Paragraph 1 Pecuniary interests
Subject to sub-paragraphs (5) and (6), if a relevant person has any pecuniary interest direct or indirect in a contract, proposed contract or other matter and is present at a meeting of the new school 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 that fact and withdraw from the meeting during the consideration or discussion of the contract or matter and he shall not vote on any question with respect to the contract or matter.
Subject to this paragraph a relevant person may enter into a contract with the temporary governing body of the school from which he is entitled to profit.
A person shall be treated as having an indirect pecuniary interest in a contract, proposed contract or other matter if—
he was nominated or appointed to office by a person with whom the contract was made or is proposed to be made or who has a direct pecuniary interest in the matter under consideration; or
he is a partner of a person with whom the contract was made or is proposed to be made or who has a direct pecuniary interest in the matter under consideration
provided that a person shall not by virtue of this sub-paragraph be treated as having such an interest by reason only of his nomination or appointment by, his membership of, or his employment by, any public body; or by reason of his membership of a corporation or other body if he has no financial interest in any securities of that corporation or other body.
For the purposes of this paragraph, a person shall be treated as having an indirect pecuniary interest in a contract, proposed contract or other matter if a relative (including his spouse or someone living with that person as if he or she were that person’s spouse) living with him, to his knowledge has, or would be treated as having, a direct or indirect pecuniary interest.
For the purposes of this paragraph, a relevant person who is paid to work at the new school shall not be treated as having a direct or indirect pecuniary interest in a contract, proposed contract or other matter by reason only of having an interest in the contract or other matter that is no greater than the interest of the generality of those paid to work at the new school.
Members of the temporary governing body shall not, by reason of their pecuniary interest in the matter, be prevented from considering and voting upon proposals for the temporary governing body to take out insurance protecting members against liabilities incurred by them arising out of their office and the temporary governing body shall not, by reason of the pecuniary interest of their members, be prevented from obtaining such insurance and paying the premiums.