Mandating Procedures of Provinces Act, 2008
R 385
Mutual Banks Act, 1993 (Act No. 124 of 1993)Chapter I : Interpretation of Act1. Definitions |
| (1) | In this Act, unless the context otherwise indicates— |
"agency"
means a right granted to a person by a mutual bank to receive on behalf of such bank from its clients any deposits, money due to it or applications for loans or advances, or to make payments to such clients on its behalf;
"articles"
means the articles of association, contemplated in section 10(2)(a), of a mutual bank;
"associate"
means—
| (a) | a subsidiary of a mutual bank; |
| (b) | any person in accordance with whose directions or instructions the board of directors of a mutual bank is accustomed to act |
| (c) | any juristic person the board of directors of which or, in the case of such juristic person that is not a company, the governing body of which is accustomed to act in accordance with the directions or instructions of a mutual bank, and includes any trust controlled or administered by such mutual bank; |
"Authority"
means the Prudential Authority established in terms of section 32 of the Financial Sector Regulation Act;
[Definition inserted by section 290, item 1(a) in Schedule 4, Financial Sector Regulation Act, 2017 (Act No. 9 of 2017) - effective 1 April 2018 (paragraph (h) of Notice 169 of 2018)]
"bank"
means a bank as defined in section 1 of the Banks Act, 1990, (Act No. 94 of 1990);
"board"
means the board of directors, referred to in section 37(1), of a mutual bank;
"board of appeal"
[Definition deleted by section 290, item 1(b) of Schedule 4, of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017) - effective 28 September 2018 (paragraph (c)(iv) of Notice No. 1019, GG 41947, dated 28 September 2018)]
"chief executive officer"
means a person who, either alone or jointly with one or more other persons, is responsible under the direct authority of the board of directors of a mutual bank for the conduct of the business of the mutual bank;
"Companies Act"
means the Companies Act, 1973 (Act No. 61 of 1973);
"company"
means a company as defined in section 1(1) of the Companies Act, 1973 (Act No. 61 of 1973);
"conduct standard"
has the same meaning ascribed to it in terms of section 1(1) of the Financial Sector Regulation Act;
[Definition inserted by section 290, item 1(c) in Schedule 4, of Act No. 9 of 2017 - effective 1 April 2018 (paragraph (h) of Notice 169 of 2018)]
"deposit"
means a deposit as defined in section 1(1) of the Banks Act, 1990 (Act No. 94 of 1990);
"director"
includes an alternate director;
"employee in charge of a risk management function"
in relation to a mutual bank, means that employee of the mutual bank who is ultimately responsible for the management of one or more of the following types of risk to which the mutual bank is exposed, namely—
| a) | solvency risk; |
| b) | liquidity risk; |
| c) | credit risk: |
| d) | currency risk; |
| e) | market risk (position risk); |
| f) | interest rate risk; |
| g) | counterpart risk: |
| h) | technological risk; |
| i) | operational risk; or |
| j) | any other risk regarded as material by that mutual bank; |
"executive officer"
in relation to any institution—
| (a) | that is not a mutual bank, includes any manager of such an institution; |
| (b) | that is a mutual bank, includes any employee of the mutual bank who is in charge of a risk management function of the mutual bank, and any manager of the mutual bank who is responsible, or reports, directly to the chief executive officer of the mutual bank; |
"Financial Sector Regulation Act"
means the Financial Sector Regulation Act, 2017;
[Definition inserted by section 290, item 1(d) in Schedule 4, of Act No. 9 of 2017 - effective 1 April 2018 (paragraph (h) of Notice 169 of 2018)]
"financial statements"
means the annual financial statements referred to in section 43(4);
"financial year"
means the financial year determined as contemplated in section 43;
"Land Bank"
means the Land and Agricultural Bank of South Africa;
"liquid assets"
means liquid assets as defined in section 1(1) of the Banks Act, 1990 (Act No. 94 of 1990): Provided that, in the application of that definition for the purposes of this Act, the reference in paragraph (a) of that definition to a minimum reserve balance required to be maintained by a bank shall be construed as a reference to a minimum reserve balance required to be maintained by a mutual bank;
"liquidator"
means a person appointed to conduct the winding-up of a mutual bank;
"member"
means a shareholder in a mutual bank;
"Minister"
means the Minister of Finance;
"mutual bank"
means a juristic person—
| (a) | the members of which— |
