Practice question
A board member secretly acquires a material interest for personal gain in a transaction requiring his board’s discretionary approval. He later abstains from the vote and argues that abstention necessarily excludes section 3(i). Which is correct?
- Abstention invariably cures the prohibited material interest
- Only the board chair can violate section 3(i)
- The provision applies only if the transaction loses money
- The provision expressly reaches the specified interest even if he votes against the transaction or does not participate in the board action
- His vote would matter only if cast in writing
Legal references
- https://lawphil.net/statutes/repacts/ra1960/ra_3019_1960.html — RA 3019, section 3(b), (c), (d), (e), (g) and (i), prohibited practices.
- https://lawphil.net/statutes/bataspam/bp1982/bp_195_1982.html — sections 2 and 4, amended RA 3019 penalty and earlier prescription provision.
- https://lawphil.net/statutes/repacts/ra2016/ra_10910_2016.html — section 1, current twenty-year statutory prescriptive period.
Answer this question in flashcards to review your response and continue practicing.