Chapter 4 Of Broadcasting RSA Regulations

Chapter 4 Of Broadcasting RSA Regulations

This Chapter provides for the incorporation of the Corporation and for the Charter. 25
The Charter is dealt with by Parliament as part of the broad national policy
framework. The Authority monitors and enforces compliance with the provisions of
the Charter of the Corporation.
Part 1: Public broadcasting service
South African Broadcasting Corporation

  1. (1) The Corporation is governed by the Charter.
    (2) In terms of this Charter, the Corporation will in pursuit of its objectives and in
    exercise of its powers, enjoy freedom of expression and journalistic, creative and
    programming independence.
    (3) The Authority must monitor and enforce compliance with the Charter by the 35
    Part 2: Establishment, incorporation, objectives and organisation of Corporation.
  2. (1) On the transfer date the Minister must apply for the establishment by 40
    incorporation of the Corporation to a limited liability company with a share capital as
    contemplated in the Companies Act.
    (2) The Corporation is the successor of the old Corporation.
    (3) The application for incorporation must be accompanied by the memorandum and
    articles of association as contemplated in the Companies Act signed by the Minister on 45
    behalf of the State.
    ( 4) The registration of the memorandum and articles of association is exempted from
    the payment of an additional fee as required by section 63(2) of the Companies Act.

(5) The Registrar of Companies is entitled to i;,sue such directives and authorise such
deviations from the regulations in force in terms of the Companies Act and the
documents prescribed in terms thereof as he or she may consider necessary in order to
effect to this section.
(6) The Board of the old Corporation must be required to promptly comply with 5
every directive issued under subsection (5).
The Minister must, when in his or her opinion the old Corporation has properly
discharged its functions and all directives issued under subsection (5), by notice in the
Gazette, fix the date of establishment and incorporation.
(8) The State, upon incorporation, holds one hundred percent of the shares of the 10
Objectives of Corporation

  1. The objectives of the Corporation are-
    ( a) to make its services available throughout the Republic;
    ( b) to provide sound and television broadcasting services, whether by analogue or 15
    digital means, and to provide sound and television programmes of information, education and entertainment funded by advertisements, subscription,
    sponsorship, licence fees or any other means of finance;
    ( c) to acquire from time to time a licence or licences for such period and subject
    to such regulations, provisions and licence conditions as may be prescribed by 20
    the Authority;
    ( d) to provide, in its public broadcasting services, radio and television programming that informs, educates and entertains;
    (e) to be responsive to audience needs and account on how to meet those needs;
    (f) to provide other services, whether or not broadcasting or programme supply 25
    services, such services being ancillary services;
    (g) to provide television and radio programmes and any other material to be
    transmitted or distributed by the common carrier for free to air reception by
    the public subject to section 33 of this Act;
    (h) to provide to other bodies by such means and methods as may be convenient, 30
    services, programmes and materials to be transmitted or distributed by such
    bodies and to receive from such other bodies services, programmes and materials to be transmitted by stations of the Corporation for reception as above;
    (i) to commission, compile, prepare, edit, make, print, publish, issue, circulate
    and distribute, with or without charge, such books, magazines, periodicals, 35
    journals, printed matter, records, cassettes, compact disks, video tapes,
    audio-visual and interactive material, whether analogue or digital and whether
    on media now known or hereafter invented, as may be conducive to any of the
    objects of the Corporation;
    (j) to establish and maintain libraries and archives containing materials relevant 40
    to the objects of the Corporation and to make available to the public such
    libraries and archives with or without charge;
    (k) to organise, present, produce, provide or subsidise concerts, shows, variety
    performances, revues, musical and other productions and performances and
    other entertainment whether live or recorded in connection with the 45
    broadcasting and programme supply services of the Corporation or for any
    purpose incidental thereto;
    (l) to collect news and information in any part of the world and in any manner
    that may be thought fit and to establish and subscribe to news agencies;
    (m) to carry out research and development work in relation to any technology 50
    relevant to the objects of the Corporation and to acquire by operation of law,
    registration, purchase, assignment, licence or otherwise copyright and
    designs, trade marks, trade names and any other intellectual, industrial and
    commercial property rights;
    ( n) to nurture South African talent and train people in production skills and carry 55
    out research and development for the benefit of audiences;
    ( o) to develop, produce, manufacture, purchase, acquire, use, display, sell, rent or
    dispose of sound recordings and films and materials and apparatus for use in
    connection with such sound recordings and films;

(p) to develop and extend the services of the Corporation beyond the borders of
South Africa.

