4.    Members Roles and Conduct

4.5    Laws that apply to Elected Members

The following explanations are provided solely as a guide, Elected Members and the public should seek independent legal advice if they need further information.

4.5.4.    The Local Authorities (Members’ Interests) Act 1968: Conflict of Interests

The Local Authorities (Members’ Interests) Act 1968 provides that an Elected Member is disqualified from office or from election to office, if that member is concerned or interested in contracts or sub-contracts under which payments made by the Local Authority exceed $25,000 in any financial year, unless prior approval has been obtained from the Auditor General.

Elected Members are also prohibited from participating in any Council discussion or vote on any matter in which they have a pecuniary interest, other than an interest in common with the general public. The same rules also apply where the Elected Member’s spouse is concerned. Members must declare their interests at Council meetings where matters in which they have a pecuniary interest arise. Elected Members can contact the Office of the Auditor General for guidance and to seek an exemption under the Local Authorities (Members’ Interests) Act 1968. 

Failure to observe the requirements of the Local Authorities (Members’ Interests) Act 1968 could invalidate the particular decision made by Council. Failure to observe these requirements could also leave the Elected Member open to prosecution under the Local Authorities (Members’ Interests) Act 1968. In the event of a conviction, the Elected Member can be disqualified from office.