Clause 7

Every person appointed to be a member of the Board shall, within three months from the date of his appointment, sell or dispose of all shares in any water, gas or electricity undertaking which, at the time of his appointment, he may own or be interested in beneficially, and no member of the Board, whilst he holds office as such, may purchase or acquire a beneficial interest in any shares in any water, gas or electricity undertaking and, if any member of the Board shall become entitled beneficially under any will or succession or in any other manner to any shares in any water, gas or electricity undertaking, he shall sell or dispose of the same within three months after he has so become entitled thereto:Provided that the Minister may waive the requirements of this subsection in any specific case subject to such conditions as he may impose.

Any member of the Board who retains, purchases, takes or acquires a beneficial interest in any shares in any water, gas or electricity undertaking in contravention of the provisions of this section shall be deemed to have been disqualified for membership of the Board and to have vacated his office as such member, and the Chairman shall, after the fact of any such contravention comes to his knowledge, report such fact to the Board at its next meeting and shall cause a notification of such vacation of office to be published in the Gazette:Provided that the Minister may waive the requirements of this subsection in any specific case subject to such conditions as he may impose.

No resolution, proceeding or other action of the Board shall be invalidated by reason of the fact that a member disqualified under this section has sat on the Board at its meetings or taken part in any proceeding or other action of the Board.

In this section, “shares in any water, gas or electricity undertaking” means stock, shares, debentures, debenture stock, bonds or other securities of any company engaged in the collection, production, supply or use of water, gas or electricity, or in the installation, sale, hire or manufacture of water, gas or electrical apparatus or appliances, and includes any share or interest in any unincorporated undertaking similarly engaged.

For the purposes of this section, the shares in any water, gas or electricity undertaking or any beneficial interest therein retained, purchased, taken or acquired by the spouse of any member of the Board shall be deemed to have been retained, purchased, taken or acquired by such member if such member and the spouse are living together.