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Skills Development Act, 1998 (Act No. 97 of 1998)

Chapter 3 : Sector Education and Training Authorities

13. Constitution of SETA

 

(1) The Minister must provide a constitution for every SETA which, subject to this Act, must be in line with a standard constitution prescribed prescribed by the Minister.

 

(2) Subject to this Act, the standard constitution referred to in subsection (1) must at least contain the following matters:
(a) The responsibilities of the Accounting Authority of the SETA;
(b) The identification of the SETA by—
(i) name;
(ii) setting out its scope of coverage;
(iii) setting out its constituencies in the relevant sector; and
(iv) setting out its legal status;
(c) The general objectives of the SETA and its objectives in respect of—
(i) employers in the relevant sector; and
(ii) employees in the relevant sector;
(d) The functions of the SETA;
(e) The framework, procedure and process for the development of a strategic plan for the SETA relating to this Act and in accordance with the Public Finance Management Act;
(f) The Accounting Authority of the SETA in respect of—
(i) its composition of members in accordance with the number of members per constituency;
(ii) its powers and duties, and delegation of functions;
(iii) its size;
(iv) its capacity;
(v) the nomination and appointment of members;
(vi) consultation on proportional representation;
(vii) alternates for members;
(viii) the term of office of members;
(ix) the induction and capacilty building of members and alternates;
(x) the first meeting at eacb new term of office of members;
(xi) the suspension of members;
(xii) the removal of members from office;
(xiii) the filling of vacancies iin the Accounting Authority; and
(xiv) the application to the Accounting Authority for listing as new organisations;
(g) The establishment of—
(i) an Executive Committee, including its composition, term of office and functions;
(ii) an Audit Committee, including its composition, accountability and functions;
(iii) a Finance Committee, including its composition, accountability and functions;
(iv) a Remuneration Committee, including its composition, accountability and functions; and
(v) a Governance and Strategy Committee, including its composition, accountability and functions;
(h) The Chairperson of the Accounting Authority regarding his or her—
(i) appointment;
(ii) term of office;
(iii) functions;
(iv) temporary absence or incapacity; and
(v) vacation of office;
(i) Meetings, special meetings and meeting procedures of the Accounting Authority, Executive Committee, chambers and other committees;
(j) The appointment of the Chief Executive Officer and other employees and the duties of the Chief Executive Officer;
(k) The finances of the SETA, in respect of—
(i) sources of finance;
(ii) investments;
(iii) purposes for which funds may be used;
(iv) financial records of the SETA;
(v) the audit of the SETA;
(vi) the financial responsibility of the Executive Committee of the SETA; and
(vii) signatories to accounts;
(I) A code of conduct for the SETA;
(m) A dispute resolution system;
(n) The indemnification of members of the Accounting Authority of the SETA, members of committees and employees of the Accounting Authority;
(o) The amalgamation with other SET As and the dissolution of the SETA;
(p) The taking over of the administration of the SETA; and
(q) The amendment of the constitution of the SETA.

 

(3) A SETA may apply to the Minister in writing for a deviation from the standard constitution referred to in subsection (1).

 

(4) The application contemplated in subsection (3) must set out the extent of the deviation requested and must be accompanied by a detailed motivation to justify the requested deviation.

 

(5) The Minister may approve the deviation contemplated in subsection (3) if the deviation—
(a) is unique to the functions and operation of the SETA in question;
(b) is justified within the framework of the national skills development strategy; and
(c) is recommended by the National Skills Authority as a deviation required by the operational needs of the SETA in question.

 

[Section 13 amended by section 11 of Act No. 26 of 2011]