Part VII Management of Building Societies
Dealings with directors
C163 Directors to disclose interests in contracts and other transactions.
1
It is the duty of a director of a building society who is in any way, whether directly or indirectly, interested in a contract or proposed contract with the society to declare the nature of his interest to the board of directors of the society in accordance with this section.
2
In the case of a proposed contract, the declaration shall be made—
a
at the meeting of the directors at which the question of entering into the contract is first taken into consideration; or
b
if the director was not at the date of that meeting interested in the proposed contract, at the next meeting of the directors held after he became so interested.
3
Where the director becomes interested in a contract after it is made, the declaration shall be made at the first meeting of the directors held after he becomes interested in the contract.
4
For the purposes of this section, a general notice given to the directors of a building society by a director to the effect that—
a
he is a member of a specified company or firm and is to be regarded as interested in any contract which may, after the date of the notice, be made with that company or firm, or
b
he is to be regarded as interested in any contract which may, after the date of the notice, be made with a specified person who is connected with him,
is a sufficient declaration of interest in relation to any contract made after that date with that company, firm or person.
5
A director need not make a declaration or give a notice under this section by attending in person at a meeting of the directors if he takes reasonable steps to secure that the declaration or notice is brought up and read at the meeting.
6
The foregoing provisions of this section apply in relation to any transaction or arrangement as they apply in relation to a contract and, for the purposes of this section, a transaction or arrangement of a kind described in section 65 made by a society for a director of the society or a person connected with a director of the society is to be treated (if it would not otherwise be so treated, and whether or not it is prohibited by that section) as a transaction or arrangement in which that director is interested.
7
A director who fails to comply with this section shall be guilty of an offence and liable—
a
on conviction on indictment, to a fine; or
b
on summary conviction, to a fine not exceeding the statutory maximum.