Co-operatives Act, 2005 (Act No. 14 of 2005)Chapter 5 : Governance of Co-operatives38. Acceptance of commission, remuneration or reward prohibited in certain circumstances |
| (1) | Subject to subsection (2), a director or employee of a co-operative may not use their position or any information obtained while acting in their capacity as director or employee to gain any commission, remuneration, reward or other advantage for themselves or for any person other than the co-operative, unless they have disclosed full particulars of the nature and extent of such commission, remuneration, reward or other advantage and the material circumstances relating to its acquisition in writing to the co-operative and the co-operative has given its written approval to such acquisition by the director, member or other person, as the case may be. |
| (2) | Notwithstanding the provisions of subsection (1), a director or employee of a co-operative may not in any circumstances use their position or any information obtained while acting in their capacity as director or employee to gain any commission, remuneration, reward or other advantage for themselves or for any person other than the co-operative through or in connection with any transaction to which the co-operative is a party. |
| (3) | A director or employee who contravenes subsection (1) or (2) is guilty of an offence and upon conviction liable to such penalty as is contained in section 92(3). |
[Section 38 substituted by section 29 of Notice No. 558, GG 36729, dated 5 August 2013]