ABOVE: Reserve Bank governor Lesetja Kganyago. CREDIT: File photo/Iol News
Cape Town – South African Reserve Bank (Sarb) governor, Lesetja Kganyago, on Thursday announced that shares were now available for people who envisage shareholding in the country’s central bank.
Kganyago said the bank had made a further 149 200 shares available to diversify its shareholder base.
However, he cautioned the prospective shareholders that the Sarb operations were not focused on maximising profits.
“I must emphasise that the Sarb does not have a profit maximising objective. Our operations are conducted in the broader interests of the country, in pursuit of the Sarb’s mandate and responsibilities.
“The mandate and independence of the Sarb are entrenched in sections 224 and 225 of the Constitution of the Republic of South Africa,” said Kganyago.
“In carrying out its mandate, the Sarb does not bow to any pressure, be it political or from the private sector.
“The Sarb accounts to the people of South Africa through Parliament.
“Shareholding in the Sarb is based exclusively on the principles of shared community representation and participation in the governance of the Sarb in order to enhance the independence, transparency and accountability of the Sarb in the interests of all South Africans.”
The Sarb has a total of two million ordinary shares, and its shareholders are paid a fixed annual dividend of 10cents per share, as stipulated by law.
Kganyago also emphasised that purchasing the Sarb shares was not an invite to control the operations of the central bank of South Africa, or its policy direction. Sarb shareholders have no say in any policy decisions that the executive management of the Sarb takes in implementing the Sarb’s constitutional mandate,” said Kganyago.
“However, the shareholders can elect a maximum of seven non-executive directors of the board of the Sarb from a list of candidates approved by a panel chaired by the Governor of the Sarb.
“These votes are normally exercised at the annual ordinary general meeting of the Sarb and each shareholder is limited to one vote for every 200 shares held.”
Kganyago said, coincidentally, that earlier this week the Sarb had put out calls for the nomination of candidates for election as non-executive directors to its board.
“I would, once again, like to encourage all members of the public to nominate candidates who have skills and experience in the mining, commerce or finance sectors. Nomination closes on March 17.
“Forms are available on the Sarb website,” said Kganyago.
The current batch of 149 200 shares become available after the North Gauteng High Court last year directed some Sarb shareholders to sell the shares which they had accumulated, in excess of the statutory limit of 10 000 shares per person, together with their associates.
- ANA/IOL NEWS