317Directors to disclose interest in contracts
(1)It is the duty of a director of a company who is in any way, whether directly or indirectly, interested in a contract or proposed contract with the company to declare the nature of his interest at a meeting of the directors of the company.
(2)In the case of a proposed contract, the declaration shall be made—
(a)at the meeting of the directors at which the question of entering into the contract is first taken into consideration ; or
(b)if the director was not at the date of that meeting interested in the proposed contract, at the next meeting of the directors held after he became so interested ;
and, in a case where the director becomes interested in a contract after it is made, the declaration shall be made at the first meeting of the directors held after he becomes so interested.
(3)For purposes of this section, a general notice given to the directors of a company by a director to the effect that—
(a)he is a member of a specified company or firm and is to be regarded as interested in any contract which may, after the date of the notice, be made with that company or firm; or
(b)he is to be regarded as interested in any contract which may after the date of the notice be made with a specified person who is connected with him (within the meaning of section 346 below),
is deemed a sufficient declaration of interest in relation to any such contract.
(4)However, no such notice is of effect unless either it is given at a meeting of the directors or the director takes reasonable steps to secure that it is brought up and read at the next meeting of the directors after it is given.
(5)A reference in this section to a contract includes any transaction or arrangement (whether or not constituting a contract) made or entered into on or after 22nd December 1980.
(6)For purposes of this section, a transaction or arrangement of a kind described in section 330 (prohibition of loans, quasi-loans etc. to directors) made by a company for a director of the company or a person connected with such a director is treated (if it would not otherwise be so treated, and whether or not it is prohibited by that section) as a transaction or arrangement in which that director is interested.
(7)A director who fails to comply with this section is liable to a fine.
(8)This section applies to a shadow director as it applies to a director, except that a shadow director shall declare his interest, not at a meeting of the directors, but by a notice in writing to the directors which is either—
(a)a specific notice given before the date of the meeting at which, if he had been a director, the declaration would be required by subsection (2) to be made ; or
(b)a notice which under subsection (3) falls to be treated as a sufficient declaration of that interest (or would fall to be so treated apart from subsection (4)).
(9)Nothing in this section prejudices the operation of any rule of law restricting directors of a company from having an interest in contracts with the company.