(1) A member of the
governing council of a stand-alone preschool or children's services centre who
has a direct or indirect pecuniary interest in a contract or proposed contract
with the governing council—
(a)
must, as soon as the member becomes aware of the interest, disclose the nature
of the interest to the governing council; and
(b) must
not take part in discussions or decisions of the governing council with
respect to that contract; and
(c) must
not vote in relation to that contract; and
(d) must
be absent from the meeting room when any such discussion or voting is taking
place.
Maximum penalty: $20 000.
(2) If a member of the
governing council of a stand-alone preschool or children's services centre
discloses an interest in a contract or proposed contract in accordance with
this section—
(a) the
contract is not liable to be avoided by the governing council on any ground
arising from the fiduciary relationship between the member and the
governing council; and
(b) the
member is not liable to account for profits derived from the contract.
(3) This section does
not apply in relation to a contract in which a member of the governing council
of a stand-alone preschool or children's services centre has an interest while
the member remains unaware that they have an interest in the contract, but in
any proceedings against the member the burden will lie on the member to prove
that they were not, at the material time, aware of the interest.