| (i) | qualify as such by virtue of their being shareholders in that juristic person: and |
| (ii) | are entitled to participate in the exercise of control in a general meeting of that juristic person; and |
| (b) | that is registered as a mutual bank in terms of this Act; |
"officer"
means any director, alternate director, local board member, general manager, deputy general manager, manager, secretary, clerk or other employee of a mutual bank;
"paid-up share"
means a share paid for in full at the time of application therefor;
"permanent interest bearing share"
means a share—
| (a) | issued by a mutual hank in terms of section 57; |
| (b) | which shall not be redeemable but shall be transferable, and |
| (c) | in respect of which interest may be paid by the mutual bank that has issued such a share; |
"person"
includes any partnership;
"prescribed"
[Definition deleted by section 290, item 1(e) in Schedule 4, of Act No. 9 of 2017 - effective 1 April 2018 (paragraph (h) of Notice 169 of 2018)]
"prudential standard"
has the same meaning ascribed to it in terms of section 1(1) of the Financial Sector Regulation Act;
[Definition inserted by section 290, item 1(f) in Schedule 4, of Act No. 9 of 2017 - effective 1 April 2018 (paragraph (h) of Notice 169 of 2018)]
"public"
includes a juristic person and, in relation to a mutual bank, also an associate of that mutual bank;
"Register"
means the Financial Sector Information Register referred to in section 256 of the Financial Sector Regulation Act;
[Definition inserted by section 290, item 1(f) in Schedule 4, of Act No. 9 of 2017 - effective 1 April 2018 (paragraph (h) of Notice 169 of 2018)]
"registered"
[Definition deleted by Act No. 54 of 1999 Gazette No. 20727];
"Registrar"
[Definition deleted by section 290, item 1(h) in Schedule 4, of Act No. 9 of 2017 - effective 1 April 2018 (paragraph (h) of Notice 169 of 2018)]
"Registrar of Companies"
means the Registrar of Companies appointed under section 7 of the Companies Act, 1973 (Act No. 6 of 1973);
"regulation"
means a regulation made and in force under this Act;
"Reserve Bank"
means the South African Reserve Bank;
"secretary"
includes any executive officer, manager, deputy manager or assistant manager of a mutual bank;
"shareholder"
means a person who holds shares in a mutual bank whether fully or partly paid and whether or not held by the mutual bank as security for an advance or loan;
"special resolution"
means a resolution—
| (a) | passed by no less than three-fourths of those members who arc personally present or represented by proxy and vote in accordance with the articles of the mutual bank at a special general meeting called for that purpose; and |
| (b) | the terms and effect of which and the reasons for which have been fully set out in the notice convening that meeting;) |
"subscription share"
means a share subscribed for by periodical contributions of a fixed amount;
"subsidiary"
means another juristic person that would have been a subsidiary as contemplated in section 1(3) of the Companies Act, of a mutual bank had both the mutual bank and that other juristic person been companies;
"Tribunal"
means the Financial Services Tribunal established in terms of section 219 of the Financial Sector Regulation Act;
[Definition inserted by section 290, item 1(i) in Schedule 4, of Act No. 9 of 2017 - effective 1 April 2018 (paragraph (h) of Notice 169 of 2018)]
"terminating mutual building society"
[Definition deleted by Act No. 25 of 1994, Gazette No. 20723];
"this Act"
includes the regulations;
"undesirable practice"
means any act prohibited, or any failure to perform any act enjoined, by section 59(1), in relation to a particular mutual bank or mutual banks specified in a notice referred to in section 59(2)(b) or all mutual banks, includes any act which in terms of a notice referred to in section 59(2) constitutes an undesirable practice for such particular mutual bank, such specified mutual banks or all mutual banks, as the case may be;
"value of share"
means the amount standing to the credit of a share in the books of a mutual bank.
| (2) | In order to determine., for the purposes of this Act, whether a particular person is a fit and proper person to hold the office of a director or an executive officer of a mutual bank, the Registrar shall proceed, mutatis mutandis, as prescribed in section 1(1A) of the Banks Act, 1990 (Act No. 94 of 1990). |
| (3) | Unless the context otherwise indicates, words and expressions not defined in subsection (1) have the same meaning ascribed to them in terms of the Financial Sector Regulation Act. |
[Section 1(3) inserted by section 290, item 1(j) in Schedule 4, of Act No. 9 of 2017 - effective 1 April 2018 (paragraph (h) of Notice 169 of 2018)]
