Marginal note:Where director must abstain
790 (1) Where subsection 789(1) applies to a director in respect of a contract, the director shall not be present at any meeting of directors while the contract is being considered at the meeting or vote on any resolution to approve the contract unless the contract is
(a) an arrangement by way of security for money lent to or obligations undertaken by the director for the benefit of the bank holding company or a subsidiary of the bank holding company;
(b) a contract relating primarily to the director’s remuneration as a director or an officer, employee or agent of the bank holding company or a subsidiary of the bank holding company or an entity controlled by the bank holding company or an entity in which the bank holding company has a substantial investment;
(c) a contract for indemnity under section 799 or for insurance under section 800; or
(d) a contract with an affiliate of the bank holding company.
(2) Any director who knowingly contravenes subsection (1) ceases to hold office as director and is not eligible, for a period of five years after the date on which the contravention occurred, for election or appointment as a director of any bank holding company, any insurance holding company or any financial institution that is incorporated or formed by or under an Act of Parliament.
Marginal note:Validity of acts
(3) An act of the board of directors of a bank holding company, or of a committee of the board of directors, is not invalid because a person acting as a director had ceased under subsection (2) to hold office as a director.
- 2001, c. 9, s. 183
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