Financial Intermediaries Act 1996

A director of a society who is or becomes in any way (whether directly or indirectly) interested in a contract, or proposed contract, with the society must declare the nature and extent of the interest to the society’s board under this section.

Subsection (1) does not apply to a contract to provide financial accommodation if the provision of the financial accommodation does not contravene section 114.

For a proposed contract, the declaration must be made—

at the meeting of the board at which the question of entering into the contract is first considered; or

if the director was not at that time interested in the proposed contract—at the next meeting of the board held after the director becomes interested in the proposed contract.

If a director becomes interested in a contract with the society after it is made, the declaration must be made at the next meeting of the board held after the director becomes interested in the contract.

For this section, a director makes a sufficient declaration if the director gives a general written notice to the board to the effect that the director—

is a member of a specified entity; and

is taken to be interested in a contract that may, after the giving of the notice, be made with the entity.