Australian Capital Territory Consolidated Acts Australian Capital Territory Consolidated Acts(1) If a member of the committee of an incorporated association has any direct or indirect pecuniary interest in a contract or proposed contract to which the association is or may be a party, the committee member must—
(a) as soon as the interest becomes apparent to him or her, disclose the nature and extent of the interest to the committee; and
(b) disclose the nature and extent of the interest at the next general meeting of the association.
Maximum penalty: 20 penalty units.
(2) A member of the committee of an incorporated association who has an interest in a contract or proposed contract referred to in subsection (1) must not take part in making any decision in relation to the contract or proposed contract, but may, subject to this section and section 66, participate in any deliberations of the committee in relation to the contract or proposed contract.
Maximum penalty: 20 penalty units.
(3) Subsection (1) does not apply in relation to a member of the committee of an incorporated association in relation to an interest in a contract or proposed contract that arises only because the committee member is an employee of the association.
(4) If a member of the committee of an incorporated association discloses an interest in a contract or proposed contract in accordance with subsection (1), or has an interest in a contract or proposed contract of the kind referred to in subsection (3)—
(a) the contract is not liable to be avoided by the association on any ground arising from the fiduciary relationship between the committee member and the association; and
(b) the committee member is not liable to account for any profits derived by him or her from the contract or proposed contract.
(5) A person who contravenes a provision of this section is liable to the association for any profit made by that person or any other person, and any damage or loss suffered by the association, as a result of that contravention.