South Australian Consolidated Acts South Australian Consolidated Acts6U—Duty of corporate agency executives not to be involved in
unauthorised transactions with agency or subsidiary
(1) Neither a
corporate agency executive nor an associate of a corporate agency executive
may, without the approval of the relevant Minister, be directly or indirectly
involved in a transaction with the agency or any subsidiary of the agency.
(2) A person will be
treated as being indirectly involved in a transaction for the purposes of
subsection (1)—
(a) if
the person initiates, promotes or takes any part in negotiations or steps
leading to the making of the transaction with a view to that person or an
associate of that person gaining some financial or other benefit (whether
immediately or at a time after the making of the transaction); and
(b)
despite the fact that neither that person nor an agent, nominee or trustee of
that person becomes a party to the transaction.
(3)
Subsection (1) does not apply—
(a) to
the provision of services by the agency or any subsidiary of the agency in the
ordinary course of its ordinary business and on ordinary terms; or
(b) to
the employment of a person under a contract of service with the agency or a
subsidiary of the agency or to a transaction that is ancillary or incidental
to such employment; or
(c) to
transactions of a prescribed class.
(4) If a transaction
is made with an agency or any subsidiary of the agency in contravention of
subsection (1), the transaction is liable to be avoided by the agency or
by the relevant Minister.
(5) A transaction may
not be avoided under subsection (4) if a person has acquired an interest
in property the subject of the transaction in good faith for valuable
consideration and without notice of the contravention.
(6) A
corporate agency executive must not counsel, procure, induce or be in any way
(whether by act or omission or directly or indirectly) knowingly concerned in,
or party to, a contravention of subsection (1).
Penalty:
If an intention to deceive or defraud is proved—Division 4 fine or
division 4 imprisonment, or both.
In any other case—Division 6 fine.