Arkansas Code Title 14. Local Government § 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 has enacted an ordinance specifically permitting a director to conduct business with the city and prescribing the extent of this authority.

(2) The prohibition under subdivision (a)(1) of this section does 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.