  1. ( l) The Corporation consists of two separate operational entities, namely-
    ( a) a public service; and 5
    ( b) a commercial service.
    (2) The public and commercial services of the Corporation must be separately
    Part 3: Public service
    Public service
  2. (I) The public service provided by the Corporation must-
    ( a) make services available to South Africans in all the official languages;
    ( b) reflect both the unity and diverse cultural and multilingual nature of South
    Africa and all of its cultures and regions to audiences;
    ( c) strive to be of high quality in all of the languages served; 15
    ( d) provide significant news and public affairs programming which meets the
    highest standards of journalism, as well as fair and unbiased coverage,
    impartiality, balance and independence from government, commercial and
    other interests;
    ( e) include significant amounts of educational programming, both curriculum- 20
    based and informal educative topics from a wide range of social, political and
    economic issues, including, but not limited to, human rights, health, early
    childhood development, agriculture, culture, justice and commerce and
    contributing to a shared South African consciousness and identity;
    (f) enrich the cultural heritage of South Africa by providing support for 25
    traditional and contemporary artistic expression;
    ( g) strive to offer a broad range of services targeting, particularly, children,
    women, the youth and the disabled;
    ( h) include programmes made by the Corporation as well as those commissioned
    from the independent production sector; and 30
    (i) include national sports programming as well as developmental and minority
    (2) The public service provided by the Corporation may draw revenues from
    advertising and sponsorships, grants and donations, as well as licence fees levied in
    respect of the licensing of persons in relation to television sets, and may receive grants 35
    from the State.
    Part 4: Commercial services
    Commercial services
  3. The commercial services provided by the Corporation must-
    ( a) be subject to the same policy and regulatory structures as outlined in this Act 40
    for commercial broadcasting services;
    (b) comply with the values of the public broadcasting service in the provision of
    programmes and service;
    ( c) commission a significant amount of their programming from the independent
    sector; 45
    (d) subsidise the public services to the extent recommended by the Board and
    approved by the Minister; and
    ( e) be operated in an efficient manner so as to maximise the revenues provided to
    its shareholder.
    Part 5: Governance of Corporation 50
    Composition of Board
  4. The Board consists of-
    ( a) twelve non-executive members;

(h) the Group Chief Executive Officer: and
the Chief Operations Officer and the Chief Financial Officer or their
equivalents, who will be executive members of the Board.
Members of Board

  1. ( l) The twelve non-executive members of the Board must be appointed by the 5
    President on the advice of the National Assembly.
    (2) The non-executive members of the Board must be appointed in a manner
    (a) participation by the public in a nomination process;
    (b) transparency and openness; and 10
    ( c) that a shortlist of candidates for appointment is published, taking into account
    the objects and principles of this Act.
    (3) The President must designate one of the members of the Board referred to in
    subsection (2) as the chairperson and another member as a deputy chairperson, both of
    whom must be non-executive members of the Board. 15
    (4) The members of the Board must, when viewed collectively-
    ( a) be persons who are suited to serve on the Board by virtue of their
    qualifications, expertise and experience in the fields of broadcasting policy
    and technology, broadcasting regulation, media law, frequency planning,
    business practice and finance, marketing, journalism, entertainment and 20
    education, social and labour issues;
    (b) be persons who are committed to fairness. freedom of expression, the right of
    the public to be informed, and openness and accountability on the part of those
    holding public office;
    ( c) represent a broad cross-section of the population of the Republic; 25
    ( d) be persons who are committed to the objects and principles as enunciated in
    the Charter of the Corporation.
    (5) The members of the Board must hold office for such period as the President may
    determine which period must not exceed five years.
    (6) The deputy chairperson referred to in subsection (3) must, when the chairperson 30
    is absent or unable to perform his or her duties, act in his or her stead and when so acting,
    exercise or perform any function of the chairperson.
    (7) Every appointment of a member of the Board must be published in the Gazette.
    (8) A member of the Board appointed to fill a casual vacancy must hold office for the
    unexpired portion of the period for which the vacating member was appointed. 35
    (9) Members of the Board appointed immediately before the transfer date will retain
    their appointments with all existing benefits.
    (IO) Nine members of the Board, which must include the chairperson or the deputy
    chairperson, will constitute a quorum at any meeting of the Board.
    ( 11) The Board controls the affairs of the Corporation and must protect matters 40
    referred to in section 6(2) of this Act.
    Executive committee
  2. (1) The affairs of the Corporation are administered by an executive committee
    consisting of the Group Chief Executive Officer and six other members appointed by the
    Board. 45
    (2) The Group Chief Executive Officer will be the accounting officer of the
    (3) The executive committee is accountable to the Board.
    (4) The executive committee will perform such functions as determined by the Board.
    Removal from office 50
  3. The appointing body may remove a member from the office on account of
    misconduct or inability to perform his or her duties efficiently after due inquiry and upon
    recommendation by the Board.


