Director conflict of interest: mandatory disclosure and recusal from board consideration; undisclosed contracts may be voidable. Directors must disclose their concern or interest in companies, bodies corporate, firms or associations at the first board meeting they attend and annually thereafter or when a change occurs; directors with an interest in a contract under consideration must disclose the nature of that interest and refrain from participating in the meeting. Contracts made without proper disclosure or with the interested director's participation are voidable at the company's option, and failure to comply attracts criminal sanction while other legal restrictions and specified inter company exceptions remain preserved.
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.
Director conflict of interest: mandatory disclosure and recusal from board consideration; undisclosed contracts may be voidable.
Directors must disclose their concern or interest in companies, bodies corporate, firms or associations at the first board meeting they attend and annually thereafter or when a change occurs; directors with an interest in a contract under consideration must disclose the nature of that interest and refrain from participating in the meeting. Contracts made without proper disclosure or with the interested director's participation are voidable at the company's option, and failure to comply attracts criminal sanction while other legal restrictions and specified inter company exceptions remain preserved.
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