Sarb's AGM to be delayed

Johannesburg - The annual general meeting (AGM) of the SA Reserve Bank (Sarb) will be delayed.
  
This is according to a letter to shareholders posted on the Sarb's website on Friday signed by JJ Rossouw, acting secretary of the bank.
  
The letter said an AGM needed to be held to conduct certain business prescribed in accordance with the regulations made by the Minister of Finance in terms of section 36 of the SA Reserve Bank Act.
  
"In terms of regulation 16 of the regulations the AGM needs to be held once every calendar year at such a place and time as may be determined by the board of the bank, being not more than six months after the end of the bank's financial year."
  
However, the Sarb said it currently faced "certain challenges" which, if not adequately addressed, might adversely affect the bank's sound functioning and thereby negatively impact on South Africa's national interest.
  
"For this reason it is regarded of the utmost importance that certain of the provisions of the Act be amended as envisaged in the SA Reserve Bank Amendment Bill as soon as reasonably possible, for purposes of this year's AGM."
  
The bill, together with the memorandum on its objects, was published in the Government Gazette on May 3.
  
"By virtue of the provisions of the bill and the fact that it still needs to be promulgated into law, it is evident that it is neither feasible nor appropriate to hold the AGM within the prescribed period of six months from the bank's financial year end," Rossouw said.
 
Accordingly, the finance minister had, in terms of section 36 of the Act, by publishing the requisite notice in the Government Gazette on August 13, amended the provisions of regulation 16 ofthe regulations.
  
"The amended regulation now provides for the minister, on good cause shown, to determine a date for the AGM later than six months after the financial year-end of the bank."
  
The minister had approved that the AGM be held on Wednesday December 8.
  
"Shareholders will in due course, in terms of the Act and the regulations, be given formal notice of the date and time of the meeting."
  
Given this delay in holding the AGM, it had been decided that the annual report with the bank's financial statements for the financial year ending March 31 2010, be made available prior to the AGM.
  
"Therefore, these documents will be forwarded to you by September 30 2010.
  
"I trust that you appreciate the need for the postponement of the AGM, and count on your understanding and support," Rossouw
said.