37.— (1) Where a member of staff of the Authority or a subsidiary or any other person engaged by the Authority or by a subsidiary has an interest, otherwise than in his or her capacity as such a member, or under their terms of engagement, in any contract, agreement or arrangement, or proposed contract, agreement or arrangement, to which the Authority or the subsidiary is a party, he or she shall—

(a) disclose to the Authority or the subsidiary, as the case may be, his or her interest and the nature thereof,

(b) take no part in the negotiation of the contract, agreement or arrangement or in any deliberation by members, or members of the staff, of the Authority or the subsidiary in relation thereto, and

(c) make no recommendation in relation to the contract, agreement or arrangement.

(2) Subsection (1) does not apply to contracts, or proposed contracts, of employment of members of the staff of the Authority with the Authority or of members of staff of a subsidiary with a subsidiary.

(3) Where a person to whom subsection (1) applies fails to comply with a requirement of that subsection then—

(a) the Authority, where the person is a member of the staff of the Authority or any other person engaged by the Authority, or

(b) the board of a subsidiary, where the person is a member of the staff of the subsidiary or any other person engaged by it,

shall decide the appropriate action (including removal from office or termination of contract) to be taken.