Part 4 — Directors and Officers of Cooperatives Division 1 Number, Qualifications and Functions of Directors
87 Effect of disclosure
under section 80 is not invalid, and the director or officer is not
accountable to the cooperative or its members or investment
shareholders for any profit realized from the contract or
transaction, by reason only of the interest of the director or officer
in the contract or transaction, if
(a) disclosure of the interest was made in accordance with thi s
Act, or
(b) disclosure of the interest was not made in accordance with
this Act but
(i) disclosure of the interest was made,
(ii) the contract or transaction was approved by a majority of
the members of the cooperative or a majority of the
members present at a meeting of the members, and
(iii) the contract or transactio n was reasonable and fair to the
cooperative at the time it was approved.