Community Schemes Ombud Service Act, 2011 (Act No. 9 of 2011)Chapter 2 : Community Schemes Ombud Service11. Fiduciary duty and disclosure |
| (1) | A member of the Board must, upon appointment, submit to the Minister and the Board a written statement in which it is declared whether or not that member has any direct or indirect financial interest in community schemes and all other financial interests. |
| (2) | A member of the Board may not be present, or take part in, the discussion of or the taking of a decision on any matter before the Board in which that member or his or her family member, business partner or associate has a direct or indirect financial interest. |
| (3) | If a member of the Board acquires an interest that could reasonably be expected to be an interest contemplated in this section, he or she must immediately, but not later than three months after acquiring that interest in writing declare that fact to the Minister and the Board. |
| (4) | If an organisation or enterprise in which a member of the Board has an interest contemplated in this section is requested to offer its services to the Service, or is in the process of concluding any agreement with the Service, including an agreement in respect of the alienation of land to the Service, the organisation or enterprise must immediately, in writing, declare the interest of such member to the Minister and the Board. |
| (5) | A member of the Board must at all times exercise the utmost good faith, honesty and integrity, care and diligence in performing his or her functions as a member of the Board, unless excused in writing by the chairperson or deputy chairperson of the Board, and, in furtherance of these functions and without limiting their scope, must— |
| (a) | take reasonable steps to inform himself or herself about the Service, its business and activities and the circumstances in which it operates; |
| (b) | take reasonable steps, through the processes of the Board, to obtain sufficient information and advice about all matters to be decided by the Board to enable him or her to make conscientious and informed decisions; |
| (c) | attend all meetings of the Board, unless excused in writing by the chairperson or deputy chairperson of the Board; |
| (d) | exercise an active and independent opinion with respect to all matters to be decided by the Board; |
| (e) | exercise due diligence in relation to any business of, and necessary preparation for and attendance at meetings of, the Board or any committee to which such member of the Board is appointed; |
| (f) | comply with any internal code of conduct that the Service may establish for members of the Board; |
| (g) | not engage in any activity that may undermine the integrity of the Service; |
| (h) | not make improper use of his or her position as a member or of information acquired by virtue of his or her position as a member of the Board; and |
| (i) | treat any confidential matters relating to the Service, that is obtained in his or her capacity as a member of the Board, as strictly confidential and not divulge them to anyone without the authority of the Service or as required as part of that member’s official functions as a member of the Board. |
| (6) | This section must be interpreted as adding to, and not deviating from, any law relating to the criminal or civil liability of a member of a governing body, and criminal or civil proceedings that may be instituted in respect of such a liability. |
| (7) | A member who contravenes or fails to comply with subsection (5) may be charged with misconduct. |