Cooperative Credit Associations Act

Marginal note:Avoidance standards

209 Where a material contract is entered into between an association and one or more of its directors or officers, or between an association and another entity of which a director or an officer of the association is a director or an officer or between an association and a person in which the director or officer has a material interest and disclosure is required by subsection 206(1), the contract 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 206(2), (3) or (4) or section 208 and the contract was approved by the directors or the members and it was reasonable and fair to the association at the time it was approved.