BANKS ACT: INPUT SOUGHT ON BOARD INDEPENDENCE DRAFT DIRECTIVE

BANKS ACT: INPUT SOUGHT ON BOARD INDEPENDENCE DRAFT DIRECTIVE

• 07 August 2025
• Financial Sector
• SA Legal Academy

The Prudential Authority has called for input by 19 September 2025 on a draft directive under the 1990 Banks Act requiring banks and controlling companies to have in place and implement a policy promoting the principle of board independence.

It is envisaged that, in particular, the policy would clearly specify that the board’s chairperson and the chairs of its sub-committees should be independent non-executive directors meeting a raft of requirements outlined in the draft directive and informed not only by provisions in the Act itself but also by provisions in the 2008 Companies Act. Among other things, these requirements relate to:

• the board candidate selection process
• previous positions, roles and responsibilities (along with those of immediate family members)
• shareholdings
• the provision of equity, other capital sources and funding, and
• resignation prior to tenure completion.

Please click the link below for more information:

• draft directive

Published by SA Legal Academy Policy Watch

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