(1) Any person, who has, directly or indirectly, by himself or his partner, any share or interest in any contract with, by or on behalf of, a municipal council, or in any employment with, under, by, or on behalf of, a municipal council other than as a municipal officer or servant, shall be disqualified for being an officer or servant of such municipal council.

(2) If any municipal officer or servant shall acquire or has acquired directly or indirectly, by himself or his partner, any share or interest in any such contract for employment as is referred to in sub-section (1), he shall be liable to be transferred or removed from his office by an order of the authority appointing him:

Provided that before an order of removal is made, such officer or servant shall be given a reasonable opportunity of showing cause against the action proposed to be taken in regard to him:

Provided further that no person by reason of his being a share-holder, in or member of, any company be held to be interested in any contract entered into between such company and the municipal council unless he is a director of such company.

Explanation.-- For the purpose of this section, "company" includes a cooperative society.