Companies Act, 1973 (Act No. 61 of 1973)Chapter XVB: Financial reporting standards440Q. Appointment and removal of Council members |
| 1) | The Minister shall appoint as members of the Council- |
| a) | the persons nominated from time to time under section 440P(3)(e) to (g); and |
| b) | persons selected in terms of subsection (2). |
| 2) | The Minister shall- |
| a) | advertise any vacancies under section 440P(3)(a) to (d) and allow at least one month for nominations; |
| b) | select and appoint persons- |
| i) | with the qualifications, knowledge and experience necessary to further the objective of the Council; |
| ii) | who are not full-time employees of the government or of a statutory body; |
| c) | appoint the chairperson and deputy chairperson of the Council. |
| 3) | Members appointed in terms of subsection (2)(b) and (c) 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 persons appointed- |
| a) | at the time the Council is established. shall be former members of the Accounting Practices Board; and |
| b) | at every subsequent appointment, shall be former members of the Council. |
| 5) | The Minister- |
| a) | must remove a member of the Council- |
| i) | who becomes insolvent, is certified as mentally unfit, or is convicted of an offence and sentenced to imprisonment without the option of a fine; |
| ii) | who becomes permanently incapacitated; |
| iii) | who has been absent without the chairperson's leave, or in the case of the chairperson, without the deputy chairperson's leave, from three consecutive meetings of the Council; or |
| iv) | contemplated in section 440P(3)(a) to (d), who ceases to be a user, preparer or auditor of financial statements; |
| b) | may remove a member of the Council for- |
| i) | non-performance of duties; |
| ii) | serious misconduct; or |
| iii) | conduct that undermines the integrity or objective of the Counci1. |
| 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). |