(1)Subject to the provisions of section 60 of this Act, if a member of a local authority has any pecuniary interest, direct or indirect, in any contract, proposed contract or other matter, and is present at a meeting of the local authority at which the contract or other matter is the subject of consideration, he shall at the meeting, and as soon as practicable after its commencement, disclose the fact and shall not take part in the consideration or discussion of the contract or other matter or vote on any question with respect to it.
(2)If any person fails to comply with the provisions of subsection (1) above, he shall for each offence be liable on summary conviction to a fine not exceeding [F1level 4 on the standard scale] unless he proves that he did not know that the contract, proposed contract or other matter in which he had a pecuniary interest was the subject of consideration at that meeting.
(3)A local authority may, by standing orders, provide for the exclusion of a member of the authority from a meeting of the authority while any contract, proposed contract or other matter in which he has a pecuniary interest, direct or indirect, is under consideration.
(4)The following, that is to say—
(a)the receipt by the [F2convener or depute convener]of a council of an allowance to meet the expenses of his office or his right to receive, or the possibility of his receiving, such an allowance;
(b)the receipt by a member of a local authority of an allowance or other payment under any provision of sections 45 to 48 of this Act [F3or under any scheme made by virtue of section 18 of the Local Government and Housing Act 1989] or his right to receive, or the possibility of his receiving, any such payment;
shall not be treated as a pecuniary interest for the purposes of this section.
Textual Amendments
F1Words substituted by virtue of Criminal Procedure (Scotland) Act 1975 (c. 21), ss. 289F, 289G (as inserted by Criminal Justice Act 1982 (c. 48), s. 54)
F2Words in s. 38(4)(a) substituted (1.4.1996) by 1994 c. 39, s. 180(1), Sch. 13 para. 92(9); S.I. 1996/323, art. 4(1)(c)
F3Words inserted by Local Government and Housing Act 1989 (c. 42, SIF 81:2), s. 194(1), Sch. 11 para. 33
Modifications etc. (not altering text)
C1S. 38 modified by Transport Act 1985 (c. 67, SIF 126), ss. 74(12), 104(2)
C2S. 38 applied (with modifications) (1.4.1996) by S.I. 1995/3026, arts. 1(2), 14