| (1) | Without limiting what a directive of a financial sector regulator may include, the Authority may, through a directive, direct that the rules of a fund, including rules relating to the appointment, powers, remuneration (if any) and removal of the board, be amended if the fund— |
| (a) | is not in a sound financial condition or does not comply with the provisions of this Act or the regulations affecting the financial soundness of the fund; |
| (b) | has failed to act in accordance with the provisions of section 18; or |
| (c) | is not being managed in accordance with this Act or the rules of the fund. |
[Section 26(1) substituted by section 290, item 8 in Schedule 4, of Notice No. 853 of 2017 - effective 1 April 2018 (paragraph (h) of Notice 169 of 2018)]
| (2) | Where a fund has no properly constituted board contemplated in section 7A and has failed to constitute a board after 90 days written notice by the registrar, or where a fund cannot constitute a board properly or where a board fails to comply with any requirements prescribed by the registrar in terms of section 7A(3), the registrar may, notwithstanding the rules of the fund; at the cost of the fund— |
| (a) | appoint so many persons as may be appropriate to the board of the fund or appoint so many persons as may be necessary to make up the full complement or quorum of the board; and |
| (b) | assign to such board such specific duties as the registrar deems expedient. |
[Section 26(2) amended by section 36(b) and (c) of Act No. 45 of 2013]
| (3) | A board constituted in terms of subsection (2) holds office until the registrar is satisfied that the fund has constituted a valid board in terms of section 7A and the registrar has relieved the former board in writing of its duties. |
| (4) | If the registrar has reason to believe that a board member is not or is no longer fit and proper to hold office, the registrar may, after giving the board member a reasonable opportunity to be heard— |
| (a) | direct the board member to vacate office; and |
| (b) | replace that board member with another person for the period and subject to the conditions that the registrar may prescribe. |
[Section 26(4) amended by section 36(d) of Act No. 45 of 2013]
| (5) | In the circumstances described in subsection the fund shall cause the vacancy to be filled in accordance with the provisions of section 7A and the rules of the fund, failing which the registrar may adopt the course set out in subsection (2). |
