Document ID: chunk:federal_register_of_legislation:C2004C01070:clause:5_27f
Version: federal_register_of_legislation:C2004C01070
Segment Type: clause
Provision Reference: sch 5 cl 27F
Character Range: 634032–636502

27F  Material personal interest—director's duty to disclose

Director's duty to notify other directors of material personal interest when conflict arises

 (1) A director of a Commonwealth authority who has a material personal interest in a matter that relates to the affairs of the authority must give the other directors notice of the interest unless subsection (2) says otherwise.

 (2) The director does not need to give notice of an interest under subsection (1) if:
 (a) the interest:
 (i) arises in relation to the director's remuneration as a director of the authority; or
 (ii) relates to a contract that insures, or would insure, the director against liabilities the director incurs as an officer of the authority (but only if the contract does not make the authority or a subsidiary of the authority the insurer); or
 (iii) relates to any payment by the authority or a subsidiary of the authority in respect of an indemnity permitted under section 27M or any contract relating to such an indemnity; or
 (iv) is in a contract, or proposed contract, with, or for the benefit of, or on behalf of, a subsidiary of the authority and arises merely because the director is a director of the subsidiary; or
 (b) all the following conditions are satisfied:
 (i) the director has already given notice of the nature and extent of the interest and its relation to the affairs of the authority under subsection (1)
 (ii) if a person who was not a director of the authority at the time when the notice under subsection (1) was given is appointed as a director of the authority—the notice is given to that person
 (iii) the nature or extent of the interest has not materially increased above that disclosed in the notice; or
 (c) the director has given a standing notice of the nature and extent of the interest under section 27G and the notice is still effective in relation to the interest.

 (3) The notice required by subsection (1) must:
 (a) give details of:
 (i) the nature and extent of the interest; and
 (ii) the relation of the interest to the affairs of the authority; and
 (b) be given at a directors' meeting as soon as practicable after the director becomes aware of his or her interest in the matter.
The details must be recorded in the minutes of the meeting.

Effect of contravention by director

 (4) A contravention of this section by a director does not affect the validity of any act, transaction, agreement, instrument, resolution or other thing.