Disability of members in proceedings on account of pecuniary interest
6.—(1) This paragraph applies where a member has any pecuniary interest, direct or indirect, in any contract, proposed contract or other matter and is present at any meeting of the Authority at which the contract, proposed contract or other matter is the subject of consideration.
(2) Subject to the following provisions of this regulation, where paragraph (1) applies the member must at the meeting and as soon as practicable after its commencement, disclose the interest and must not take part in the consideration or discussion of the contract, proposed contract or other matter or vote on any question with respect to it.
(3) The Secretary of State may, subject to such conditions as the Secretary of State may think fit to impose, remove any disability imposed by this regulation in any case in which it appears to the Secretary of State to be in the interests of the health service that the disability should be removed.
(4) The Authority may, by standing orders made under regulation 5(2), provide for the exclusion of a member from a meeting of the Authority while any contract, proposed contract or other matter in which the member has a pecuniary interest, direct or indirect, is under consideration.
(5) Any remuneration, compensation or allowances payable to a member by virtue of paragraph 2 of Schedule 6 to the Act (pay and allowances) is not to be treated as a pecuniary interest for the purpose of this regulation.
(6) Subject to paragraphs (3) and (7), the member shall be treated for the purpose of this regulation as having an indirect pecuniary interest in a contract, proposed contract or other matter if—
(a)the member, or their nominee, is a director of a company or other body with which the contract was made or is proposed to be made, or which has a direct pecuniary interest in the other matter under consideration; or
(b)the member is a partner of, or is in the employment of, a person with whom the contract was made or is proposed to be made or who has a direct pecuniary interest in the other matter under consideration,
and in the case of two persons living together as a couple (whether married or not) the interest of one is, if known to the other, to be deemed for the purpose of this regulation to be also an interest of the other.
(7) A member is not to be treated as having a pecuniary interest in any contract, proposed contract or other matter by reason only—
(a)of membership of a company or other body, if the member has no beneficial interest in any securities of that company or other body; or
(b)of an interest in any company, body or person with which the member is connected as mentioned in paragraph (6) which is so remote or insignificant that it cannot reasonably be regarded as likely to influence the member in the consideration or discussion of, or voting on, any question with respect to that contract, proposed contract or other matter.
(8) Where a member—
(a)has an indirect pecuniary interest in a contract, proposed contract or other matter by reason only of a beneficial interest in securities of a company or other body; and
(b)the total nominal value of those securities does not exceed £5,000 or one-hundredth of the total nominal value of the issued share capital of the company or body, whichever is the lesser; and
(c)if the share capital is of more than one class, the total nominal value of shares of any one class in which the member has a beneficial interest does not exceed one-hundredth of the total issued share capital of that class,
this regulation does not prohibit the member from taking part in the consideration or discussion of the contract, proposed contract or other matter, or from voting on any question with respect to it but in such circumstances the member must nonetheless disclose the interest.
(9) This regulation applies to a committee or sub-committee as it applies to the Authority and applies to a member of any such committee or sub-committee (whether or not the member is also a member of the Authority) as it applies to a member of the Authority.
(10) In this regulation—
“securities” means—
shares or debentures, whether or not constituting a charge on the assets of a company or other body, or rights or interests in any share or debenture, or
rights (whether actual or contingent) in respect of money lent to, or deposited with, any industrial or provident society; and
“shares” means shares in the share capital of a company or other body or the stock of a company or other body.