| (1) | The Minister must establish a council, to be known as the Financial Reporting Standards Council consisting of— |
| (a) | four persons, each of whom is registered and practicing as an auditor; |
| (b) | two persons, each of whom is responsible for preparing financial statements on behalf of public companies; |
| (c) | two persons responsible for preparing financial statements for private companies, or personal liability companies; |
| (d) | four persons who, in their capacity as holders of securities issued by a company, or as creditors of a company, are reasonably expected to rely on financial statements, as contemplated in the definition of "financial statement" in section (1); |
| (e) | two persons knowledgeable in company law; |
| (f) | one person nominated by the executive officer of the Financial Services Board as defined in the Financial Services Board Act, 1990 (Act No. 97 of 1990), or any successor body to it; |
| (g) | one person nominated by the Governor of the South African Reserve Bank, or any successor body to it; and |
each of whom must be appointed by the Minister, to serve for a term of three years.
| (2) | The Minister must select candidates— |
| (a) | with the qualifications, knowledge and experience necessary to further the functions of the Council; and |
| (b) | appoint the chairperson and deputy chairperson of the Council. |
| (3) | Persons appointed as members of the Council— |
| (4) | A person may be reappointed to the Council, subject to section 205. |
| (5) | The Minister may require the Council to be a member of a relevant international accounting standards setting organisation. |
