| 1) | A director, member, partner, official, employee or agent of a financial institution or of a nominee company who takes part in a decision to invest any of the funds of the financial institution or any trust property in a company or other undertaking in which he or she has a direct or indirect financial interest, must declare that interest in writing to the board of management or other governing body of the financial institution or nominee company, indicating the nature and extent of such interest, before such decision is made. |
| 2) | For the purposes of subsection (1), ‘invest’ includes – |
| a) | the purchase of shares in a company, or of an interest in a close corporation or partnership |
| b) | the granting of a secured or unsecured loan. |
| c) | acquiring a financial interest in an agreement or other matter in which the financial institution or nominee company has a material interest. |
[Section 3(2) amended by section 158 of Act No. 45 of 2013]
| 3) | A declaration of interest made in terms of subsection (1) must be recorded in the minutes of the meeting of the board or governing body at which the declaration is made or considered. |