  1. (I) A person will not qualify to be appointed to the Board if such person-
    ( a) is not a citizen of and not pennanently resident in the Republic;
    (b) is subject to an order of a competent court declaring such person to be
    mentally ill or disordered; 5
    ( c) is convicted, after the commencement of this Act, whether in the Republic or
    elsewhere, of any offence for which such person is sentenced to imprisonment
    without the option of a fine;
    (d) at any time prior to the date of commencement of this Act was convicted, or
    at any time after such commencement is convicted- 10
    (i) in the Republic, of theft, fraud, forgery and uttering a forged document,
    pe1jury or an offence in tenns of the Corruption Act, 1992 (Act No. 94 of
    (ii) elsewhere, of any offence corresponding materially with any offence
    referred to in subparagraph (i); 15
    (iii) whether in the Republic or elsewhere, of any other offence involving
    ( e) has been convicted of an offence under this Act.
    Disclosure of conflict of interests
  2. (1) A person may not be appointed on the Board, unless the necessary disclosure 20
    has been made that such person-
    ( a) directly or indirectly, whether personally or through his or her spouse, partner
    or associate, has a direct or indirect financial interest in the telecommunications, broadcasting or printed media industry;
    ( b) or his or her spouse, partner or associate, holds an office in or is employed by 25
    any company, organisation or other body, whether corporate or incorporate,
    which has a direct or indirect financial interest of the nature contemplated in
    paragraph ( e ).
    (2) If at any stage during the course of any proceedings before the Board it appears
    that any Board member has or may have an interest which may cause such conflict of 30
    interest to arise on his or her part-
    ( a) such Board member must forthwith fully disclose the nature of his or her
    interest and leave the meeting so as to enable the remaining Board members
    to discuss the matter and determine whether such Board member is precluded
    from participating in such meeting by reason of a conflict of interest; and 35
    ( b) such disclosure and the decision taken by the remaining Board members
    regarding such determination, must be recorded in the minutes of the meeting
    in question.
    (3) If any Board member fails to disclose any interest as required by subsection (2) or,
    subject to the provisions of that subsection, if he or she is present at the venue where a 40
    meeting of the Board is held or in any manner whatsoever participates in the
    proceedings of the Board, the relevant proceedings of the Board will be null and void.
    Part 6: Financial matters
    Financial regulations
  3. ( l) The Corporation must draw up proper financial regulations concerning the 45
    manner in which the financial affairs of the Corporation must be managed.
    (2) Such regulations must be approved by the Minister after consultation with the
    Minister of Finance.
    (3) The Corporation must make such regulations known in a manner it deems fit.
    (4) The Corporation must open and maintain an account with a bank registered as 50
    such in the Republic, or with any other financial institution so registered and approved
    by the Minister of Finance.

(5) The Corporation may with the approval of the Minister invest any surplus funds
of the Corporation.
(6) The surplus referred to in subsection (5) must at the end of a financial year, be
carried over to the next financial year and form part of the budget of the Corporation for
that financial year. 5
(7) Any dividends received by the State must be paid into the J\;ational Revenue Fund.

