Regulatory Alerts2018-03-31
Information Circular 3 of 2016: Filling of Vacancies on the Board of a Fund
The Financial Services Board of South Africa has prescribed a maximum 90-day period for pension funds to fill board vacancies under Section 7A(1A) of the Pension Funds Act. To ensure board decisions remain valid during this interim period, fund rules must explicitly authorize such actions while maintaining compliance with Section 7A(1) and maintaining a quorum. Funds are advised to amend their governing rules accordingly to prevent legal challenges to decisions made by partially constituted boards.
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