Section 48: Disclosure of interest

48. Disclosure of interest (1) Any director or senior officer of a financial institution who is in any manner, whether directly or indirectly, interested in an advance, loan or credit from the financial institution shall— (a) disclose in writing the nature and extent of his interest to the board of directors of the financial institution; and (b) not take part in any deliberation or any decision-making process in relation thereto. (2) Any disclosure of interest under subsection (1) (a) shall be made at the earliest opportunity or at or before a meeting of the board of directors convened to discuss the matter or before a decision is made thereon. (3) The board shall cause the disclosure of interest under subsection (1) (a) to be circulated forthwith to all the directors individually. (4) Where a director or senior officer of a financial institution who holds any office or acquires property whereby, whether directly or indirectly, duties or interests might be created in conflict with his duties or interests as director as a consequence thereof or otherwise or as senior officer of the financial institution, he shall disclose in writing, at a meeting of the board of directors of the financial institution, the fact, nature and extent of the conflict and where the board of directors determines that the director or senior officer is in a situation of conflict of interest, he shall abstain from taking part in any decision on or vote taken by the board of directors on the matter. (5) The disclosure under subsection (4) shall be made at the first meeting of the board of directors held— (a) after the declarant becomes a director or senior officer of the financial institution; or [Issue 3] B3 – 38 Revised Laws of Mauritius (b) where he is already a director or senior officer of the financial institution, after he commences to hold the office or comes into possession of the property, as the case may be; and (c) such disclosure shall be recorded in the minutes of the meeting. (6) Every disclosure under subsection (1) or (4) shall be chronologically recorded by the financial institution in a separate register which, as and when required, shall be produced for examination by officers or other persons duly authorised by the central bank.