I am so fed up with bad directors, business heads, and key persons and the staggering amount of fraud taking place. RSA is fast declining in the world’s eyes and fast becoming a place to avoid doing any business with except on a strictly cash up front basis. SA businessmen, especially professionals, are fast earning an unwanted and sometimes unwarranted stigma of simple dishonesty. I recently attended a large seminar and every single person who attended commented how they were involved in investigating, examining or advising on mass dishonesty or fraud. A crying shame.
Unique circumstances call for unique answers and one of the answers I feel needs closer examination and one that I am personally advocating and recommending is the Fit & Proper Persons Declaration by any business head or owner – especially Directors.
The UK are now following this model successfully and Australia and New Zealand are close behind, the USA is already entrenched. Why not RSA ? the answer to me is simple, I just don’t deal with companies where the principals and directors do not have fully completed and verifiable Fit & Proper Persons Declarations – honest men and women have nothing to fear. This should be absolutely mandatory for any Director and even investors and shareholders should be authenticated properly (inserts a link break in the chain of the Blackmarket economy).
For your information, the FSB uses this approach for its credit rating agencies and I firmly believe that in terms of holding a company and it’s Director/s responsible so should every honest businessman in RSA – after all –
Fraud is just like aids in a lot of respects……………..the main one being you will get it from somebody you get into bed with ….
You should know exactly who you are getting involved with especially in business – remember time spent on a reconnaissance is seldom wasted.
Just my opinion, but if someone isn’t willing to have ready and provide the answers the following questions or can’t – walk away and thank your lucky stars. Listening to this will probably save you time money and heartache – so read it again.
Every established company should at least make this requirement mandatory for new appointments or promotions.
QUESTIONNAIRE TO BE COMPLETED IN RESPECT OF DIRECTORS, SENIOR
MANAGERS AND KEY EMPLOYEES
1. Personal details of the director, senior manager or key employee in respect of which
this questionnaire is being completed:
1.1. Surname and title:
1.2. Full first name(s):
1.3. Any previous surname(s) or first name(s):
1.4. Indicate the proposed position to be held, e.g. director or managing director:
1.5. Effective date of appointment (where applicable):
1.6. Residential address and telephone number:
1.7. Postal address:
1.8. Previous residential address(es) during the previous 5 years:
1.9. Nationality
Date of birth:
Place of birth:
RSA Identity Document number (attach a certified
copy):
Passport number:
Expiry date:
Country of issue:
1.10. Nationality and indicate how it was acquired (e.g. birth, naturalisation or
marriage):
1.11. Professional qualification(s), the year(s) when, and the institution(s) at which,
this was acquired (may be provided in separate sheet):
1.12. Attach completed Personal Credential Verification Forms for purposes of the
background screening of each director, senior manager or key employee. The
said forms are obtainable from the Financial Services Board.
1.13. Attach detailed curriculum vitae.
2. General details in respect of the individual proposing to become a director, senior
manager or key employee:
2.1. State in what capacity you are completing this document, i.e. as a current or
prospective director (executive or non-executive), senior manager or key
employee. State full job title and describe the particular duties and
responsibilities:
2.2. Significant shareholding history (including indirect holdings) over at least the
last five years (including only those holdings which provided you a significant
influence over the operations and affairs of the entity)
3. Specific test to assess fitness and probity
If any answers to any of these questions is ‘yes’ please provide details on
separate pages or in the space provided with proper referencing
3.1 Have you ever been subject to any proceedings of a disciplinary or criminal
nature, or have been notified of any impending proceedings or of any
investigation, which might lead to such proceedings?
3.2 Have you, or any business in which you have had controlling interest or have
exercised influence, been investigated, disciplined, suspended or criticized by a
regulatory or professional body, a court or tribunal, whether publicly or privately?
3.3Have you ever been associated, in ownership or management capacity, with a
company, partnership or other business association that has been refused
registration, authorization, membership or a license to conduct trade, business or
profession, or has had that registration, authorization, membership or license
revoked, withdrawn or terminated?
3.4 As a result of the removal of the relevant license, registration or other
authority mentioned in question 3 above, have you ever been refused the right to
carry on a trade, business or profession requiring a license, registration or other
authorization?
3.5 Have you ever been subject of any justified complaint relating to regulated
activities?
3.6 Have you ever been charged or convicted of any criminal offence, particularly
an offence relating to dishonesty, fraud, forgery, uttering a forged document,
perjury any financial crime or other criminal acts or been involved in acts of
serious financial or other misconduct?
3.7 Have you ever contravened any of the requirements and standards of a
regulatory body, professional body, government or its agencies?
3.8 Have you ever been a director, partner, or otherwise involved in the
management of a business that has gone into curatorship, insolvency or
liquidation while you have been connected with that business or within one year
after that connection?
3.9 Have you ever been dismissed, asked to resign or resigned, from
employment or from a position of trust, fiduciary appointment or similar because
of questions about your honesty and integrity?
3.10 Have you ever been disqualified, under the Companies Act, 2008 or its
predecessor or any other financial services legislation or regulation the object of
which is the protection of the public against financial loss from acting as a
director or serving in a managerial capacity?
3.11 Have you ever been diagnosed as being mentally ill or unstable?
3.12 Have you ever been disciplined by a professional, trade or regulatory body,
or dismissed or requested to resign from any position or office for negligence,
incompetence or mismanagement?
3.13 Have you ever been the subject of any adverse judgment or award, in South
Africa or elsewhere that remains outstanding or was not satisfied within a
reasonable period?
3.14 Have you ever made any arrangements or composition with your creditors,
filed for bankruptcy, been adjudged bankrupt, had your assets sequestrated, or
been involved in proceedings relating to any of these?
3.15 Have you ever been a senior officer of a company or a shareholder in a
position to exercise influence in the company that:
(a) Has been the subject of any adverse judgment or award, in South Africa or
elsewhere, which remains outstanding or was not satisfied within a reasonable
period?
(b) Has, in South Africa or elsewhere, made any arrangements or composition
with its creditors, filed for bankruptcy, been adjudged bankrupt, had assets
sequestrated, or been involved in proceedings relating to any of the foregoing?
3.16 Do you have reasons to believe that any of your close relatives or business
associates, if subject to the above tests, would have responded by a ‘Yes’ to any
of these questions?
These questions courtesy of the FSB –
http://www.pmg.org.za/files/policy/1...quirements.pdf
Integrity without knowledge is weak and useless, and knowledge without integrity is dangerous and dreadful.
Samuel Johnson
English author, critic, & lexicographer (1709 - 1784)
Did you like this article? Share it with your favourite social network.