Section 4. The governing body of a municipality may make, or may receive, written charges against, and may after hearing remove, because of inefficiency, neglect of duty and misconduct in office, or any of such causes, a director of an industrial development financing authority, appointed from such municipality; provided, that such director shall have been given, not less than fourteen days before the date set for such hearing, a copy in writing of the charges against him and written notice of the time, date and place of the hearing to be held thereon, and at the hearing shall have been given the opportunity to be represented by counsel and to be heard in his own defense. Pending final action upon any such charges, the governing body may temporarily suspend such director, provided that if it finds that such charges have not been substantiated, it shall immediately reinstate him in his office. In case of any such removal, such governing body shall forthwith deliver to the clerk of the municipality for filing with the certificate, and with the duplicate certificate, attested copies of such charges and of its findings thereon.

A director who ceases to be a resident of the city or town shall be removed upon the date of his change of residence by operation of law.

The provisions of chapter two hundred and sixty-eight A shall apply to all directors, officers and employees of the authority, except that the authority may purchase from, sell to, borrow from, loan to, contract with or otherwise deal with any person in which any director of the authority is in any way interested or involved provided, however, that such interest or involvement is disclosed in advance to the members of the board and recorded in the minutes of the board; and provided further, that no director having such an interest or involvement may participate in any decision of the board relating to such person. Employment by the municipality or service in any agency or board thereof shall not be deemed to be such an interest or involvement.