§ 14-47-115 - Prohibition against director interest in contracts.
14-47-115. Prohibition against director interest in contracts.
(a) (1) A director of the city shall not be interested, directly or indirectly, in any contracts made with the city unless the board of directors of the city shall have enacted an ordinance specifically permitting a director to conduct business with the city and prescribing the extent of this authority.
(2) This prohibition shall not apply to contracts for the furnishing of supplies, equipment, or services to be performed for a municipality by a corporation in which no director holds any executive or managerial office, or by a corporation in which a controlling interest is held by stockholders who are not directors.
(b) Any director acting on any contract with the city in which he is interested or receiving any benefit in violation of this section shall be guilty of a misdemeanor and fined in any sum of not less than five hundred dollars ($500) nor more than five thousand dollars ($5,000).