Indirect Interest. A Director has an indirect interest in a contract or transaction with the Cooperative if at least one party to the contract or transaction is another Entity: (1) in which the Director has a material or financial interest, or is a general partner; or (2) of which the Director is a director, officer, or trustee.
Indirect Interest. Under the French Commercial Code, the control procedure applies not only to agreements between the company and its senior executives or shareholders, but also where a senior executive or shareholder is not party to an agreement but has an indirect interest in it. The Group recommends using the definition of “indirect interest”3 proposed by the AMF4 : “A person is regarded as having an indirect interest in an agreement to which they are not a party if they derive or are likely to derive benefit from the agreement by virtue of their links with the parties, or their power to influence the behaviour of the parties”. For example, an indirect interest was held to exist in the following circumstances: a CEO who gets his company to guarantee the commitments of another company of which he is Chairman, insofar as that guarantee supported him in his position as Chairman, enabling him to remain in office and to receive remuneration and benefits for doing so. Each indirect interest must be assessed on its own merits.
