| (a) | may not be appointed or act as a director in terms of section 218 of the Companies Act; or |
| (b) | has been penalised in disciplinary proceedings for a contravention of the rules of any professional organisation, including a self-regulatory organisation, which contravention involved dishonesty, |
may be appointed as a member of the controlling body of a self-regulatory organisation.
| (2) | A person who accepts an appointment in contravention of subsection (1) commits an offence and is liable on conviction to a fine or to imprisonment for a period not exceeding 2 years, or to both a fine and such imprisonment. |
| (3) | If a self-regulatory organisation makes an appointment in contravention of subsection (1)— |
| (a) | without making reasonable enquiry as to whether the appointed member is disqualified in terms of subsection (1); or |
| (b) | knowing that the appointed member is so disqualified, |
the registrar may impose a fine not exceeding R50 000 upon the self-regulatory organisation.
| (4) | A self-regulatory organisation must, within 14 days of the appointment of a new member to its controlling body, inform the registrar of the appointment and furnish the registrar with such information on the matter as the registrar may reasonably require. |
| (5) | The provisions of subsection (4) may not be construed so as to render the appointment of a member of the controlling body of a self-regulatory organization subject to the approval of the registrar. |
| (6) | If it appears to the registrar that a member is disqualified in terms of subsection (1), the registrar may, subject to subsection (7), instruct the self-regulatory organization to remove that member from its controlling body. |
| (7) | The registrar must, before giving an instruction in terms of subsection (6)— |
| (a) | in writing inform the self-regulatory organisation and the particular member of the registrar’s intention to give such an instruction; |
| (b) | give the self-regulatory organisation and the particular member written reasons for the intended instruction; and |
| (c) | call upon the self-regulatory organisation and the particular member to show cause within a period of 14 days why the instruction should not be given. |
| (8) | If the registrar instructs the self-regulatory organisation to remove a member from its controlling body, the self-regulatory organisation must so remove the member within a period of 14 days and must ensure that the person in question does not in any way, whether directly or indirectly, concern himself or herself with or take part in the management of the self-regulatory organisation. |
| (9) | If a self-regulatory organisation fails to comply with subsection (8), the registrar may, in respect of such failure, impose a fine not exceeding R5 000 for every day during which such failure continues. |
| (10) | Sections 95(2), (3) and (4) is, with the changes required by the context, applicable to the imposition of a fine under subsections (3) and (9). |
