Mutual Banks Act, 1993 (Act No. 124 of 1993)Chapter IV : Administration of Mutual Banks39. Disclosure by directors of interest in contracts with mutual bank |
| (1) | A director of a mutual bank who is in any way, whether directly or indirectly, interested in any contract or proposed contract with the mutual bank or participates in the profits of any contract with the mutual bank, or is a director, office-bearer or officer of any company or a member of any firm entering into any contract with the mutual bank, shall declare the nature and extent of his interest as provided in subsection (2). |
| (2) | The declaration required by subsection (1) shall be made at the meeting of the directors of the mutual bank at which the question of entering into the contract is first taken into consideration, if the director concerned is present at such meeting, or otherwise at the next meeting of the directors following his receipt of notification in writing of such contract, or, if the director was not at the date of the meeting interested in the proposed contract, at the first meeting after he became so interested, and, where a director becomes interested in a contract after it is made, at the first meeting of the directors held after the director became so interested. |
| (3) | A director having an interest as set out in subsection (1), shall not take part in the discussion of any such contract or any matter arising from it, nor shall he vote in respect thereof. |