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bruneilawsby aturio
In force2021 Revised Edition
Contents

Part · Regulation of Business

23B. Disclosure of interest by directors

(I)

Every director of a finance company who has in any manner, whether directly or indirectly, any interest in an advance. loan or credit facility or proposed advance, loan or credit facility from that finance company shall as soon as practicable declare in writing the nature of that interest to the board of directors, and the secretary of that finance company or other officer appointed by it for that purpose shall cause a copy of such declaration to be circulated forthwith to all directors.

(2)

The requirements of subsection (1) do not apply where -

(a)

the interest of any director consists only of being a director, officer or member of a body corporate or unincorporate. or a director or officer of a sole proprietorship or a firm which is interested in an advance, loan or credit facility or proposed advance, loan or credit facility from that finance company; and

(b)

the interest of the director may be regarded as trivial.

(3)

For the purposes of subsection (I), a general notice given to the

Board of Directors of a finance company by a director to the effect that he is a director, an officer or member of the body corporate or unincorporate, or a director or officer of the sole proprietorship or the firm to which the credit facility is given or proposed to be given shall be a sufficient declaration of interest in relation to such credit facility or proposed credit facility if -

(a)

it specifies the nature and extent of his interest in the body corporate or unincorporated, sole proprietorship or firm;

(b)

his interest is not different in nature or greater in extent than the nature and extent so specified in the notice at the time any advance, loan or credit facility is made; and

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Finance Companies

(c)

it is given at the meeting of Board of Directors or the director takes reasonable steps to ensure that it is brought up and read at the next meeting of Board of Directors after it has been served on a each of the directors.

(4)

Every director of a finance company who holds any office or possesses any property whereby. directly or indirectly, duties or interest might be created in conflict with his duties or interest as a director of that finance company, shall declare at a meeting of Board of Directors of that finance company the fact of his holding such office or possessing such property and the nature character and extent of the conflict.

(5)

The declaration referred to in subsection (4) shall be made at the first meeting of the directors held -

(a)

after he became a director of the finance company; or

(b)

if already a director, after he commenced to hold that office or to possess that property.

(6)

The secretary of the finance company or its other officer referred to in subsection (1) shall record any declaration made under this section in the minutes of the meeting at which it was made or at which it was brought up and read.

(7)

Any director who contravenes subsection (1) or (4) is guilty of an offence and liable on conviction to a fine not exceeding $50,000 and imprisonment for a term not exceeding 3 years or both.

Report

Read on from s 24

Part

Minimum Liquid Assets

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Part

Inspection of Finance Companies

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Part 7

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Part

General

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