Section 32: Avoiding conflict of interest

32. Avoiding conflict of interest (1) Subject to subsections (2) and (3), an officer of an insurer who— (a) is a party to a major contract or proposed major contract with the insurer; (b) is an officer or a substantial shareholder of any entity that is a party to a major contract or proposed major contract with the insurer; or (c) has a material interest in any person who is a party to a major contract or proposed major contract with the insurer, shall, immediately after becoming aware of the contract or proposed contract, disclose in writing, or cause to be entered in a record kept for that purpose by the insurer, the nature and extent of that interest in accordance with the other provisions of this section. (2) Where the contracting party in subsection (1) is a director, the disclosure required by subsection (1) shall be made— (a) at the meeting of directors at which a proposed contract is first considered; (b) where the director was not then interested in a proposed contract, at the first meeting after the director becomes so interested; (c) where the director becomes interested after a contract is made, at the first meeting after the director becomes so interested; or (d) where a person who is interested in a contract later becomes a director, at the first meeting after that person becomes a director. (3) The disclosure required by subsection (1) shall be made, in the case of an officer other than a director, to the Secretary of the board of directors— (a) immediately after the officer becomes aware that a proposed contract is to be considered or a contract has been considered at a meeting of directors; (b) where the officer becomes interested after a contract is made, forthwith after the officer becomes so interested; or [Issue 1] I15 – 28 Revised Laws of Mauritius (c) where a person who is interested in a contract later becomes an officer, immediately after the person becomes an officer. (4) An officer who fails to make a disclosure in breach of this section shall commit an offence and shall, on conviction, be liable to a fine not exceeding one million rupees and to imprisonment for a term not exceeding 3 years.