Disclosure of interests by members of an association
147 Disclosure of interests by members of an association
(1) This section applies to a member of a relevant entity (the
"interested member" ) if—
(a) the interested member has a direct or indirect
financial interest in an issue being considered, or about to be considered, by
the entity; and
(b) the interest could conflict with the proper performance
of the interested member’s duties in relation to the consideration of the
issue.
(2) As soon as practicable after the relevant facts come to the
interested member’s knowledge, the interested member must disclose the
nature of the interest to a meeting of the entity.
(3) Unless the entity
otherwise directs, the interested member must not—
(a) be present when the
entity considers the issue; or
(b) take part in a decision of the entity
about the issue.
(4) The interested member must not be present when the
entity is considering whether to give a direction under subsection (3) .
(5)
If there is another member of the entity who must, under subsection (2) , also
disclose an interest in the issue, the other member must not—
(a) be present
when the entity is considering whether to give a direction under subsection
(3) ; or
(b) take part in making the decision about giving the direction.
(6) If—
(a) because of this section, a member of the entity is not present
at an entity meeting for considering or deciding an issue, or for considering
or deciding whether to give a direction under subsection (3) ; and
(b) there
would be a quorum for the entity if the member were present;
the remaining
members present are a quorum for the entity for considering or deciding the
issue, or for considering or deciding whether to give the direction, at the
meeting.
(7) A disclosure under subsection (2) must be recorded in the
entity’s minutes.
(8) In this section—
"relevant entity" means—
(a) an association; or
(b) the executive
committee, or a subcommittee, of an association.
