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Agricultural Produce Agents Act, 1992 (Act No. 12 of 1992)

16. Prohibition on acting as agent under certain circumstances

 

(1)
(a) Subject to the provisions of subsection (2), no person shall act as an agent unless he or she is the holder of a fidelity fund certificate issued to him or her and to every employee contemplated in the definition of "fresh produce agent" in section 1 and, if such person is—
(i) a company, to every director of that company;
(ii) a close corporation, to every member of that corporation; or
(iii) a trust, to every trustee of that trust,

who acts as an agent on behalf of that company, close corporation or trust contemplated in the definition of "fresh produce agent" in section 1.

(b) Subject to the provisions of subsection (2), no person shall perform any act as an export agent or a livestock agent unless a registration certificate has been issued to him or her.

 

(2) No agent shall receive remuneration for the performance of an act as an agent, unless—
(a) in the case of a fresh produce agent, the act has been performed by the holder of a fidelity fund certificate which has not been suspended; or
(b) in the case of an export or livestock agent, the act has been performed by the holder of a registration certificate.

 

(3)
(a) Every prospective fresh produce agent shall, within the prescribed period and in the prescribed manner, apply to the council for a fidelity fund certificate, and such application shall be accompanied by the security referred to in section 17(1) and the application fee determined by the council.
(b) Every prospective export agent and livestock agent shall, within the prescribed period and in the prescribed manner, apply to the council for a registration certificate, and such application shall be accompanied by the application fee determined by the council.
(c) If the council, upon receipt of any application referred to in subsection (1) or (2) and the security (where applicable) and application fee referred to in those subsections, is satisfied that the applicant is not disqualified in terms of subsection (6) from being issued with a fidelity fund or registration certificate, the council shall in the prescribed form issue to the applicant a fidelity fund certificate or a registration certificate, as the case may be.
(d) Any document purporting to be a fidelity fund certificate or registration certificate which has been issued contrary to the provisions of this Act shall be null and void and shall on demand be returned to the council.

 

(4) [Section 16(4) deleted by section 15 of Act No. 47 of 2003]

 

(5) [Section 16(5) deleted by section 15 of Act No. 47 of 2003]

 

(6) No fidelity fund certificate or registration certificate, as the case may be, shall be issued to any person—
(a) who has at any time by reason of improper conduct been dismissed from a position of trust;
(b) who has at any time been convicted of an offence involving an element of dishonesty;
(c) who is of unsound mind;
(d) [Section 16(6)(a) deleted by section 15 of Act No. 47 of 2003];
(e) who has, after an investigation in terms of section 24, been found guilty of improper conduct;
(f) who is an unrehabilitated insolvent in respect of whom the trustee of the insolvent estate has not certified that the insolvent is a fit and proper person to assume a position of trust and to be issued with a fidelity fund certificate or registration certificate, as the case may be;
(g) in the case of a company, close corporation or other juristic person, which is being wound-up, whether provisionally or otherwise, or is deregistered, as the case may be;
(h) who has failed to discharge all his or her liabilities to the council;
(i) who has failed to comply with any lawful requirement of the council;
(j) in the case of a fresh produce agent, who has failed to comply with the provisions of section 19(1)(a);
(k) in the case of a fresh produce agent who carries on or intends to carry on business as a fresh produce agent under a trade name which is identical or confusingly similar to a trade name of a fresh produce agent—
(i) already issued with a fidelity fund certificate: or
(ii) whose fidelity fund certificate is suspended or has lapsed or been withdrawn in terms of this Act;
(I) in the case of an export agent, who carries on or intends to carry on business as a livestock agent under a trade name which is identical or similar to a trade name of a livestock agent—
(i) already issued with a registration certificate: or
(ii) whose registration certificate is suspended or has lapsed or been withdrawn in terms of this Act;

Provided that if in respect of any person who is subject to any disqualification referred to in this subsection, the council is satisfied that with due regard to all the relevant considerations, the issue of a fidelity fund certificate or registration certificate, as the case may be, to such person will be in the interest of justice, the council may issue,o n such conditions as the council may determine, a fidelity fund certificate or registration certificate, as the case may be, to such person when he or she applies therefor.

 

(6A)

(a) The council may issue a fidelity fund certificate or registration certificate to any person who is acting or intending to act as a fresh produce agent or livestock agent and such a certificate shall be deemed to be a certificate issued on application by such a person.
(b) The issuing of a fidelity fund certificate or registration certificate under paragraph (a) shall not exempt the person from any prosecution for not complying with or contravening any provision of this Act or the rules prior to the issuing of such a certificate.

 

(7) [Section 16(7) deleted by section 15 of Act No. 47 of 2003]

 

(8) [Section 16(8) deleted by section 15 of Act No. 47 of 2003]

 

(9) Each agent who is the holder of a fidelity fund or registration certificate shall—
(a) annually before or on a date determined by the council, pay to the council the amount determined by the council for the maintenance of such certificate;
(b) forthwith notify the council in writing—
(i) of any change of his or her business or postal address;
(ii) if the partnership of which he or she is a partner, dissolves;
(iii) if he or she becomes a member of a partnership;
(iv) if, in the case of a company or close corporation, a change in the directorship of that company or the membership of that close corporation has occurred;
(v) if, in the case of a trust, a change in the trustees of that trust has occurred;
(vi) if he or she has ceased to act as an agent; and
(vii) of any further particulars requested by the council as a result of a notice in terms of the preceding subparagraphs.

 

(10)
(a) A fidelity fund or registration certificate issued to an agent shall automatically lapse when he or she becomes disqualified as contemplated in subsection (6) or if the agent ceases to act as an agent.
(b) If a fidelity fund certificate which lapsed in terms of subparagraph (a) had been issued to a company, close corporation or trust, then the fidelity fund certificate of—
(i) every director, member or trustee; and
(ii) every employee.

as contemplated in the definition of "fresh produce agent" in section 1 shall likewise lapse.

(c) If a fidelity fund or registration certificate so lapses or is suspended, the registrar shall—
(i) by means of a written notice addressed to the said business and postal address of the agent, notify him or her thereof; and
(ii) in the case of a fresh produce agent who conducts his or her business at a fresh produce market, by means of a written notice addressed to the person in charge of that market, notify him or her thereof; and
(iii) cause particulars thereof to be published in a newspaper in at least two official languages, one of which should be English, circulating in the district in which the said agent's last known business address, as entered in the records of the council, is situated.
(d) The agent or any person who is in possession of or has under his or her control a fidelity fund or registration certificate which has lapsed under paragraph (a) shall return the certificate to the registrar within 30 days after the last date of publication referred to in paragraph (c)(iii).
(e) A fidelity fund or registration certificate which has lapsed, shall be void with effect from the date of such lapsing.

 

(11) No person whose fidelity fund or registration certificate has lapsed, may directly or indirectly participate in the management of any business carried on by an agent in his or her capacity as such. or participate in the carrying on of such business, or be employed, directly or indirectly, in any capacity in such business, except with the written consent of the council and subject to such conditions as the council may determine from time to time.

[Section 16(11) inserted by section 15 of Act No. 47 of 2003]

 

(12) No agent shall directly or indirectly in any capacity, whatsoever employ a person referred to in subsection (11), or allow or permit such person directly or indirectly to participate in any capacity in the management or the carrying on of his or her business as an agent, except with the written consent of the council, and subject to such conditions as the council may impose.

[Section 16(12) inserted by section 15 of Act No. 47 of 2003

 

[Section 16 substituted by section 15 of Act No. 47 of 2003]