(1) This section applies where -

(a) a registered society enters into a transaction the parties to which include -

(i) a member of the society's committee, or

(ii) a person connected with such a member, and

(b) in connection with the transaction, the society's committee exceeds any limitation on its powers under the society's registered rules.

(2) The transaction is voidable at the instance of the society.

(3) Whether or not it is avoided, a party to the transaction who is within subsection (1)(a)(i) or (ii), and any member of the committee who authorised the transaction, is liable -

(a) to account to the society for any gain made directly or indirectly by the transaction, and

(b) to indemnify the society for any loss or damage resulting from the transaction.

(4) Nothing in the above provisions excludes the operation of any other enactment or rule of law by virtue of which the transaction may be called in question or any liability to the society may arise.

(5) The transaction ceases to be voidable if -