Conflicts of interest

(1) A director or officer of a credit union who– (a) is a party to a material contract or a proposed material contract with the credit union; or (b) has a material interest in or a material relation to any person who is party to a material contract or proposed material contract with the shall disclose in writing to the credit union, or request to have entered in the minutes of meetings of directors, the nature and extent of that interest. (2) The disclosure required by sub-section (1) must be made in writing in the case of a director or officer when the matter or proposed contract comes or ought reasonably to come to the attention of the director or officer. (3) A director or officer who has a material interest or a material relation within the scope of sub-section (1) or (2) shall leave any meeting at which the matter is being discussed, and shall refrain from voting on any matter related thereto which becomes the subject of action by the Board of Directors of the provided that such an interest, if so disclosed, shall not disqualify the interested person for purposes of constituting a quorum. (4) Where a director or officer of a credit union fails to disclose any material interest or any material relation in accordance with this section, the Supreme Court may, on the 34 Credit Unions Act application of a credit union or a member of the credit union, set aside the contract on any terms that the Supreme Court considers appropriate.