Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000)

Chapter 8A : Municipal Entities

Part 6 : Governance of municipal entities

93H. Duties of directors

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(1) The board of directors of a municipal entity must—
(a) provide effective, transparent, accountable and coherent corporate governance and conduct effective oversight of the affairs of the municipal entity;
(b) ensure that it and the municipal entity comply with all applicable legislation and agreements;
(c) communicate openly and promptly with the parent municipality of the municipal entity; and
(d) deal with the parent municipality of the municipal entity in good faith.

 

(2) A director must—
(a) disclose to the board of directors, and to the representative of the parent municipality, any direct or indirect personal or business interest that the director or his or her spouse or partner may have in any matter before the board, and must withdraw from the proceedings of the board when that matter is considered, unless the board decides that the director's direct or indirect interest in the matter is trivial or irrelevant; and
(b) at all times act in accordance with the Code of Conduct for directors referred to in section 93L.

 

[Section 93H inserted by section 26 of Act No. 44 of 2003]