Article 55 - Payment to Directors for Loss of Office
(1) It is not lawful for an Investment Club to make to a director of the Investment Club any payment by way of compensation for loss of office, or as consideration for or in connection with his retirement from office, without particulars of the proposed payment (including its amount) being disclosed to Members of the Investment Club and the proposal being approved by Ordinary Resolution. This Article 55 does not affect the ability of an Investment Club to pay compensation to a director in connection with the termination of his employment by the Investment Club.
(2) Where a payment which is unlawful under this Article 55 is made to a director, he shall be liable to repay it to the Investment Club, unless and until the provisions of this Article are subsequently complied with.
|Derived (as from 20th December 2016).|