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1It shall be the duty of the Secretary of State—
(a)to satisfy himself, before he appoints a person to be a member, that that person will have no such financial or other interest as is likely to affect prejudicially the performance of his functions as a member ; and
(b)to satisfy himself from time to time with respect to each member that he has no such interest;
and a person who is a member or whom the Secretary of State proposes to appoint as a member shall, whenever requested by the Secretary of State to do so, furnish the Secretary of State with such information as he may specify with a view to carrying out his duty under this paragraph.
2Subject to the following provisions of this Schedule, a person shall hold and vacate office as a member or the chairman or a deputy chairman in accordance with the terms of the instrument appointing him to that office.
3A person may at any time resign his office as a member or the chairman or a deputy chairman by giving to the Secretary of State a notice in writing signed by the person in question and stating that he resigns that office.
4Where—
(a)a member becomes or ceases to be the chairman or a deputy chairman ; or
(b)a member who is also chairman of one of the corporations ceases to be chairman of that corporation,
the Secretary of State may, after consultation with the chairman of the Board in a case falling within sub-paragraph (b) of this paragraph, vary the terms of the instrument appointing the person in question to be a member so as to alter the date on which he is to vacate office as a member.
5If the chairman or a deputy chairman ceases to be a member, he shall cease to be the chairman or a deputy chairman, as the case may be.
6(1)If the Secretary of State is satisfied that a member—
(a)has been absent from meetings of the Board for a period longer than three consecutive months without the permission of the Board ; or
(b)has become bankrupt or made an arrangement with his creditors ; or
(c)is incapacitated by physical or mental illness ; or
(d)is otherwise unable or unfit to discharge the functions of a member,
the Secretary of State may declare his office as a member to be vacant and shall notify the declaration in such manner as he thinks fit; and thereupon the office shall become vacant.
(2)In the application of the preceding sub-paragraph to Scotland, for the references in paragraph (b) to a member's having become bankrupt and to a member's having made an arrangement with his creditors there shall be substituted respectively references to sequestration of a member's estate having been awarded and to a member's having made a trust deed for behoof of his creditors or a composition contract.
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