| 15.1.1 | Fundamental principles — |
| • | A Charter Council will be established as an independent body with a mandate to oversee the implementation of the charter. |
| • | The Charter Council will address the issues of principle and, in particular |
| ➢ | conduct the reviews and take the decisions referred to in paragraphs 4.3 and 4.4; and |
| ➢ | if there is a material change in the circumstances or the environment in which the charter has to be implemented, it will consider whether the targets and implementation strategies are still appropriate, and if not how they should be varied. |
| • | There will be equality between industry association representatives and all others on the Charter Council. The Charter Council must fairly reflect the interests of all the financial institutions. |
| • | Decisions of the Charter Council will be taken on a consensual basis. If, on any issue, the Charter Council is unable to achieve consensus, there will be a dispute-breaking mechanism in the Charter Council either by some agreed mechanism within the Charter Council, or by reference to arbitration or mediation. |
| 15.1.2 | The Charter Council will establish an executive to attend to its routine work and specifically to: |
| • | receive, consider and approve annual audits from each financial institution; |
| • | confirm ratings of financial institutions: |
| • | issue guidance notes on the interpretation and application of the charter; |
| • | prepare an annual review which outlines progress and evaluates new areas of intervention; |
| • | submit the annual review to the BEE Advisory Council for publication; |
| • | prepare interim reports at appropriate intervals; |
| • | undertake the reviews identified in terms of the charter; |
| • | accredit agencies to perform audits; and |
| • | engage with Government, public sector finance institutions, the BEE Advisory Council and other regulatory agencies to promote the implementation of the charter. |
| 15.1.3 | There will be a right to take any decision of the executive on review or appeal to the Charter Council. |
| 15.1.4 | The Charter Council will ensure that the executive is adequately resourced, capacitated and supported to fulfil its mandate as envisaged in the charter. A business plan will be commissioned which will, amongst other things, outline a budget for the work of the Charter Council. Financial Institutions will be required to fund the Charter Council in accordance with the budget. |
| 15.2.1 | Each financial institution will report annually to the Charter Council on its progress in implementing the provisions of this charter. If a financial institution is a member of a group, it should report as part of the group in the South African holding company unless — |
•The financial institution is a listed company; or
•The financial institution opts in.
| 15.2.1 | The first annual report will be for the year ending 31 December 2004, and must be submitted to by 31 March 2005. |
| 15.2.3 | Thereafter each financial institution will report as at 31 December each year thereafter, and submit the report by 31 March of the following year. |
| 15.2.4 | All financial institutions will publish, for general information, an annual BEE report. The BEE report will include the audited scorecard and an account of progress in discharging unquantified responsibilities as contained in paragraph 15.2.6. |
| 15.2.5 | Besides the general reviews outlined in 4.3 and 4.4, the following specific areas have been identified for review, and where necessary, the setting of targets: |
| • | all targets for black women representation on the basis of the reports for 2006; |
| • | 5.5 on employment equity targets for 2014 and 11 at the board and executive management levels; |
| • | 9.1.3 on targeted investment; and |
| 15.2.6 | Progress on the following unquantified responsibilities (as set out in the charter) should be reported on annually by financial institutions and submitted together with the scorecard, to the Charter Council. |
