Land and Agricultural Development Bank Act, 2002 (Act No. 15 of 2002)Part II : Management of Bank21. Conflict of interest |
| (1) | A Board member must, on his or her appointment to the Board, in writing disclose to the Minister and the Board any of his or her material interests which may constitute a conflict of interest in respect of his or her duties as Board member, and he or she must in writing inform the Minister and the Board if any such conflict arises after his or her appointment. |
(2)
| (a) | A Board member who has a direct or indirect material interest, whether financial or otherwise, in a proposed agreement which is to be entered into by the Bank must refrain from participating in any discussion or consideration of that agreement and from voting in respect of that agreement. |
| (b) | A Board member who obtains a material interest in an agreement contemplated in paragraph (a) after the agreement has been entered into must table full particulars of the nature and extent of that interest at the first Board meeting following the date on which the interest was obtained. |
| (3) | A Board member or employee of the Bank must at any meeting of the Board or the Bank refrain from taking part in the decision-making process in respect of an application for or an agreement in respect of the rendering of financial services by the Bank submitted by a— |
| (a) | person who is related to or is a business or life partner of that member or employee, as the case may be; |
| (b) | company of which that member or employee, as the case may be, is a director, shareholder or employee; |
| (d) | close corporation of which that member or employee, as the case may be, is a member or which has a member who is related to or is a business or life partner of that member or employee; |
| (d) | person who is a debtor or creditor of that member or employee; |
| (e) | person who is in partnership or any financial association with that member or employee; |
| (f) | person who is in the employ of that member or employee; or |
| (g) | person who is a debtor or creditor under a mortgage bond of any body of persons, whether incorporated or not, of which that member or employee is a director or under which he or she holds any office or position other than that of auditor. |
| (4) | The Board may from time to time determine any additional policy or stipulate a code of conduct in respect of conflicts of interest applicable to the Board or employees of the Bank. |
| (5) | A Board member who fails to comply with subsection (2) or (3) may be removed from office by the Minister. |
| (6) | No person may disclose any information contemplated in subsection (1) except in terms of a law or court order that compels such disclosure. |
| (7) | Any person who contravenes subsection (6) is guilty of an offence. |