(a) No commissioners, nor the board of commissioners of a suburban improvement district, shall be financially interested, directly or indirectly, in any firm, corporation, or association from which any property, services, materials, or facilities are purchased, acquired, or received by donation for the district, unless it is first submitted to, and approved by, the court having original jurisdiction under which the district was organized; nor shall any commissioners, or the board, enter into any contract with, or accept a donation of property or facilities from, any person with whom they are, directly or indirectly, engaged in business, without court approval as prescribed.(b)(1) The court may not act upon such matters until after twenty (20) days from the date of first publication of the notice.(2)(A) The clerk of the court shall give notice of the hearing by publication once each week for two (2) successive weeks.(B) The notice shall be commenced the week following the date upon which application is made to the court.(c) In the event any prohibited transaction shall occur or shall have occurred without court approval as prescribed, then, by action commenced in the circuit court ch application is made to the court.(c) In the event any prohibited transaction shall occur or shall have occurred without court approval as prescribed, then, by action commenced in the circuit court in the county in which the larger portion of land within the district is located, any property owner within the district shall have the right, within one (1) year from the date thereof, to require that the purchase, acquisition, or donation be rescinded. Each commissioner participating in the action shall be subject to removal from office as provided in this subchapter.Acts 1941, No. 41, § 3; 1970 (1st Ex. Sess.), No. 16, § 1; 1971, No. 360, § 2; 1981, No. 510, § 3; A.S.A. 1947, § 20-703.
Arkansas Legal Code