Malaysia legislation
Section 23
Section 23
(1)
No member of an Authority shall be disqualified by his office from entering into any contract with the Authority, nor shall any such contract entered into by or on behalf of an
Authority in which any member shall be in any way directly or indirectly interested be liable, on account of such interest, to be avoided or set aside, nor shall any member so contracting or being so interested be liable to account to the Authority for any profit realized by any such contract or arrangement by reason only of being a member.
(2)
For the purposes of this section a person shall be deemed to be indirectly interested in a contract or other matter if-
(a)
he or any nominee of his is a member of a company or other body with which the contract is made or is proposed to be made or which has a direct pecuniary interest in the matter under consideration; or
(b)
he is a partner or is in the employment of a person with whom the contract is made or is proposed to be made or who has a direct pecuniary interest in the matter under consideration:
Provided that –
(i)
this subsection shall not apply to membership of or employment under any other Authority or any association of persons who as a public body and not for their own profit provide any public utility;
(ii)
a member of a company or other body shall not by reason only of his membership be treated as being so interested if he has no beneficial interest in any shares or stock of that company or other body.
(3)
Notwithstanding the provisions of subsection (1) it shall be the duty of every member to disclose to such Authority the nature and extent of any interest whatsoever, whether direct or indirect, he, his spouse, any member of his family, any partner or any nominee of his, may have in any contract, proposed contract or matter due to be considered or as soon as possible after the acquisition of his interest.
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(4)
No member of an Authority shall vote upon or take part in or be present at the discussion of any contract, proposed contract or other matter in any meeting of such
Authority in which he himself, his spouse, any member of his family, any partner or any nominee of his, either directly or indirectly, has any interest.
(5)
Nothing in subsection (3) or (4) shall have application to an interest in a contract or other matters which a member of an Authority or other person may have as a ratepayer or an inhabitant of the area.
(6)
The Minister may, subject to such conditions as he may think fit to impose, remove any disability imposed by this section in any case in which the number of members of the Authority so disabled 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 him that it is in the interests of the inhabitants of the area that the disability should be removed.
(7)
No member of an Authority shall, under cover of his office, exact or accept any promise, fee or reward whatsoever, other than his lawful remuneration, in respect of any contract or matter affecting the Authority.
(8)
Every Authority shall cause to be maintained a record, in a book kept for the purpose, of all disclosures made under the provisions of this section.
(9)
Any member of an Authority contravening any of the provisions of subsections
(3)
, (4) and (7) shall be guilty of an offence and shall be liable on conviction to a fine of one thousand ringgit and to imprisonment for a term not exceeding six months and shall be disqualified from continuing to be a member of such Authority, and shall be liable to account to the Authority for any profit which may accrue to him from any such contract or matter:
Provided that a prosecution for an offence under this section shall not be instituted without the consent in writing of the State Attorney-General.
Validity of act of Authority.