  1. ( 1) Subject to the provisions of section 32 of the Companies Act the Corporation
    may have less than seven persons. ·
    (2) The Minister must, with the concurrence of the Ylinister of Finance, determine the 10
    total value and number of the shares in the Corporation.
    (3) The Corporation is exempt from the payment of any stamp duty or fees which are
    payable in respect of any increase of the share capital or the number of shares in the
    Corporation as required by section 75(3) of the Companies Act.
    Financial year and annual financial statements
  2. (1) Subject to the provisions of section 285 of the Companies Act, the financial
    year of the Corporation commences on l April and ends on 31 March of the following
    (2) In addition to the annual financial statements to be drawn up in terms of the
    Companies Act the Minister may direct the Corporation to draw up annual statements in 20
    a form determined by him or her.
    (3) The annual financial statements must be tabled by the Minister in the National
    Rights and obligations
  3. (1) The Corporation may not by virtue of the powers conferred upon it by this 25
    Act do anything for which a licence is required in tenns of the IBA Act or the
    Telecommunications Act, 1996 (Act No. 103 of 1996), unless it has obtained the licence
    in question and complies with the conditions thereof.
    (2) Notwithstanding anything to the contrary contained in the IBA Act, or any other
    law, the Corporation is entitled, against payment of the annual fees which the Authority 30
    may from Lime to time determine, to be issued with a licence contemplated in subsection
    (3) The Corporation must provide the Authority with all necessary and relevant
    information for the purpose of monitoring compliance with the Charter.
    Transfer of assets
  4. ( 1) Before the transfer date the Corporation must apply in terms of sections 41
    and 42 of the IBA Act for the broadcasting licences held by the old Corporation to be
    transferred to the Corporation.
    (2) Subject to the provisions of the IBA Act or any other law, all the other assets
    issued to the old Corporation must be transferred to the Corporation in terms of section 40
    7 4 of the IBA Act.
    (3) The Corporation is required to pay liabilities, rights and obligations of the old
    Corporation, including any claim to copyright, trademarks, patents and inventions
    vested in the Corporation.
    (4) Subject to the provisions of any other law, no transfer duty, stamp duty or any 45
    other duty must be payable in respect of the transfer of any asset in terms of this section.
    Borrowing powers
  5. The Corporation must not borrow money without prior written approval of the
    Minister and the Minister of Finance.


  1. (1) The Corporation must keep proper account of all moneys received or
    expended by it and of all its assets, liabilities and financial transactions.
    (2) The Corporation must as soon as practicable after the end of each financial year,
    prepare statements of accounts and a balance sheet showing in appropriate detail the 5
    revenues and expenditure of the Corporation during that financial year, and its assets and
    liabilities as at the end of each financial year.
    (3) The Corporation must in its accounts referred to in subsection (2) reflect
    separately the accounts of the public and commercial services.
    Auditing IO
  2. ( l) In addition to the annual financial statements to be prepared in terms of the
    Companies Act, the Corporation must cause its books and accounts to be audited
    annually by a person registered as an accountant and auditor under the Public
    Accountants’ and Auditors’ Act, 1991 (Act No. 80 of 1991), and appointed as auditor of
    the Corporation. 15
    (2) The Board must produce and lay before the auditor all books and accounts of the
    Corporation with all vouchers in support thereof, and all books, papers and writings
    relating thereto which are in its possession or control.
    (3) For the purposes of the audit the auditor may hear and receive evidence upon
    oath, and may by written notice under his hand require any person to appear before him 20
    in person at a time and place stated in such notice, to give information or produce any
    books or document necessary for the audit.
    ( 4) Any person appearing in terms of such a notice must be paid such witness fees
    and allowances as he or she would have been entitled to if such person appeared in a
    magistrate’s court as a witness. 25
    (5) The auditor must-
    ( a) disallow any payment made without proper authority according to law, and
    report the dis allowance to the Board;
    (b) charge against the person who made or authorized the payment in question, so
    much of the payment as is not condoned by the Board; 30
    (c) charge against the person responsible therefor-
    (i) as much of the amount of any deficiency or loss arising from negligence
    or misconduct of that person as is not condoned by the Board;
    (ii) as much of any amount which ought to have been but was not brought
    into account by that person as is not condoned by the Board, provided 35
    that no amount must be condoned where such deficiency or loss is the
    result of theft or fraud by that person,
    and certify in every case that the amount so charged is correct.
    (6) Any amount so charged and certified by the auditor must be paid by the person
    against whom it has been charged to the Corporation within fourteen days after it was so 40
    certified, and, if not so paid, may be recovered from that person as a debt by the
    (7) It must be the duty of the auditor, in addition to his or her ordinary duties as an
    auditor, to certify not less than once in every year~
    (a) whether or not, in his or her opinion- 45
    (i) the accounts of the Corporation are in order;
    (ii) such accounts present a true and correct view of the financial position of
    the Corporation and of its transactions;
    (iii) due provision has been made for the redemption and repayment of loans
    raised by the Corporation; 50
    (iv) the value of the assets of the Corporation has been correctly stated; and
    (b) whether or not all his or her requirements and recommendations as auditor
    have been complied with and carried out.
    (8) The expenses of or incidental to any audit must be borne by the Corporation.

