Companies Act, 1973 (Act No. 61 of 1973)

Chapter VIII: Directors

Interests of Directors and Officers in Contracts

238. When particulars of interest to be stated in notice of meeting
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1)If a director of a company is in any way, whether directly or indirectly, materially interested in a contract or proposed contract which is placed before the company at any meeting thereof for confirmation or authorisation, the notice convening any such meeting shall state the full particulars of the interest in such contract of the director concerned.

 

2)A company which fails to comply with the provisions of subsection (1) and any director who is a party to such failure, shall be guilty of an offence.