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Companies Act, 1973 (Act No. 61 of 1973)

Chapter XVB: Financial reporting standards

440X. Appointment and removal of members of Panel

 

 

1) The Minister shall appoint as members of the Panel-
a) the persons nominated under section 440W(:3)(e) and (f); and
b) persons selected in terms of subsection (2).

 

2) The Minister shall-
a) advertise vacancies under section 440W(3)(a) to (d) and allow at least one month for nominations;
b) select candidates who--
i) have the qualifications, knowledge and experience necessary to further the objective of the Panel;
ii) are not full-time employees of government or of a statutory body;
c) appoint a chairperson and deputy chairperson from members nominated under section 440W(c) and (e).

 

3) Members appointed under subsection (2) shall be appointed every three years and may not serve for more than six consecutive years.

 

4) For the sake of continuity, the Minister shall ensure that five or more of the candidates appointed-
a) at the time the Panel is established, shall be members of the GAAP Monitoring Panel of the JSE Limited; and
b) at every subsequent appointment, shall be former members of the Panel.

 

5) The Minister-
a) must remove a member of the Panel who-
i) becomes insolvent,
ii) is certified as mentally unfit;
iii) is convicted of an offence and sentenced to imprisonment without the option of a fine;
iv) fails to disclose a conflict of interests; or
v) is permanently incapacitated; and
b) may remove a member of the Panel if the member-
i) regularly declines nomination to an investigation committee;
ii) is not conscientious in the performance of an investigation;
iii) engages in an activity that may undermine the integrity or objective of the Panel.

 

6) A vacancy arising at any time other than the close of a three-year cycle shall be filled in the manner described in subsection (2).