member is aware that the matter is to be considered at a meeting of the board of directors or any of its committees at which the member does not intend to be present, disclose the nature of the interest to the chairperson of the water corporation before the meeting is held. (2) If a member of the board of directors of a water corporation has disclosed an interest to the chairperson under subsection (1)(b), the chairperson must disclose that interest at the meeting at which the matter is considered, before the consideration of the matter. (3) The member of the board of directors— (a) may stay in the meeting during any consideration of the matter; and (b) may take part in the discussion; and (c) must not move or second a motion on a question relating to the matter; and (d) must leave the meeting while any vote is taken on a question relating to the matter; and (e) may, when notified by the chairperson that the vote has been declared, return to the meeting. (4) If a member of the board of directors discloses an interest under subsection (1), a statement showing— (a) that the disclosure was made; and (b) the nature of the matter and the nature of the disclosed interest; and (c) whether any vote was taken on a question relating to the matter and, if so, whether the member was present while the vote was taken; and (d) whether the member left the meeting at any time during consideration of the matter and, if so, at what stage the member left— must— (e) in the case of a disclosure made at or before a meeting of the board of directors, be included in the minutes of the meeting; and (f) in the case of a disclosure made at or before a meeting of a committee, be recorded by the committee and presented to, and included in the minutes of the next ordinary meeting of the board of directors. (5) A person must comply with subsections (1) and (3). (6) It is a defence to a charge under subsection (5) for the person charged to prove that the person did not know— (a) that he or she had a pecuniary interest in the matter; or (b) that a matter in which he or she had a pecuniary interest was considered or to be considered at the meeting. (7) The Magistrates' Court has jurisdiction over a charge under this section even though title to land may be genuinely in question. (8) A charge may not be filed for an offence under this section more than 3 years after the commission of the alleged offence. (9) The Minister may, by notice in writing to a water corporation, remove any disability imposed by this section in any case if so many of the members of the board of directors of the water corporation are affected that the Minister decides that the transaction of the business of the water corporation would be impeded. (10) For the purposes of subsection (9), the Minister may remove, either indefinitely or for a specified time, any disability that would otherwise attach to a member, or class of members, of the board of directors, because of any interests, and in respect of any matters, that the Minister specifies in the notice. S. 110 substituted by No. 85/2006 s. 54.