GEN - General - Consultation process on proposed changes to Listings
JSE
GEN
GEN - General - Consultation process on proposed changes to Listings
Requirements regarding company secretaries
As part of the process of implementing our Listings Requirements relating to
financial directors ("FD"), it has come to our attention that several companies
have a joint company secretary and FD. This scenario could classify the FD as
part time which is prohibited in terms of paragraph 4.8(b) of the Listings
Requirements. The existing Listings Requirements is also silent on a company
secretary also fulfilling another executive director role.
King III highlights the very important role of the company secretary with an
arms length relationship with the board and the Companies Act makes it
compulsory for companies to have one.
The JSE is therefore considering an amendment to the Listings Requirements so
that company secretaries, who must be appointed in terms of the Companies Act,
cannot be a director (in any capacity) of the company. This does not mean that
the company secretary must be a full time employee of the company. In fact, it
may in be necessary and advisable to contract with an external company that
provides Company Secretarial services, in order to secure the necessary
expertise. We are proposing that the Listings Requirements will have a
reasonable transitional period for existing listed companies, with an effective
date of 1 January 2013.
The proposed Listings Requirements are available on the JSE`s website and
interested parties are invited to submit their comments by no later than 18
November 2011. Comments can be submitted electronically to thandekam@jse.co.za.
17 October 2011
Date: 17/10/2011 08:55:35 Produced by the JSE SENS Department.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
