Singapore legislation
Clause 24
of Banking Bill
Clause 24
Disclosure of interest by directors
(1)
Every director of a bank who has in any manner whatsoever, whether directly or indirectly, an interest in an advance, loan or credit facility or proposed advance, loan or credit facility from that bank shall as soon as practicable declare the nature of his interest to the board of directors of that bank and the secretary of that bank shall cause such declaration to be circulated forthwith to all the directors.
(2)
The requirements of subsection (1) of this section shall 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 an advance, loan or credit facility or proposed advance, loan or credit facility from that bank if the interest of the director may properly be regarded as of a trivial nature.
(3)
For the purposes of subsection (1) of this section, a general notice given to the board of directors of a bank by a director to the effect that he is an officer or member of a specified company or a member of a specified firm and he 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 or firm shall be deemed to be a sufficient declaration of interest in relation to any advance, loan or credit facility so made if —
it specifies the nature and extent of his interest in the particular company or firm;
his interest shall not be different in nature or greater in extent than the nature and extent so specified in such notice at the time any advance, loan or credit facility is made; and
it is given at the 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.
(4)
Every director of a bank who holds any office or possesses any property whereby, whether directly or indirectly, duties or interest might be created in conflict with his duties or interest as director shall declare at a meeting of the directors of that bank the fact and the nature, character and extent of the conflict.
(5)
The declaration referred to in subsection (4) of this section shall be made at the first meeting of the directors held —
after he becomes a director of the bank; or
if already a director, after he commences to hold office or to possess the property, as the case may be.
(6)
The secretary of that bank shall cause to be brought up and read any declaration made under subsection (1) or (4) of this section at the next meeting of the directors after it is given, and 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 acts in contravention of subsection (1) or (4) of this section shall be guilty of an offence under this Act and shall be liable on conviction to imprisonment for a term not exceeding three years or to a fine not exceeding five thousand dollars or to both such imprisonment and fine.