Local Government (Scotland) Act 1973

41 Removal or exclusion of disability, etc. S

(1) The Secretary of State, as respects a member of any local authority, may, subject to such conditions as he may think fit to impose, remove any disability imposed by section 38 of this Act in any case in which the number of members of a local authority disabled by that section at any one time would be so great a proportion of the whole as to impede the transaction of business, or in any other case in which it appears to the Secretary of State in the interests of the inhabitants of the area that the disability should be removed.

(2) The power of the Secretary of State under subsection (1) above includes power to remove, either indefinitely or for any period, any such disability which would otherwise attach to any member, or any class or description of member, by reason of such interests, and in respect of such matters, as may be specified by the Secretary of State.

(3) Nothing in section 38 of this Act precludes any person from taking part in the consideration or discussion of, or voting on, any question whether an application should be made to the Secretary of State for the exercise of the powers conferred by subsections (1) and (2) above.

(4) Section 38 of this Act does not apply to an interest in a contract, proposed contract or other matter which a member of a local authority has as [F1 a person who is liable to pay any of the community charges or community water charges imposed under the Abolition of Domestic Rates Etc. (Scotland) Act 1987 [F2 or any council tax or council water charge imposed under the Local Government Finance Act 1992] or who would be so liable but for any enactment or anything provided or done under any enactment or as] a ratepayer or inhabitant of the area, or as an ordinary consumer of water or to an interest in any matter relating to the terms on which the right to participate in any service, including the supply of goods, is offered to the public.

(5) For the purposes of section 38 of this Act, a member shall not be treated as having a pecuniary interest in any contract, proposed contract or other matter by reason only of an interest of his or of any company, body or person with which he is connected, as mentioned in section 39 of this Act, which is so remote or insignificant that it cannot reasonably be regarded as likely to influence a member in the consideration or discussion of, or in voting on, any question with respect to that contract or matter.

(6) Where a member of a local authority 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 the total nominal value of those securities does not exceed £1,000 or one-hundredth of the total nominal value of the issued share capital of the company or body, whichever is the less, and if the share capital is of more than one class, the total nominal value of shares of any one class in which he has a beneficial interest does not exceed one-hundredth of the total issued share capital of that class, sections 38 and 39 of this Act shall not prohibit him from taking part in the consideration or discussion of the contract or other matter or from voting on any question with respect to it, without prejudice, however, to his duty to disclose his interest.

Textual Amendments

F1 Words inserted by Local Government and Housing Act 1989 (c. 42, SIF 81:1, 2), s. 145, Sch. 6 para. 23

F2 Words in s. 41(4) inserted (1.4.1993) by Local Government Finance Act 1992 (c. 14), s. 117(1), Sch. 13 para.35; S.I. 1993/575, art. 2(c)

Modifications etc. (not altering text)

C1 S. 41 applied (temp. from 6.4.1995 until 1.4.1996) by S.I. 1995/789, art. 2, Sch. para. 3

S. 41 applied (with modifications) (1.4.1996) by S.I. 1995/3026, arts. 1(2), 14

C2 S. 41(1)-(3) extended (6.3.1992) by Local Government Finance Act 1992 (c. 14), s. 112(4).

C3 S. 41(1)-(3) applied (1.4.1996) by 1994 c. 39, ss. 74(4), 82(4); S.I. 1996/323, art. 4(1)(a), Sch. 1