s 21B Disclosure of interest by directors
21B.—(1) Subject to this section, every director of a finance company who is in any way, directly or indirectly, interested in an advance, loan or credit facility or proposed advance, loan or credit facility from that finance company must, as soon as practicable, declare the nature of his or her interest to the board of directors of that finance company and the secretary of the company must cause the declaration to be circulated forthwith to all the directors. (2) Subsection (1) does not apply in any case where the interest of the director of a finance company consists only of being a member or creditor of a company which is interested in an advance, loan or credit facility or proposed advance, loan or credit facility from that finance company if the interest of the director may properly be regarded as not being a material interest. (3) For the purposes of subsection (1), a general notice given to the board of directors of a finance company by a director to the effect that he or she is an officer or member of a specified company or a member of a specified firm or partner or manager or an officer or member of a specified VCC, and he or she is to be regarded as having an interest in any advance, loan or credit facility which may, after the date of the notice, be made to that company, firm, limited liability partnership or VCC is deemed to be a sufficient declaration of interest in relation to any advance, loan or credit facility so made if —(a) it specifies the nature and extent of his or her interest in the particular company, firm, limited liability partnership or VCC;[S 26/2022 wef 13/01/2022] (b) his or her 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 (c) it is given at a meeting of the directors or the director takes reasonable steps to ensure that it is brought up and read at the next meeting of the directors after it is given.[S 26/2022 wef 13/01/2022] (4) Every director of a finance company who holds any office or possesses any property whereby, directly or indirectly, duties or interests might be created in conflict with his or her duties or interests as director must declare at a meeting of the directors of that finance company the fact and the nature, character and extent of such conflict. (5) The declaration referred to in subsection (4) must be made at the first meeting of the directors held —(a) after he or she becomes a director of the finance company; or (b) if already a director, after he or she commences to hold the office or to possess the property. (6) The secretary of a finance company must cause to be brought up and read any declaration made under subsection (1) or (4) at the next meeting of the directors of that finance company after it is made, and must record any declaration so made 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) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 3 years or to both.