Bank Act

Marginal note:Avoidance standards

792 A material contract between a bank holding company and one or more of its directors or officers, or between a bank holding company and another entity of which a director or an officer of the bank holding company is a director or an officer or between a bank holding company and a person in which the director or officer has a material interest, is neither void nor voidable

• (a) by reason only of that relationship, or

• (b) by reason only that a director with an interest in the contract is present at or is counted to determine the presence of a quorum at the meeting of directors or the committee of directors that authorized the contract,

if the director or officer disclosed the interest in accordance with subsection 789(2), (3) or (4) or section 791 and the contract was approved by the directors or the shareholders and it was reasonable and fair to the bank holding company at the time it was approved.