Staff of Corporation

  1. ( l) The Corporation may engage such officers and other employees as it may
    deem necessary for the attainment of its objects, and may determine their duties and
    salaries, wages, allowances or other remuneration and their other conditions of service 5
    in general.
    (2) The Corporation may-
    ( a) establish a housing fund or in any other manner provide for housing to its
    officers and other employees on such terms and conditions as it may
    determine; 10
    (b) establish or support associations or institutions for the promotion of the
    interests of its officers and other employees of their dependants;
    ( c) establish or support aid funds for the rendering of assistance to its officers and
    other employees or their dependants under such circumstances as it may
    approve; 15
    (d) establish a bursary fund to finance or assist in financing in the interest of the
    Corporation the training or further training of existing or prospective officers
    and other employees of the Corporation; and
    ( e) provide for its officers, other employees and pensioners or their dependants,
    by means of insurance with an insurance company or by means of a pension 20
    or provident fund or in any other manner, pecuniary benefits upon retirement
    or termination of service or at any other time.
    (3) As from the transfer date every employee of the old Corporation must, without
    interrupting his or her service, become an employee in a similar post in the Corporation,
    subject to conditions of employment which must not be less favourable than those 25
    applicable to him or her on the day immediately preceding the transfer date.
    ( 4) For the purposes of the Income Tax Act, 1962 (Act No. 58 of 1962), employees
    transferred to the Corporation in terms of subsection (3) must be deemed not to have
    changed employers and the position of such employees in respect of the phasing in of
    any tax levied on benefits or privileges derived by reason of employment or the holding 30
    of any office as contemplated in Schedule 7 to the Income Tax Act, 1962, remains
    (5) Employees transferred from the old Corporation to the Corporation in terms of
    subsection (3), must retain all vacation and sick leave which on the day immediately
    preceding the transfer date stood to their credit, including all monetary benefits attached 35
    (6) Any inquiry or other action instituted or contemplated in respect of misconduct
    allegedly committed by such employee prior to his or her transfer to the Corporation will
    be disposed of or instituted by the Corporation, and the Corporation must take steps
    against the employee concerned if he or she is found guilty of misconduct, in terms of 40
    the laws applicable to him or her before the transfer date.
    (7) Any agreements reached between employees and the management of the old
    Corporation relating to the recognition agreements and downscaling of employees,
    increment or any human resource policy are applicable to the Corporation, and the
    Corporation must take all necessary steps to conclude the process. 45
    Television licenses
  2. (1) The Corporation may issue a television licence conferring to the holder the
    right to use a television set or any number of television sets specified in the licence.
    (2) The licence is renewable annually.
    (3) The holder of any television set which was used without authorisation before the 50
    date of commencement of this Act, must within 12 months after the date and subject to
    the rules of the Corporation relating to the authorisation, apply for such licence.
    ( 4) The Corporation must maintain a register of all the licences.
    (5) For the purposes of this Act, “holder” means-
    ( a) any owner of a television set; 55
    (b) any business or institution with reference to a category to which such business
    or institution belongs;
    ( c) any holder of any permit registered for a place, vehicle, vessel or aircraft so
    specified, where a business or the affairs of that institution are carried on, or

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