(1) A person shall not be appointed as trustee if there is a material conflict of interest between his or her role as trustee and his or her role in any other capacity.
(2) There is a material conflict of interest for the purpose of subsection (1) where a person is an officer or employee, or a shareholder of the company issuing the debentures.
(3) Within 90 days after a trustee becomes aware that a material conflict of interest exists in his or her case, the trustee shall—
(a) eliminate the conflict of interest; or
(b) resign from office.
(4) A trust deed, any debentures issued thereunder and a security interest effected thereby are valid despite a material conflict of interest of the trustee.
(5) If the trustee is appointed contrary to subsection (1) or continues as a trustee contrary to subsection (3), any interested person may apply to the court for an order that the trustee be replaced; and the court may make an order on such terms as it thinks fit.