Bank Act

Marginal note:Where director must abstain

• 203 (1) Where subsection 202(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 or a subsidiary of the bank;

  • (b) a contract relating primarily to the director’s remuneration as a director or an officer, employee or agent of the bank or a subsidiary of the bank or an entity controlled by the bank or an entity in which the bank has a substantial investment;

  • (c) a contract for indemnity under section 212 or for insurance under section 213; or

  • (d) a contract with an affiliate of the bank.

• Marginal note:Ineligibility

  (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 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, 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.