Use of funds for interested persons prohibited; specified transactions and concentration investments deemed to confer benefit. Non profit organisation funds or assets must not be used, directly or indirectly, for the benefit of an interested person; specified transactions are deemed to constitute such benefit, including loans without adequate security or interest, provision of assets or services without adequate compensation, remuneration in excess of reasonable amounts, purchases or sales at non arm's length consideration, diversion of funds above a modest threshold, and investments in concerns where an interested person has substantial interest exceeding a prescribed capital percentage.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Use of funds for interested persons prohibited; specified transactions and concentration investments deemed to confer benefit.
Non profit organisation funds or assets must not be used, directly or indirectly, for the benefit of an interested person; specified transactions are deemed to constitute such benefit, including loans without adequate security or interest, provision of assets or services without adequate compensation, remuneration in excess of reasonable amounts, purchases or sales at non arm's length consideration, diversion of funds above a modest threshold, and investments in concerns where an interested person has substantial interest exceeding a prescribed capital percentage.
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