When you know about a conflict of interest, you have to prove something was a fair deal if you want to stop it from being cancelled. You have to show that the price was fair if you knew about the person's interest at the time of the deal. If you did not know about the interest, the organisation has to prove they did not get a fair deal.
If you want to see how this rule compares to another law, you can look at s 141(5). You can use this to help you understand the rules about conflicts of interest. This law is important for organisations to follow so they can make fair decisions.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM330305.
A person seeking to prevent an act being avoided, and who knew, or ought reasonably to have known, of the member's interest at the time the act was done, has the onus of establishing fair value.
In any other case, the entity has the onus of establishing that it did not receive fair value.
