Singapore legislation
Section 28
Section 28
Disclosure of interest by directors
(1)
Every director of a bank in Singapore who has in any manner, directly or indirectly, an interest in a credit facility from or an exposure of, or a proposed credit facility from or exposure of, that bank must as soon as practicable declare the nature of the director’s interest to the board of directors of that bank and the secretary of that bank must cause the declaration to be circulated immediately to all the directors.
(2)
The requirements of subsection (1) do not apply in any case where the interest of the director consists only of being a member or creditor of a company which is interested in a credit facility from or an exposure of, or a proposed credit facility from or exposure of, that bank if the interest of the director may properly be regarded as of a trivial nature.
(3)
For the purposes of subsection (1), a general notice given to the board of directors of a bank by a director to the effect that the director is an officer or a member of a specified company, or a partner or manager of a specified firm or specified limited liability partnership, and that the director is to be regarded as having an interest in any credit facility or exposure which may, after the date of the notice, be granted to or acquired in respect of that company, firm or limited liability partnership, is deemed to be a sufficient declaration of interest in relation to any credit facility so granted or any exposure so acquired if —
it specifies the nature and extent of the director’s interest in that company, firm or limited liability partnership;
the director’s interest is not different in nature from or greater in extent than the nature and extent so specified in the notice at the time any credit facility is granted or any exposure is acquired; and
it is given at a meeting of the board of directors or the director takes reasonable steps to ensure that it is brought up and read at the next meeting of the board of directors after it is given.
(4)
Every director of a bank in Singapore who holds any office or possesses any property whereby, directly or indirectly, duties or interest might be created in conflict with the director’s duties or interest as director must declare at a meeting of the directors of that bank the fact and the nature, character and extent of the conflict.
(5)
The declaration mentioned in subsection (4) is to be made at the first meeting of the directors held —
after the person becomes a director of the bank; or
if already a director, after the person commences to hold the office or to possess the property, as the case may be.
(6)
The secretary of that bank must —
cause to be brought up and read any declaration made under subsection (1) or (4) at the next meeting of the directors after it is given; and
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 acts in contravention of subsection (1) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both.
(8)
In this section, “exposure” has the meaning given in the Fifth Schedule.