Section 33: Requirement to abstain

33. Requirement to abstain (1) Where section 32 applies to a director in respect of a major 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 insurer or a subsidiary of the insurer; (b) a contract relating primarily to the director’s remuneration as a director or an officer, employee or agent of the insurer or a subsidiary of the insurer or an entity controlled by the insurer or an entity in which the insurer has a material investment; or (c) a contract with an affiliate of the insurer. (2) Any director of an insurer who knowingly contravenes subsection (1) 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. (3) The Court before which a director is convicted of an offence under this section shall, in addition to any penalty imposed under subsection (2), order that the director be disqualified from holding office as director of any insurer for a term not exceeding 5 years.