I move amendment No. 44:
In page 36, subsection (1), line 50, to delete "relevant".
SECTION 35.
Amendment agreed to.
I move amendment No. 45:
In page 37, subsection (2), line 3, to delete "relevant".
Amendment agreed to.
Question proposed: "That section 35, as amended, stand part of the Bill."
I have one brief point on the section. I think it is something which the Minister cannot do anything about. I can foresee a lot of litigation here on the question of an officer of a relevant company who authorises or permits the company to enter into a transaction, the term "officer" there would no doubt include director. What about the situation of a director who votes against an illegal loan at a board meeting? He can hardly be described as permitting an illegal loan. What about a director who does not turn up for a board meeting, whether deliberately or accidentally, or just because he is unable to turn up, can he be described as permitting an illegal loan to take place?
I think it is in the interests of directors to be aware of their responsibilities under this Bill when it is passed. They will have to be aware of the transactions to be administered at board meetings. The fact that they would not be present at the meeting would be a matter for interpretation, I would not like to comment further on that. All I can say is that if they are at a board meeting and a loan is being authorised which they do not approve of, they can dissent, but they should ensure that that is recorded in the minutes of that meeting. At the following meeting they should ensure that the minutes record their dissension. That would be a defence in relation to any litigation.
Section 35, as amended, agreed to.