20A—Validity of transactions of semi-government authorities
(1) Subject to
subsection (2), a transaction to which a semi-government authority is a
party or apparently a party (whether made or apparently made under the
authority's common seal or by a person with authority to bind the
semi-government authority) is not invalid because of—
(a) any
deficiency of power on the part of the authority;
(b) any
procedural irregularity on the part of the governing body or any member of the
governing body of the authority or on the part of an employee or agent of the
authority;
(c) any
procedural irregularity affecting the appointment of a member of the governing
body of the authority or an employee or agent of the authority.
(2) This section does
not validate a transaction in favour of a party—
(a) who
enters into the transaction with actual knowledge of the deficiency or
irregularity; or
(b) who
has a connection or relationship with the semi-government authority such that
the person ought to know of the deficiency or irregularity.