95. No executive director of a public institution shall, under pain of forfeiture of office, have any direct or indirect interest in an undertaking causing his personal interest to conflict with that of the institution. However, forfeiture is not incurred if such an interest devolves to him by succession or gift, provided he renounces it or, after informing the board of directors thereof, he disposes of it within the time prescribed by the board.
An executive director who is forfeited of office becomes disqualified from holding any executive office or employment in any public institution or regional council for the period determined in the judgment. The disqualification period shall not exceed three years.
The board of directors of a public institution must, on becoming aware that its executive director is in a situation of conflict of interest, take measures with the view of instituting proceedings for forfeiture of office against him. It must, also, within the ten following days, inform the Minister thereof in writing, indicating to him the nature of the situation and the measures taken.
Every member of the board of directors of a public institution, other than the executive director, who has a direct or indirect interest in an undertaking causing his personal interest to conflict with that of the institution shall, under pain of forfeiture of office, disclose his interest in writing to the board of directors and abstain from sitting on the board and participating in the deliberations or decisions on any question relating to the undertaking in which he has an interest.
For any member of the board of directors, the fact of being a minority shareholder of a corporation which operates an undertaking referred to in this section does not constitute a situation of conflict of interest if the shares of the corporation are listed on a recognized stock exchange and if the member of the board of directors involved is not an insider of the corporation within the meaning of section 89 of the Securities Act (chapter V-1.1).
1971, c. 48, s. 60; 1986, c. 106, s. 9; 1987, c. 104, s. 6; 1992, c. 21, s. 375.