ASSOCIATIONS INCORPORATION ACT 1985 - SECT 31

ASSOCIATIONS INCORPORATION ACT 1985 - SECT 31

31—Disclosure of interest

        (1)         A member of the committee of an incorporated association who has any direct or indirect pecuniary interest in a contract, or proposed contract, with the association—

            (a)         must, as soon as he or she becomes aware of his or her interest, disclose the nature and extent of his or her interest to the committee; and

            (b)         must disclose the nature and extent of his or her interest in the contract at the next annual general meeting of the association (if an annual general meeting is required to be held by the association).

Maximum penalty: $5 000.

        (2)         Subsection (1) does not apply in respect of a pecuniary interest that exists only by virtue of the fact—

            (a)         that the member of the committee is an employee of the association; or

            (b)         that the member of the committee is a member of a class of persons for whose benefit the association is established; or

            (c)         that the member of the committee has the pecuniary interest in common with all or a substantial proportion of the members of the association.

        (3)         Where a member of the committee of an incorporated association discloses a pecuniary interest in a contract, or proposed contract, in accordance with this section, or his or her interest is not such as need be disclosed under this section—

            (a)         the contract is not liable to be avoided by the association on any ground arising from the fiduciary relationship between the member and the association; and

            (b)         the member is not liable to account for profits derived from the contract.