Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)NoticesDetermination of Fit and Proper Requirements and Conditions for Managers of Collective Investment Schemes3. Requirements for Appointment of Board of Directors of Managers |
| 1) | The registrar hereby determines the following requirements for the board of directors of managers: |
| a) | A minimum of four directors must be appointed as members of the board of directors of a manager (the number of directors to be appointed must be determined in the constituting documents of the company); |
| b) | the executive directors must be resident in the Republic; |
| c) | the non-executive directors must constitute at least 50% of the board of directors and the majority of the non-executive directors should be independent; |
| d) | the board of directors must be informed on issues for which enlightenment is sought and at least two executive directors or senior management should attend meetings of the board of directors with a duty to inform members; and |
| e) | the chairperson should preferably be a non-executive and need not necessarily be resident in the Republic. The chairperson will be required to sign statutory documents and must be available to do so. |
| 2) | There must be sufficient collective investment schemes, legal and accounting experience and expertise amongst members of the board of directors. Each of the directors must be fit and proper and complete Annexure B together with the documents as required in terms of the said Annexure. |
| 3) | Prior written approval of the registrar must be obtained for any change in directors. An application for such change must be provided to the registrar and accompanied by reasons for such change. Managers must complete Annexure B in respect of new directors and Annexure C in respect of outgoing directors. |