Co-operative Banks Act, 2007 (Act No. 40 of 2007)

Chapter II : Registration, Constitution, Functions, Management and Auditor of Co-operative Bank

Part 1 : Application to register, name, and fit and proper requirement

9. Fit and proper person
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(1)The Authority may, for purposes of assessing whether a director, managing director or executive officer of a proposed co-operative bank is a fit and proper person, have regard to-
(a)the competence and soundness of judgment of the person for the fulfilment of the responsibilities of the particular office and class of co-operative bank;
(b)the diligence with which the person concerned is likely to fulfil those responsibilities;
(c)previous conduct and activities of the person in business or financial matters; and
(d)any evidence that the person—
(i)within the previous 10 years has been convicted in the Republic or elsewhere of theft, fraud, forgery or uttering a forged document, perjury, an offence under the Prevention and Combating of Corrupt Activities Act, 2004 (Act No. 12 of 2004), an offence under the Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001), or any offence involving dishonesty;
(ii)has been convicted of an offence committed after the Constitution of the Republic of South Africa, 1993 (Act No. 200 of 1993), took effect, and sentenced to imprisonment without the option of a fine;
(iii)has contravened the provisions of any law the object of which is the protection of the public against financial loss;
(iv)is a former director or executive officer of a co-operative bank or any other bank and that the person's actions contributed to the inability of that co-operative bank or other bank to pay its debts; or
(v)has taken part in any business practices that, in the opinion of the Authority, were deceitful, prejudicial, or otherwise improper (whether unlawful or not) or which otherwise brought discredit to that person's methods of conducting business.

 

(2)The Authority may request any person to assist him or her in assessing if a person is fit and proper to act as a director, managing director or executive officer of a proposed co-operative bank.