Victorian Consolidated Legislation

Associations Incorporation Act 1981 - SECT 29B

Disclosure of interest

29B. 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 incorporated 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 in the statement submitted under section 30(3) by the
        incorporated association to its members at the next annual general
        meeting of the incorporated association.

Penalty: 10 penalty units.

(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 incorporated
        association; or

   (b)  that the member of the committee is a member of a class of persons for
        whose benefit the incorporated 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
        incorporated association.



(3) If 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 incorporated
        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.